This is the first of a two-part series. In the next part, I'll share some technical thoughts and suggestions on creating effective KPIs. Things like how to ensure that the KPI results line up to reality, how to chart trends, and how to better collect the underlying data required for accurate metrics (i.e. actual cost of labor, parts used, etc.)
As always, I am more than happy to assist you in deploying, reviewing/testing, or enhancing your KPIs. Don't hesitate to reach out to me at any time.
One more thought before I shut up and get to the point. MP2 users may not think of KPIs as part of their maintenance management process because there is no built-in KPI manager. Although the interface isn't as fancy as some other platforms, please give me a call to discuss ways that I can help you to get access to these important Key Performance Indicators.
Three Common Maintenance KPIs
Preventive vs. Corrective WOs - this one is pretty familiar and doesn't need much explaining.
WO Backlog - may be quantified based on either past due or total pending work. If possible, it is better to measure in terms of planned labor hours instead of WO count.
Planned vs. Actual Labor - of course, you have to have planned and actual labor in your system in order for this to work.
Two Overrated KPIs (this may cause some controversy)
Current Open WOs This nearly always trends the same way as "WO backlog". The same is true of other metrics like "WOs Released" or "WOs Completed", although one of these may lag predictably behind another. If one trends differently than the others, it usually reflects a known anomaly that is not indicative of your maintenance program's overall health. For example, an approaching outage or a temporary effort to complete historic WOs. That being said, this KPI might be appropriate on a temporary basis to track progress on a temporary endeavor like open WO cleanup.
Assets Covered by PMs This metric is likely to return very mislieading results because PMs may be attached to assets or locations at different levels of the hierarchy. In an extreme example, your HRSG may not show any PM schedules, even though it actually has hundreds that are attached to different components of the system. Another reason this KPI is not particularly helpful is because it reports on data that does not change frequently.
Three that you might not have thought of.
Preventive Maintenance Compliance - the percentage of PM work orders that are completed within 10% of the total frequency period. For example, monthly PMs that were completed within 3 days of their scheduled release, quarterly PMs completed within 9 days, etc. A more forgiving version would be to simply measure the percentage of PMs that were completed on time within their last frequency period.
Inventory Aging - the percentage of inventory that has not been turned over for a predetermined period of time (last two years, for example). This might be connected to a report to show you exactly which items aren't being used and might therefor be candidates for removal. Conversely, you might want a KPI to show how often you are ordering parts for work orders instead of pulling them from the warehouse.
Budget Variance - the variance against budget for all or selected accounts
Do you have any thoughts, arguments, or suggestions about KPIs? Any particular metric that you find very helpful? Please share with us in the comments!
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