SMRP Best Practice Metric 2009.10

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Society for Maintenance and Reliabil ity Professionals

Best Practice Metrics

October 19, 2009



SMRP Best Practice Metr ics

Published October 19, 2009

Table of Contents

1. INTRODUCTION

2. METRICS

Pillar 1 – Bus iness and Management

1.1 Ratio of Replacement Asset Value (RAV) to Craft Wage Headcount

1.3 Maintenance Unit Cost

1.4 Stocked MRO per RAV

1.5 Maintenance Cost per RAV

Pillar 2 – Manufacturing Process Reliability

2.1.1 OEE (Overall Equipment Ef fecti veness)

2.3 Uptime

2.4 Idle Time

Pillar 3 – Equipment Reliability

3.2 Total Downti me

3.3 Scheduled Downtime

3.4 Unscheduled Downtime

3.5.1 MTBF (Mean Time Between Failures)

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© 2009 by SMRP PUBLICATION DATE: October 19, 2009



METRICS (continued)

3.5.2 MTTR (Mean Time to Repair)

3.5.3 MTBM (Mean Tome Between Maintenance)

3.5.4 MDT (Mean Down Time)

Pillar 4 – Organization and Leadership

4.1 Rework

4.2.2 Maintenance Training Man-hours

Pillar 5 – Work Management

5.1.1 Corrective Maintenance Cost

5.1.2 Corrective Maintenance Hours

5.3.1 Planned Work

5.3.2 Unplanned Work

5.3.3 Actual Cost to Planning Estimate

5.3.4 Actual Hours to Planning Estimate

5.4.1 Reactive Work

5.4.2 Proactive Work

5.4.3 Schedule Compliance Hours

5.4.4 Schedule Compliance Work Orders

5.4.5 Standing Work Orders

5.4.9 Ready b acklog

5.4.14 PM & PdM Compliance

5.5.1 Supervisor to Craft Ratio

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METRICS (continued)

5.5.2 Planner to Craft Ratio

5.5.6 Craft Workers on Shift

5.5.7 Overtime Percentage of Maintenance Cost

5.5.8 Overtim e Percentage of Maintenance Hours

5.5.31 Stores Inventory Turns

5.5.33 Stock Outs

5.5.71 Contractor Cost

5.5.72 Contractor Hours

5.6.1 Wrench Time

GUIDELINES

1.0 Determining RAV (Replacement Asset Value)

2.0 Understanding OEE (Overall Equipment Effectiveness)

3.0 Lagging and Leading Indicators

GLOSSARY

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Introduction

It is my pleasure, on behalf of The Society for Maintenance and Reliability Professionals (SMRP) tointroduce the SMRP Maintenance & Reliability Metrics. This important contribution to our ever-evolvingbody of knowledge is a product of several years of rigorous and conscientious work by the dedicatedvolunteer members of SMRP’s Best Practices Committee, ably led by Committee Chairman Dick Olverof Agrium, and Co-Vice Chairmen Jay Padesky of USG and Kevin Stewart of Alcoa, very capablysupported by Jerry Kahn of Siemens (the initial project manager) and Al Poling, the current TechnicalDirector of SMRP’s Body of Knowledge directorate.

For the past several years, the mission of the SMRP Best Practices Committee has been to standardizehow we measure and calculate common (and not-so-common) key performance indicators, thereby

establishing a sound foundation on which to build more robust best practices, and by which to measureand compare performance using consistent measuring systems. This is the first edition of what will bea living document provided by SMRP’s Body of Knowledge Directorate. The SMRP format for thesedefinition documents is the best and most comprehensive in the world, and the process used to developthese definition documents is the most rigorous and thorough.

I have had the privilege to be a member of the SMRP Best Practices Committee since its inception.During my tenure with the committee, I met some of the best thinkers in the maintenance and reliabilitycommunity and participated on the front lines of some of the most interesting debates about bestpractices. These debates were very thought-provoking and very enlightening. Having been aparticipant and contributor to this work, I have become a more informed member of our community.The experience has been gratifying, both professionally as well as personally. I know I speak for all of

the members of the committee when I say I’m proud of the work that has been done.

The process devised and adopted by the Best Practices Committee to develop standard definitions forperformance metrics is rigorous, resulting in an extensively vetted definition for each metric, one youcan use with confidence. The process began with a thorough listing and prioritization of metrics. Over70 were identified and prioritized, and these were put into one of five categories, corresponding with thefive pillars of the SMRP Body of Knowledge (namely: Business & Management, Manufacturing ProcessReliability, Equipment Reliability, Leadership & Organization and Work Management). From thiscompilation, metrics can be selected to form a comprehensive balanced score card for maintenanceand reliability performance.

Best Practices Committee members volunteered to write the drafts that were used to develop themetrics. Each author or author team researched the literature and material from around the worldrelated to the assigned metric calculation and definition. These materials were thoroughly reviewedand compared and differences were reconciled if possible. If that was not possible, differences withother published standards were noted in the SMRP Metric Definition, highlighting the difference andexplaining the rationale for the SMRP definition. Generally speaking, where other published standardswere available harmonization was usually possible. For some metrics, there were no formal publishedguidelines in existence and the first such definition is included in this compendium.

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After the first draft of a metric definition was written, the document was reviewed by a sub-team taken

from the full committee. An iterative and intensive review and edit process ensued. A final draft waspresented to the full committee in a tri-weekly conference call where the metric was presented by theauthor and reviewed and approved by those in attendance. Further comments were incorporated andthe definition was eventually posted for public review. An ample amount of time was provided for publicreview and scrutiny. In some cases excellent feedback was provided that had not been previouslyconsidered. All of this input was reviewed and appropriately incorporated into the final definitiondocument. Next, at least three committee members volunteered to “validate” the metric at theircompany or plant in order to test the usability and value of the metric definition. The validation effortsometimes uncovered unanticipated problems which resulted in further editing. Eventually, when thecommittee was satisfied that the validation was successful, final publication began. In some cases acompanion “use guidance” document was written to accompany the more involved metrics calculations. After final review the document(s) was published.

This authoritative compilation of metrics definitions, along with the companion guideline documents andglossary, will provide you with reliable guidance on how to measure these indicators. It gives themaintenance and reliability professional the ability to: measure performance consistently; make validcomparisons; establish achievable goals and objectives; and set realistic expectations. Thestandardization of how we measure our maintenance and reliability practices forms the foundation forthese goals. This compilation also very effectively sets the stage for the comprehensive and world-class benchmarking services being provided and managed by SMRP’s Benchmarking Committee,which uses these definitions in the SMRP Benchmarking survey questionnaire. The Best PracticesCommittee standardized these indicators; the Benchmarking Committee will identify performancethresholds for each.

This is a significant contribution to our community; I hope you will take full advantage of it!

Robert S DiStefano

Director SMRP Body of KnowledgeChairman & CEO, Management Resources Group, Inc.

To get involved with SMRP’s Best Practices, Benchmarking or M&R Knowledge Committees, pleasecontact Al Poling, SMRP Body of Knowledge Technical Director at [email protected].

mailto:[email protected]

mailto:[email protected]



BUSINESS AND MANAGEMENT METRIC

1.1 Ratio of Replacement Asset Value(RAV) to Craft-Wage Headcount



BUSINESS AND MA NAGEMENT METRIC

1.1

Ratio of Replacement As set Value(RAV) to Craft-Wage Headcount

A. DEFINITION

The metric is Replacement Asset Value (RAV) of the assets being maintained at the plant divided by the craft-wageemployee headcount. The result is expressed as a ratio in dollars per craft-wage employee.

B. OBJECTIVES

This metric allows comparisons of the ratio of craft-wage personnel on a site with other sites, as well as tobenchmark data. The RAV is used in the numerator to normalize the measurement given that different plants vary insize and replacement value. The metric can be used to determine the standing of a plant relative to best in classplants which have high asset utilization and equipment reliability and generally have lower maintenance craft-wagecost.

C. FORMULA

Ratio of Replacement Asset Value ($) to Craft-Wage Head Count = RAV ($) ÷ Craft-Wage Headcount

D. COMPONENT DEFINITIONS

Craft-Wage Headcount

Number of maintenance personnel responsible for executing work assignments pertaining to maintenance activities.Include the number of contractors’ personnel who are used to supplement routine maintenance. The headcount ismeasured in full-time equivalents (FTE).

Replacement Asset Value (RAV)

Also referred to as Estimated Replacement Value (ERV). This is the dollar value that would be required to replacethe production capability of the present assets in the plant. Include production/process equipment as well as utilities,facilities and related assets. Do not use the insured value or depreciated value of the assets. Include replacementvalue of buildings and grounds if these assets are maintained by the maintenance expenditures. Do not include thevalue of real estate, only improvements.

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© 2009 by SMRP PUBLICATION DATE: April 16, 2009



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© 2009 by SMRP PUBLICATION DATE: A ugust 18, ,2009

E. QUALIFICATIONS

1. Time basis: yearly

2. To be used by maintenance managers to measure the effectiveness of their craft-wage workforce.

3. This metric can be calculated and used to compare a process, a department or an entire facility.

4. Contractors that are employed as part of capital projects or upgrade work should not be included.

5. Contract employees who support the regular maintenance work force and perform maintenance on a site should

be included.

6.

If contract costs for painting, plumbing, carpentry and similar activities are included as part of the RAV, thiscontract headcount should be included in the denominator.

7. A full-time equivalent should be normalized at 40 hours per week.

8. For facilities using Total Productive Maintenance (TPM), maintenance performed by operators should be included.

F. SAMPLE CALCULATION

For a given facility, the Replacement Asset Value ($) is $624,500,000 and the Craft-Wage Headcount formaintenance employees is 150.

The Ratio of Replacement Asset Value ($) to Craft-Wage Headcount = RAV ($) ÷ Craft-wage Headcount

The Ratio of Replacement Asset Value ($) to Craft-Wage Headcount = $624,500,000 ÷ 150 maintenance employees

The Ratio of Replacement Asset Value ($) to Craft-Wage Headcount = $4,160,000 per maintenance employee

G. HARMONIZATION

This metric has not been harmonized with European standard EN 15341: Maintenance Indicators.

H. REFERENCES

None







BUSINESS AND MANA GEMENT METRIC


A. DEFINITION

The metric is the measure of the total maintenance cost required for an asset or facility to generate a unit ofproduction.

B. OBJECTIVES

To quantify the total maintenance cost to produce a standard unit of production over a specified time period (e.g.monthly, quarterly, annually, etc.). This metric provides a period over period trend of maintenance cost per unit

produced. This measure can be applied to a specific asset, a group of assets within a facility, across an entire facilityor across multiple facilities.

C. FORMULA

Maintenance Unit Cost = Total Maintenance Cost ÷ Standard Units Produced


Standard Units Prod uced

A typical quantity produced as output. The output has acceptable quality and consistent means to quantify.Examples would include gallons, liters, pounds, kilograms, or other standard units of measures.

Total Maintenance Cost

Total expenditures for maintenance labor (including maintenance performed by operators, e.g., TPM), materials,contractors, services, and resources. Include all maintenance expenses for outages/shutdowns/turnarounds as wellas normal operating times. Include capital expenditures directly related to end-of-life machinery replacement (this isnecessary so that excessive replacement versus proper maintenance is not masked). Do not include capitalexpenditures for plant expansions or improvements.

E. QUALIFICATIONS

1. Time Basis: Annually, if a shorter interval is used, it should include a weighted portion of planned outages or turnarounds.

2. To be used by: Maintenance, Operations, Finance or other functions to evaluate and benchmark maintenance

cost for production units within a plant, across multiple plants or against the industry.

3. To obtain data necessary for this measure, Total Maintenance Cost includes all costs associated with

maintaining the capacity to produce over a specified time period.

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4.

Standardized units are industry typical measures that enable valid comparisons across similar businesses.

These are the gross standard units (disregarding any first pass quality losses) and must be the same for

comparison purposes.

5. Output variances, such as production curtailments due to business demand or operational issues unrelated to

maintenance will negatively impact this measure.

6. Measuring maintenance cost on a specific asset within a facility will require appropriate accounting of distributed

costs (e.g. infrastructure costs allocated to the asset from the site). A percentage of building and grounds costs

directly associated with the preservation of the production asset should be applied to the asset.

7.

The unit maintenance cost on different products can vary significantly even though they have the same units of

measure. Care should be exercised when comparing different products or processes.


The total maintenance cost for the year was $2,585,000. The total output from the manufacturing site in that sameyear was 12,227,500 kg.

Maintenance Unit Cost = Total Maintenance Cost ÷ Standard Units Produced

Maintenance Unit Cost = $2,585,000 ÷ 12,227,500 kg

Maintenance Unit Cost = $0.21 per kg

G. HARMONIZATION

This metric and its supporting definitions are similar or identical to the indicator E3 in standard EN 15341. Thisdocument is recommended by the European Federation of National Maintenance Societies (EFNMS) as a guidelinefor calculating the E3 indicator.

H. REFERENCES

None




1.4 Stocked MRO Inventory Value As aPercent of Replacement Asset Value (RAV)



BUSINESS AND MANA GEMENT METRIC

1.4 Stocked MRO Inventory Value As a Percent of Replacement Value (RAV)

A. DEFINITION

The metric is the value of maintenance, repair and operating materials (MRO) and spare parts stocked on site tosupport maintenance, divided by the Replacement Asset Value (RAV) of the assets being maintained at the plant,expressed as a percentage.

B. OBJECTIVES

This metric enables comparisons of the value of stocked maintenance inventory on site with other plants of varyingsize and value, as well as to benchmarks. The RAV is used in the denominator to normalize the measurement giventhat different plants vary in size and value.

C. FORMULA

Stocked MRO Inventory Value per RAV (%) = [Stocked MRO Value ($) × 100] ÷ Replacement Asset Value ($)


Stocked MRO Inventory Value

Current book value of maintenance, repair and operating materials held in stock at the plant site (includingconsignment and vendor managed inventory). Include the value of MRO materials in all storage locationsincluding remote stores locations whether or not the material is included in inventory asset accounts or anallocated portion of pooled spares. (Try to estimate the value of “unofficial” stores in the plant even if they are notunder the control of the storeroom and even if they are not “on the books”). Include the estimated value forstocked material that may be in stock at zero-value because of various CMMS and/or accounting idiosyncrasies,etc. DO NOT include raw material, finished goods or related inventories. The monetary cost of an individualstoreroom item can be calculated as:

Monetary Cost of Individual Storeroom Item = Quantity on Hand × Individual Item Cost

When aggregated as the cost of all stocked items, inventory value is calculated as:

N

∑ (Quantity on Hand × Individual Item Cost)i

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Also referred to as Estimated Replacement Value (ERV). This is the dollar value that would be required to replacethe production capability of the present assets in the plant. Include production/process equipment as well as utilities,facilities and related assets. Do not use the insured value or depreciated value of the assets. Include replacementvalue of buildings and grounds if these assets are maintained by the maintenance expenditures. Do not include thevalue of real estate, only improvements.

E. QUALIFICATIONS

1. Could be measured quarterly or annually.

2. Typically used by corporate managers to compare plants, by plant managers, maintenance managers,

materials managers, procurement managers, operations managers, reliability managers, vice presidents..

3. Can be used to determine standing of a plant in a four-quartile measurement system, as best in class plants with

high asset utilization and high equipment reliability in most industries have less stocked inventory value because

of a more predictable need for materials

4. Cannot rely on this metric alone, since lower stocked inventory value does not necessarily equate to best in

class. Should balance this metric with stock-outs (which should be low) and other indicators of the service level

of the stocked inventory.


If Stocked MRO Inventory Value is $3,000,000, and the Replacement Asset Value (RAV) is $100,000,000, then theStocked MRO Inventory Value as a Percent of RAV would be:

Stocked MRO Inventory Value per RAV (%) = [Stocked MRO Value ($) × 100] ÷ Replacement Asset Value ($)

Stocked MRO Inventory Value per RAV (%) = ($3,000,000 × 100) ÷ $100,000,000

Stocked MRO Inventory Value per RAV (%) = 3%

G. HARMONIZATION


H. REFERENCES

None




1.5 Annual Maintenance Cost As a Percentof Replacement Asset Value (RAV)



BUSINESS AND MA NAGEMENT METRIC

1.5 Annual Maintenance Cost As a Percentof Replacement Asset Value (RAV)

A. DEFINITION

The metric is the amount of money spent annually maintaining assets, divided by the Replacement Asset Value(RAV) of the assets being maintained, expressed as a percentage.

B. OBJECTIVES

This metric allows comparisons of the expenditures for maintenance with other plants of varying size and value, aswell as to benchmarks. The RAV is used in the denominator to normalize the measurement given that plants vary insize and value.

C. FORMULA

Annual Maintenance Cost per RAV (%) = [Annual Maintenance Cost ($) × 100] ÷ Replacement Asset Value ($)


Annual Mainten an ce Co st

Annual expenditures for maintenance labor (including maintenance performed by operators, e.g. TPM),materials, contractors, services, and resources. Include all maintenance expenses foroutages/shutdowns/turnarounds as well as normal operating times. Include capital expenditures directlyrelated to end-of-life machinery replacement (this is necessary so that excessive replacement versusproper maintenance is not masked). Do not include capital expenditures for plant expansions orimprovements. Ensure maintenance expenses included are for the assets included in the RAV in thedenominator.


Also referred to as Estimated Replacement Value (ERV). This is the dollar value that would be required to replace

the production capability of the present assets in the plant. Include production/process equipment as well as utilities,facilities and related assets. Do not use the insured value or depreciated value of the assets. Include the replacementvalue of buildings and grounds if these assets are included in maintenance expenditures. Do not include the value ofreal estate, only improvements.

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E. QUALIFICATIONS

1. Should be measured annually.

2. Typically used by corporate managers to compare plants, by plant managers, maintenance managers, operations

managers, reliability managers, and vice presidents.

3. Can be used to determine standing of plant in a four-quartile measurement system, as best in class plants with

high asset utilization and high equipment reliability in most industries spend less maintaining their assets.

4. Cannot rely on this metric alone since lower maintenance cost does not necessarily equate to best in class.


If Annual Maintenance Cost is $3,000,000 annually and the Replacement Asset Value for the assets is$100,000,000, then the Annual Maintenance Cost As a Percent of Replacement Asset Value would be:

Annual Maintenance Cost As a Percent of RAV = [Annual Maintenance Cost ($) × 100] ÷ Replacement Asset Value

Annual Maintenance Cost As a Percent of RAV = ($3,000,000 × 100) ÷ $100,000,000

Annual Maintenance Cost As a Percent of RAV = 3%

G. HARMONIZATION

This metric and its supporting definitions are similar or identical to EN 15341 indicator E1. This document isrecommended by the European Federation of National Maintenance Societies (EFNMS) as a guideline forcalculating the E1 indicator.

H. REFERENCES

None



MANUFACTURING PROCESS RELIABILITY METRIC

2.1.1 Overall Equipment Effectiveness



Manufactur ing Process Reliabil i ty Metric

2.1.1 Overall Equipment Effectiveness

A. DEFINITION

The metric is a measure of equipment or asset performance based on actual availability, performance efficiency, andquality of product or output when the asset is scheduled to operate. Overall equipment effectiveness (OEE) istypically expressed as a percentage.

B. OBJECTIVES

This metric identifies and categorizes major losses or reasons for poor asset performance. It provides the basis for

setting improvement priorities and beginning root cause analysis. OEE can also foster cooperation and collaborationbetween operations, maintenance, and equipment engineering to identify and reduce or eliminate the major causesof poor performance. Maintenance alone cannot improve OEE.

C. FORMULA

Overall Equipment Effectiveness (%) = Availability (%) × Performance Efficiency (%) × Quality Rate (%)

Availability (%) = [Uptime (hrs) × 100] ÷ [Total Available Time (hrs) – Idle Time (hrs)]

Uptime (hrs) = Total Available Time (hrs) – [Idle Time (hrs) + Total Downtime (hrs)]

Total Downtime (hrs) = Scheduled Downtime (hrs) + Unscheduled Downtime (hrs)

Performance Efficiency (%) = [Actual Production Rate (units per hour) ÷ Best Production Rate (units per hour)] × 100

Quality rate % = [(Total Units Produced – Defective Units Produced) ÷ Total Units Produced] × 100


Avai lab i l i ty

Availability is the percentage of the time that the asset is actually operating (uptime) compared to when it isscheduled to operate (gross time). This is also called operational availability.

