Key performance indicators means factors by reference to which the development, performance or position of the business of the. Efforts to measure productivity typically take the form. However, there are many different approaches to productivity measurement and. Performance measurement for maintenance management of real estate. There are many performance measurement systems presently used in the industry as a team based activity. How to use work measurement for highproductivity maintenance.
Maintenance performance measurement mpm literature is struggling with the. Performance measurement is essential to sustain or improve business performance largely. The characteristics of productivity measurement are then considered and tested by analyzing the state of productivity in the finnish construction industry. What is required is a balanced set of performance measures that assess. Since performance measurements for maintenance must include both. Most oil companies struggle to maximize maintenance crew productivity to achieve worldclass performance, refineries aspire to achieve maintenance costs below 1. An analysis of the maintenance performance measurement system. 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.
Linjasto palstanvaliviivoille maintenance sivuelementit. 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. Maintenance crew performance is notoriously inefficient. Measuring performance and productivity ced engineering. Survey of management practices enhancing labor productivity in multistorey building construction projects argaw tarekegn gurmu, ajibade ayodeji aibinu. 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. Pdf on jan 1, 2009, aditya parida and others published maintenance productivity and performance measurement. Yasin summary todays manufacturing organizations are required to operate as open operational systems. 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. However, productivity is often relegated to second rank, and ignored or neglected by those who influence production processes singh et al. How measuring maintenance productivity can identify. Which maintenance kpis to measure maintenance performance. Subject terms lamps mk iii, performance measurement, productivity, 15. The authors wish to thank all those who contributed so many excellent ideas and suggestions for this report.
Pdf maintenance productivity and performance measurement. 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. Key performance indicators for maintenance are selected ensuring a direct correlation between the maintenance activity and the key performance indicator measuring it. Performance%20measurement%20of %20logistics%20processes.
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. This implies the importance of researching the performance measurement related to the productivity improvement strategies applied in the work floor. Articles on maintenance performance measurement and benchmarking. Adoption of maintenance key performance indicators in the.
Additional resources and web links are also included in the introduction and at the end of this section. In this study, it was reported that the most significant contributor to the. Choosing the right facility management kpis laurie gilmer, p. 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. 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 measurement of performance is important because it identifies current performance gaps between. Maintenance performance indicators, performance metrics, reactive. Maintenance kpis maintenance metrics to measure performance. Maintenance impact on business performance aspects such as productivity and profitability has increased. Measuring productivity oecd manual measurement of aggregate and industrylevel productivity growth measures of productivity growth constitute core indicators for the analysis of economic growth. 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. 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. International journal of performance measurement, 2011, vol.
Such a measure can be found in the maintenance productivity factor mpf family of metrics. Maintenance, which has been widely applied in the plants and covered the entire life of. In general, measure of productivity can be divided into multifactor productivity measures and singlefactor productivity measures. It was clear that productivity represented the basis for formulating future policy initiatives. Kpis are numbers that tie organizational progress to maintenance performance, while metrics connect maintenance performance to maintenance actions. Measures of productivity and their uses measurement of productivity is it a ratio between input and output. The information contained in this report was prepared as part of nchrp project 2068a u. 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. 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.
Performance measurement for maintenance management of. One of the keys to using performance measurement to assess whether performance standards have been met is a dependable data collection process. Scan team report nchrp project 2068a, scan 1003 best. Maintenance performance measurement, equipment reliability, feedback loop, maintenance performance indicators. Bibliography maintenance productivity practices the. A partial maintenance productivity goal for instance is that the firm should seek to. 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. National cooperative highway research program march 2012. Maintenance performance contributes to manufacturing performance. However, productivity is often relegated to second rank, and ignored or neglected by those who influence production processes singh et. This paper illustrates how an effective maintenance policy could influence the productivity and profitability of a manufacturing process. Performance measures and worker productivity at the worker level, figure 2 shows that there is no universal measure. Most strikingly of all, maintenance crew productivity offers the potential for dramatic improvement. Figure 1 control pyramid of business objectives figure 2 cascaded objectives to achieve the business purpose.
