REGISTER NOW! August 1, 2022. FREE 1–Hour Virtual Uptime Elements Introduction

KPI’s are oftentimes measured to determine the current performance of a maintenance organization.  But is 85% technical availability (uptime) a good score for a food company?  Is 5% maintenance costs/asset replacement value too high or too low for a maintenance organization?  If we are too high, what is an acceptable level and what buttons must we press to get to that level?  To determine realistic targets and to define the way to achieve those targets benchmarking can be an adequate method, but there are some pitfalls…

Pitfalls of benchmarking

1. Not taking the KPI relevance into account.  One KPI in itself will not tell you anything.  It’s always about the interrelations of the different KPI’s and how they influence each other.  The KPI and benchmarking information must be interpreted by an expert, like the way an X-ray needs to be interpreted by a medical specialist.  A framework like the VDM Control Panel that aggregates the information in a comprehensive and organized set of KPI’s is very useful in the analysis.

2. Using the KPI’s can be like comparing apples and oranges.  Analyses using benchmark data are possible only if companies are compared with peer companies in the same industry - a chemical company with a chemical company and a paper plant with a paper plant.  Even within the same industry there can also be differences.  A fine paper plant has far higher benchmark for technical availability than a cardboard plant, for example. So it is important to find the right level for conducting the benchmark. This level will differ from company to company.

3. The absence of definitions for the KPI’s being reviewed.  Benchmark data is often gathered without clear prior specification of the data that must be gathered.  After all, everybody surely knows what maintenance costs are, or how technical availability must be calculated?  In reality, the opposite is true.  Every company applies its own particular definitions invalidating the results of the benchmark. Utilizing a templated tool like uses standardized definitions ensuring that all of the data can be compared accurately.

4. Blindly accepting the output of the study. The benchmark study is a means to an end, not a goal in its own right.  It is like an initial X-ray being used to determine the patient's overall health.  Further investigation must be carried out before any conclusions may be drawn.  Using the medical example this could include talking to the patient and conducting targeted diagnostic tests.  Therefore, benchmark studies must always be accompanied by further analyses.  Methods include interviews with management, but also with representatives of the shop floor.  This enables validation and explanation of measured performances.  A validation of this kind will strengthen the report and increase its acceptance.  This avoids a benchmark report being seen as a grading of performance and ensures it is used more as an improvement recommendation.

Tip excerpted from the book Value Driven Maintenance®, New faith in Maintenance.

Mainnovation Book

Learn More

Upcoming Events

August 9 - August 11 2022

MaximoWorld 2022

View all Events
80% of newsletter subscribers report finding something used to improve their jobs on a regular basis.
Subscribers get exclusive content. Just released...MRO Best Practices Special Report - a $399 value!
Reliability Leader Fluid Cleanliness Pledge

Fluid Cleanliness is a Reliability Achievement Strategy as well as an asset life extension strategy

MaximoWorld 2022 Conference Austin Texas

Connect with leading maintenance professionals, reliability leaders and asset managers from the world's best-run companies who are driving digital reinvention.

“Steel-ing” Reliability in Alabama

A joint venture between two of the world’s largest steel companies inspired innovative approaches to maintenance reliability that incorporate the tools, technology and techniques of today. This article takes you on their journey.

Three Things You Need to Know About Capital Project Prioritization

“Why do you think these two projects rank so much higher in this method than the first method?” the facilitator asked the director of reliability.

What Is Industrial Maintenance as a Service?

Industrial maintenance as a service (#imaas) transfers the digital and/or manual management of maintenance and industrial operations from machine users to machine manufacturers (OEMs), while improving it considerably.

Three Things You Need to Know About Criticality Analysis

When it comes to criticality analysis, there are three key factors must be emphasized.

Turning the Oil Tanker

This article highlights the hidden trap of performance management systems.

Optimizing Value From Physical Assets

There are ever-increasing opportunities to create new and sustainable value in asset-intensive organizations through enhanced use of technology.

Conducting Asset Criticality Assessment for Better Maintenance Strategy and Techniques

Conducting an asset criticality assessment (ACA) is the first step in maintaining the assets properly. This article addresses the best maintenance strategy for assets by using ACA techniques.

Harmonizing PMs

Maintenance reliability is, of course, an essential part of any successful business that wants to remain successful. It includes the three PMs: predictive, preventive and proactive maintenance.