Total Available Time

365 days x 24 hours

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© 2009 by SMRP PUBLICATION DATE: June 30, 2009



Idle Tim e (SMRP Metric 2.4)

The amount of time an asset is idle or waiting to run. It is the sum of the times when there is no demand, feedstockor raw material and other administrative idle time (e.g. not scheduled for production).

Upti me (SMRP Metric 2.3)

The amount of time an asset is actively producing a product or providing a service. It is the actual running time.

Downtime Event

An event when the asset is down and not capable of performing its intended function.

Scheduled Downtime (SMRP Metric 3.3)

Time to do required work on an asset that is on the finalized weekly maintenance schedule.

Unscheduled Downtime (SMRP Metric 3.4)

Time an asset is down for repairs or modifications that are not on the weekly maintenance schedule.

Performance Efficiency (Rate/Speed)

The degree to which the equipment operates at historical best speeds, rates, and/or cycle times.

Quality Rate

The degree to which product characteristics meet the product or output specifications.

Actual Product ion Rate

The rate at which an asset actually produces product during a designated time period.

Best Producti on Rate

The rate at which an asset is designed to produce product during a designated time period or the demonstrated best

sustained rate, whichever is higher.

Total Units Produced

The number of units produced during a designated time period.

Defective Units Produced

The number of unacceptable units produced during a time period (i.e. losses, rework, scrap, etc.).

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E. QUALIFICATIONS

1.

Time Basis: see options below

Real Time - hourly or per operating shift

Daily – summary report of OEE performance

Period Trending – daily, weekly, monthly, quarterly, and/or annual comparisons

2. Used primarily by maintenance, reliability, production and industrial engineers to capture asset performance data

to identify improvement opportunities.

3. Also used by operations, maintenance and plant engineers as a relative indicator of asset performance from

period to period to evaluate equipment stability and potential capacity for the purposes of production scheduling

and capital investment justification.

4. Caution should be used when calculating OEE at a plant or corporate level. OEE percentage is a better

measure of specific equipment effectiveness.

5. OEE is not a good measure for benchmarking assets, components or processes because it is a relative indicator

of specific asset effectiveness over a period of time.

6. The OEE percentage should be used primarily as a relative, internal improvement measure for a specific asset

or single-stream process.

7. OEE is not a measure of maintenance effectiveness since most factors are not within the control of the maintainers.

8.

If planned and scheduled maintenance is performed during Idle time (i.e. when there is no demand for the asset), the

time is not considered downtime. (Note: This can result in misleading production availability values if demand

increases, reducing or eliminating the opportunity to do planned and scheduled maintenance while the asset is idle.

9. The performance efficiency value cannot exceed 100%; to ensure this does not happen the best production rate

must be specified correctly. When determining best speed, rate or cycle time; plants must evaluate this based

on historic information and whether or not the best speed is sustainable. Typically, time basis is the prior year.

Sustainability varies by type of asset but typically is greater than 4 hours with good quality production or 4 days

with large process plants.

10.

The quality rate should be first pass first time, meaning quality standards are met at the time of manufacturing

without the need for rework.

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An example of the calculation of OEE percentage based on OEE data for one day (24 hours) for “Machine D”operation are shown in the table below.

Major Losses Data Comments

Total Available Time 24 (hrs) 24 hours in one day

Idle Time 8 (hrs) Not required 8 hours per day

Scheduled Downtime

No production, breaks, shift change, etc. 0.66 (hrs) Meeting & shift change

Planned maintenance 1.00 (hrs) Monthly PM

Total Scheduled Downtime 1.66 (hrs)

Un-scheduled Downtime

Waiting for operator 0.46 (hrs)

Failure or breakdowns 0.33 (hrs) Mechanical drive coupling

Setups & changeover 0.56 (hrs) 2 size changes

Tooling or part Changes 0.23 (hrs) Screw station bits

Startup & adjustment 0.50 (hrs) 1st shift Monday

Total Un-Scheduled Downtime 2.08 (hrs)

Total Downtime (scheduled +unscheduled)

3.74 (hrs) 1.66 + 2.08 = 3.74 hours

Uptime 12.26 (hrs) Uptime = (24 - 8) - 3.74 = 12.26 hrs

Availability 76.63% Availability =12.26 ÷ (24 - 8) × 100 = 76.63%

Performance efficiency losses (Count)

Minor stops 10 events Machine jams

Reduced speed or cycle time 100 vs. 167 units Design rate: 12.5 units/hour

Performance efficiency 59.88% Performance Eff =(100 ÷ 167) x 100 = 59.88%

Quality & yield losses (Count)

Scrap product / output 2 Waste, non-salvageable

Defects, rework 1

Yield / Transition 5 Startup & adjustment related

Input material flow 0 Waiting for raw materials

Rejected units produced 8 2 + 1 + 5 = 8

Good units produced 92 100 – 8 = 92 good units

Quality rate 92.00% Quality Rate = (92 ÷ 100 ) × 100 = 92.00%

Overall Equipment Effectiveness % 42.21% 76.63 x 59.88 x 92.00 = 42.21%

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“Machine D” OEE averaged 50.2% year-to-date, 45.06% in the prior period, and is 42.21% in the current period. AnOEE trending downward warrants a review and analysis to understand the root causes and to identify and prioritizeopportunities f or improvement.

TOTAL TIME (365 days x 24 hoursper day)

Idle Time, able to run but not

scheduled to operateSCHEDULE HOURS of Production

DOWNTIME

LOSSESUPTIME HOURS of Actual Production

A V A I L A B I L I T Y

Best Production Rate

Actual Production

S P E E D

Q U A L I T Y

SPEED LOSSES Actual Production

QUALITY LOSSES"First Time First Pass"

Saleable Production

Overall Equip ment Effectiveness Timeline

G. HARMONIZATION


H. REFERENCES

None




2.3 Uptime



MANUFACTURING PROCESS RELIA BIL ITY METRIC

2.3 Upt ime

A. DEFINITION

The amount of time an asset is actively producing a product or providing a service. It is the actual running time. (SeeFigure 1. - Time Element Chart)

B. OBJ ECTIVES

This metric allows evaluation of the total amount of time the asset has been capable of running to produce a product

or to perform a service. It is used to compare the actual run time to planned potential capacity predictions.

C. FORMULA

Uptime = Total Available Time – (Idle Time + Total Downtime)


Idle Time

The amount of time an asset is idle or waiting to run. It is the sum of the times when there is no demand,no feedstock

or raw material and other similar times when the asset is not scheduled for production.


365 days/year × 24 hours/day = 8760 hours/year (note: the addition of 1 more day/year must be made for leap years)

Total Downtime

The amount of time an asset is not capable of running. It is the sum of Scheduled Downtime and UnscheduledDowntime.

E. QUALIFICATIONS

1. Time Basis: Monthly and yearly (should coincide with financial reporting periods)

2. To be used by: plant and/or corporate managers for improvement initiatives, capital investment justification,

asset rationalization and to identify latent capacity

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A given asset is idle for 27 hours and down for 8 hours during a one month period.

Uptime = Total Available Time – (Idle Time + Total Downtime)

Total Available Time = 30 days/month × 24 hours/day = 720 hours/30 day month

Idle Time = 27 hours

Total Downtime = 8 hours

Uptime = 720 – (27 + 8) = 685 hours

Uptime can also be expresses as a percentage e.g. 685 hours ÷ 720 hours = 95.1%

Note: In the sample calculation a 30 day month (720 hrs) is assumed.

G. HA RMONIZATION

This metric is not harmonized.

H. REFERENCES

None

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Available to Run

TotalDowntime

Uptime Idle Time

ScheduledDowntime

UnscheduledDowntime


Examples of Idle Time Examples of ScheduledDowntime

Scheduled RepairsPM/PdMTurnaroundsSet -up

Examples of UnscheduledDowntime

No Demand

No Feedstock No Raw Material

Not scheduledfor roduction

Unscheduled RepairsExternal Factors

Figure 1. Time Element Chart




2.4 Idle Time



MANUFACTURING PROCESS RELIAB ILITY METRIC

2.4

Idle Time

A. DEFINITION

The metric is the amount of time an asset is idle or waiting to run. It is the sum of the times when there is nodemand, feedstock or raw material and other administrative idle time (e.g. not scheduled for production). This doesnot include equipment downtime periods (scheduled/unscheduled), as shown by the Time Element Chart (Figure 1).

B. OBJECTIVES

This metric is used to evaluate the total amount of time or percentage of time the asset is idle or waiting to run. The

metric is used to identify reasons for a loss in potential capacity.

C. FORMULA

Idle Time (hours) = No Demand + No Feedstock or Raw Material + Administrative Idle Time

Idle Time Percentage = Idle Time (hours) ÷ Total Capacity Time (hours)


No Demand

The time that an asset is not scheduled to be in service due to a lack of demand for the product.

No Feedstoc k or Raw Materials

The time that an asset is not scheduled to be in service due to a lack of feedstock or raw material.

Administrat ive Id le Time

The time that an asset is not scheduled to be in service due to a business decision (e.g. economic).

E. QUALIFICATIONS

1.

Time basis: monthly and yearly

2. To be used by plant, operations, corporate managers and production planners to identify latent capacity.

3. Can be used for improvement initiatives, capital investment justification, and asset rationalization.

PAGE 1 of 3

© 2009 by SMRP PUBLICATION DATE: July 17, 2009




During a given month, an asset is down for 15 hours due to a shortage of raw material, 17 hours due to the failure ofa downstream piece of equipment (no demand), 10 hours due to upstream process quality problems (no feedstock)and 2 hours due to a shift change (administrative).

Idle Time (hours) = No Demand + No Feedstock or Raw Material + Administrative Idle Time

Idle Time (hours) = 15 hours + 17 hours + 10 hours + 2 hours

Idle Time (hours) = 44 hours

Idle Time can also be expressed as a percentage.

A 30 day month = 30 days × 24 hours/day = 720 hours

Idle Time (percentage) = 44 hours ÷ 720 hours

Idle Time (percentage) = 6.1%

G. HARMONIZATION


H. REFERENCES

None

PAGE 2 of 3




PAGE 3 of 3


Available to Run

TotalDowntime

Uptime Idle Time

ScheduledDowntime

UnscheduledDowntime



Scheduled RepairsPM/PdMTurnaroundsSet-up


No FeedstockNo Raw Material

Not scheduled forproduction

Unscheduled Repairs

External Factors

Figure 1 Time Element Chart



EQUIPMENT RELIABILITY METRIC

3.2 Total Downt ime



EQUIPMENT RELIAB ILITY METRIC

3.2 Total Downtime

A. DEFINITION

The metric is the amount of time an asset is not capable of running. It is the sum of Scheduled Downtime andUnscheduled Downtime. (See Figure 1 - Time Element Chart)

B. OBJECTIVES

This metric allows the evaluation of the total amount of time the asset has not been capable of running. The metriccan be used to identify problem areas and/or potential capacity in order to minimize downtime.

C. FORMULA

Total Downtime = Scheduled Downtime + Unscheduled Downtime


Scheduled Downtime

Time to do required work on an asset that is on the finalized weekly maintenance schedule.

Unscheduled Downtime

Time an asset is down for repairs or modifications that are not on the weekly maintenance schedule.

Weekly Schedule

The list of maintenance work to be done in the week. It is usually finalized three to four days before the start of thework week.

E. QUALIFICATIONS

1. Time Basis: Weekly, monthly and yearly

2.

To be used by plant and corporate managers for improvement initiatives, capital investment justification, asset

rationalization and to identify latent capacity

3. To track rate-related losses, the metric Overall Equipment Effectiveness (OEE) or Utilization Rate can be used.

PAGE 1 of 3




4. Downtime will vary by industry. Caution must be used when comparing values across industries or industry

sectors.

5. If downtime is required, the downtime should be scheduled such that outages can be planned.

6. Every effort should be made to avoid unscheduled downtime.


For a given asset in a given month the scheduled downtime is 50 hours and the unscheduled downtime is 25 hours.

The Total Downtime would be:

Total Downtime = Scheduled Downtime + Unscheduled Downtime

Total Downtime = 50 + 25

Total Downtime = 75 hrs

It can also be expressed as a percentage.

For a 30-day month:

Total Downtime (%) = [75 hrs ÷ (30days × 24hrs/day)] × 100

Total Downtime (%) = [75hrs ÷ 720 hrs] × 100

Total Downtime (%) = 10.4 %

G. HARMONIZATION


H. REFERENCES

None

PAGE 2 of 3




PAGE 3 of 3


Available to Run

TotalDowntime

Uptime Idle TimeScheduledDowntime

UnscheduledDowntime



Scheduled RepairsPM/PdM

TurnaroundsSet- up


No Demand

No Feedstock

No Raw Material Not scheduled

for roduction

Unscheduled Repairs

External Factors

Figure 1 Time Element Chart




3.3 Scheduled Downtime




3.3 Scheduled Down time

A. DEFINITION

The metric is the amount of time an asset is not capable of running due to scheduled work (i.e. work that is on thefinalized weekly maintenance schedule). (See Figure 1 - Time Element Chart)

B. OBJECTIVES

This metric allows evaluation of the total amount of time the asset has not been capable of running due to scheduledwork. The metrics would be used to understand the impact of scheduled work on capacity and to minimize

downtime.

C. FORMULA

Scheduled Downtime = Sum of asset downtime identified on the Weekly Schedule


Weekly Schedule

The list of maintenance work to be done in the week. It is usually finalized three to four days before the start of the

work week.

E. QUALIFICATIONS

1.

Time Basis: weekly, monthly or yearly

2. To be used by plant managers /corporate managers, for capital investment justification, and asset rationalization.

The metric can also be used to identify latent capacity

3. Examples include: preventive maintenance, repair, turnarounds, etc., (see Time Element Chart - Figure 1).

4.

A company or plant categorizes Scheduled Downtime at their discretion.

5.

Actual hours (not estimated or scheduled hours) should be counted as Scheduled Downtime. For example, ifthe Scheduled Downtime for an asset was planned and scheduled for 20 hours, but the work actually took 30

hours, then 30 hours would be counted as scheduled downtime.

6. Where there is not a weekly schedule or categories of downtime on the weekly schedule, downtime that is

known a week ahead would qualify as scheduled.

7. Downtime will vary by industry. Caution must be used when comparing values across industry sectors.

PAGE 1 of 3




8.

If downtime is required, the downtime should be scheduled such that outages can be planned.

9.

Every effort should be made to avid unscheduled downtime.


For a given asset in a month, downtime identified on weekly schedules included 30 hours of PM work, 10 hours ofrepair work and 10 hours of setup time. These were also the actual hours (not estimated hours). For this example,start-up and shutdown times have been considered negligible.

Scheduled Downtime = Sum of asset downtime identified on the Weekly Schedule

Scheduled Downtime = PM Time + Repair Time + Setup Time

Scheduled Downtime = 30 + 10 + 10

Scheduled Downtime = 50 hours

Scheduled Downtime can also be expressed as a percentage.

For a 30-day month:

Scheduled Downtime (%) = [50 hrs ÷ (30 days × 24 hrs/day)] × 100

Scheduled Downtime (%) = [50 hrs ÷ 720 hrs] × 100

Scheduled Downtime (%) = 6.9 %

G. HARMONIZATION


H. REFERENCES

None

PAGE 2 of 3




PAGE 3 of 3


Available to Run

TotalDowntime

Uptime Idle Time

Scheduled

Downtime

Unscheduled

Downtime



Scheduled Repairs

PM/PdMTurnaroundsSet- up


No Demand

No Feedstock

No Raw Material



Figure1 Time Element Chart




3.4 Unscheduled Downt ime




3.4 Unscheduled Downtime

A. DEFINITION

Unscheduled Downtime is the amount of time an asset is not capable of running due to unscheduled repairs, i.e.repairs not on the finalized weekly maintenance schedule. (See Figure 1 - Time Element Chart)

B. OBJECTIVES

This metric allows evaluation of the total amount of time the asset has not been capable of running due tounscheduled repair work. The metric would be used to understand the impact of unscheduled work on capacity and

maintenance productivity in order to minimize downtime.

C. FORMULA

Unscheduled Downtime = Sum of asset downtime not identified on the Weekly Schedule.


Weekly Schedule

The list of maintenance work to be done in the week. It is usually finalized three to four days before the start of the

workweek.

E. QUALIFICATIONS

1. Time Basis: Weekly, monthly and yearly

2. To be used by plant and corporate managers for improvement initiatives, capital investment justification, and

asset rationalization. The metric can also be used to identify latent capacity.

3. Figure 1 includes examples of Unscheduled Downtime causes. How an individual company categorizes

Unscheduled Downtime is at their discretion.

4.

Downtime will vary by industry. Caution must be used when comparing values across industry sectors.

5. If downtime is required, the downtime should be scheduled such that outages can be planned.

6. Every effort should be made to avoid unscheduled downtime.

PAGE 1 of 3





For a given asset in a month, the downtime that was not identified on the weekly schedule included 20 hours of repairwork and 5 hours due to a lightning strike on the power line feeding the plant.

Unscheduled Downtime = Sum of asset downtime not identified on the Weekly Schedule

Unscheduled Downtime = Repair Time + Power Outage Time

Unscheduled Downtime = 20 hours + 5 hours = 25 hours

It can also be expressed as a percentage. For a 30-day month

Unscheduled Downtime (%) = [25 hrs ÷ (30 days × 24 hrs/day)] ×100

Unscheduled Downtime (%) = (25 hrs ÷ 720 hrs) × 100 = 3.5 %

G. HARMONIZATION


H. REFERENCES

None

PAGE 2 of 3




PAGE 3 of 3


Available to Run

TotalDowntime

Uptime Idle TimeScheduledDowntime

UnscheduledDowntime



Scheduled RepairsPM/PdMTurnaroundsSet- up


No Demand




Figure1 Time Element Chart




3.5.1 Mean Time Between Failures (MTBF)




3.5.1 Mean Time Between Failures (MTBF)

A. DEFINITION

Mean Time Between Failures (MTBF) is the average length of operating time between failures for an asset orcomponent. MTBF is used primarily for repairable assets and components of similar type. A related term, Mean Timeto Failure (MTTF) is used primarily for non-repairable assets and components, e.g. light bulbs and rocket engines.Both terms are a measure of asset reliability and are also known as Mean Life. MTBF is the reciprocal of FailureRate (λ) at constant failure rates.

B. OBJECTIVES

This metric is used to assess the reliability of a repairable asset or component. Reliability is usually expressed as theprobability that an asset or component will perform its intended function without failure for a specified period of timeunder specified conditions.

When trending, an increase in MTBF indicates improved asset reliability.

C. FORMULA

MTBF = Operating time (hours) ÷ Number of Failures


Failure

When an asset is unable to perform its required function.

Mean Life

A term used interchangeably with Mean Time Between Failures and Mean Time to Failure.

Operating Time

An interval of time during which the asset or component is performing its required function.

E. QUALIFICATIONS

1. Time Basis: Equipment dependent

2. To be used by: maintenance and reliability personnel

PAGE 1 of 2

© 2009 by SMRP PUBLICATION DATE: August 4, 2009



PAGE 2 of 2


3. Best when used at asset or component level

4. Should be trended over time for critical assets/components

5.

Can be used to compare reliability of similar asset/component types

6. If MTBF for an asset or component is low, root cause failure analysis (RCFA) or failure modes and effects

analysis (FMEA) should be performed to identify opportunities to improve reliability.

7. By using MTBF as a parameter for redesign, the repair time and maintenance cost of an asset could be reduced.


Assume an asset had 10 failures in 1000 hours of operation, as indicated in the diagram below,

Failures

9 10 9 10 1 2 3 4 51 2 3 4 5 6 7 86 7 8

100 152 192 297 433 485 689 757 823 951

1000

Hours

1000

Hours

951 100 152 192 297 433 485 689 757 823

MTBF = Operating time (hours) ÷ Number of Failures

MTBF = 1000 hours ÷ 10 failures

MTBF = 100 hours

G. HARMONIZATION

This metric and its supporting definitions are similar or identical to EN 15341 indicator T17. This document isrecommended by the European Federation of National Maintenance Societies (EFNMS) as a guideline forcalculating the T17 indicator.