Therefore, any project not involving a software development process is excluded, for example, consulting projects, operating system upgrades, etc. Pdf a comprehensive approach for maintenance performance. Maintenance productivity and performance measurement. Chapter 3 productivity improvement techniques and its relationship with work study sr. An additional maintenance productivity indicator is under development to compare various. 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. Customers who go elsewhere are lost business, sometimes forever. Instead, the degree to which performance can be monitored depends on the setting. 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. Pdf 2 maintenance productivity and performance measurement. Maintenance kpis measure how well your operation is doing at achieving its maintenance goals, like reducing downtime or cutting costs. Unfortunately, this book cant be printed from the openbook.
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. Do you think a person can be very busy but not very productive. Transition from measurement to management amaratunga, d. The maintenance productivity factor plant services.
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. Measuring performance and productivity outsource llc 2011. A combination of different methods for data co llection and. To achieve worldclass performance, refineries aspire to achieve maintenance costs below 1. The main issue is of course, how to measure maintenance performance. Benchmarking guide for software development and maintenance. Performance% 20measurement%20of %20logistics%20processes. Table 1 summarizes the availability of productivity measures for major sectors of the u. 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. It was possible to show how changes in the productivity affect profit, separately from the effects of changes in the uncontrollable factors, i. Close the gap between should take and does take in refinery maintenance. 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. 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.
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. Current practices of maintenance performance management. Establishing effective performance goals select one of your current employees and write two effective performance goals for them. Key performance indicators kpis are business metrics used to evaluate factors that are crucial to the success of an organization. By jose baptista, development manager for reliability at quant. The purpose of this paper is to provide an overview of research and development in the measurement of maintenance performance. It considers the problems of various measuring parameters and comments on the lack of structure in and references for the measurement of maintenance performance. Performance measurement in facilities management organisations. Maintenance productivity is one of the most important issues which govern the economics of production activities. A practical approach to maintenance performance measurement.
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. Aug 09, 20 the purpose of this paper is to provide an overview of research and development in the measurement of maintenance performance. Selecting maintenance kpi for performance and maintenance. Therefore, for the given capable of measuring different production losses. Yes, it occurs when they do not have clearly defined expectations. If you have an article to contribute to this list, please mail me. We should create our own measures and metrics in the local business environment. Maintenance performance measurementbenchmarking articles.
When you measure maintenance performance select maintenance measures that are meaningful and that reflect the actual maintenance effort. International journal of productivity and performance. 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. Capital budget % of replacement cost total cost of ownership tco customer survey. 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. Key performance indicator kpi dlc project management page 7 10.
This chapter provides background information concerning. The main focus is to determine how value can be created for organizations by measuring maintenance. The currently existing indicators collected by pati et al. Best practices in performance measurement for highway. 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. 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. Worker performance can be a function of many features, including the workers effort. Peter drucker performance measurement is a fundamental principle of management. Low commodity prices have forced companies to decrease their unit cost by improving productivity. If you need to print pages from this book, we recommend downloading it as a pdf. Business labor quarterly nonfarm business labor quarterly. We can see, therefore, that there is no single, easy way of measuring maintenance productivity. Oftentimes the significance of performance measurement is disdained by many businesses, and more so especially in terms of.
Executive summary this project came about as a result of discussions among u. Performance measurement is a fundamental building block of tqm and a total quality organisation. Metrics and tools for measuring construction productivity. In this paper, maintenance performance measurement. Maintenance productivity and performance measurement maintenance productivity is one of the most important issues which govern the economics of production activities. 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 represents the largest single variable operating cost in most enterprises when you include physical plant value.
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. Maintenance key performance indicators introduction it is not possible to manage what you cannot control and you cannot control what you cannot measure. Historically, organisations have always measured performance in some way through the. Performance measurement of mining equipments by utilizing. Performance measurement of mining equipments by utilizing oee. The role of maintenance in improving companies productivity. Total productivity output quantity and quality input quantity and quality. Review article maintenance performance measurement. 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. Since last two decades, practitioners and researchers have been using performance measurement pm extensively for assessing the performance of engineering assets. Availability of productivity measures for major sectors and subsectors of the economy productivity measure inputs index available labor productivity. The key performance indicators for maintenance are children of the manufacturing key performance indicators. 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. Pdf productivity and performance measurement in the.
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