Performance measurement for maintenance management of real estate. Additional resources and web links are also included in the introduction and at the end of this section. Most oil companies struggle to maximize maintenance crew productivity to achieve worldclass performance, refineries aspire to achieve maintenance costs below 1. Kpis are numbers that tie organizational progress to maintenance performance, while metrics connect maintenance performance to maintenance actions. Therefore, for the given capable of measuring different production losses. Maintenance productivity and performance measurement maintenance productivity is one of the most important issues which govern the economics of production activities. Preventive maintenance is the concept wherein, operators produced goods using machines and the maintenance group was dedicated with work of maintaining those machines, however with the automation of nippondenso, maintenance became a problem as more maintenance personnel were required. Key performance indicators for maintenance are selected ensuring a direct correlation between the maintenance activity and the key performance indicator measuring it. Performance measures and worker productivity at the worker level, figure 2 shows that there is no universal measure. Maintenance, which has been widely applied in the plants and covered the entire life of. Therefore, any project not involving a software development process is excluded, for example, consulting projects, operating system upgrades, etc.
Measuring performance and productivity ced engineering. An introduction to the maintenance scorecard this is a longer article than our normal article in fact, it is the first chapter of daryl mathers new book the maintenance scorecard. The currently existing indicators collected by pati et al. Maintenance key performance indicators introduction it is not possible to manage what you cannot control and you cannot control what you cannot measure. Such a measure can be found in the maintenance productivity factor mpf family of metrics. This paper illustrates how an effective maintenance policy could influence the productivity and profitability of a manufacturing process. In general, measure of productivity can be divided into multifactor productivity measures and singlefactor productivity measures.
Adoption of maintenance key performance indicators in the. Capital budget % of replacement cost total cost of ownership tco customer survey. International journal of productivity and performance. Bibliography maintenance productivity practices the. Performance measurement for maintenance management of. Table 1 summarizes the availability of productivity measures for major sectors of the u. This chapter provides background information concerning.
What is required is a balanced set of performance measures that assess. Pdf on jan 1, 2009, aditya parida and others published maintenance productivity and performance measurement. The main focus is to determine how value can be created for organizations by measuring maintenance. Pdf 2 maintenance productivity and performance measurement. An analysis of the maintenance performance measurement system. Instead, the degree to which performance can be monitored depends on the setting. Executive summary this project came about as a result of discussions among u. Rokamadarasz performance measurement for maintenance management of real estate 166 cannot be adopted, because of the different bases of the survey, cultures, climates, and different legislation and economical, social, and environmental circumstances. Most strikingly of all, maintenance crew productivity offers the potential for dramatic improvement.
It was clear that productivity represented the basis for formulating future policy initiatives. In addition, breakdowns and downtime have an impact on the plant capacity, product quality, and cost of production, as well as health, safety and the environment. The measurement of performance is important because it identifies current performance gaps between. An additional maintenance productivity indicator is under development to compare various. Tpm total productive maintenance total productive maintenance tpm is a worldwide known management system, born in 1971 in nippon denso, a toyota division in japan, which basic aims the loss elimination in plant processes by continuous training.
Chapter 3 productivity improvement techniques and its relationship with work study sr. Maintenance productivity is one of the most important issues which govern the economics of production activities. Measures of productivity and their uses measurement of productivity is it a ratio between input and output. Key performance indicators kpis measure the performance of a person, department, project, or company over time, and how effective they are at achieving their aims. Maintenance performance indicators, performance metrics, reactive. Performance measurement in facilities management organisations. We should create our own measures and metrics in the local business environment. Maintenance performance measurement, equipment reliability, feedback loop, maintenance performance indicators. Unfortunately, this book cant be printed from the openbook. Worker performance can be a function of many features, including the workers effort. Customers who go elsewhere are lost business, sometimes forever. Yes, it occurs when they do not have clearly defined expectations. Throughout my career, i have seen or rather felt the various economic crises created by several factors, from the 1970s oil embargo to the world economic recession in 2008. Performance% 20measurement%20of %20logistics%20processes.