H. REFERENCES

1. Gulati, R. (2009). Maintenance and Reliability Best Practices. Industrial Press

2. United States Air Force. Mil-Std-721C




3.5.2 Mean Time to Repairor Replace (MTTR)




3.5.2 Mean Time to Repair or Replace (MTTR)

A. DEFINITION

Mean Time to Repair or Replace (MTTR) is the average time needed to restore an asset to its full operationalcapabilities after a failure. MTTR is a measure of asset maintainability, usually expressed as the probability that amachine can be restored to its specified operable condition within a specified interval of time, regardless of whetheran asset is repaired or replaced.

B. OBJECTIVES

The objective of this metric is to assess maintainability, including the effectiveness of plans and procedures.

C. FORMULA

MTTR = total repair or replacement time (hours) ÷ number of repair or replacement events


Repair/Replacement Time

The time required to restore the function of an asset after failure by repairing or replacing the asset. The duration of

the repair or replacement begins when the asset ceases to operate to the time operability is restored. It shouldinclude time for checking the asset for its functionality prior to handing it over to Operations.

Repair/Replacement Event

The act of restoring the function of an asset after failure or imminent failure by repairing or replacing the asset.

Failure


E. QUALIFICATIONS

1. Time basis: Equipment dependent

2. Used by maintenance and reliability personnel.

3. Provides the best data when used for the same type of asset/component in a similar operating context.

PAGE 1 of 2




PAGE 2 of 2


4. The Craft Worker’s skill level, existence and use of repair procedures and the availability of tools and materials

could significantly reduce MTTR.

5. By using MTTR as a parameter for redesign, the repair time and maintenance cost of an asset could be reduced.


Assume an asset had 10 failures in 1000 hours of operation and repair times were 2, 6, 10, 6, 5, 10, 1, 2, 5 and 3hours as shown in the diagram below.

FAILURES

9 10 9 10 1 2 3 4 51 2 3 4 5 6 7 86 7 8

100 152 192 297 433 485 689 757 823 951

1000

Repair Time 2 6 10 6 5 10 1 2 5 3 2 5 3 5 10 1

1000

Hours

951

MTTR = total repair or replacement time (hours) ÷ number of repair or replacement events

MTTR = (2+6+10+6+5+10+1+2+5+3) ÷ 10

MTTR = 50 hours ÷ 10

MTTR= 5 hours per event

G. HARMONIZATION

This metric and its supporting definitions are similar or identical to EN 15341 indicator T21. This document isrecommended by the European Federation of National Maintenance Societies (EFNMS) as a guideline forcalculating the T21 indicator.

H. REFERENCES

1. Gulati, R. (2009). Maintenance and Reliability Best Practices. Industrial Press

2. United States Air Force. Mil-Std-721C




3.5.3 Mean Time Between Maintenance(MTBM)




3.5.3 Mean Time Between Maintenance (MTBM)

A. DEFINITION

The metric is the average length of operating time between one maintenance action and another maintenance actionfor an asset or component. This metric is applied only for maintenance actions which require or result in functioninterruption.

B. OBJECTIVES

This metric is used to measure the effectiveness of the maintenance strategy for an asset or component. It can also

be used to optimize the productivity of maintenance personnel by minimizing the number of trips to a specific asset orcomponent.

C. FORMULA

Mean Time Between Maintenance (MTBM) = Operating Time (hours) / Number of Maintenance Actions


Maintenance Action

One or more tasks necessary to retain an item in or restore it to a specified operating condition. A maintenanceaction includes corrective as well as preventative and predictive maintenance tasks that interrupt the asset function.

Operating Time

An interval of time during which the asset or component is performing its required function.

E. QUALIFICATIONS

1. Time Basis: equipment dependent

2. Used by reliability engineers to measure the effectiveness of the reliability program of an asset or component.

3.

Should be trended over time to see changes in performance. An increasing MTBM indicates improved

maintenance effectiveness and reliability.

4. Can be used to compare maintenance effectiveness of similar asset and/or component types.

5. Assets or components with low MTBM warrant further analysis (e.g. root cause failure analysis, failure modes

and effects analysis) to determine how reliability can be improved.

6. By using MTBM as a parameter for redesign, repair time and costs can be reduced.

PAGE 1 of 2




PAGE 2 of 2



A given asset had 10 corrective, 6 preventive and 3 predictive maintenance tasks (each resulting in operationinterruption) over 1000 hours of operation.

Mean Time Between Maintenance (MTBM) = Operating Time (hours) / Number of Maintenance Actions

Mean Time Between Maintenance (MTBM) = 1000 hours ÷ (10 + 6 + 3)

Mean Time Between Maintenance (MTBM) = 1000 hours ÷ 19

Mean Time Between Maintenance (MTBM) = 52.63 hours

G. HARMONIZATION


H. REFERENCES

None




3.5.4 Mean Downtime (MDT)




3.5.4 Mean Downtime (MDT)

A. DEFINITION

The metric is the average downtime required to restore an asset or component to its full operational capabilities.MDT includes the time from failure to restoration of an asset or component.

B. OBJECTIVES

This metric is used to measure the effectiveness of the repair strategy for an asset or component. It can also beused to optimize the productivity of maintenance personnel by minimizing the time to repair a specific asset or

component.

C. FORMULA

Mean Downtime (MDT) = Total Downtime (hours) ÷ Number of Downtime Events


Total Downtime (SMRP Metric 3.2)

The amount of time an asset is not capable of running. It is the sum of Scheduled Downtime and Unscheduled

Downtime.

Scheduled Downtime (SMRP Metric 3.3)

The time to do required work on an asset that is on the finalized weekly maintenance schedule.

Unscheduled Downtime (SMRP Metric 3.4)

The time an asset is down for repairs or modifications that are not on the weekly maintenance schedule.

Downtime Event

An event when the asset is down and not capable of performing its intended function.

E. QUALIFICATIONS

1. Time basis: equipment dependent.

2.

Used by maintenance, industrial and reliability engineers to measure the effectiveness of the repair process for

an asset or component.

PAGE 1 of 3




3.

Can be used to assess planning effectiveness and to identify productivity opportunities.

4.

By using MDT as a parameter for redesign, the repair time and costs can be reduced.

5. The metric MDT can be broken into components for root cause analysis.

6.

If the asset or component is not required 100% of the time, there may be more meaningful metrics to be used for

improvement.


A given asset had 10 downtime events in 1000 hours of operation and the scheduled downtimes due to thesedowntime events were 3, 9, 15, 8 and 6 hours respectively due to tooling change-outs, modifications, etc. and theunscheduled downtimes due to these downtime events were 7, 14, 2, 4 and 8 hours respectively due to equipmentfailures.

Mean Downtime (MDT) = Total Downtime (hours) ÷ Number of Downtime Events

Mean Downtime (MDT) = [(3 + 9 + 15 + 8 + 6) + (7 + 14 + 2 + 4 + 8)] ÷ 10

Mean Downtime (MDT) = [41 + 35] ÷ 10

Mean Downtime (MDT) = 76 ÷ 10

Mean Downtime (MDT) = 7.6 hours

G. HARMONIZATION


H. REFERENCES

None

PAGE 2 of 3




PAGE 3 of 3


Available to Run

TotalDowntime

Uptime Idle Time

Scheduled

Downtime

Unscheduled

Downtime



Scheduled Repairs

PM/PdMTurnaroundsSet -up


No Demand




Figure 1. Time Element Chart



LEADERSHIP AND ORGANIZATION METRIC

4.1 Rework



ORGANIZATION AND L EADERSHIP METRIC

4.1 Rework

A. DEFINITION

Rework is corrective work done on previously maintained equipment caused by maintenance, operations or materialproblems that resulted in a premature functional failure of the equipment. The typical causes of rework aremaintenance, operational or material quality issues.

B. OBJECTIVES

This metric is used to identify and measure work that is the result of premature failures caused by errors in

maintenance or operation (e.g. start-up) of the equipment or material quality issues. Measuring rework and its rootcauses enables plant management to develop and implement effective strategies designed to minimize or eliminatethese errors. Typical strategies include: maintenance training, operations training, defective parts elimination,maintenance work procedures development or revision, operating procedures development or revision, and improvedpurchasing and/or warehouse practices.

C. FORMULA

Rework (%) = [Corrective Work Identified as Rework (hours) ÷ Total Maintenance Labor Hours] × 100


Total Maintenance Labor Hour s

Total maintenance labor is expressed in hours and includes all maintenance labor hours for normal operating timesas well as outages, shutdowns and turnarounds. Include labor hours for capital expenditures directly related to end-of-life machinery replacement so that excessive replacement versus proper maintenance is not masked. Do notinclude labor hours used for capital expansions or improvements.

Corrective Work

Work done to restore the function of an asset after failure or when failure is imminent.

E. QUALIFICATIONS

1. Time Basis: Monthly

2. To be used by: Maintenance and Operations personnel to measure the amount of maintenance labor is caused

by maintenance or operation errors and/or material quality issues.

3. This metric focuses on the asset, not on individual jobs or activities.

4. The percentage of rework should be very low.

PAGE 1 of 2




PAGE 2 of 2


5. To capture rework, there must be a way to identify and capture corrective maintenance labor caused by

maintenance or operation errors and/or material quality issues. A separate work request or work order should

be used to capture rework. Using an existing work request or work order can mask rework.

6. Rework should be captured by function, craft, crew and/or vendor to enable effective root cause analysis.


A total of 1000 maintenance labor hours are worked in a month. A total of 40 hours are for corrective work identifiedas rework.

Rework (%) = [Corrective Work Identified as Rework (hours) ÷ Total Maintenance Labor Hours] × 100

Rework (%) = (40 hours ÷ 1000 hours) × 100

Rework (%) = 4%

G. HARMONIZATION


H. REFERENCES

None



ORGANIZATION AND LEADERSHIP METRIC

4.2.2 Maintenance Training Hours



ORGANIZATION AND L EADERSHIP METRIC

4.2.2 Maintenance Train ing Hours

A. DEFINITION

The metric is the number of hours of formal training that maintenance personnel receive annually. It is expressed ashours per employee.

B. OBJECTIVES

This metric measures the investment in training to improve the skills and abilities of maintenance personnel.

C. FORMULA

Maintenance Training Hours = Training Hours ÷ Number of Maintenance Employees

This metric can also be expressed as a percentage of the total number of hours worked by a maintenancedepartment.


Training Hours

Includes all time spent on formal training that is designed to improve job skills. The training is provided in a formalsetting and typically includes classroom and hands-on training with testing to confirm comprehension. Training caninclude but is not limited to safety, leadership, technical, computer, planning, reliability, problem solving, and similartraining. Attendance at conventions, seminars and workshops is credited as training, as long as the subjects fallwithin the SMRP Body of Knowledge.

Maintenance Employees

All personnel, salaried and hourly, direct and indirect, who are responsible for executing work assignments pertainingto the maintenance of physical assets and components.

E. QUALIFICATIONS

1. Time basis: yearly

2. Used by maintenance management to measure the investment in skills training.

3. Used as an aid when evaluating skill levels of maintenance craft personnel.

4. Training should be formal and documented and should include comprehension testing.

PAGE 1 of 3




PAGE 2 of 3


5. Individual training needs assessments are important to target specific skills deficiencies and for developing an

overall skills training program.

6. It is helpful to break out training by craft or job classification (mechanical, electrical, craft worker, planner,

engineer, supervisor, etc.) for benchmarking purposes.

7. This metric may also be expressed as a percentage of total maintenance hours (e.g. training hours ÷ total

maintenance labor hours).


A given maintenance organization consists of a manager, maintenance engineer, planner, two foremen, ten

mechanics, four electricians and a storeroom clerk. Training hours during the year included:

264 hours Safety

288 hours Laser alignment

288 hours Hydraulic systems

80 hours Circuit analysis

120 hours Job planning

176 hours Team building

52 hours Mathematics

80 hours Annual SMRP Conference

72 hours Storeroom management

Training Hours = 264 + 288 + 288 + 80 + 120 + 176 + 52 + 80 + 72 = 1420 hours

Number of Maintenance Employees = 1 + 1 + 1 + 2 + 10 + 4 + 1 = 20

Maintenance Training Hours = Training Hours ÷ Number of Maintenance Employees

Maintenance Training Hours = 1420 hours ÷ 20 Maintenance Employees

Maintenance Training Hours = 71 hours/employee

Training Hours as a Percentage of Total Maintenance Hours

The maintenance department total hours for the year were 38,400 man hours.

Maintenance Training Hours (%) = (Training Hours ÷ Total Hours Worked) × 100

Maintenance Training Hours (%) = (1420 hours ÷ 38,400 hours) × 100

Maintenance Training Hours (%) = 0.037 × 100

Maintenance Training Hours (%) = 3.7%



Training Hours by Craft

The four electricians received the following training:

48 hours – Safety 64 hours - Circuit analysis 32 hours - Team building

The total hours of electrician training for the year = 48 + 64 + 32 = 144 hours

Maintenance Training Hours = 144 hours ÷ 4 electricians = 36 hours/electrician

G. HARMONIZATION

This metric and its supporting definitions are similar or identical to EN 15341 indicator O23. This document isrecommended by the European Federation of National Maintenance Societies (EFNMS) as a guideline for

calculating the O23 indicator.

H. REFERENCES

None

PAGE 3 of 3




WORK MANAGEMENT METRIC

5.1.1 Corrective Maintenance Cost



WORK MANA GEMENT METRIC

5.1.1 Correcti ve Maintenance Cost

A. DEFINITION

Corrective Maintenance Cost is the percentage of total maintenance cost that is used to restore equipment to afunctional state after a failure or when failure is imminent. (See Figure 1 – Maintenance Work Types)

B. OBJECTIVES

This metric quantifies the financial impact of work done on corrective maintenance tasks. Trending correctivemaintenance costs can provide feedback to evaluate the effectiveness of proactive activities.

C. FORMULA

Corrective Maintenance Cost (%) = (Corrective Maintenance Cost ×100) ÷ Total Maintenance Cost


Corrective Maintenance Cost

Labor, material, services, and/or contractor cost for work done to restore the function of an asset after failure or whenfailure is imminent.


Total expenditures for maintenance labor (including maintenance performed by operators, e.g., TPM), materials,contractors, services, and resources. Include all maintenance expenses for outages/shutdowns/turnarounds as wellas normal operating times. Include capital expenditures directly related to end-of-life machinery replacement (this isnecessary so that excessive replacement versus proper maintenance is not masked). Do not include capitalexpenditures for plant expansions or improvements.

E. QUALIFICATIONS


2. To be used by: Maintenance management personnel to evaluate the effectiveness of proactive activities such

as the preventive and predictive maintenance programs

3. To obtain data necessary for this measure, the work order system must be configured so that corrective

maintenance work is differentiated from other types of work. This can usually be done by setting up the

appropriate work types and classifying each work order accordingly.

PAGE 1 of 3




4. The costs incurred for corrective work resulting from problems discovered before failure (e.g., predictive

maintenance inspections) should be included in corrective maintenance cost.

5. A high percentage of corrective maintenance cost is typically an indication of a reactive work culture and poor

asset reliability. It can also indicate ineffective preventive and predictive maintenance programs.


The total maintenance cost for the month was $1,287,345. The total cost of all corrective work orders was $817,010.

Corrective Maintenance Cost (%) = (Corrective Maintenance Cost ×100) ÷ Total Maintenance Cost

Corrective Maintenance Cost (%) = ($817,000 ×100) ÷ $1,287,345

Corrective Maintenance Cost (%) = $81,700,000 ÷ $1,287,345

Corrective Maintenance Cost (%) = 63.5%

G. HARMONIZATION


H. REFERENCES

None

PAGE 2 of 3




PAGE 3 of 3


Corrective

Maintenance Work

Structured Work

Identification

Improvement &

Modification Work

Capital Work

Non-Capitalized

Improvements &

Modifications

Predictive

Maintenance

Preventive

Maintenance

Condition Based

Inspections

Corrective Work

from structured

work ID program

All Work

Other non-

maintenance work

Corrective work not

from structured

work ID program

Figure 1 – Maintenance Work Types




5.1.2 Correct ive Maintenance Hours




5.1.2 Corrective Maintenance Hours

A. DEFINITION

Corrective Maintenance Hours is the percentage of total maintenance labor hours that is used to restore equipmentto a functional state after a failure or when failure is imminent. (See Figure 1 – Maintenance Work Types)

B. OBJECTIVES

This metric quantifies the labor resource impact of work done on corrective maintenance tasks. Trending correctivemaintenance hours can provide feedback to evaluate the effectiveness of proactive activities.

C. FORMULA

Corrective Maintenance Hours (%) = (Corrective Maintenance Hours × 100) ÷ Total Maintenance Labor Hours


Corrective Maintenance Labor Hour s

Labor used to restore the function of an asset after failure or when failure is imminent. Labor can be internal and/orexternal (contract).



E. QUALIFICATIONS


2. To be used by: Maintenance management personnel to evaluate the effectiveness of proactive activities such

as the preventive and predictive maintenance programs.

3. To obtain data necessary for this measure, the work order system must be configured so that corrective

maintenance work is differentiated from other types of work. This can usually be done by setting up the

appropriate work types and classifying each work order accordingly.

PAGE 1 of 3




4. The labor incurred for corrective work resulting from problems discovered before failure (e.g., predictive

maintenance inspections) should be included in corrective maintenance labor hours.

A high percentage of corrective maintenance labor hours could be an indication of a reactive work culture and

poor asset reliability.


The total internal maintenance labor used during the month was 2400 hours of straight time and 384 hours ofovertime. Maintenance done by contractors consumed another 480 hours. Corrective maintenance labor during themonth was 1832 hours.

Corrective Maintenance Hours (%) = (Corrective Maintenance Hours × 100) ÷ Total Maintenance Labor Hours

Corrective Maintenance Hours (%) = [1832 ÷ (2400 + 384 + 480)] × 100

Corrective Maintenance Hours (%) = (1832 ÷ 3264) × 100

Corrective Maintenance Hours (%) = 0.561 × 100

Corrective Maintenance Hours (%) = 56.1%

G. HARMONIZATION

This metric and its supporting definitions are similar or identical to the indicator O16 in standard EN 15341. Thisdocument is recommended by the European Federation of National Maintenance Societies (EFNMS) as a guidelinefor calculating the O16 indicator.

H. REFERENCES

None

PAGE 2 of 3




PAGE 3 of 3


Corrective

Maintenance Work

Structured Work

Identification

Improvement &

Modification Work

Capital Work

Non-Capitalized

Improvements &

Modifications

Predictive

Maintenance

Preventive

Maintenance

Condition Based

Inspections

Corrective Workfrom structured

work ID program

All Work

Other non-

maintenance work

Corrective work not

from structured

work ID program

Figure 1 – Maintenance Work Types




5.3.1 Planned Work




5.3.1 Planned Work

A. DEFINITION

The metric is the hours of maintenance labor for work that was formally planned and completed versus the totalmaintenance labor hours expressed as a percentage.

B. OBJECTIVES

This metric is designed to measure the amount of planned work that is being executed. This is a measure of theeffectiveness of the routine maintenance planning process. It is a secondary indicator of craft utilization and can

provide insight into opportunities for wrench time improvement.

C. FORMULA

Planned Work (%) = [Planned Work Executed (hrs) ÷ Total Maintenance Labor Hours] × 100

The result is expressed as a percent (%).


Planned Work

Planned work is work that has gone through a formal planning process to identify labor, materials, tools, and safetyrequirements. This information is assembled into a job plan package and communicated to craft workers prior to thestart of the work.

Planned Work Executed

Labor hours for work that was formally planned and completed.


Total maintenance labor is expressed in hours and includes all maintenance labor hours for normal operating times

as well as outages, shutdowns and turnarounds. If operators hours spent on maintenance activities are captured,they should be included in any applicable metrics. Include labor hours for capital expenditures directly related to end-of-life machinery replacement so that excessive replacement versus proper maintenance is not masked. Do notinclude labor hours for capital expansions or improvements.

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© 2009 by SMRP PUBLICATION DATE: May 24, 2009



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E. QUALIFICATIONS

1. The work plan is independent of work execution.

2. Time Basis: Weekly

3. Overtime hours worked during the planning period should be included in the total maintenance labor hours. If

these hours are expended on planned work, they should be included in the planned work executed.

4. To be used by: Operations and Maintenance management to understand the opportunity for productivity

improvement through planned work.

5. If operators hours spent on maintenance activities are captured, they should be included in any applicable

metrics.

6.

Planned work plus unplanned work (metric 5.3.2) must total 100%.


In a given week the available maintenance labor hours were: 25 craft workers × 8 hrs/day × 5 days/wk = 1000 hrs

There were 75 hours of overtime worked on emergency unplanned work.

