I am seeking feedback on Key Performance Indicators (KPIs) specific to Predictive Maintenance (PdM) rather than those used at the Reliability Program level. Some of the metrics I focus on include: comparing cost savings of PdM findings versus running to failure, calculating PdM program efficiency by dividing PdM program costs by total cost savings (as a percentage), determining the lost production ratio by comparing the time taken for total replacement versus repair, analyzing cost efficiency by comparing cost savings to the cost of replacement when running to failure, and calculating the cost per data point by dividing all program costs (such as training, travel, equipment amortization, and manpower) by the average number of data points. This latter metric may seem unconventional, but it was requested. How do others justify their roles in this area?
In the second edition of Terry Wireman's book, "Developing Performance Indicators for Managing Maintenance," there are key indicators to measure the success of a Predictive Maintenance (PdM) program. These include PdM hours as a percentage of total maintenance hours and cost savings. Key Performance Indicators (KPIs) to look out for are: 1) Increased Equipment Uptime or avoidance of downtime costs, 2) Enhanced Equipment Capacity or improved performance efficiency, and 3) Reduced Maintenance Expenses through cost-effective planned repairs. It is important to compare current maintenance costs to those prior to implementing a PdM program to assess its effectiveness. Furthermore, a successful PdM program should result in decreased breakdown frequency. For more in-depth information, check out Terry Wireman's latest edition of the book.
Dear Mr. Hatfield, In my recent book, "The Maintenance Scorecard," I delve into the importance of understanding the reasons behind establishing a predictive maintenance program before attempting to measure its effectiveness. Many maintenance professionals are quick to adopt traditional metrics without considering how these activities contribute to overall company performance. When assessing the justification for a maintenance program, two key factors come into play. Firstly, cost-effectiveness is crucial in determining whether it is more beneficial in the long run to perform the activity rather than not. This includes considering effects on productivity and other indirect costs. Secondly, cost/benefit analysis is essential, especially in areas related to safety, environmental impact, and capital spending. To ensure the ongoing effectiveness of a maintenance program, it is important to measure its impact on overall costs and benefits. Additionally, monitoring failure modes that are not predicted in time to take action is another valuable metric to consider. It is imperative to avoid relying solely on traditional metrics and instead create customized measures that align with the specific goals of your organization. While the term "KPI" is commonly used, it is often misinterpreted as simply referring to measures or metrics. A Key Performance Indicator should accurately represent the overall performance within a specific strategic theme, supported by a range of other indicators. In conclusion, adopting a tailored approach to measuring maintenance performance will yield more meaningful insights and drive strategic decision-making for your organization. Sincerely, Daryl Mather www.strategic-advantages.com
The metrics that you're tracking are indeed comprehensive and provide a good snapshot of the Preventive Maintenance program efficiency. One additional KPI to consider could be Mean Time Between Failures (MTBF). This could provide insights on the efficacy of your preventive measures in extending the operating life of your assets and machines, an important information in predictive maintenance context. Also, I would recommend tracking the diagnostic precision or accuracy of your PdM system, which can be measured by the number of true positives identified by your system. This metric will provide insight into the ability of your PdM system to correctly predict failures before they happen, thus cushioning you against costly disruptions.
You've got a comprehensive set of KPIs there for your PdM program. Another metric you might consider is 'equipment uptime', i.e. the percentage of time that machines are available and operational. A successful PdM program should increase the uptime by catching problems early and scheduling maintenance during non-productive times. This directly contributes to the efficiency and bottom line of operations. Also, you might want to measure the 'detection-to-correction ratio', which evaluates how much time elapses from when a maintenance issue is detected till it's corrected. This helps to evaluate the efficiency of your PdM program in actioning insights quickly. The sooner you can act on a detection, the less downtime there is. Collecting the right KPIs is essential for showing PdM's value to other stakeholders.
These are very comprehensive metrics, and I believe you've touched upon some significant aspects of calculating the efficiency of a Predictive Maintenance (PdM) Program. An additional metric that might be worth considering is the "Maintenance Cost as a Percentage of the Replacement Asset Value," which enables an understanding of the cost-effectiveness of your maintenance program. Also, don't forget to factor in the PdM's impact on overall equipment effectiveness (OEE). It could provide valuable insight into how your PdM efforts are improving the overall productivity and efficiency of the equipment. Lastly, training efficacy and turnaround times for spotting and rectifying potential breakdowns might also serve as crucial indicators.
✅ Work Order Management
✅ Asset Tracking
✅ Preventive Maintenance
✅ Inspection Report
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Answer: - Some KPIs for cost savings in PdM include comparing PdM findings cost savings versus running to failure, calculating program efficiency by dividing PdM program costs by total cost savings, and analyzing cost efficiency by comparing cost savings to the cost of replacement when running to failure.
Answer: - PdM program efficiency can be measured by dividing PdM program costs by total cost savings and expressing it as a percentage. The formula is: PdM program efficiency = (PdM program costs / total cost savings) 100.
Answer: - The lost production ratio in PdM is determined by comparing the time taken for total replacement versus repair. It helps in evaluating the impact of maintenance actions on production downtime.
Answer: - Justification of roles in PdM can be approached by demonstrating the tangible benefits and cost savings achieved through the implementation of predictive maintenance strategies, and by showcasing how PdM contributes to overall operational efficiency and equipment reliability.
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