Because productivity is a ratio, it is important that both the numerator and denominator of the ratio have the same units of measure, and typically this unit of measure is financial dollars, euros, ringgit or. Since maintenance also has a strategic dimension, its performance measurement system should be linked to the espoused strategy of the function in order to get the. Which maintenance kpis to measure maintenance performance. It was possible to show how changes in the productivity affect profit, separately from the effects of changes in the uncontrollable factors, i. The information contained in this report was prepared as part of nchrp project 2068a u. The role of maintenance in improving companies productivity. One of the keys to using performance measurement to assess whether performance standards have been met is a dependable data collection process. Transition from measurement to management amaratunga, d.
Key performance indicators kpis are business metrics used to evaluate factors that are crucial to the success of an organization. The authors wish to thank all those who contributed so many excellent ideas and suggestions for this report. Key performance indicators measuring and managing the maintenance function this paper deals with the identification of key performance indicators for the maintenance function, by first looking at the ways that maintenance performance metrics relate to manufacturing metrics. The main issue is of course, how to measure maintenance performance.
Key performance indicators means factors by reference to which the development, performance or position of the business of the. When you measure maintenance performance select maintenance measures that are meaningful and that reflect the actual maintenance effort. Performance measurement is a fundamental building block of tqm and a total quality organisation. The introduction to performance measurement section discusses the principles of performance measurement and management and includes examples of governmental units using performance measurement as a regular part of their operations. However, there are many different approaches to productivity measurement and. Close the gap between should take and does take in refinery maintenance. A combination of different methods for data co llection and.
Current practices of maintenance performance management. Maintenance kpis maintenance metrics to measure performance. However, productivity is often relegated to second rank, and ignored or neglected by those who influence production processes singh et. Performance measurement of mining equipments by utilizing oee sermin elevli1 and birol elevli2 over the past century, open pit mines have steadily increased their production rate by using larger equipments which require intensive capital investment. Establishing effective performance goals select one of your current employees and write two effective performance goals for them. Good maintenance results come at the end of doing good maintenance and your maintenance kpis need to measure if you are doing the right maintenance rightly. Total productivity output quantity and quality input quantity and quality. Linjasto palstanvaliviivoille maintenance sivuelementit. Historically, organisations have always measured performance in some way through the. Scan team report nchrp project 2068a, scan 1003 best. Peter drucker performance measurement is a fundamental principle of management. In other words, maintenance kpis are a target your business is aiming at and maintenance metrics are the arrows youre shooting at that target. How measuring maintenance productivity can identify significant costreduction opportunities. International journal of performance measurement, 2011, vol.
Maintenance represents the largest single variable operating cost in most enterprises when you include physical plant value. This article analyses the issues and challenges associated with the different facets of maintenance performance measurement mpm and presents tools and methods to measure the performance. Key performance indicator kpi dlc project management page 7 10. In this paper, maintenance performance measurement. Measuring performance and productivity outsource llc 2011.
How to use work measurement for highproductivity maintenance. Because productivity is a ratio, it is important that both the numerator and denominator of the ratio have the same units of measure, and typically this unit of measure is financial dollars, euros, ringgit or equivalent. The maintenance productivity factor plant services. A days output lost because of an unplanned stoppage will never be recovered without additional costs being incurred, e. Only software development and maintenance projects are under the scope of this document, regardless of their development methodology waterfall, agile, etc. Maintenance kpis measure how well your operation is doing at achieving its maintenance goals, like reducing downtime or cutting costs.
Selecting maintenance kpi for performance and maintenance. If you need to print pages from this book, we recommend downloading it as a pdf. The variation of ideas shows that researchers tend to discuss maintenance performance from various factors which are according to their own interpretation and area of research. The characteristics of productivity measurement are then considered and tested by analyzing the state of productivity in the finnish construction industry. Pdf a comprehensive approach for maintenance performance. Maintenance performance measurementbenchmarking articles. How to use work measurement for high productivity maintenance operations nowhere is the application of work measurement likely to generate more productivity improvement and cost reduction than in maintenance. Maintenance impact on business performance aspects such as productivity and profitability has increased. Performance%20measurement%20of %20logistics%20processes. In this study, it was reported that the most significant contributor to the. Since last two decades, practitioners and researchers have been using performance measurement pm extensively for assessing the performance of engineering assets. Choosing the right facility management kpis laurie gilmer, p.