Operators performed 23 hours of unplanned maintenance work and 17 hours of planned preventive maintenance.

Total hours = 1000 + 75 + 23 + 17 = 1115 hours

The total amount of hours expended on planned jobs by maintenance craft workers was 650 hours.

Planned Work = [(650 hrs + 17 hrs) ÷ (1000 hrs + 75 hrs + 23 hrs + 17 hrs)] × 100 = 59.8%

G. HARMONIZATION


H. REFERENCES

Palmer, R. (1999), Maintenance Planning and Scheduling Handbook, McGraw-Hill

Gulati, R. (2009), Maintenance and Reliability Best Practices, Industrial Press

Wireman, T. (2005), Developing Performance Indicators for Managing Maintenance, 2nd Ed., Industrial Press







WORK MA NAGEMENT METRIC

5.3.2 Unp lanned Work

A. DEFINITION

The metric is the hours of maintenance labor for work that was completed but not formally planned versus the totalmaintenance labor hours expressed as a percentage.

B. OBJ ECTIVES

This metric is designed to measure the amount of unplanned work that is being executed. This is a measure of theeffectiveness of the routine maintenance planning process. It is a secondary indicator of craft utilization and can

provide insight into opportunities for wrench time improvement.

C. FORMULA

Unplanned Work (%) = [Unplanned Work Executed (hrs) ÷ Total Maintenance Labor Hours] × 100

The result is expressed as a percent (%).


Planned Work


Unplanned Work

Unplanned work is work that has not gone through a formal planning process.

Unplanned Work Executed

Labor hours for unplanned work that has been completed.

Total Maintenance Labor Hours

Total maintenance labor is expressed in hours and includes all maintenance labor hours for normal operating timesas well as outages, shutdowns and turnarounds. If operators hours spent on maintenance activities are captured,they should be included in any applicable metrics. Include labor hours for capital expenditures directly related to end-of-life machinery replacement so that excessive replacement versus proper maintenance is not masked. Do notinclude labor hours for capital expansions or improvements.

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E. QUALIFICATIONS

1.

The work plan is independent of work execution.

2. Time Basis: Weekly

3. Overtime hours worked during the planning period should be included in the total maintenance labor hours. If

these hours are expended on unplanned work, they should be included in the unplanned work executed.

4. To be used by: Operations and Maintenance management to understand the opportunity for productivity

improvement through planned work.

5. If operators hours spent on maintenance activities are captured, they should be included in any applicable

metrics.

6.

Unplanned work plus planned work (metric 5.3.1) must total 100%.


In a given week the available maintenance labor hours were: 25 craft workers × 8 hrs/day × 5 days/wk = 1000 hrs

There were 75 hours of overtime worked on emergency unplanned work.

Operators performed 23 hours of unplanned maintenance work and 17 hours of planned preventive maintenance.

Total hours = 1000 + 75 + 23 + 17 = 1115 hours

The total amount of hours expended on unplanned jobs by maintenance craft workers was 350 hours.

Unplanned Work = [(350 hrs + 75 hrs + 23 hrs) ÷ (1000 hrs + 75 hrs + 23 hrs + 17 hrs)] × 100 = 40.2%

G. HARMONIZATION


H. REFERENCES

Palmer, R. (1999), Maintenance Planning and Scheduling Handbook, McGraw-HillGulati, R. (2009), Maintenance and Reliability Best Practices, Industrial Press

Wireman, T. (2005), Developing Performance Indicators for Managing Maintenance, 2nd Ed., Industrial Press




5.3.3 Actual Cost to Planning Est imate




5.3.3 Actual Cost to Planning Estim ate

A. DEFINITION

Actual Cost to Planning Estimate is the ratio of the actual cost incurred on a work order to the estimated cost for thatwork order.

B. OBJECTIVES

This metric measures the accuracy to which work is planned and the efficiency of planned work execution.

C. FORMULA

Actual Cost to Planning Estimate = [Actual Work Order Cost ($) ÷ Planned Cost ($)] × 100


Actual Wo rk Or der Co st

The final cost of the work order after it is closed.

Planned Cost

The planner’s estimate of cost to complete the work order. Contingencies should not be included.

E. QUALIFICATIONS

1. This metric can be measured per work order or per planner.

2. Used by: Maintenance managers and supervisors to evaluate a planner’s estimating accuracy and the

stability of the work execution process.

3. This metric can be influenced by many factors. Every aspect of the organizations’ routine maintenance work

process will impact this measure. These include such factors as departmental priorities, politics, how time is

charged, etc.

4. Scope changes to the work order should be captured and considered when calculating this metric.

5. The same basis should be used for both the numerator and denominator (e.g. activity, time frame).

6. Only work orders that have been planned, completed and closed should be included.

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7. All outstanding purchase orders should clear before the work order is closed. Unpaid purchases can

significantly impact the final cost.

8.

This metric works best when applied to small sample sizes or individual work orders.

9. See also the related metrics 5.3.4 Actual Hours to Planning Estimate and 5.3.5 Planning Variance Index.

10. If the actual cost is over the estimated cost, the result will be above 100%

11. If the actual cost is under the estimated cost, the result will be below 100%

12. Actual Cost to Planning Estimate is also called Estimating Accuracy.


A maintenance planner plans a carbon steel pipe replacement job by first visiting the job site. He/she identifies the

craft skills required, number of craft workers, materials, tools, procedures, and permits that are needed for the job.The planner estimates the costs to complete the work order as shown below.

Planned Cost

Replacement pipe $1,360Rental, Manlift $ 550Labor (Welder) $ 720 (16hrs @ $45/hr)Labor (Mechanic) $ 540 (12hrs @ $45/hr)Total Estimate $3,170

After the work order has been completed and closed, the actual costs were:

Actual costReplacement pipe $1,360Rental, Manlift $ 800Labor (Welder) $ 810 (18hrs @ $45/hr)Labor (Mechanic) $ 720 (16hrs @ $45/hr)Total Labor Material $3,690

Actual Cost to Planning Estimate = [Actual Work Order Cost ($) ÷ Planned Cost ($)] × 100

Actual Cost to Planning Estimate = [$3,690 ÷ $3,170] x 100

Actual Cost to Planning Estimate = 1.164 x 100 = 116.4%

G. HARMONIZATION


H. REFERENCES

None




5.3.4 Actual Hours to Planning Estimate




5.3.4 Actual Hours to Planning Est imate

A. DEFINITION

Actual Hours to Planning Estimate is the ratio of the actual number of labor hours reported on a work order to theestimated number of labor hours that was planned for that work order.

B. OBJECTIVES

This metric measures the accuracy with which work is planned and the efficiency of planned work execution.

C. FORMULA

Actual Hours to Planning Estimate = (Actual Work Order Hours ÷ Planned Hours) × 100


Actual Wo rk Or der Ho urs

The quantity of hours reported on a work order after it is closed.

Planned Work Order Hours

The planner’s estimate of hours needed to complete the work order.

E. QUALIFICATIONS

1. Time basis: per work order or per planner

2.

Used by: Maintenance managers and supervisors to evaluate a planner’s estimating accuracy and the stability

of the work execution process.

3.

This metric can be influenced by many factors. Every aspect of the organizations’ routine maintenance work

process will impact this measure. These include such factors as departmental priorities, politics, how time is

charged, etc.

4. Scope changes to the work order should be captured and considered when calculating this metric.

5.

The same basis should be used for both the numerator and denominator (e.g. activity, time frame).

6. Only work that has been planned, completed and closed should be included.

7. This metric works best when applied to small sample sizes or individual work orders.

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8.

See also the related metrics 5.3.3 Actual Cost to Planning Estimate and 5.3.5 Planning Variance Index.

9.

If the actual hours are over the estimated cost, the result will be above 100%.

10.

If the actual hours are under the estimated cost, the result will be below 100%

11. Actual Hours to Planning Estimate is also called Estimating Accuracy.


A maintenance planner plans a carbon steel pipe replacement job by first visiting the job site. He/she identifies thecraft skills required, number of craft workers, materials, tools, procedures, and permits that are needed for the job.The planner estimates the costs to complete the work order as shown below.

Planned Labor Hours

Labor (Welder) 16hrsLabor (Mechanic) 12hrsTotal Labor Material 28hrr

After the work order has been completed and closed, the actual labor hours were:

Actual Labor Hours

Labor (Welder) 18hrsLabor (Mechanic) 16hrs

Total Labor Material 34hrs

Actual Hours to Planning Estimate = (Actual Work Order Hours ÷ Planned Hours) × 100

Actual Hours to Planning Estimate = (34 hrs ÷ 28 hrs) × 100

Actual Hours to Planning Estimate = 1.214 × 100

Actual Hours to Planning Estimate = 121.4%

G. HARMONIZATION


H. REFERENCES

None




5.4.1 Reactive Work




5.4.1 React ive Work

A. DEFINITION

Reactive work is maintenance work that breaks into the weekly schedule.

B. OBJECTIVES

This metric is used to measure and monitor the amount of work that is performed outside of the weekly schedule.

C. FORMULA

Reactive Work (%) = [Work that breaks into the weekly schedule (hrs) ÷ Total Maintenance Labor Hours] × 100




Weekly Schedule

The list of maintenance work to be done in the week. It is usually finalized three to four days before the start of thework week.

E. QUALIFICATIONS


2. To be used by maintenance and operations management to understand how reactive a plant is (i.e. jumping

from one problem to the next).

3.

Can be used to show the potential benefit of reducing the level of reactive work and increasing the level of

planned and scheduled work.

4. High levels of reactive work can be an indication of poor asset reliability and/or poor work prioritization and

management.

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5.

Examples of reactive work include emergency work and similar work that must be started immediately due the

asset condition and/or business requirements (e.g. product demand).

6.

Work that is well planned and scheduled is completed more efficiently than reactive work.

7. Ideally the amount of reactive work would be minimal.


The total hours worked in the month by the maintenance organization on all work types and priorities is 1000 hours. A total of 350 hours was worked on emergency and similar work that was not on the weekly schedule.

Reactive Work (%) = [Work that breaks into the weekly schedule (hrs) ÷ Total Maintenance Labor Hours] × 100

Reactive Work (%) = [350 hrs ÷ 1000 hrs] × 100

Reactive Work (%) = 0.35 × 100

Reactive Work (%) = 35%

G. HARMONIZATION

This metric and its supporting definitions are similar or identical to EN 15341 indicator O17. This document isrecommended by the European Federation of National Maintenance Societies (EFNMS) as a guideline forcalculating the O17 indicator.

H. REFERENCES

Moore, Ron. (2004). Making Common Sense Common Practice, Models for Manufacturing Excellence Elservier Butterworth – Heinemann

Wireman, Terry. (2005). Developing Performance Indicators for Managing Maintenance – IndustrialPress

Campbell, John and James Reyes-Picknell. (2006). Uptime – Productivity Press









A. DEFINITION

Proactive work is maintenance work that is completed to avoid failures or to identify defects that could lead tofailures. It includes routine preventive and predictive maintenance activities and work tasks identified from them.

B. OBJECTIVES

This metric is used to measure and monitor the amount of work that is being done in order to prevent failures or toidentify defects that could lead to failures.

C. FORMULA

Proactive Work (%) = [Work completed on preventive maintenance work orders, predictive maintenance work orders, and

corrective work identified from preventive and predictive work orders (hrs) ÷ Total Maintenance Labor Hours] × 100


Preventiv e Maintenance

Preventive maintenance is an equipment maintenance strategy based on replacing or restoring an asset on a fixedinterval regardless of its condition. Scheduled restoration and replacement tasks are examples of preventivemaintenance.

Predictive Maintenance

Predictive maintenance is an equipment maintenance strategy based on assessing the condition of an asset todetermine the likelihood of failure and then taking appropriate action to avoid failure. The condition of equipment canbe measured using condition monitoring technologies, statistical process control, equipment performance indicatorsor through the use of human senses.

Corrective Work Identif ied from Preventive and Predicti ve Maintenance Work Orders

Corrective work that was identified through preventive and/or predictive maintenance tasks and completed prior tofailure in order to restore the function of an asset.

Failures


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E. QUALIFICATIONS


2. To be used by maintenance and operations management to understand how much time is being spent on

activities designed to avoid failures.

3.

High levels of proactive work coupled with a low rate of failures can be an indication that operation andmaintenance processes are well designed and managed.

4. Ideally the amount of proactive work would be high to maximize the benefits derived from avoiding failures.


The total actual hours worked in the month by the maintenance organization is 1000 hours. A total of 150 hours wasworked on preventive maintenance, 100 hours was worked on predictive maintenance and 400 hours was worked oncorrective maintenance from preventive and predictive maintenance work orders.

Proactive Work (%) = [Work completed on preventive maintenance work orders, predictive maintenance work

orders, and corrective work Identified from preventive and predictive work orders (hrs) ÷ TotalMaintenance Labor Hours] × 100

Proactive Work (%) = [(150 hours + 100 hours + 400 hours) ÷ 1000 hours] × 100

Proactive Work (%) = [650 hours ÷ 1000 hours] × 100

Proactive Work (%) = 0.65 × 100

Proactive Work (%) = 65%

G. HARMONIZATION


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H. REFERENCES

Moore, Ron. (2004). Making Common Sense Common Practice, Models for Manufacturing Excellence Elservier Butterworth – Heinemann

Wireman, Terry. (2005). Developing Performance Indicators for Managing Maintenance – Industrial Press

Campbell, John and James Reyes-Picknell. (2006). Uptime – Productivity Press




5.4.3 Schedule Compliance - Hours




5.4.3 Schedule Compliance - Hours

A. DEFINITION

The metric is a measure of adherence to the maintenance schedule expressed as a percent of total time available toschedule.

B. OBJECTIVES

This metric measures compliance to the maintenance schedule and reflects the effectiveness of the work schedulingprocess.

C. FORMULA

Schedule Compliance (%) = [Scheduled Work Performed (hrs) ÷ Total Time Available to Schedule (hrs)] × 100


Scheduled Work Perfor med (hrs)

Actual hours worked on scheduled work per the maintenance schedule.

Total Time Available to Schedule

The total craft hours available to schedule. Do not include vacation, illness or injury, and other similar time off.

E. QUALIFICATIONS

1. This metric is typically calculated and reported on a daily and/or weekly basis.

2. To be used by maintenance management to identify opportunities for efficiency improvement.

3. Scheduling is the “when” and involves assigning all required resources to perform the work at the optimum time

to facilitate the most efficient execution of the work.

4.

The scheduler reviews the planned work package which includes a written scope, work plan, manpowerrequirements (by craft workers), all required permits, special tools, equipment (such as mobile work platforms,

cranes, lifts, etc.) and parts availability. This information is compared to the production schedule and the

manpower available to determine the optimum time to schedule the work.

5. Any work performed that is not on the schedule is unscheduled work.

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6.

This metric is a secondary indicator of planning effectiveness, reactive work and craft worker effectiveness.

7.

See also related metric 5.4.4 Schedule Compliance – Work Orders which measures weekly schedule

performance using work orders.


Daily Basis:

For a given work day the available work hours are 20 craft workers × 8 hrs/day = 160 hrs/day.

On this day 140 hrs of work was scheduled while 20 hrs were not scheduled due to anticipated emergency work or

other unscheduled work.

The actual scheduled worked performed was limited to100 hrs due to emergency work and work that extendedbeyond the scheduled time.


Schedule Compliance (%) = [100 hrs ÷ 160 hrs] × 100

Schedule Compliance (%) = 0.625 × 100

Schedule Compliance (%) = 62.5%

Weekly Basis:

For a given week the available work hours are 20 craft workers × 8 hrs/day × 5 days/week = 800 hrs.

During this week 675 hrs of work was scheduled while 125 were not scheduled due to anticipated emergency work orother unscheduled work.

The actual scheduled worked performed was limited to 482 hrs due to emergency work and work that extendedbeyond the scheduled time.


Schedule Compliance (%) = [482 hrs ÷ 800 hrs] × 100

Schedule Compliance (%) = 0.603 × 100

Schedule Compliance (%) = 60.3%

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G. HARMONIZATION


H. REFERENCES

Palmer, Richard D. (1999). Planning and Scheduling Handbook – McGraw Hill




5.4.4 Schedule Compliance – Work Orders




5.4.4 Schedu le Compl iance – Work Orders

A. DEFINITION

The metric is a measure of adherence to the weekly maintenance work schedule expressed as a percent of totalnumber of scheduled work orders.

B. OBJECTIVES

This metric measures compliance to the weekly maintenance schedule and reflects the effectiveness of the workscheduling process.

C. FORMULA

Scheduled Compliance (%) = (Number of work orders performed as scheduled ÷ Total number of scheduled work orders) × 100


Number of Work Orders Perfor med as Scheduled

Number of work orders on the maintenance schedule that were executed when scheduled.

Total Number of Scheduled Work Orders

Total number of work orders on the weekly maintenance schedule.

Weekly Schedule

The list of maintenance work to be done in a week. It is usually finalized three to four days before the start of thework week.

E. QUALIFICATIONS

1. This metric is calculated on a weekly basis.

2.

To be used by maintenance management to identify opportunities for efficiency improvement.

3. Rescheduled work that reappears on a weekly maintenance schedule cannot be completed as scheduled since

the original schedule date has already passed. Count only work orders that were actually completed as

scheduled on the original schedule.

4. See also related metric 5.4.3 Schedule Compliance – Hours which measures schedule performance in hours.

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© 2009 by SMRP PUBLICATION DATE: May14, 2009



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© 2009 by SMRP PUBLICATION DATE: May14, 2009

5.

Any work performed that is not on the schedule is unscheduled work.

6.

This metric is a secondary indicator of planning effectiveness, reactive work and craft worker effectiveness.


For a given week there were 135 work orders scheduled. At the end of the week 113 scheduled work orders and 45emergency work orders were completed.

Scheduled Compliance (%) = (Number of work orders performed as scheduled ÷ Total number of scheduled work orders) × 100

Scheduled Compliance (%) = (113 ÷ 135) × 100

Scheduled Compliance (%) = 0.837 × 100

Scheduled Compliance (%) = 83.7%

Note: The emergency work orders do not count as they broke into the weekly schedule.

G. HARMONIZATION


H. REFERENCES

Palmer, Richard D. (1999). Planning and Scheduling Handbook – McGraw Hill




5.4.5 Standing Work Orders



WORK MANAGEMENT METRICS

5.4.5 Standing Work Orders A. DEFINITION

The metric is the ratio of the hours worked on standing work orders to the total maintenance labor hours expressedas a percentage.

B. OBJECTIVES

This metric measures the amount of maintenance work charged to standing work orders.

C. FORMULA

Standing Work Orders (%) = [Hours worked on standing work orders ÷ total maintenance labor hours] × 100


Standing Work Order

A work order opened for a specific period of time to capture labor and material costs for recurring or short durationmaintenance work and for work that is not associated with a specific piece of equipment where tracking work historyor formalizing individual work orders is not cost effective or practical. Examples include shop housekeeping,meetings, training, etc. Standing work orders are also referred to as a blanket work orders.

In some cases involving specific equipment, a standing work order may be used if the time and cost associated withthe work is insignificant and if there is no need to capture maintenance history (e.g. time required to perform a routinedaily adjustment).


Total maintenance labor is expressed in hours and includes all maintenance labor hours for normal operating timesas well as outages, shutdowns and turnarounds. If operator hours spent on maintenance activities are captured, theyshould be included in the numerator and denominator of all applicable metrics. Include labor hours for capitalexpenditures directly related to end-of-life machinery replacement so that excessive replacement versus propermaintenance is not masked. Do not include labor hours used for capital expansions or improvements.

E. QUALIFICATIONS

1. This metric is calculated on a weekly, monthly or annual basis.

2. To be used by maintenance and operations managers to understand the amount of maintenance work not

captured against a specific piece of equipment.

3. Standing work orders should be used on a limited basis recognizing that work history is not captured and the

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data captured does not lend itself to analysis.

4.

Standing work orders do not provide any detail or work history and are used primarily to capture maintenance costs.

5.

Standing work orders should not be a substitute for emergency work orders since important work history will not

be captured for the emergency condition.

6. Excessive use of standing work orders may be an indication that a work order system is not being used effectively.

7.

Work types should not be mixed within a standing work order.

8. Standing work orders should be closed periodically (typically monthly but no greater than annually) and a new

standing work order created at the start of the next period to avoid abuse and raise awareness of associated costs.

