Transcription of Key Performance Indicators for Facility Managers in a Lean ...
1 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 3 Core 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 4 Objectives of Lean MaintenanceBuyRoot CausesDesignRoot CausesStoreRoot CausesInstall/CommRoot CausesOccupyRoot CausesMaintainRoot CausesUptime & Necessary WorkUnnecessary WorkLossesDefectsMinimum Unit Cost of Maintenance Life Cycle Engineering 5 Optimum Asset UtilizationObjective ofLean MaintenanceOptimum Asset UtilizationReliabilityTotal CostsCost of Unreliable AssetsCost to Improve ReliabilityTotal Cost of
2 ReliabilityOPTIMUM ASSET UTILIZATION Life Cycle Engineering 6 Proactive:Solve RootCausePreventive:Perform Time-Based :Fix it whenBrokeHighHighLowLowCompetitiveAdvant ageValue CreationPredictive:Collect data,Assess Conditions3 Life Cycle Engineering 7 Causes of Maintenance & RepairDesign & Engineering 25-32%Maintenance Errors 12-23%Occupancy 15-46%Management 10-17%Construction 7-13%Non Preventable 31% Life Cycle Engineering 8 Almost 70% of all maintenance work does not need to happen and can be eliminated in a perfect world and in consideration of the entire life cycle Estimates associated with this are broken down as follows: Design/Engineering25-32% Construction 7-13% Damage (Occupancy) 15-46% Maintenance Error 12-23% Management Strategy 10-17%Preventable Work Life Cycle Engineering 9 Core KPI sWORK PROCESS EFFICIENCYP lanned to Total Work, Overtimeas a Percentage of Total Hours, EFFECTIVENESSF aults Detected Prior to Failure,Avoided Cost, OthersRELIABILITY MANAGEMENTMTBF, MTBR, MTTR, OthersINDUSTRY PERFORMANCECost as a Percentage of RAV, Total Cost/Unit, Others OPERATING EFFECTIVENESSOA, Asset Utilization, OthersCORPORATEROA, RONA.
3 Others4 Life Cycle Engineering 10 Performance DashboardBusiness UnitPareto to identify distributionEffectivenessby Asset or Group of AssetsEquipmentKPI sMTBF affects availability and costROA/RONACostAUAvailabilityOccupancyD amageMTBFCost/UnitCost/RAVE fficiencyWork EffectivenessRONAO rdersBacklogShare PriceSafety IndexEnvironmental Index Life Cycle Engineering 11 Maintenance Core KPI sAsset PerformanceCost ControlOrganizational EffectivenessResourcesRegulatory & Quality1. Asset Performance /Availability4. Maintenance Repair Factor5. Maintenance Cost/square footReliability Excellence2. MTBR3. Number of Overdue PM/PDMWork Orders6. Overtime7. Budget Variance8. % of eachtype of work17. TRIR9. Training hours10. % Labor Cost charged to workorders11. % Maintenance Materials charged to work orders12.
4 Levels of Supervision13. Span of Control14. % Emergency work orders15. % Planned work orders16. BacklogMission, Vision, GoalsStrategyProcesses & ActivitiesPeopleTechnologyBusinessStruct ureLeadership Life Cycle Engineering 12 Allocation of Maintenance by TypePercentageCurrentObjectiveA survey(1)disclosed the following objectives: Reduce total maintenance by 50% Shift the proportion of maintenance:CurrentObjectiveReactive 50% 15%Preventive 35% 30%Condition Based 15% 55%(1) Thomas Marketing Information Center, Dec. 1997 Preventive MaintenanceCondition-Based MaintenanceReactive MaintenanceEliminated Maintenance5 Life Cycle Engineering 13 Improvement ProcessAsset EffectivenessAssessmentGap, Opportunitiesfor ImprovementPrioritize by Impacton ObjectivesForm Strategies, Develop MetricsImplementGain Approval,Obtain ResourcesMeasure Results.
5 MetricsContinuous Improvement Best Practice ObjectivesCurrent ConditionsFormulate TacticalAction PlansBenchmarkingPeopleProcessesSystemsT echnologyBusiness CriticalOperating ObjectivesBusinessPlanIMPROVEMENT PROCESS Life Cycle Engineering 14 WorkOrder Total Costs Included in M&R Factor Excluded from M&R FactorUnplanned Planned Planned Planned Capital Projects Expense ProjectsNew Investment Improve Existing AssetsBreakdown Repair Preventive Maintenance Corrective/ Preventive Repair Predictive Maintenance Maint & Repair Proactive Maintenance Proactive & Special Maintenance Training Mgmt Support Turnaround/ Shutdown Improvemnts Modifications Regulatory Compliance Mgmt. Support Maintenance Repair Condition Monitoring & Inspection Training Emergency 1 2 3 4 5 6 7 8 9 10 11 Type of Activities Type of Tactics Type of Work WORK ORDER BREAKDOWN STRUCTURE DemolitionDemolition12 X WORK ORDER BREAKDOWN STRUCTURE Life Cycle Engineering 151234567891011 Repair FactorMTCE StrategyBudgeting ProcessBench-marking Process12 IdentifiesSupports or Helps to re-directSupportsSupportsCMMS ReportCMMS information = Basis for ChangeShortens Budgeting Cycleidentifies Base Load MTCEKPI s at your FingertipCost Buckets per Work Order BreakdownStructure$$$$MTCE & Repair Cost6 Life Cycle Engineering QUESTIONS?
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