High quality benchmarking leads to a greater understanding of where a company is on the best practices ladder to measure against historical performance, company goals or world class metrics. Pdf productivity and performance measurement in the. If you have an article to contribute to this list, please mail me. Maintenance performance contributes to manufacturing performance. The data should be reliable and clearly illustrate how well the performance standards are met as an indicator of whether a program or intervention is working. National cooperative highway research program march 2012. Benchmarking guide for software development and maintenance. Maintenance performance measurement mpm literature is struggling with the. Survey of management practices enhancing labor productivity in multistorey building construction projects argaw tarekegn gurmu, ajibade ayodeji aibinu. This implies the importance of researching the performance measurement related to the productivity improvement strategies applied in the work floor. Business labor quarterly nonfarm business labor quarterly. Articles on maintenance performance measurement and benchmarking. Efforts to measure productivity typically take the form.
Purpose the purpose of this study is to identify various issues and challenges associated with development and implementation of a maintenance performance measurement mpm system. Yasin summary todays manufacturing organizations are required to operate as open operational systems. A practical approach to maintenance performance measurement. The purpose of this paper is to identify and prioritize management practices that have the potential to improve labor productivity in multistorey building construction projects. Aug 09, 20 the purpose of this paper is to provide an overview of research and development in the measurement of maintenance performance. Maintenance performance measurement mpm has received a great amount of attention from researchers and practitioners in recent years due to a paradigm shift in maintenance, as explained in figure 1. The purpose of this paper is to provide an overview of research and development in the measurement of maintenance performance. To achieve worldclass performance, refineries aspire to achieve maintenance costs below 1.
Metrics and tools for measuring construction productivity. Maintenance productivity factor mpf is a metric that combines efficiency in execution, quality of maintenance work and the impact of organizational effectiveness to measure the productivity of the maintenance workforce. By jose baptista, development manager for reliability at quant. Maintenance crew performance is notoriously inefficient. Do you think a person can be very busy but not very productive. Performance measurement of mining equipments by utilizing oee. There are many performance measurement systems presently used in the industry as a team based activity. Maintenance performance measurement mpm is defined as the multidisciplinary process of measuring and justifying the value created by maintenance investment, and taking care of the organizations stockholders requirements viewed strategically from the overall business perspective parida and chattopadhyay, 2007. The main focus is to determine how value can be created for organizations by measuring maintenance performance, looking at such maintenance strategies as condition based maintenance, reliability centered maintenance, e maintenance etc. Maintenance productivity and performance measurement. Review article maintenance performance measurement.
Measurement standards must derive from business str information about key processes, productivity and r information necessary for performance measurement a performance, performance products and services, ope. The selection of effective and useful kpi for maintenance performance, productivity and reliability measurement of inthefield work is a much more demanding request to satisfy. Maintenance performance measurement mpm has received a great amount of attention from researchers and practitioners in recent years due to a paradigm shift in maintenance. Low commodity prices have forced companies to decrease their unit cost by improving productivity. Performance measurement of mining equipments by utilizing. The key performance indicators for maintenance are children of the manufacturing key performance indicators. However, productivity is often relegated to second rank, and ignored or neglected by those who influence production processes singh et al. Best practices in performance measurement for highway. Measuring productivity oecd manual measurement of aggregate and industrylevel productivity growth measures of productivity growth constitute core indicators for the analysis of economic growth. Figure 1 control pyramid of business objectives figure 2 cascaded objectives to achieve the business purpose.
A partial maintenance productivity goal for instance is that the firm should seek to. How measuring maintenance productivity can identify. We can see, therefore, that there is no single, easy way of measuring maintenance productivity. Pdf maintenance productivity and performance measurement. Subject terms lamps mk iii, performance measurement, productivity, 15. Availability of productivity measures for major sectors and subsectors of the economy productivity measure inputs index available labor productivity.
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