9. Standing work orders are typically not scheduled on a weekly schedule.


For a given month 100 hours were spent on standing work orders. The total maintenance hours worked during themonth was 1500 hours.

Standing Work Orders (%) = [Hours worked on standing work orders ÷ total maintenance labor hours] × 100

Standing Work Orders (%) = [100 ÷ 1500] × 100

Standing Work Orders (%) = 0.067 × 100

Standing Work Orders = 6.7%

G. HARMONIZATION


H. REFERENCES

What is a Standing Work Order (SWO)? UCSC Physical Plant, May 16, 2009.<http://ucscplant.ucsc.edu/ucscplant/index.jsp?page=FAQ#faq2>

Work Order Control. PlantServices.com. May 16, 2009. http://plantservices.com/articles/2006/279.html>

What is a Standing Work Order (SWO)? University of Southern California Facilities ManagementServices, May 16, 2009. <http://usc.edu/fms/faq.shtml>

Work Order . University of Minnesota Facilities Management Services. July 11, 2007<http://www.facm.umn.edu/famis/swoother1.htm>

Work Order. University of Southern California Facilities Management Services, July 11, 2007.<http://usc.edu/fms/faq.shtml>




5.4.9 Ready Backlog



WORK MANAGEMENT METRICS

5.4.9 Ready Backlog

A. DEFINITION

The metric is the quantity of work that has been fully prepared for execution but has not yet been executed. It is workfor which all planning has been done and materials procured but awaiting assigned labor for execution.

B. OBJECTIVES

This metric measures the quantity of work yet to be performed to ensure labor resources are balanced with theavailable work.

C. FORMULA

Ready Backlog = Ready Work ÷ Crew Capacity


Ready Work

Work that has been prepared for execution i.e. necessary planning has been done, materials procured and laborrequirements have been estimated.

Crew Capacity

That portion of the weekly maintenance labor complement that is available to work on backlog jobs. It is the sum ofthe straight time hours per week for each individual in the crew, plus scheduled overtime, less indirect commitments(e.g. training, meetings, vacations, etc.).

E. QUALIFICATIONS

1. Time Basis: weekly

2. To be used by maintenance management to balance labor resources against available work. If insufficient

resources are available, workers can work overtime or contractors can be used to supplement the workforce inorder to keep labor capacity balanced with workload.

3. If ready backlog is less than two weeks, it may be difficult to create a weekly schedule for the full work crew.

4. If ready backlog is greater than four weeks, there is likelihood that work will not be completed in a timely fashion

(i.e. excessive work order aging).

5. Two to four weeks of ready backlog facilitates level scheduling of the work crew.

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5.4.14 PM & PdM Compliance




5.4.14 PM & PdM Comp liance A. DEFINITION

The metric is a review of completed preventive maintenance (PM) and predictive maintenance (PdM) work orders,wherein the evaluation is against preset criteria for executing and completing the work.

B. OBJECTIVES

This metric summarizes PM & PdM work order execution and completion compliance.

C. FORMULA

PM & PdM Compliance = PM & PdM work orders completed by due date ÷ PM & PdM work orders due

PM & PdM work order compliance can be measured and reported different ways using different completion criteria.

1. A PM & PdM work order is considered completed on time if completed by the required date.

2. A PM & PdM work order is considered completed on time if completed by the required date + one day.

3. A PM & PdM work order is considered completed on time if completed by the required date + 20 % of the PMand PdM frequency up to a maximum of 28 days.

If a grace period is allowed for PM & PdM work order completion, the same completion criteria must beused consistently.


Execution Date

The date the PM or PDM work was executed on the asset or component.

Completion Date

The date that PM or PdM work order was certified complete and closed out in the CMMS system.

Required Date

The date when the PM or PdM work is scheduled to be completed.

Due Date

The required date + the grace period.

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E. QUALIFICATIONS

1.

Time Basis: monthly and yearly

2. To be used by plant maintenance personnel to monitor PM & PdM work order compliance.

3. Required dates for PM & PdM completion should be based on the equipment manufacturer’s recommendation or

performance analysis supported by empirical data.

4. Performance should be trended and compared against predefined standards or targets.

5. Performance can be measured and report by asset or for all assets or some subset thereof.

6. Typical grace periods based on fixed-frequency generated PM’s and PdM’s are shown in the table below.

PM Frequency Number of Days 20% Grace Period (days)5 years 1826 365

2 years 730 146

1 year 365 73

6 months 182 36

3 months 91 18

2 months 60 12

1 month 30 6

8 weeks 56 11

6 weeks 42 8

4 weeks 28 63 weeks 21 4

2 weeks 14 3

1 week 7 1


In a given month 476 Pm & PdM’s are due. There are 416 PM’s and PdM’s completed by the due date with thebalance overdue.

PM & PdM Compliance = PM & PdM work orders completed by due date ÷ PM & PdM work orders due

PM & PdM Compliance = 416 ÷ 476

PM & PdM Compliance = 87.4%

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An example of a basic PM & PdM Compliance table and graph are shown below.

Month 1 2 3 4 5 6 7 8 9 10 11 12

PM & PdM Compliance 89% 76% 79% 83% 82% 65% 77% 78% 82% 81% 78% 87%

G. HARMONIZATION


H. REFERENCES

None




5.5.1 Supervisor to Craft Worker Ratio




5.5.1 Craft Worker to Superviso r Ratio

A. DEFINITION

The metric is the ratio of maintenance craft workers to supervisors.

B. OBJ ECTIVES

This metric is used to measure the manpower work load of supervisors for comparison and benchmarking.

C. FORMULA

Craft Worker to Supervisor Ratio = Total Number of Maintenance Craft Workers ÷ Total Number of Supervisors

The result is expressed as a ratio e.g. 15:1


Supervisor

The first-line leader who is accountable for work execution by the maintenance craft workers.

Maintenance Craft Worker

The worker responsible for executing maintenance work orders (e.g. electrician, mechanic, PM/PdM technician, etc.).

E. QUALIFICATIONS

1. Time basis: yearly.

2.

Used by maintenance and plant managers, human resources representatives and industrial engineers to

understand the manpower workload of maintenance supervisors.

3.

The ratio is calculated and used for the maintenance department and for individual supervisors for comparison

and benchmarking.

4.

Supervisors typically have additional responsibilities beyond supervising maintenance work execution (e.g.

quality inspections, craft worker training, emergency work planning, etc.). These additional responsibilities must

be considered when making comparisons.

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A given maintenance department has 78 craft workers and 6 supervisors.


Craft Worker to Supervisor Ratio = 78 ÷ 6

Craft Worker to Supervisor Ratio = 13:1

A given supervisor has 12 mechanics, and 2 welders assigned to his crew.


Craft Worker to Supervisor Ratio = (12 + 2) ÷ 1


G. HARMONIZATION


H. REFERENCES

LifeCycle Engineering, (2004). Maintenance Planning and Scheduling, Educational Program

LifeCycle Engineering, (2005). Maintenance Excellence for Maintenance Leaders, Educational Program




5.5.2 Craft Worker to Planner Ratio




5.5.2 Craft Worker to Planner Ratio

A. DEFINITION

The metric is the ratio of maintenance craft workers to planners.

B. OBJECTIVES

This metric is used to measure the manpower planning work load of planners for comparison and benchmarking.This ratio identifies the level of work planning activities necessary to maintain a backlog of planned maintenancework.

C. FORMULA

Craft Worker to Planner Ratio = Total Number of Maintenance Craft Workers ÷ Total Number of Planners

The result is expressed as a ratio e.g. 30:1.




Planned Work


Planner

A formally trained maintenance professional who identifies labor, materials, tools, and safety requirements formaintenance work orders. The planner assembles this information into a job plan package and communicates it to

the maintenance supervisor and/or craft workers prior to the start of the work

E. QUALIFICATIONS

1. Time basis: yearly.

2. Used by maintenance and plant managers, human resources representatives and industrial engineers to

understand the manpower planning workload of maintenance planners.

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3.

The ratio is calculated and used for the maintenance department and for individual planners for comparison and

benchmarking.

4. This metric is typically normalized to a 40-hour work week.

5. A planner may have duties such as expediting or overseeing capital repairs that are not planning. Only planning

hours should be used when calculating this metric (i.e. equivalent planner).


A given maintenance department has 78 craft workers and 2 planners.


Craft Worker to Planner Ratio = 78 ÷ 2

Craft Worker to Planner Ratio = 38:1

A given planners plans work for 28 mechanics, 3 welders, 2 machinists and 1 heavy equipment operator.


Craft Worker to Planner Ratio = (28 + 3 + 2 + 1) ÷ 1


G. HARMONIZATION


H. REFERENCES

Palmer, Richard D. (2005). Maintenance Planning and Scheduling Handbook, 2nd Edition; McGraw-Hill

Life Cycle Engineering, (2005). Maintenance Excellence for Maintenance Leaders, Educational Program




5.5.6 Craft Worker on Shift Ratio




5.5.6 Craft Worker on Shift Ratio

A. DEFINITION

The metric is the ratio of the number of maintenance craft workers on shift to the total number of maintenance craft workers.

B. OBJECTIVES

This metric is an indirect measurement of equipment reliability since frequent unexpected failures require craftworkers on shift to expedite repairs. Trending the number of craft workers on shift can also help identify maintenanceissues on the off shifts and can be used to benchmark with other companies or between departments within the

same plant.

C. FORMULA

Craft Worker on Shift Ratio = Total Number of Maintenance Craft Workers on Shift ÷ Total Number of MaintenanceCraft Workers

The result is expressed as a ratio e.g. 1:6.




On Shift

Maintenance craft workers who rotate with or are assigned work hours aligned with a production shift are considered“on shift.” Maintenance craft workers on shift typically work on emergency work and are not identified with the maingroup of maintenance craft workers that work day shift.

E. QUALIFICATIONS

1.

Time basis: monthly

2. Used by plant management as an indicator of the reliability of production assets.

3. Maintenance craft workers called in to work outside their normal shift are not considered on shift whether

working a full shift or not.

4. Trending the number of craft workers on shift may help identify maintenance issues on the off shifts.

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A given maintenance department has 24 mechanics with 3 on shift, 8 Electricians with 2 on shift and 4instrumentation technicians with 1 on shift.

Craft Worker on Shift Ratio = Total Number of Maintenance Craft Workers on Shift ÷ Total Number of MaintenanceCraft Workers

Craft Worker on Shift Ratio = (3 + 2 + 1) ÷ (24 + 8 = 4)

Craft Worker on Shift Ratio = 6 ÷ 36

Craft Worker on Shift Ratio = 1:6

G. HARMONIZATION


H. REFERENCES

None




5.5.7 Overt ime Maintenance Cost




5.5.7 Overtime Maintenance Cost

A. DEFINITION

The metric is the cost of overtime maintenance labor used to maintain assets divided by the total cost of maintenancelabor used to maintain assets, expressed as a percentage.

B. OBJECTIVES

This metric is used to determine whether the permanent maintenance workforce is performing effectively andappropriately staffed for the maintenance workload.

C. FORMULA

Overtime Maintenance Cost (%) = [Overtime Maintenance Labor Cost ($) ÷ Total Maintenance Labor Cost ($)] × 100


Overtime Maintenance Labor Cost

Overtime Maintenance Labor Cost is the cost of any hours worked beyond the standard work period or shift (e.g. 8hours per day or 40 hours per week) multiplied by the labor rate. Add production incentives to this number but not

profit sharing. Include overtime maintenance labor costs for normal operating times as well as foroutages/shutdowns/turnarounds. Include labor cost for capital expenditures directly related to end-of-life machineryreplacement (this is necessary so that excessive replacement versus proper maintenance is not masked). Do notinclude labor cost used for capital expenditures for plant expansions or improvements. Typically, it does not includetemporary contractor labor overtime cost.

Total Maintenance Labor Cost

Total maintenance labor cost is expressed in dollars, including overtime. Total cost includes all maintenance laborhours multiplied by the labor rate, plus any production incentive but not profit sharing. Include maintenance laborcosts for normal operating times as well as outages/shutdowns/turnarounds. Include labor for capital expendituresdirectly related to end-of-life machinery replacement (this is necessary so that excessive replacement versus proper

maintenance is not masked). Do not include labor used for capital expenditures for plant expansions orimprovements. Typically, it does not include temporary contractor labor cost.

E. QUALIFICATIONS

1. Time basis: Typically calculated on a monthly basis.

2. To be used by maintenance managers, maintenance supervisors, and human resources managers to evaluate

the need for additional resources.

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3. Complementary metrics include 5.6.1 Wrench Time, 5.4.1 Reactive Work, 5.5.71 Contractor Cost, 5.5.8

Overtime Maintenance Hours, and 4.1 Rework

4. If a contractor is used as permanent onsite maintenance, their costs should be included.

5. It may be difficult to separate operator-based maintenance labor cost.

6. Abnormally high levels of overtime during turnarounds may skew routine overtime maintenance cost.

7. Cost can be expressed in any currency as long as the same currency is used for comparison purposes.


If overtime maintenance labor cost in a given month is $12,500 and the total maintenance labor cost is $250,000 for

this same month, overtime maintenance cost would be:

Overtime Maintenance Cost (%) = [Overtime Maintenance Labor Cost ($) ÷ Total Maintenance Labor Cost ($)] × 100

Overtime Maintenance Cost (%) = [$12,500 ÷ $250,000] × 100

Overtime Maintenance Cost (%) = 0.05 × 100

Overtime Maintenance Cost (%) = 5%

G. HARMONIZATION


H. REFERENCES

None




5.5.8 Overtime Maintenance Hours



WORK MANAGEMENT

5.5.8 Overtime Maintenance Hours

A. DEFINITION

The metric is the number of overtime maintenance labor hours used to maintain assets, divided by the totalmaintenance labor hours to maintain assets, expressed as a percentage.

B. OBJECTIVES

This metric is used to determine whether the permanent maintenance workforce is performing effectively andappropriately staffed for the maintenance workload.

C. FORMULA

Overtime Maintenance Hours (%) = (Overtime Maintenance Labor Hours ÷ Total Maintenance Labor Hours) × 100


Overtime Maintenance Labor Hours

Overtime Maintenance Labor Hours is any hours beyond the normal standard work period or shift (e.g. 8 hours perday or 40 hours per week). Include overtime maintenance labor hours for normal operating times as well asoutages/shutdowns/ turnarounds. If operator hours spent on maintenance activities are captured, they should beincluded in the numerator and denominator of all applicable metrics. Include labor hours for capital expendituresdirectly related to end-of-life machinery replacement (this is necessary so that excessive replacement versus propermaintenance is not masked). Do not include labor hours used for capital expenditures for plant expansions orimprovements. Typically, it does not include temporary contractor labor overtime hours.


Total maintenance labor is expressed in hours and includes all maintenance labor hours for normal operating timesas well as outages/shutdowns/turnarounds. If operator hours spent on maintenance activities are captured, theyshould be included in the numerator and denominator of all applicable metrics. Include labor hours for capitalexpenditures directly related to end-of-life machinery replacement (this is necessary so that excessive replacementversus. proper maintenance is not masked). Do not include labor hours used for capital expenditures for plantexpansions or improvements. Typically, it does not include temporary contractor labor hours.

E. QUALIFICATIONS

1. Time basis: Typically calculated on a monthly basis.

2. To be used by maintenance managers, maintenance supervisors, and human resources managers to evaluate

the need for additional resources.

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3. Complementary metrics include 5.6.1 Wrench Time, 5.4.1 Reactive Work, 5.5.71 Contractor Cost, 5.5.8

Overtime Maintenance Hours, and 4.1 Rework

4. If a contractor is used as permanent onsite maintenance, their hours should be included.

5. It may be difficult to separate operator-based maintenance labor hours.

6. Abnormally high levels of overtime during turnarounds may skew routine overtime maintenance hours.


In a given month overtime maintenance labor hours is 500 and the total maintenance labor hours is 10,000 for thesame month, overtime maintenance hours would be:

Overtime Maintenance Hours (%) = (Overtime Maintenance Labor Hours ÷ Total Maintenance Labor Hours) × 100

Overtime Maintenance Hours (%) = (500 hours ÷ 10,000 hours) × 100

Overtime Maintenance Hours (%) = 0.5 × 100

Overtime Maintenance Hours (%) = 5%

G. HARMONIZATION


H. REFERENCES

None







WORK MANAGEMENT


A. DEFINITION

The metric is a measure of how quickly inventory is flowing through the storeroom inventory system.

B. OBJECTIVES

This metric is used to measure the appropriateness of storeroom inventory levels.

C. FORMULA

Stores Inventory Turns = Value of stock purchased ÷ Value of stock on hand

The unit of measure is inventory turns per unit of time.


Value of Stock on Hand

The current value of the stock in inventory.

Value of Stock Purchased

The value of the inventory items purchased in the period for which the metric is being calculated.

E. QUALIFICATIONS


2. To be used by storeroom, purchasing and finance management.

3. Due to variation in the stock replenishment process, this metric should be measured over a time period that

allows anomalies in the purchasing cycle to be normalized.

4.

This metric is best used with other indicators (e.g. 5.5.33 Stock Outs) that provide a complete picture ofstoreroom inventory.

5. This metric should be trended in order to capture changes in storeroom inventory management practices.

6. This metric can be used on subsets of the inventory to see the specific behavior of different classes of inventory

items (e.g. power transmission, electrical, operating supplies, spare parts, etc.).

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7. When used in conjunction with the metric 5.5.33 Stock Outs, a low stock out and low turn ratio would suggest

that inventory levels are too high. An effective storeroom must manage risk at an acceptable level and balance

this against working capital. The optimum turn ratio will be different for different classes of parts and will depend

on the amount of risk a facility is willing to take. A high turn ratio on spare parts could indicate a reliability issue

and/or reactive maintenance culture.


A given storeroom has current values and purchases over the previous twelve months as follows.

• Total storeroom inventory value is $7,241,296.

•

Total of all storeroom purchases during this period is $15,836,351.

• Total spare parts inventory value is $3,456,789.

• Total of all spare parts purchases during this period is $5,123,456.

• Total operating supplies inventory value is $1,567,890.

• Total of all operating supplies purchases during this period is $9,345,678.

Stores Inventory Turns = Value of stock purchased/Value of stock on hand

Stores Inventory Turns (total inventory) = $15,836,351 ÷ $7,241,296

Stores Inventory Turns (total inventory) = 2.19

Stores Inventory Turns (spare parts) = $5,123,456 ÷ $3,456,789

Stores Inventory Turns (spare parts) = 1.48

Stores Inventory Turns (operating supplies) = $9,345,678 ÷ $1,567,890

Stores Inventory Turns (operating supplies) = 5.96

G. HARMONIZATION

This metric and its supporting definitions are similar or identical to EN 15341 indicator E12. This document isrecommended by the European Federation of National Maintenance Societies (EFNMS) as a guideline forcalculating the E12 indicator.

H. REFERENCES

None




5.5.33 Stock Outs




5.5.33 Stock Outs

A. DEFINITION

The metric is a measure of the frequency that a customer goes to the storeroom inventory system and cannotimmediately obtain the part needed.

B. OBJECTIVES

This metric is used to maintain the appropriate balance in stocked inventory. Too much inventory increases workingcapital unnecessarily. Too little inventory results in unnecessary delay and equipment downtime that can negatively

impact costs and profits.

C. FORMULA

Stock Outs (%) = (Number of Inventory Requests with Stock Out ÷ Total Number of Inventory Requests) × 100


Number of Inventory Requests wi th Stock Out

An inventory request is a stock out if the requested item is normally stocked on site and the inventory request is for a

normal quantity of the item but the inventory on hand is insufficient to fill the request.

Total Number of Inventory Requests

The total of all requests for items listed as stocked in the storeroom inventory system.

E. QUALIFICATIONS


2. To be used by maintenance, storeroom and purchasing management.

3. Integrated supply involves maintaining stock records in a storeroom inventory system but storing items off-site at

a vendor’s site. Deliveries are made on some prearranged schedule with emergency delivery available. The

advantage of integrated supply is reducing working capital and storage requirements with minimal risk. Stock

outs can be measured in an integrated supply arrangement.

4. Consignment involves keeping vendor owned inventory on-site. The vendor owns the inventory until it is

consumed. The advantage of consignment is reducing work capital. Stock outs can be measured in an

integrated supply arrangement.

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5.

This metric is best used with other indicators (e.g. 5.5.31 Inventory Turns) that provide a complete picture of

storeroom inventory.

