Key Performance Indicators for Facility Managers in a Lean ...

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1 Life Cycle Engineering Key Performance Indicators for Facility Managers in a Lean Environment Life Cycle Engineering 2 New processes must begin with radical change Continuous improvement is exactly the right idea if you are already the world leader in everything you do. It is a terrible idea if you are lagging. It is probably a disastrous idea if you are far behind the world standard. I believe that we have made a major mistake of our advocacy of continuous need rapid, quantum leap improvement. -Paul O Neil, Former Chairman of AlcoaLean Maintenance = Radical Change Life Cycle Engineering 3Core Lean Business AspectsRevenue Growth Operation & Maintenance CostsLean MaintenanceReduce Total Delivered CostIncrease AssetUtilizationIncrease ROA / RONA Availability Occupancy rate Quality Capital effectiveness Materials & Spare Parts Management Market differentiation Price Quality Response Cash Flow2 Life Cycle Engineering 4Objectives of Lean MaintenanceBuyRoot CausesDesignRoot CausesStoreRoot CausesInstall/CommRoot CausesOccupyRoot CausesMaintainRoot CausesUptime & Necessary WorkUnnecessary WorkLossesDefectsMinimum Unit Cost of Maintenance Life Cycle Engineering 5Optimum Asset UtilizationObjective ofLean MaintenanceOptimum Asset

4 © Life Cycle Engineering ® 10 Performance Dashboard Business Unit Pareto to identify distribution Effectiveness by Asset or Group of Assets Equipment

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