While maintenance goals can vary from one organization to another, here are 5 maintenance KPIs that every maintenance manager must have on their dashboard.
Key Performance Indicators, or KPIs, are an excellent way of measuring performance as they provide quantifiable metrics over time for a specific objective. With industry 4.0 and digitalization, maintenance KPIs are a source of valuable business intelligence to make the right decisions at the right time. Maintenance teams require access to real-time maintenance information as drivers for performance improvement to achieve objectives and operational excellence.
Modern enterprises appreciate that the performance of their maintenance team has a direct impact on their profitability. After all, maintenance teams are responsible for reducing equipment downtime and increasing reliability. Maintenance KPIs help you measure your maintenance performance and align them with organizational objectives.
How to Measure Maintenance KPIs?
For many years, spreadsheets have been the go-to tool for several companies to track maintenance KPIs. While it may appear to serve the purpose in general, it is far from being the most efficient and reliable way to track maintenance performance. Firstly, spreadsheets are prone to human errors, and maintaining them requires teams to commit a significant amount of time. Secondly, spreadsheets cannot give you real-time information and rely solely on your maintenance team to update them manually. An EAM or CMMS software, like BriskForce, can convert maintenance data into actionable reports and dashboards that help maintenance managers make better decisions.
Top 5 Maintenance KPIs
Identifying which specific asset management KPIs suit your organization and align with the organizational goals is the first step toward measuring maintenance performance. While maintenance goals can vary from one organization to another, there are a few general indicators that every maintenance team must have on their dashboard.
1. Unscheduled Downtime
Unscheduled downtime is every maintenance manager’s nightmare for a good reason. No matter how short, unscheduled downtime can cost businesses a fortune, and a good maintenance strategy can reduce unplanned downtime by more than 30%. Measuring unscheduled downtime helps maintenance managers analyze the effectiveness of their maintenance strategies and identify gaps. It is also helpful to understand how downtime affects your profitability. For example, consider a parts manufacturer capable of manufacturing 100 parts per hour. If each part is worth $20, a downtime of just an hour will result in a revenue loss of $2000 for the manufacturer.
Unscheduled Downtime (%) = Unscheduled Downtime Hours / Total Maintenance Hours * 100
2. Maintenance Unit Cost
Maintenance Unit Cost measures the total maintenance cost required to produce a specific unit, typically measured over a specific period -monthly, quarterly, or annually. This metric allows the business to analyze the trend of maintenance unit costs and how they impact product life cycle costs. Maintenance costs are a flexible KPI because you can apply maintenance costs for a specific asset, an asset category, or an entire facility.
Maintenance Unit Cost = Total Maintenance Costs / Units Produced
3. Reactive Maintenance Work Hours
Reactive maintenance refers to repairs performed as a result of equipment failure. Have you heard the famous expression – “if it ain’t broke, don’t fix it”? It turns out that it doesn’t serve well for asset maintenance. It’s no secret that reactive maintenance costs businesses significantly more in the long run. Reactive maintenance is a KPI for maintenance that breaks into the daily or weekly maintenance schedule as a percentage of the total maintenance labor hours. With the reactive approach, technicians waste valuable time firefighting as failures occur unexpectedly. Moreover, you may not always have the required spare parts in your inventory at the point to carry out necessary replacements.
Reactive Maintenance % = Maintenance Hours that Affect Weekly Schedule / Total Maintenance Hours * 100
4. Mean Time Between Failure (MTBF)
As the name suggests, MTBF is an essential measure of asset reliability calculated as the average operating time of equipment between failures. We all know that equipment failures are bad news for the shop floor, and minimizing them can dramatically improve productivity. The higher the MTBF metric, the better, indicating that the equipment delivers a more extensive period of productive hours before a failure occurs.
MTBF = Operating Hours / Number of Failures
5. Mean Time to Repair (MTTR)
MTTR (mean time to repair) is the average time it takes to repair a piece of equipment, and it includes both the time to repair and test. MTTR is the total time spent on repairs divided by the number of repairs during a specific period. Let’s assume that a particular asset experienced ten outages during a week and technicians spent 100 minutes actively repairing it. In this case, the MTTR would be 100 divided by 10, which is 10 minutes.
MTTR = Total Minutes Spent on Repairs / Number of failures
Maintenance Reporting with BriskForce CMMS
Effective maintenance decisions require maintenance managers to have access to reliable data. CMMS dashboards and reports can help maintenance managers gain valuable insights into the effectiveness of their maintenance strategies and keep unplanned asset downtime to a minimum. BriskForce offers powerful cloud CMMS software that revolutionizes how maintenance teams manage assets and work orders. With our dynamic maintenance dashboards, you can track and analyze maintenance KPIs in just a few clicks. Start a free 14-day trial or contact us for a demo.