cwilliams_kpi_ppt1.pdf

7/27/2019 cwilliams_kpi_ppt1.pdf

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MaintenanceKPIs

The

True

Story

TheKeytosuccess


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KPIs

KeyPerformance

Indicators

definition

Ke Per ormanceIndicators KPI are inancialandnonfinancialmeasuresormetricsusedto

helpan

organization

define

and

evaluate

how

successfulitis,typicallyintermsofmaking

progresstowardsitslongtermorganizational

goalsSource Wikepedia


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WhyMeasureKPIs

So

that

Ican

manage

Ihavetohandinm re orts

Myannualraisedependsonit

urcompany s eav y n o s

Notsure itwasstartedbeforeIgothere


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Whyshouldwemeasure?

The

purpose

of

measuring

is

to

gather

relevantinformationtoenablemanagersto

makemoreinformeddecisionsanddrive

continuousimprovement

in

support

of

corporategoals


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Theresultsofmeasuring

Theconsequence

of

measuring

should

be

change.Achangeinprocedure,achangein

knowledge,achangeinexpectationsandmost

importantlyachange

in

behavior.

Theconsequenceofmanagingshouldbethat

thechan eisintheri htdirection.


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Company

Strategy

r ca success ac ors

KeyPerformanceIndicators


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a

owe

measure

aga ns

Bestin

class

In ustrystan ar s

Otherplants

within

the

organization

Whodobestinclassmeasureagainst?


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a

wege

wrong

THE NATIONAL CRUISE SHIP ORCHESTRA OF THE YEAR 1911

HMSTitanic1912


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Howtogetitright examples

For

one

flexible

packaging

company

the

start

ofLeanmanufacturing

Thisledtotheneedforlowerinventoryand

waste raw material and the Plant was char ed

withreducingit

Breaks


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OnePaper

Company

wanted

to

be

the

short

order/shortdeliverytimesupplier

AtthePaperMill theamountofseconds

roducedwas

abi

issue

ThemaintenanceKPIwasAvailabiltyof

,


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Howtogetitright examples arge ee companywan e o e e

Employerof

Choice

but

they

had

trouble

re a n ngpeop e

At

most

of

their

integrated

Steel

Mill

they

weresubjecttofinesfortheirsafetyviolations

and moreimportantly peopleweregetting

hurt. ThemaintenanceKPIwasNumberofJSA

completed


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A

High

profile

beverage

companys

number

1

annualcustomercomplaintwasfailingouter

wrap.Thiswasfromstoresandpublic.

ThePlant

was

told

bluntly

it

had

to

stop

MaintenanceKPIwasfunctionalfailuresofthe


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CommonMeasures

MeanTime

Between

Failures

(MTBF)

TotalhoursinthetimePeriod


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CommonMeasures

MTBF

exampleAquarrytruckisrequiredtorunforaneighthourshift itaverages16failuresashift

therefor

MTBF

=

8

=

1=30

minutes

16 2

Thiswouldleadtheoperationsschedulerto

believethat

he

can

rely

on

the

truck

for

only

30minutesatatimeandscheduleothertrucksaccordingly


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CommonMeasures

MTBF

example

ButifwelookatthedistributionoffailuresHours 1 2 3 4 5 6 7 8Failures 0 0 0 0 0 0 8 8

ittellsadifferentstory.Furtheranalysis

showedthetruckwasoverheatingafter6

hours

repairswere

made

to

the

cooling

systemandthetruckdelivered100%


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CommonMeasures

MTBFLookingatMTBFinisolationcanbe

misleadingastheexampleillustrates.Italso

doesntdifferentiate

between

a5minute

stop

tomakeadjustmentsbecauseofTPManda

threehourbreakdown.Itisagoodindicatorof

whetherthings

are

getting

better

when

used

inconjunctionwithothermeasures


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CommonMeasures

Mean

Time

To

Repair

(MTTR)

TotalDowntimeCausedByFailures


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CommonMeasures

MTTR

exampleAtasteelmill,maintenancewere roudto

showthattheyhadbeenabletoreduce

motorsinonepartofthemillfrom6hours

to2hours.


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.

Theysaid

there

was

instant

payback

on

the

equipment oug tto ot is,ast eywere

changingmotors

every

month


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CommonMeasures

PM

Compliance

PMscompletedwithintimeframe

Shouldbe

used

in

conjunction

with

the

availability

of

the

equipmentthatisincludedonthePMandtheoccurrencesof

thefailuremodethePMismeanttoaddress


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s

OK

OKAY

/


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s ,

shouldrequire

the

inspector

to

provide

a

.

shouldalsocontainacceptablelevelsand

outsidethoselevels.


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eop e

eve opmen

s

Thereare

two

popular

measurements

Totalnumberofemployees

an

Totalhourspentontraining

Totalnumber

of

employees


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eop e

eve opmen

s

Howevernone

of

these

measures

address

the

.

Assumingthatameasurehasbeenusedto

trainingabettermeasurewouldbe:


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eop e

eve opmen

s

Downtime ours or ai urea tertraining

Downtime

hours

for

failure

before

training


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WhattypeofKPIsdoyouwant

Sometimes

Tried Until

roven Ineffective Duh!


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WhattypeofKPIsdoyouwant

OrS trate ic

T elling

R eplaceable,renewable,reviewable(Dynamic)


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TheonetruismaboutKPIs

KPIs,

goals

etc

will

drive

behaviour


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At

a

paper

mill

it

was

decided

that

Overtime

costswouldbeusedasaKPI.Inthe

maintenancedepartmentitwasnotedthat

theTruck

Repair

area

was

the

worst

offender

averaging30%wheretherestofmaintenance

wasat10%


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The

truck

department

was

manned

by

2

truck

mechanicsonthedayshiftwhorespondedto

callsontheoffshifts.Thesolutionwassimple,

onemechanic

was

scheduled

onto

the

afternoon

shift,reducingtherelianceonovertimeby50%


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The

downtime

at

the

mill

was

costed

at

$200/minute,totaling$240,000 morethan4

timesthewagesofatruckmechanic.It

transpiredthat

the

jobs

that

normally

took

2mentodowereleftasideuntiltherewerenot

enoughtruckstokeepthemillrunning.


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Wrapup

There

is

no

cookie

cutter

approach

to

measurements.Theyshouldbedrivenbythe

Corporatestrategyandgovernedbythe

culturewithin

the

organization.

This

should

resultinthebehaviorandresultsyouneed

GoodLuck!

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