6.

Information gleaned from stock out reports should be analyzed to assess stocking levels based on consumption

trends.

7.

Stocking level thresholds should balance working capital savings with risk.


A storeroom receives 1,234 stock requests in a given month. There 30 requests in this same month where therewas insufficient inventory to fill the request. Analyses of these 30 requests found 4 that were excessive orders

beyond normal request quantities; therefore these 4 requests did not meet the criterion for stock outs. Theremaining 26 requests were stock outs.

Stock Outs (%) = (Number of Inventory Requests with Stock Out ÷ Total Number of Inventory Requests) × 100

Stock Outs (%) = (26 ÷ 1234) × 100

Stock Outs (%) = 0.021 × 100

Stock Outs (%) = 2.1%

G. HARMONIZATION


H. REFERENCES

None








5.5.71 Cont ractor Cost

A. DEFINITION

The metric is the percentage of contractor costs of the total maintenance costs used to maintain assets.

B. OBJECTIVES

The objective of this metric is to quantify contractor costs for trending, comparison and benchmarking.

C. FORMULA

Contractor Maintenance Cost Percentage = [Contractor Maintenance Cost ($) ÷ Total Maintenance Cost ($)] × 100


Contractor Maintenance Cost

The total expenditures for contractors engaged in maintenance on site. Include all contractor maintenance labor andmaterials costs for normal operating times as well as outages/shutdowns/turnarounds. Include contractors used forcapital expenditures directly related to end-of-life machinery replacement so that excessive replacement versusproper maintenance is not masked. Do not include contractors used for capital expenditures for plant expansions orimprovements.


The total expenditures for maintenance labor (including maintenance performed by operators, e.g., TPM), materials,contractors, services, and resources. Include all maintenance expenses for outages/shutdowns/turnarounds as wellas normal operating times. Include capital expenditures directly related to end-of-life machinery replacement (this isnecessary so that excessive replacement versus proper maintenance is not masked). Do not include capitalexpenditures for plant expansions or improvements.

E. QUALIFICATIONS

1. Time basis: monthly and yearly

2.

To be used by corporate managers and executives, plant managers, maintenance managers, and human

resources managers to measure and compare contractor costs.

3. Do not rely on this metric alone for contractor cost evaluation (i.e., the labor portions may have to be considered

separately.)

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4. This metric can be used as an aid to determine if the permanent maintenance workforce is appropriately sized

and staffed for the maintenance workload.

5. Top performers typically use some complement of contractors for specialty crafts and/or skills, for peak or

abnormal workloads (such as outages/turnarounds/ shutdowns) and for specialty tools/resources (e.g., cranes,

vibration measurements, etc.).


For a given plant, annual Contractor Maintenance Cost is $2,600,000 and the annual Total Maintenance Cost is$10,000,000.

Contractor Maintenance Cost Percentage = [Contractor Maintenance Cost ($) ÷ Total Maintenance Cost ($)] × 100

Contractor Maintenance Cost Percentage = [$2,600,000 ÷ $10,000,000] × 100

Contractor Maintenance Cost Percentage = 0.26 × 100

Contractor Maintenance Cost Percentage = 26.0%

G. HARMONIZATION

This metric and its supporting definitions are similar or identical to the indicator E10 in standardEN15341. This document is recommended by the European Federation of National MaintenanceSocieties (EFNMS) as a guideline for calculating the E10 indicator. Details are provided in thedocument “Global Maintenance and Reliability Indicators”. More information can be found atwww.harmonizedindicators.org .

H. REFERENCES

None

http://www.harmonizedindicators.org/

http://www.harmonizedindicators.org/




5.5.72 Contractor Hours




5.5.72 Cont ractor Hours

A. DEFINITION

The metric is the percentage of contractor labor hours of the total maintenance labor hours used to maintain assets.

B. OBJECTIVES

The objective of this metric is to quantify contractor labor hours for trending, comparison and benchmarking.

C. FORMULA

Contractor Hours Percentage = (Contractor Labor Hours ÷ Total Maintenance Labor Hours) × 100


Contractor Labor Hours

The hours used by contractors performing maintenance on the site. Include all hours for routine service work as wellas those used on outages/shutdowns/turnarounds. Include contractor hours used for capital expenditures directlyrelated to end-of-life machinery replacement so that excessive replacement versus proper maintenance is notmasked. Do not include contractor hours used for capital expenditures for plant expansions or improvements.



E. QUALIFICATIONS

1. Time basis: monthly and yearly.

2.

To be used by corporate managers and executives, plant managers, maintenance managers, and human

resources managers to measure and compare contractor hours.

3.

Useful for developing trends in overall labor usage to determine whether the permanent maintenance workforce

is appropriately sized and staffed for the maintenance workload.

4.

Top performers typically use some complement of contractors for specialty crafts and/or skills, for peak or

abnormal workloads (such as outages/turnarounds/ shutdowns) and for the use of specialty tools/resources

(e.g., cranes, vibration measurements, etc.).

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For a given plant, the maintenance labor used in a month at the site is:

Maintenance craft labor 821 hoursContractors used for roofing repairs 240 hoursChiller compressor service contract labor 13 hoursContractor used to clean the cooling tower basin 200 hoursContract thermographic scan 16 hours

Total maintenance labor hours used 1290 hours

Contractors used for roofing repairs 240 hoursChiller compressor service contract labor 13 hoursContractor used to clean the cooling tower basin 200 hoursContract thermographic scan 16 hours

Contractor labor hours used 469 hours

Contractor Hours Percentage = (Contractor Labor Hours ÷ Total Maintenance Labor Hours) × 100

Contractor Hours Percentage = (469 Hours ÷ 1290 Hours) × 100

Contractor Hours Percentage = 0.364 × 100

Contractor Hours Percentage = 36.4%

G. HARMONIZATION


H. REFERENCES

None




5.6.1 Wrench Time




5.6.1 Wrench Time

A. DEFINITION

The metric is a measure of the time a maintenance craft worker spends applying physical effort or troubleshooting inthe accomplishment of assigned work. The result is expressed as a percentage of total work time. Wrench Time ismeasured through a process called work sampling.

B. OBJECTIVES

The objective of this metric is to identify opportunities to increase productivity by qualifying and quantifying theactivities of maintenance craft workers.

C. FORMULA

Wrench Time Percentage = (Wrench Time Observations ÷ Total Observations) x 100

Wrench Time Percentage = [Wrench Time (hrs) ÷ Total Hours (hrs)] x 100


Wrench Time

The time when a maintenance craft worker is applying physical effort or troubleshooting in the accomplishment of

assigned work.

Non-Produc tive Work Time

The time not directly related to accomplishing the assigned work e.g. breaks, personal time, meetings, travel,planning, instruction, waiting, procuring tools and materials and training.

Total Work Time

The total time that maintenance craft workers are being paid to accomplish work, commonly referred to as being “onthe clock”. This includes straight time and over time whether scheduled or unscheduled.

Break Time

Time for scheduled and unscheduled breaks.

Personal Time

PAGE 1 of 4

The time when a worker is taking care of personal business e.g. making or receiving a personal phone call, meetingwith Human Resources or a union steward, using the restroom and other similar personal activities.




Meeting Time

The scheduled and unscheduled meetings including safety meetings, information meetings, department meetingsand other similar meetings.

Travel Time

The time when a maintenance craft worker is traveling regardless of the reason or the mode of transportation (e.g.,walking, riding, etc.)

Planning Time

The time when a maintenance craft worker is planning a job. This includes planning emergency and unscheduled work.

Instruct ion Time

The time when a maintenance craft worker is receiving work instruction (e.g. assignment of jobs at the beginning of a shift).

Waitin g Time

The time when a maintenance craft worker is waiting regardless of the reason.

Training Time

The time when a maintenance craft worker is receiving formal or informal training. This can be in a classroom or on-the-job.

Work Sampling

The process of making a statistically valid number of observations to determine the percentage of total work timeworkers spend on each activity.

E. QUALIFICATIONS

1. Time basis: Daily

2. Used by maintenance managers and supervisors:

a. To enable comparison to prior periods for trending purposes.

b.

To enable comparison to other maintenance operations.

c. To identify inefficiencies inherent in storage locations or delivery processes.

d. To identify opportunities for improvement in planning and scheduling.

e. To identify barriers to productivity in the maintenance work process.

f. To justify changes in the maintenance work force based on productivity.

PAGE 2 of 4




3. Used by operations managers and supervisors (as a customer of maintenance)

a.

To verify the value for paid maintenance services.b. To identify Operations opportunities to improve maintenance wrench time.

For example:

Safe work permitting

Equipment preparation including decontamination and log out/tag out

Schedule changes or interruptions

2. This metric can be used for measuring a specific crew, a specific craft or for all maintenance craft workers in a

unit or plant.

3. It is recommended that work sampling not be used to measure the activities of an individual worker. If used in

this way, workers will likely deviate from their normal behaviors whenever being observed.

4. It is recommended that different crafts and/or crews be measured separately since the barriers to productivity

may vary by craft or crew.

5. It is recommended that observations be taken throughout the total work time of the craft workers being

measured to determine the time relevance associated with any activity (e.g. clean-up at the end of a shift).

6. To avoid bias, it is strongly recommended that observations be made by an impartial party.

7. A statistically valid number of observations must be made. A snapshot in time may not be representative of the norm.

8. This metric does not address the quality of work.

9. Use time category definitions that are appropriate for the work performed at the plant where worker productivity

is being measured.

10. Breaking waiting time into sub categories can be helpful in identifying improvement opportunities. Maintenance

craft workers typically wait for instruction, equipment decontamination, safety support such as work permit or

lock out/tag out, materials, tools, coworkers, etc.

11. Breaking travel time into sub categories can help identify improvement opportunities. Maintenance craft workers

typically travel for tools, materials, instruction, to break facilities, etc.

12. The focus should be on identifying and quantifying “non-productive” activities.

13. Analysis including RCA may be beneficial or necessary to understand the causes of “non-productive” activities.

14. The percentage of any given activity can be multiplied by the total work time to estimate the total amount of time

spent on any given activity.

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15. The total cost or value of any activity can be calculated by multiplying the fully loaded craft cost times the

number of workers times the number of hours spent on the activity.




PAGE 4 of 4



An assessment was conducted on a ten-person maintenance crew for one 8 hour shift.

Total Work Time = 10 workers x 8 hours = 80 hours

• There are three formal break times: 15 minute paid break at mid morning, 30 minute unpaid lunch and 15

minute paid break at mid afternoon.

•

There is a startup meeting used to assign work (instruction) at the beginning of the shift that typically lasts

20 minutes and a 10 minute transition (planning) meeting at the end of the shift.

• There was a 30 minute safety meeting after lunch.

Observations

Break Personal Meeting Travel Planning Instruct Waiting Training Wrench Total

14 7 15 27 10 10 15 0 49 147

9.5% 4.8% 10.2% 18.4% 6.8% 6.8% 10.2% 0% 33.3% 100%

7.6 hr 3.8hr 8.2hr 14.7hr 5.4hr 5.4hr 8.2hr 0hr 26.7hr 80hr

Wrench Time = (Productive Work Time ÷ Total Work Time) × 100

Wrench Time = (26.7 hrs ÷ 80 hrs) × 100

Wrench Time = 0.33 × 100

Wrench Time = 33%

G. HARMONIZATION


H. REFERENCES

1. Barnes, Ralph m. (1956). Work Sampling – John Wiley & Sons

2. Barnes, Ralph M. (1937). Motion and Time Study – John Wiley & Sons

3.

Hansen, Bertrand L. (1960). Work Sampling for Modern Management – Prentice Hall

4. Lambrou, Fred H. (1962). Guide to Work Sampling – Hayden Publishing

5. Palmer, Richard D. (1999). Planning and Scheduling Handbook – McGraw Hill

6. Poling, Alan J. (2008). Work Sampling … What it is and why you should do it!, NPRA Reliability and

Maintenance Conference



WORK MANAGEMENT GUIDELINE

1.0 Determining Replacement Asset Value(RAV)



BUSINESS AND MANAGEMENT GUIDELINE

1.0 Determining Replacement Asset Value (RAV)

Guidelines provide additional information or further clarification on component terms used in SMRP Best PracticeMetrics. This guideline is for Replacement Asset Value (RAV).

A. DEFINITION

Replacement Asset Value (RAV) is defined as the cost that would be incurred to replace the facility and equipment inits current configuration based on current replacement prices. It is intended to represent the realistic value toreplace the existing assets at new value.

B. PURPOSE

RAV is used as the denominator in a number of calculations to normalize cost performance of facilities of varioussizes within a given industry. These calculations are used to determine the performance of the maintenance andreliability function relative to other facilities in the same or similar industry.

C. INCLUSIONS

• Building envelope

• All physical assets (equipment) that must be maintained on an ongoing basis

• The value of improvements to grounds (provided these must be maintained on an ongoing basis)

• Capitalized engineering costs

D. EXCLUSIONS

• Value of land on which the facility is situated

• The value of working capital:

o Raw material inventory

o Work-in-process inventory

o

Finished goods inventoryo Spare parts inventory

• Capitalized interest

• Pre-operational expense

• Investments included in construction of the facility that are not part of the facility assets

• Mine development

PAGE 1 of 2




PAGE 2 of 2


E. CALCUL ATION METHODS

There are four methods generally used to determine the RAV of a facility. These methods, described below, areranked in order of decreasing accuracy.

1. Determine the original capital cost for the facility and equipment. Adjust for inflation since the date ofcommissioning. Different indices are available, such as inflation data from the US Bureau of Labor

Statistics atwww.bls.gov, Chemical Engineering’s Plant Cost Index (CECPI) at http://www.che.com,etc.). Add the value of any significant capital expansions (not replacements) that have occurred sincecommissioning, also adjusted for inflation. Subtract the value of any decommissioned or abandonedassets, also adjusted for inflation.

2. Use the insured asset value (IAV) provided by the insurance company. If using this method, it should

be recognized that the IAV may be less accurate than the RAV (as determined above); depending onthe level of risk the organization is willing to accept. However, this inaccuracy normally does notsignificantly impact the calculations in which RAV is used.

3. If the facility was recently part of a corporate acquisition, the purchasing company may have contractedan independent professional appraiser to determine the replacement value. The appraised valuenormally includes items such as working capital and land values, so adjustments should be made asappropriate.

4. If the organization has facilities of similar size, age, and capacity, RAV calculations made at one facilitycan be extended to other facilities and adjusted appropriately. It should be recognized that this isusually the least accurate method for determining RAV.

E. APPLICABLE METRICS

• 1.1 RAV per Craft/Wage Headcount

• 1.4 Stores Inventory Value per RAV

• 1.5 Annual Maintenance Cost per RAV

F. REFERENCES

None

http://www.bls.gov/

http://www.che.com/

http://www.bls.gov/

http://www.che.com/

http://www.che.com/

http://www.bls.gov/



MANUFACTURING PROCESS RELIABILITY GUIDELINE

2.0 Understanding OEE



MANUFACTURING PROCESS RELIAB ILITY GUIDELINE

2.0 Understanding OEE

Guidelines provide additional information or further clarification on component terms used in SMRP Best PracticeMetrics. This guideline is for Overall Equipment Effectiveness (OEE). This guideline is not intended to be a thoroughreview of OEE but rather an explanation on how OEE is defined as a SMRP best practice metric.

A. DEFINITION

Overall Equipment Effectiveness (OEE) is a metric for measuring how well a process is operating by evaluating thethree major process components; availability, performance efficiency (rate/speed) and quality. The process can be asingle piece of equipment, a manufacturing cell, a production line or a plant.

OEE takes into account equipment availability, how efficiently the equipment performs and the quality of theproducts produced.

OEE = Availability × Performance Efficiency × Quality

B. PURPOSE

The purpose of OEE is to identify sources of waste and inefficiencies or process losses that reduce availability(downtime), performance efficiency (rate/speed) and quality (defects) so corrective action can be taken to improvethe process.

C. OEE COMPONENTS:

Figure 1 below is provided as an aid to help understand the various components used to calculate OEE.

TOTAL AVAILABLE TIME (365 days x 24 hours per day)

IDLE TIME - Not scheduled due

to conditions beyond the control

of the plant

SCHEDULED HOURS of Production

Unscheduled

downtime LOSSESUPTIME HOURS of Actual Production

A V A I L A B I L I T Y

BEST Production

ACTUAL Production

S P

E E D

Q U A L I T Y

SPEED LOSSES ACTUAL Production

QUALITY LOSSES#1 SALEABLE Production

Figure 1 – OEE Components

PAGE 1 of 4




AVAILABIL ITY

Availability is defined as the percentage of time that the process is actually operating (uptime) compared to when it isscheduled to operate and is calculated as follows:

Availability (%) = {Uptime (hrs) ÷ [Total Available Time (hrs) – Idle Time (hrs)]} × 100

Scheduled Hours:

Production can occur every day of the year. Total Available Time in Figure 1 above is calculated as 365 days peryear, 24 hours per day, and 7 days per week. However, equipment may not be scheduled to operate at all times dueto business conditions (no demand, seasonal weather conditions, holidays, test runs, etc.) which are beyond thecontrol of the plant.

Scheduled hours are calculated by deducting these non-scheduled operating hours or Idle Time from the Total Available Time. This is done so that the plant is not penalized by conditions which it cannot control. However, ifplanned/scheduled maintenance is performed during time not scheduled for business reasons theseplanned/scheduled maintenance hours should be included in the scheduled hours.

Uptime Hours:

Uptime hours are calculated by determining the total duration of the downtime events that stopped scheduledproduction and subtracting this from the calculated Scheduled Hours. Typical sources of downtime losses includeequipment failures, changeover/set-up time, planned/scheduled maintenance, operator shortages and relatedconditions.

PERFORMANCE EFFICIENCY (RATE/SPEED)

Performance efficiency (rate/speed) is defined as the percentage of Actual Run Rate/Cycle Time to the Best RunRate/Cycle Time and can be calculated by either of the methods below.

Performance Efficiency (rate/speed) (%) = (Actual Run Rate ÷ Best Run Rate) × 100

Performance Efficiency (rate/speed) (%) = (Actual Cycle Time ÷ Best Cycle Time) × 100

Run rate is expressed in units produced per operating time and cycle time is expressed as time per unit of output.The Performance Efficiency (rate/speed) calculation considers all units produced and includes good and defectiveproduct.

The ideal run rate and ideal cycle time should be based on the equipment, cell, production line, or plant capacity asdesigned, and represents the maximum production rate at which the equipment can consistently and reliably operate.

The Best Run Rate and Best Cycle Time should be based on the equipment, cell, production line, or plant capacityas designed or the historic best rate (whichever is higher), and represents the maximum production rate at which theequipment can consistently and reliably operate.

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The differences between the best and actual run rates or cycle times are losses due to the performance efficiency(rate/speed) of operation. These take into account all instances when the equipment, cell, production line, or plant is

not operating at its best performance efficiency (rate/speed), e.g. reduced speeds, as well as idling and minorstoppages not included in the availability delays.

The Performance Efficiency (rate/speed) value cannot exceed 100% to ensure that if the best performance efficiency(rate/speed) is incorrectly specified; the impact on the OEE will be minimized.

QUALITY

Quality is defined as the percentage of “First Pass, First Time” Saleable Production to the Actual Production and canbe calculated by either of the methods below.

Quality (%) = (“First Pass, First Time” Saleable Production ÷ Actual Production) × 100

Quality (%) = (Good Pieces ÷ Total Pieces) × 100

“First Pass, First Time” Saleable Production is all production that meets all customer (or internal customer) qualityspecifications on the first attempt, without the need for reprocessing or rework.

Actual Production is the total quantity of production produced in the given time period, regardless of its quality.

Quality losses include losses due to the product not meeting all specified quality standards as well as scrappedproduct and product requiring rework. Product that must be reworked is included as a loss because the goal is zerodefects by making the product right the first time.

D. INTERPRETATION OF OEE

The OEE metric is open to various interpretations. When comparing and benchmarking OEE, it is important that thebasis for each component is fully understood and calculated the same way. Availability is the most subjectivecomponent. The hours used or excluded for availability can have a significant effect on the value of the availabilitycomponent.

A literature review and discussions with experts indicates that some definitions of OEE use total time to calculateavailability. In addition, some availability calculations excluded planned maintenance downtime from the scheduledhours of production. In this guideline for OEE, SMRP has placed value on what is controllable at the plant level andonly includes these controllable production times.

