Maintenance KPIs vs. Metrics

While there are countless KPIs to be monitored it’s extremely important that we know what KPIs are critical to business and which are not, allowing for a better evaluation of priorities.  Before we examine the different types of KPIs, it is important to understand what they are and how they help your business succeed.

What is a KPI?  

A KPI, or key performance indicator is simply a measurement of how well a task is performed.  KPIs can be set for machines, people, or any number of systems.  The main goal of a KPI is usually to save money, increase productivity/efficiency, and improve safety measures.

Metrics are in the same family, but a slightly different meaning.  Metrics are just a system of measurement. When using both terms together, metrics are the numbers that measure progress towards a goal, while KPIs are the numbers you are aiming to hit.  

What is the difference between maintenance KPIs and maintenance performance metrics?

The terms maintenance KPIs and maintenance performance metrics are sometimes used interchangeably, however, they are not the same.

We now know that maintenance KPIs are measurable values that show how effective you are at achieving key maintenance objectives.  Maintenance metrics track a specific process’s status.

Another key distinguisher between the two is that maintenance KPIs are strategic, while maintenance performance metrics are tactical. KPIs focus mostly on the end goal, while metrics are more focused on the smaller steps needed to reach that goal.

Which KPIs for maintenance should you define and track?

Your KPIs should be centered around three major things: strategy, improvements, and long-term growth.  When trying to improve these factions of business, it is important to make sure that your goals are both realistic and sustainable.  However, the most important thing to remember when setting your goals is to keep them realistic.  If your goal production is too high or not sustainable then this can lead to disorganization later on.  Another point to keep in mind is that at any given time, you should be focusing on no more than five KPIs.

The Five KPI Rule

After five KPIs, tracking tends to get a little crowded.  KPIs are supposed to be high priorities, not simply any metric you want to measure.  Your KPIs will change over time, especially with growth, making your goals change with it.  When deciding which KPIs you wish to pursue it is highly important to converse with maintenance managers.  They are the ones that deal with metrics and keep production running smoothly on a daily basis.  The insight provided by these workers is extremely valuable when crafting KPIs.  Below I’ve listed several key performance indicators that would be beneficial to explore.  There are many more KPIs out there, however for the majority of companies these will be the most relevant.

MTBF (Mean Time Between Failure)

Mean time between failure is the average time one piece of equipment breaks down (or fails in some capacity) until the next machine failure.  MTBF is measured in hours and calculated by the following formula:

MTBF= Total Uptime / Number of Breakdowns. 

As a company, it should be a goal to lengthen the time between these failures.  In order to increase your MTBF, you must first make sure your CMMS is capable of tracking these metrics (schedule a demo to see how CHAMPS accurately collects these critical metrics).  Then, we must take this data and be proactive, or in other terms, perform preventive maintenance.  These routinely scheduled maintenance checks will save far more in the long run than simply performing repairs only after breakdowns.

PM Compliance

PM compliance is one of the most important KPIs you’ll track.  It measures how successful your facility is at completing preventive maintenance tasks, as well as how the completion of these tasks has optimized performance.  These measurements include optimizing your schedule, reducing downtime, as well as increasing general efficiency.  The PM compliance formula is as follows:

PM compliance = # of completed PMs + # of scheduled PMs x 100

In order to improve PM compliance percentage you must make sure that preventive maintenance is on track.  In order for this to occur PMs must be made easier to complete.  With a trusted mobile software, PMs are now easier than ever!

MTR (Mean Time to Repair)

MTR or Mean Time to Repair measures the average time from the moment a machine breaks down or fails, to the moment it is repaired.  It deals with equipment diagnosis, planning, scheduling, and the actual work necessary to fix the machine.  Your company’s goal would be to reduce the MTR over time. 

Wrench time

Wrench time is defined as the metric that shows how much time maintenance professionals spend with a tool in their hand, actually performing maintenance tasks.  Wrench time measures only the time spent doing the work, meaning that time spent picking out tools, travel time, breaks, looking over the work order, etc. are not included.  This gives a more accurate measure of time spent purely on manual maintenance tasks.   

Percentage of Work Covered by Work Order

This KPI lets you see how much of the maintenance work is entered into your system.  This KPI is extremely valuable, as it deals with data collection.  It’s important that your maintenance team enter every task in your CMMS system, as this allows for more data, and more data leads to better understanding of patterns and trends, allowing for more accurate predictions of when preventive maintenance should be scheduled.

Defining KPIs for maintenance activities

To actually define your KPIs for maintenance, it’s advisable to approach them like goals.  If you don’t treat them as such, your improvement efforts will lack focus and direction.

Your main goal should be to improve in all areas. But, it is important to only track specific and measurable KPIs in order to accurately see results.

Examples of maintenance KPIs

Here are some examples of potential maintenance KPIs that are specific and measurable:

  • Reduce unexpected downtime by 20% over the next year.
  • Increase wrench time for scheduled maintenance tasks by 10% in the next three months.
  • Reduce energy consumption by 15% by the end of the quarter.

Defining your maintenance KPIs is just the first step on the path towards improving them.  Each KPI should be broken down into more details that outline your plan of action, maintenance metrics, and milestones.

How to track these KPIs and metrics

In order to track KPIs effectively, it is important that you have a reliable and accurate CMMS system.  CHAMPS has an easy to use interface and a mobile component that will make tracking KPIs easier than ever.  You’ll be able to choose the KPIs you wish to monitor right on your dashboard.

So what are you waiting for? CHAMPS is dedicated to helping maintenance professionals reach their full potential. Contact us to learn how CHAMPS can help your maintenance team hit their KPIs more efficiently.

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