Equally important is the comparison of the various OEE components. The classic example in literature is improvingOEE through higher availability or increased performance efficiency (rate/speed) but at the expense of quality. OEEmust be evaluated in the context of the entire operation with other metrics and plant comment. OEE must be part ofthe plant’s overall improvement process.

Lastly, OEE does not provide information on the cost benefits of maximizing the OEE components. OEE is a startingpoint for understanding sources of plant losses and the beginning the improvement process.

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E. OTHER METRICS

The following SMRP metrics are similar in scope:

1. 2.5 Utilization Rate

2. 2.1.2 TEEP (Total Effective Equipment Performance)

F. REFERENCES

Cavalenes, John. (2005). Improving Productivity and OEE Utilizing Real Time Manufacturing IntelligenceSolutions- Citect Americas

Fitchett, Don. (2009). Oh, Equipment Effectiveness, I’ve heard about that before. Business Industrial

Network

Frost & Sullivan. May 2005. Overall Equipment Effectiveness (OEE)

Koch, Arno. (August 2003). OEE Industry Standard Version 2.0 Bloom Consultancy

ParsecTM Automation Corporation. (2005). Using OEE as part of a Lean manufacturing Program toImprove Factory Floor Productivity and Profitability

Production Equipment Availability, A Measurement Guide. 3rd Edition 2002. The Association forManufacturing Technology

The Fast Guide to OEE . (2005). Vorne Industries

Wauters, Frances and Jean Mathot. (June 2002). OEE Overall Equipment Effectiveness – ABBCorporation



SMRP METRIC GUIDELINE

3.0 Determining Leading andLagging Indicators



SMRP METRICS GUIDELINE

3.0 Determin ing Leading and Lagging Indicators

Guidelines provide additional information or further clarification on component terms used in SMRP Best PracticeMetrics. This guideline is used as an aid for determining whether an indicator is leading or lagging. This guideline isnot intended to be a thorough prescription but rather an explanation on how to determine, define and use leading andlagging indicators from a SMRP Best Practice Metrics standpoint.

A. DEFINITION

Lagging Indicator

An indicator that measures performance after the business or process result starts to follow a particular pattern or

trend. Lagging indicators confirm long-term trends, but do not predict them.

Leading Indicator

An indicator that measures performance before the business or process result starts to follow a particular pattern ortrend. Leading indicators can sometimes be used to predict changes and trends.

B. PURPOSE

The purpose of leading and lagging indicators is to measure the performance of the maintenance and reliabilityprocess. Leading and lagging indicators provide information so that positive trends can be reinforced andunfavorable trends can be corrected.

C. DISCUSSION OF LEADING AND LA GGING INDICATORS

The purpose of running a business is to create shareholder value by providing a distinct product or service. Creatingvalue starts with the needs of the customer and continues through producing a quality product and delivering it ontime at a competitive price. The maintenance function is a key stakeholder in this value stream; however,maintenance as a function cannot achieve this alone.

The maintenance and reliability process represents the collection of “all” stakeholder tasks required to support themanufacturing or service function. The output of a healthy maintenance and reliability process is optimal assetreliability at optimal cost, which contributes to maximum shareholder value. The maintenance and reliability processis a supply chain. If a step in the process is skipped or performed at a substandard level, the process fails to

maximize its contribution.

There are three sets of measurable components that make up the maintenance and reliability process (see Figure 2:Components of the Maintenance and Reliability Process).

• Management processes and behaviors (mission and vision, people skills)

• Operational execution (operations, design and maintenance)

• Manufacturing performance (availability, quality, cost and benefits)

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Each component is a process on its own which can be measured using both leading and lagging indicators. These

indicators are used to determine the quality of each process. In this context the components of the maintenance andreliability process can be both leading and lagging indicators, depending on where in the process the indicators areused. There is a cause and effect relationship between leading and lagging; the action being measured will cause aresulting action or effect which is also being measured. This means that a given measure could be both a laggingmeasure for a previous cause in the chain and a leading measure for a following effect. There are a series of causesand effects in the chain until the final lagging measures are reached.

Figure 1 (Leading and Lagging Indicator Mapping) illustrates the concept of an indicator being both leading andlagging depending on the application of the metric. Preventive maintenance (PM) compliance is used to measurehow much PM work was completed as scheduled. In this case, it is a lagging indicator or result of how much PMwork is completed when viewed in the context of work execution. However, when viewed as an indicator ofequipment reliability, PM compliance is a leading indicator of the reliability process. The higher an organization’s PM

compliance, the more likely this will lead to improved equipment reliability. Similarly, improved equipment reliabilitywill lead to reduced maintenance cost, which is a lagging indicator of the overall maintenance process.

Figure 1: Leading and Lagging Indicator Mapping

When considering a leading measure, it is beneficial to express it in terms of what it is a leading measure for, i.e.what is the lagging measure that will be affected?

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Figure 2 Components of the Maintenance and Reliability Process depicts the relationship between the different

maintenance and reliability processes components and the concept of leading and lagging indicators. The final resultof a behavior and process is a lagging indicator. However, it can be a leading indicator for the operational execution.In this context, the lagging indicators of one component can also be viewed as the leading indicators of anotherdependent component.

Figure 2: Components of the Maintenance and Reliability Process

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Examples of Leading and Lagging Indicators, and their relationship with the SMRP Best Practice metrics are

provided in Table 2. The metrics are categorized in accordance with the SMRP Body of Knowledge.

Behaviors &

Processess

Operational

Execution

Manufactoring

Performance

BoK - Business & Management

Maintenance Margin (COGS) Lagging

Maintenance Unit Cost LaggingMaintenance Cost per RAV Lagging

BoK - Manufacturing Process Reliability

OEE Lagging

Availability LaggingTotal Operating Time Lagging

BoK - Equipment ReliabilitySystems Covered by Criticality Analysis Lagging Leading Leading

Scheduled Downtime Lagging Lagging

Unscheduled Downtime Lagging LaggingMTBF Lagging Leading

BoK - People Skills

Rework Lagging Leading Leading

Maintenance Training - $ Lagging Leading LeadingMaintenance Training -MHRs Lagging Leading Leading

BoK - Work Management

Corrective Maintenance Hours Lagging Leading

Preventive Maintenance Hours Lagging Leading

Condition Based Maintenance Hours Lagging Leading

Planned Work Lagging Leading Leading

Reactive Work Lagging Lagging Leading

Proactive Work Lagging Lagging Leading

Schedule Compliance Hours Leading Leading

Schedule Compliance Work Orders Leading Leading

Standing Work Orders Leading Leading

Work Order Aging Lagging Leading LeadingPlanned Backlog Lagging Leading Leading

Table 1: Leading and Lagging Indicators

D. CONCLUSION

The use of leading and lagging indicators is an important component of the maintenance and reliability process.Leading indicators measure the process and are used to predict changes and trends. Lagging indicators measureresults and confirm long-term trends. Whether an indicator is a leading or lagging indicator depends on where in theprocess the indicator is applied. A lagging indicator of one process component can be a leading indicator of anotherprocess component. Whether leading or lagging, performance indicators should be used confirm processperformance. These indicators help build on successes and can lead to improvement where unfavorable trends exist.

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PAGE 5 of 5


F. REFERENCES

• Olver, Richard Agrium Planner Ratios and Planning and Scheduling Metrics September 2004 rev 5

• Mather, Daryl Techniques for Applying Leading or Lagging Metrics Immediately! http://www.reliabilityweb.com

• Lagging Indicator http://baystreet.investopedia.com/terms/l/laggingindicator.asp

• Murphy, Joseph Perspectives on Measure, http://www.staffing.org/articles/JosephMurphy.arco0016jm.asp

• Leading Indicator http://www.investorwords.com/2741/leading.indicator.html

• Rostykus, Walt and Egbert, Joshua Key Measures for Successful Improvement

http://curiouscat.com/invest/leadingindicators.cfm

• Life Cycle Engineering Me and My Key Performance Indicators – Lagging and Leading Maintenance

Excellence News, Issue 8, http://www.lce.com/newsltr/newsltr8.htm

http://www.reliabilityweb.com/


http://baystreet.investopedia.com/terms/l/laggingindicator.asp

http://www.staffing.org/articles/JosephMurphy.arco0016jm.asp


http://www.investorwords.com/2741/leading.indicator.html




http://www.lce.com/newsltr/newsltr8.htm






http://baystreet.investopedia.com/terms/l/laggingindicator.asp




Maintenance and Reliability

Body of Knowledge Glossary

Published by SMRP

October 19, 2009

Copyright © 2009 SMRP



SMRP Maintenance and Reliability Body of Knowledge Glossary

The following definitions are from SMRP’s metrics, benchmarking survey questionnaire and the guide to themaintenance and reliability body of knowledge. Formal metric definitions are in Bold.

Term Definition Where Used ABC Classification ABC analysis is the method of classifying items involved in a

decision situation on the basis of their relative importance. Itsclassification may be on the basis of monetary value, availabilityof resources, variations in lead-time, part criticality to the runningof a facility and others.

BM Survey

Actual Cost to PlanningEstimate (5.3.3)

The ratio of the actual cost incurred on a work order to theestimated cost for that work order.

Actual Hours toPlanning Estimate(5.3.4)

The ratio of the actual number of labor hours reported on awork order to the estimated number of labor hours that wasplanned for that work order.

Actual Production Rate The rate at which an asset actually produces product during a

designated time period.

2.1.1 OEE

2.1.2 TEEP

Actual Work Order Cost The final cost of the work order after it is closed. 5.3.3 Actual Cost toPlanning Estimate5.3.5 PlanningVariance Index

Actual Work Order Hours The quantity of hours reported on a work order after it is closed. 5.3.4 Actual Hours toPlanning Estimate

Administrative Idle Time Time that an asset is not available to run due to a businessdecision (e.g., economic)

2.4 Idle Time

Airborne Ultrasonic A technology that utilizes ultrasound to locate a variety of

potential problems in plants and facilities. This technology helpsin leak detection, mechanical inspection of pipes and pumps andelectrical inspection. Airborne ultrasound is used for conditionmonitoring, energy conservation and quality assuranceprograms. The three main problem areas where airborneultrasonic technology is applied are: leak detection, mechanicalinspection/trending and electrical inspection. Instruments basedon airborne ultrasound sense high frequency sounds producedby leaks, electrical emissions and mechanical operations.Through an electronic process, these sounds are translated intothe audible range where they are heard through headphones andobserved as intensity increments, typically decibels, on a displaypanel.

BM Survey

Annual Maintenance Cost (Replaced by Total Maintenance Cost) 1.5 AnnualMaintenance Cost as aPercentage ofReplacement AssetValue

Annual MaintenanceCost as a Percent ofReplacement AssetValue (RAV) (1.5)

The amount of money spent annually maintaining assets,divided by the Replacement Asset Value (RAV) of the assetsbeing maintained, expressed as a percentage.

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Term Definition Where Used

Autonomous Work Teams A small group of people who are empowered to manage

themselves and the work they do on a day-to-day basis. The

members of an autonomous work group are usually responsible

for a whole process, product, or service, and not only perform the

work but also design and manage it.

BM Survey

Availability (2.2) Availability is the probability that an item or system is operatingsatisfactorily at any point in time when used under statedconditions.

Avai labi li ty Availability is the percentage of the time that the asset is actuallyoperating (uptime) compared to when it is scheduled to operate(gross time). This is also called operational availability.

2.1.1 OEE2.1.2 TEEP

Best Production Rate The rate at which an asset is designed to produce product duringa designated time period or the demonstrated best sustainedrate, whichever is higher.

2.1.1 OEE2.1.2 TEEP

Break Time Time for scheduled and unscheduled breaks. 5.6 .1 Wrench Time

Business Benefits Financial benefits impacting the business, such as labor savings,increases in productivity, lower inventories, safety of personneland any other direct costs savings. Benefits must be translatedinto a cost benefit.

4.2.3 MaintenanceTraining ROI

Centralized MaintenanceOrganization

A maintenance organization wherein a single maintenancedepartment responsible for the entire facility reporting at the plantlevel.

BM Survey

CombinationMaintenanceOrganization

In combination or sometime called “hybrid” organizationstructure, the best characteristics of both, centralized anddecentralized are considered. In this structure, areas will have adedicated small staff to take care of daily /routine issues andcentralized staff will be responsible major PM s and specializedrepairs.

BM Survey

Completion Date The date that PM or PdM work order was certified complete andclosed out in the CMMS system.

5.4.14 PM & PdMCompliance

ComputerizedMaintenanceManagement System(CMMS)

A computer system used for managing and executing themaintenance process whose fundamental functionality is thework order system.

5.4.7 Work OrderCycle Time

Condition BasedMaintenance

Condition Based Maintenance (CBM) is an equipmentmaintenance strategy based on measuring the condition ofequipment in order to assess whether it will fail during somefuture period, and then taking appropriate action to avoid the

consequences of that failure. The condition of the equipmentcould be measured using condition monitoring, statistical processcontrol, equipment performance, or through the use of humansenses. The term Condition Based Maintenance (CBM), On-Condition Maintenance and Predictive Maintenance (PdM) canbe used interchangeably.

5.1.5 Condition BasedMaintenance Cost

Condition BasedMaintenance Cost(5.1.5)

The maintenance costs that are used to measure, trend, andcompare equipment conditions with known standards todetect, analyze, and correct problems before they causefunctional failures.

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Condition BasedMaintenance Cost

Labor, material and services cost by company personnel orcontractors for work performed as condition based maintenance.Includes operator costs if all operator maintenance costs areincluded in Total Maintenance Costs.

5.1.5 Condition BasedMaintenance Cost

Condition Based

Maintenance Hours(5.1.6)

Condition Based Maintenance Hours (shown as a

percentage) is maintenance labor hours that are used tomeasure, trend, and compare equipment conditions withknown standards to detect, analyze, and correct problemsbefore they cause functional failures.

Consignment Stock Inventoried items that are physically stored in the storeroom butare owned by the vendor or supplier until issued or consumed.

5.5.35 StoreroomTransactions Per Clerk5.5.36 StoreroomRecords

Contact Ultrasonic A direct contact ultrasonic method places the transducers againstthe outside of the targeted component. The signal is passed intothe material to a receiver which measures the characteristic ofecho which are effective by discontinuity within the object.

BM Survey

Continuous Improvement Continuous improvement is an ongoing evaluation program that

includes constantly looking for the “little things” that can make acompany more competitive. It’s a measure of all work that

increases or improves the current operating perimeters.

BM Survey

ContinuousImprovement Hours(5.7.1)

Continuous Improvement Hours is the percentage of internalmaintenance labor hours that is used to improve the currentperformance to an increased level. Continuous ImprovementHours are used to improve the performance for, but notlimited to safety, quality, and environment, availability,output and cost.

Contractor Cost (5.5.71) The percentage of contractor costs of the total maintenancecosts used to maintain assets.

Contractor Hours(5.5.72)

The percentage of contractor labor out of the total quantityof labor used to maintain assets.

Contractor Labor Hours Hours used by contractors performing maintenance on the site.Include all hours for routine service work as well as those usedon outages/shutdowns/turnarounds. Include contractor hoursused for capital expenditures directly related to end-of-lifemachinery replacement (this is necessary so that excessivereplacement versus proper maintenance is not masked). Do notinclude contractor hours used for capital expenditures for plantexpansions or improvements.

5.5.72 ContractorHours

Contractor MaintenanceCost

Total expenditures for contractors engaged in maintenance onsite. Include all contractor maintenance labor and materialscosts for normal operating times as well asoutages/shutdowns/turnarounds. Include contractors used forcapital expenditures directly related to end-of-life machineryreplacement so that excessive replacement versus propermaintenance is not masked. Do not include contractors used forcapital expenditures for plant expansions or improvements.


Corrective MaintenanceCost (5.1.1)

Corrective Maintenance Cost is the percentage of totalmaintenance cost that is used to restore equipment to afunctional state after a failure or when failure is imminent.

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Corrective MaintenanceCosts (component)

Labor, material, services, and/or contractor cost for work done torestore the function of an asset after failure or when failure isimminent.

5.1.1 CorrectiveMaintenance Cost

Corrective Maintenance

Hours (5.1.2)

Corrective Maintenance Hours is the percentage of

maintenance labor that is used to restore equipment to afunctional state after a fault recognition

Corrective Work Work done to restore the function of an asset after failure orwhen failure is imminent.

4.1 Rework5.4.12 PM & PdM Yield

Corrective WorkIdentified fromPreventive andPredictive MaintenanceWork Orders

Corrective work that was identified through preventive and/orpredictive maintenance tasks and completed prior to failure inorder to restore the function of an asset.


Craft-Wage Headcount Number of maintenance personnel responsible for executingwork assignments pertaining to maintenance activities. Includethe number of contractors’ personnel who are used to

supplement routine maintenance. The headcount is measured infull-time equivalents (FTE).

1.1 Ratio ofReplacement AssetValue to Craft/Wage

Head Count

Craft Worker A maintenance person who is responsible for executing workassignments pertaining to maintenance activities (Includes bothhourly and salaried personnel. Examples of Craft Workersinclude: technicians, trades people, PdM technicians,apprentices, tool carriers, wrench turners, mechanics,electricians and helpers.).

5.5.1 Supervisor toCraft Ratio5.5.2 Planner to CraftRatio5.5.6 Craft Workers onShift

Craft Worker on ShiftRatio (5.5.6)

The metric is the ratio of the number of maintenance craftworkers on shift to the total number of maintenance craftworkers.

Crew Capacity That portion of the weekly maintenance labor complement that is

available to work on backlog jobs. It is the sum of the straighttime hours per week for each individual in the crew, plusscheduled overtime, less indirect commitments (e.g. training,meetings, vacations, etc.).

5.4.9 Ready Backlog

Critical Analysis A quantitative and/or qualitative analysis of events and faults andthe ranking of these in order of the seriousness of theirconsequences. Considerations include safety, environment,quality, production, and cost.

3.1 Systems Coveredby Critical Analysis

Critical Equipment Equipment that has been evaluated and classified as critical dueto its potential impact on safety, environment, quality, production,and cost.

BM Survey

Critical Stock Items An item that is inventoried because having the part on-hand isconsidered essential to the overall reliability of the operation due

to its high cost, long lead time and/or negative impact on aplant’s safety, environmental impact, operation and/or downtimeshould the part be needed and not be in stock. (Also calledcritical, emergency or insurance spares.)

5.5.34 Inactive Stock5.5.36 Storeroom

Record

Critical Systems A system that is vital to continued operations, will significantlyimpact production, or have inherent risks to personnel safety orthe environment if failed.

3.1 Systems Coveredby Critical Analysis

DecentralizedMaintenanceOrganization

A maintenance organization in which multiple maintenancegroups report to specific business or production functions.

BM Survey

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Defective UnitsProduced

The number of unacceptable units produced during a time period(i.e. losses, rework, scrap, etc.).

2.1.1 OEE2.1.2 TEEP

Direct MaintenancePersonnel

Maintenance Employees assigned to perform actualmaintenance tasks such as corrective and preventivemaintenance. Examples include mechanics, electricians, hourlytechnicians and hourly supervisors.

5.5.3 Direct to IndirectMaintenancePersonnel Ratio

Direct Purchase Items Non-inventoried item, typically purchased on an as-neededbasis.

5.5.35 StoreroomTransactions

Direct to IndirectMaintenance PersonnelRatio (5.5.3)

A measure of the maintenance personnel who are actively doingthe maintenance work (Direct) to the maintenance personnelsupporting the maintenance work (Indirect).

Downtime Event An event when the asset is down and not capable of performingits intended function.

3.5.4 MDT2.1.1 OEE2.1.2 TEEP

Due Date The required date + the grace period. 5.4.14 PM & PdM

Compliance

Economic Order Quantity(EOQ)

A fixed order quantity is established that minimizes the total of

carrying and preparation costs under conditions of certainty and

independent demand.

BM Survey

Equipment Repair History A chronological list of failures, repairs, and modifications onequipment / assets. Also called maintenance history ormaintenance record.

BM Survey

Execution Date The date the PM or PDM work was executed on the asset orcomponent.


Failure When an asset is unable to perform its required function. 3.5.1 MTBF3.5.2 MTTR3.5.5 MTTF5.4.2 Proactive Work

Failure Modes and Effects Analysis (FMEA)

A procedure in which each potential failure mode in every sub-item (component) of an item (asset) is analyzed to determine itseffect on other sub-items and on the required function of theitem.

BM Survey

Failure Rate (need to define and add to component definition in 3.5.1) 3.5.1 MTBF

Fatalities Number of Fatalities in your company during the past year. ForUS companies as reported on section G of OSHA form 300A.

BM Survey

First Aid Injuries or illnesses that do not meet the minimum threshold to berecordable. The First Aid Incident Rate is calculated by takingthe total number of “first aid incidents” times 200,000 and dividingthe result by the number of hours of exposure.

BM Survey

Free Issue Inventory Low cost and high usage inventoried stock items that areavailable as needed without a goods issue. Typically, theseitems are stored in an unsecured environment close to the pointof usage. Examples of common free issue inventoried stockinclude nuts, bolts, gaskets, cable ties, etc.

5.5.36 StoreroomRecord

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Group Leader Team member who may not have any authority over othermembers but is appointed on a permanent or rotating basis torepresent the team to the next higher reporting level, makedecisions in the absence of a consensus, resolve conflict

between team members and coordinate team efforts.

BM Survey

Inactive Stock Any item that is inventoried but has no usage for 12 months orlonger.

5.5.36 StoreroomRecords

Idle Time (2.4) The amount of time an asset is idle or waiting to run. It is thesum of the times when there is no demand, no feedstock orraw material and other similar times when the asset is notscheduled for production.

2.3 Uptime

Idle Time The amount of time an asset is idle or waiting to run. It is thesum of the times when there is no demand, feedstock or rawmaterial and other administrative idle time (e.g. not scheduled forproduction).

2.1.1 OEE2.1.2 TEEP

Inactive MRO Item An inventoried MRO storeroom item with no usage for 12 months

or longer.

5.5.34 Inactive Stock

Inactive Stock (5.5.34) The ratio of the number of inactive inventory stock records to thetotal number of inventory stock records excluding critical sparesand non-stock inventory records.

Inactive Stocked MROInventory Value

The current book value of maintenance, operating and repairmaterials in stock with no usage for 12 or more months (includingconsignment and vendor-managed stores). Include value ofinactive MRO materials in all storage locations including satelliteand/or remote storeroom locations whether or not that material isincluded in inventory asset accounts or an allocated portion ofpooled spares. Include estimated value for stocked material thatmay be in stock at zero value because of various CMMS and/or

accounting idiosyncrasies, etc. DO NOT INCLUDE raw material,finished goods, packaging materials and related materials.


Indirect MaintenancePersonnel

Maintenance Employees required to support the overallmaintenance operation, but not directly performing maintenancework. These personnel are generally charged to an overheadaccount. Examples include salaried supervision, engineering,maintenance planning and scheduling, clerical, etc.

5.5.3 Direct to IndirectMaintenancePersonnel Ratio

Indirect MaintenancePersonnel Cost

Indirect Maintenance Personnel cost includes all indirectmaintenance labor costs, both straight time and overtime.Indirect maintenance personnel are maintenance employeesrequired to support the overall maintenance operation, but notdirectly performing maintenance work. These personnel are

generally charged to an overhead account. Examples includesalaried supervision, engineering, maintenance planning andscheduling, clerical, etc.

5.5.4 IndirectMaintenancePersonnel Cost

Indirect MaintenancePersonnel Cost (5.5.4)

Indirect Maintenance Personnel Cost is the cost incurred forindirect maintenance personnel for the period expressed asa percentage of the total maintenance cost for the period.

Infrared Monitoring A monitoring technique that uses special instruments such as aninfrared camera to detect, identify, and measure the heat energyobjects radiate in proportion to their temperature and emissivity.

BM Survey

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In-sourcing Maintenance The process of moving maintenance activities performed by

outside contractors in-house to be performed by company

employees. This is the opposite of “outsourcing”.

BM Survey

Instruction Time The time when a maintenance craft worker is receiving workinstruction (e.g. assignment of jobs at the beginning of a shift).

5.6.1 Wrench Time

Internal Labor Hours usedfor ContinuousImprovement

The internal direct and indirect labor hours used on improvementprocesses intended to improve the current level of availability,reliability, maintainability, quality, safety, environment and costs.

Examples are hours used for systematic critical analysis,identification of improvements, participation in projects and theirpreparations, as instructor for training and education internallyand externally, or, finally, for safety, quality or environmentalaudit or schemes.

Do not include labor hours for capital expenditures for plantexpansions or improvements

5.7.1 ContinuousImprovement Hours

Inventory Stock Record The individual record describing the part that is inventoried,represented by a unique inventory number or stock keeping unit(SKU).


Knowledge ManagementSystem

A system that is designed to capture the explicit knowledge of acompany’s employees, contractors and other people working on-site on a permanent basis or temporarily.

BM Survey

Labor Costs Labor cost consists of hourly pay (or equivalent hourly pay, if asalaried employee) plus FICA (social security) taxes, insuranceand benefits.

4.2.1 Maintenancetraining Cost4.2.3 MaintenanceTraining ROI

Labor Hours on Job Plans The planner’s estimate of labor hours required to complete a

work order at the point when the planning is complete and thework order is sent for approval.

5.3.6 Planner

Effectiveness

Labor Hours Used onCorrective Maintenance

Labor used to restore the function of an asset after failure orimminent failure (i.e., fault recognition). Labor can be eitherinternal or external (contract).

5.1.2 CorrectiveMaintenance Hours

Lagging Indicator An indicator that measures performance after the business orprocess result starts to follow a particular pattern or trend.Lagging indicators confirm long-term trends, but do not predictthem.

Guideline 3.0

Leading Indicator An indicator that measures performance before the business orprocess result starts to follow a particular pattern or trend.Leading indicators can sometimes be used to predict changesand trends.

Guideline 3.0

Lean Initiatives Business improvement initiatives that are designed to removewaste from the business processes. The waste may include

materials, time, scrap, poor quality, no value add tasks, buffers,

work-in-progress.

BM Survey

Line items in inventory Number of different items in inventory, each with its own uniquedescription and stock number.

BM Survey

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Maintenance Employees All personnel, salaried and hourly, direct and indirect, who areresponsible for executing work assignments pertaining to themaintenance of physical assets and components.

4.2.1 MaintenanceTraining Costs4.2.2 MaintenanceTraining Hours5.5.3 Direct to Indirect

MaintenancePersonnel Ratio

Maintenance HourlyHeadcount

The headcount of hourly maintenance personnel who areemployed full time performing maintenance at a site

1.1 RAV toMaintenance HourlyHeadcount

Maintenance Job Plan An estimate of the number of maintenance labor hours requiredby craft and the MRO materials needed to complete the assignedwork. Additional elements can include asset documents,drawings, bills of material, tool list, applicable procedures andsafety related items.

5.3.6 PlannerEffectiveness

Maintenance MaterialsCost

Costs of the parts and supplies used to maintain and repair plant

equipment and facilities.

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Maintenance MaterialCost

The value of all maintenance, repair, and operating material(MRO) used during the period. This includes both stocked MROinventory usage and outside purchased materials, including costto repair a spare. Do not include material used for capitalexpenditures for plant expansions or improvements. Do notinclude contractor labor cost.

5.5.38 MaintenanceMaterials Cost

Maintenance ShutdownCosts

Total costs incurred to prepare and execute all plannedmaintenance shutdown or outage activities. Include all staff costsincurred for planning and management of the maintenanceactivities performed during the shutdown. Include all costs fortemporary facilities and rental equipment directly tied tomaintenance activities performed during the shutdown. Do notinclude costs associated with capital project expansions or

improvements that are performed during the shutdown. TheMaintenance Shutdown Costs are determined and reported for aspecific time period, e.g. monthly, quarterly, annually.

5.1.9 MaintenanceShutdown Costs

Maintenance TrainingCost (4.2.1)

Maintenance training costs are the dollar expenditures for theformal training that maintenance personnel receive annually. It isexpressed as costs per employee.

Maintenance TrainingHours (4.2.2)

The metric is the number of hours of formal training thatmaintenance personnel receive annually. It is expressed ashours per employee.

Maintenance TrainingROI (4.2.3)

Maintenance Training Return on Investment (ROI) is defined asthe ratio of the benefits realized by a business to the cost oftraining maintenance employees

Maintenance Unit Cost(1.3)

The metric is the measure of the total maintenance costrequired for an asset or facility to generate a unit ofproduction.

Mean Downtime-MDT(3.5.4)

The metric is the average downtime required to restore an assetor component to its full operational capabilities. MDT includesthe time from failure to restoration of an asset or component.

Mean Life A term used interchangeably with Mean Time Between Failures(MTBF) and Mean Time to Failure (MTTF).

3.5.1 Mean TimeBetween Failure

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Mean Time BetweenFailures-MTBF (3.5.1)

MTBF is the average length of time between one failure andanother failure for an asset or component. MTBF is usuallyused for repairable assets of similar type. Another term,Mean Time to Failure (MTTF) is usually used for non-repairable assets i.e. light bulbs, rocket engines etc. Bothterms are used as a measure of asset reliability. These termsare also known as mean life. MTBF is the reciprocal of theFailure Rate (λ), at constant failure rates.

Mean Time BetweenMaintenance-MTBM(3.5.3)

The metric is the average length of operating time between onemaintenance action and another maintenance action for an assetor component. This metric is applied only for maintenanceactions which require or result in function interruption.

MTTF (Mean Time ToFailure)

The average length of operating time to failure of a non-repairable asset or component.

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Mean Time To Repair-MTTR (3.5.2)

Mean Time To Repair or Replace (MTTR) is the average timeneeded to restore an asset to its full operational capabilitiesafter a failure. MTTR is a measure of asset maintainabilityusually expressed as the probability that a machine can berestored to its specified operable condition within aspecified interval of time regardless of whether an asset isrepaired or replaced.

Meeting Time The scheduled and unscheduled meetings including safetymeetings, information meetings, department meetings and othersimilar meetings.

5.6.1 Wrench Time

Modification Time Time to make modification or changes to the asset includingcapital work

3.3 ScheduledDowntime

Motor Current Analysis Monitoring the motor current during start-up (surge-current) andthe current trace over time (decay) to detect friction forces. Apredictive technique used to analyze current and voltagesupplied to an electric motor or generator to detect abnormaloperating conditions in induction motor applications. MotorCurrent Analysis can be used to identify incoming winding health,stator winding health, rotor health, load issues, system load andefficiency, bearing health, air gap static and dynamic eccentricity,and coupling health.

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Motor testing (hi-pot,insulation)

A test done to confirm the reliability of an electrical insulationsystem where a high voltage (twice the operating voltage plus1000 volts) is applied to cables and motor windings. This istypically a “go/no-go” test. Industry practice calls for HiPot testson new and rewound motors only. This test stresses theinsulation system and can induce premature failures in marginal

motors.

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MRO (Maintenance,Repair and OperatingMaterials)

Maintenance, repair and operating materials (MRO) and spareparts

1.4 Stocked MROInventory Value as aPercent ofReplacement AssetValue (RAV)

No Demand The time that an asset is not scheduled to be in service at thestart of the planning period for lack of demand for the product.

2.4 Idle Time

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No Feedstock or RawMaterials

The time that an asset is not available for production because nofeedstock or raw materials were present

2.4 Idle Time

Non-destructive Testing(NDT)

A collection of technologies that provide a means of assessingthe integrity, properties, and condition of components or materialwithout damaging or altering them. NDT methods includeultrasonic testing, eddy current testing, radiography,thermography, visual inspection, magnetic particle testing, dyepenetrant testing, acoustic testing, and others. Also termed non-destructive examination (NDE).

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Non-Productive WorkTime

The time not directly related to accomplishing the assigned worke.g. breaks, personal time, meetings, travel, planning, instruction,waiting, procuring tools and materials and training.

5.6.1 Wrench Time

Non-stock Item An item documented in the inventory system that is not physicallyin the storeroom but is documented for use on a parts list and/orfor repetitive purchasing purposes.

5.5.34 Inactive Stock5.5.35 StoreroomTransactions5.5.36 Storeroom

RecordNumber of InventoryRequests with Stock Out

An inventory request is a stock out if the requested item isnormally stocked on site and the inventory request is for a normalquantity of the item but the inventory on hand is insufficient to fillthe request.

5.5.33 Stock Outs

Number of work ordersperformed as scheduled

Number of work orders on the maintenance schedule that wereexecuted when scheduled.

5.4.4 ScheduleCompliance – WorkOrders

On Shif t Maintenance craft workers who rotate with or are assigned workhours aligned with a production shift are considered “on shift.”Maintenance craft workers on shift typically work on emergencywork and are not identified with the main group of maintenance

craft workers that work day shift.

5.5.6 Craft Workeron Shift Ratio

Operating Time An interval of time during which the asset or component isperforming its required function.

3.5.1 MTBF3.5.3 MTBM3.5.5 MTTF

Operator Maintenance Operators perform inspections and minor routine and recurringmaintenance activities to deep the asset working efficiently for itsintended purpose (cleaning, pressure checks, lube checks etc.).

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OSHA Recordable Rate OSHA Recordable rate (per 200,000 hrs) - OSHA RecordableIncident Rate is calculated by taking the total number of“recordable incidents” times 200,000 and dividing the result bythe number of hours of exposure.

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Outsourcing Maintenance The maintenance performed by vendors or outside contractors. BM Survey

Overall EquipmentEffectiveness (OEE)(2.1.1)

Overall equipment effectiveness (OEE) is a measure ofequipment or asset performance based on actual availability,performance efficiency, and quality of product or output when theasset is scheduled to operate. OEE is generally expressed as apercentage.

2.1.1 OEE

Overtime MaintenanceCost (5.5.7)

The metric is the cost of overtime maintenance labor used tomaintain assets divided by the total cost of maintenancelabor used to maintain assets, expressed as a percentage.

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Overtime MaintenanceHours (5.5.8)

The metric is the number of overtime maintenance laborhours used to maintain assets, divided by the totalmaintenance labor hours to maintain assets, expressed as apercentage.

Overtime MaintenanceLabor Cost

Overtime Maintenance Labor Cost is the cost of any hoursworked beyond the standard work period or shift (e.g. 8 hoursper day or 40 hours per week) multiplied by the labor rate. Addproduction incentives to this number but not profit sharing.Include overtime maintenance labor costs for normal operatingtimes as well as for outages/shutdowns/turnarounds. Includelabor cost for capital expenditures directly related to end-of-lifemachinery replacement (this is necessary so that excessivereplacement versus proper maintenance is not masked). Do notinclude labor cost used for capital expenditures for plantexpansions or improvements. Typically, it does not includetemporary contractor labor overtime cost.

5.5.7 OvertimeMaintenance Cost

Overtime Maintenance

Labor Hours

Overtime Maintenance Labor Hours is any hours beyond the

normal standard work period or shift (e.g. 8 hours per day or 40hours per week). Include overtime maintenance labor hours fornormal operating times as well as outages/shutdowns/turnarounds. If operator hours spent on maintenance activitiesare captured, they should be included in the numerator anddenominator of all applicable metrics. Include labor hours forcapital expenditures directly related to end-of-life machineryreplacement (this is necessary so that excessive replacementversus proper maintenance is not masked). Do not include laborhours used for capital expenditures for plant expansions orimprovements. Typically, it does not include temporarycontractor labor overtime hours.

5.5.8 Overtime

Maintenance Hours

Percentage of Workorders with KittedMaterials

Measure of number of work orders for which required parts havebeen identified, secured (pick listed), packaged and available to

do the job divided by all work orders x 100.

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Performance Efficiency(Rate/Speed)

The degree to which the equipment operates at historical bestspeeds, rates, and/or cycle times.

2.1.1 OEE2.1.2 TEEP

Performance Trending A process of assessing progress toward achievingpredetermined goals, including information on the efficiency withwhich resources transformed into goods and services, outputs,the quality of those outputs, how well they are delivered to thecustomers and the extent to which customers are satisfied.

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Personal Time The time when a worker is taking care of personal business e.g.

making or receiving a personal phone call, meeting with HumanResources or a union steward, using the restroom and othersimilar personal activities.

5.6.1 Wrench Time

Planned Cost The planner’s estimate of cost to complete the work order.Contingencies should not be included.

5.3.3 Actual Cost toPlanning Estimate5.3.5 PlanningVariance Index

Planned Work (5.3.1) Planned work is the hours of maintenance work that wasformally planned and completed versus the totalmaintenance labor hours expressed as a percentage.

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Planned Work Planned work is work that has gone through a formal planningprocess to identify labor, materials, tools, and safetyrequirements. This information is assembled into a job planpackage and communicated to craft workers prior to the start ofthe work.

5.5.2 Planner to CraftRatio5.3.1 Planned Work

Planned Work Executed Work that was formally planned and completed. 5.3.1 Planned Work

Planned Work OrderHours

The planner’s estimate of hours needed to complete the workorder.

5.3.4 Actual Hours toPlanning Estimate

Planner A formally trained maintenance professional who identifies labor,materials, tools, and safety requirements for maintenance workorders. The planner assembles this information into a job planpackage and communicates it to the maintenance supervisorand/or craft workers prior to the start of the work.

5.5.2 Planner to CraftRatio

Planner Effectiveness

5.3.6

Planner Effectiveness measures the average amount of work a

maintenance planner can plan per month. The result isexpressed as the number of maintenance job plans created permonth.

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Planning Period The period of time that defines how the potential capacity will beused. (revise or delete)

2.4 Idle Time

Planning Time The time when a maintenance craft worker is planning a job.This includes planning emergency and unscheduled work.

5.6.1 Wrench Time

Planning Variance Index(5.3.5)

The percent of work orders closed where the actual costvaried by within +/- 20 percent from the Planned Cost

Planner to Craft Worker

Ratio (5.5.2)

The number of maintenance workers a single planner is

preparing planned maintenance activities for completion.

PM & PdM Compliance(5.4.14)

The metric is a review of completed preventive maintenance(PM) and predictive maintenance (PdM) work orders, wherein theevaluation is against preset criteria for executing and completingthe work.


PM & PdM CorrectiveWork Orders

Corrective Work orders that are generated from by a PM or PdMtask.

5.4.13 PM & PdMEffectiveness

PM & PdM Effectiveness(5.4.13)

A measure of the effectiveness of the corrective work thatresults directly from Preventive Maintenance (PM) andPredictive Maintenance (PdM) strategies. The measure isthe amount of corrective work identified from PM/PdM work

orders that was truly necessary.PM & PdM Frequency Cyclical period of time upon which PM & PdM activities are

repeated5.4.11 PM & PdMWork Orders Overdue

PM & PdM Work OrderBacklog Trend (5.4.10)

A measure of all active PM & PdM work orders (i.e., ongoing – not closed) in the system. It is historically trended usingthe Required By Date of the work order and comparing thisto Today’s Date +/- 14 days. Using this guideline, allactive PM & PdM Work Orders in the system are categorizedeither as Overdue, Current or Future.

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PM & PdM Work OrdersOverdue (5.4.11)

An absolute measure of Preventive Maintenance (PM) andPredictive Maintenance (PdM) work orders that are past theRequired By Date (i.e., overdue).

PM & PdM Yield (5.4.12) A measure of corrective work that results directly from PM &

PdM tasks in place. The measure is the amount of repairand replacement work that is identified when performing PMor PdM work compared to the amount of PM or PdM workbeing done.

Predictive Maintenance(PdM)

Predictive maintenance (PdM) is an equipment maintenancestrategy based on assessing the condition of an asset todetermine the likelihood of failure and then taking appropriateaction to avoid failure. The condition of equipment can bemeasured using condition monitoring technologies, statisticalprocess control, equipment performance indicators or throughthe use of human senses.

5.4.2 Proactive Work All PM& PdM Metrics

Preventive Maintenance(PM)

Preventive maintenance (PM) is an equipment maintenancestrategy based on replacing or restoring an asset on a fixed

interval regardless of its condition. Scheduled restoration andreplacement tasks are examples of preventive maintenance.

5.4.2 Proactive Work5.1.3 Preventive

Maintenance Cost

Preventive MaintenanceCost (5.1.3)

The metric is the maintenance cost that is used to performfixed interval maintenance tasks, regardless of theequipment condition at the time. The result is expressed asa percentage of total maintenance costs.

Preventive MaintenanceCosts

Labor, material and services cost (including maintenanceperformed by operators, e.g., TPM) by company personnel orcontractors for work performed as preventive maintenance.Includes operator costs if all operator maintenance costs areincluded in Total Maintenance Costs.

5.1.3 PreventiveMaintenance Cost

Preventive MaintenanceHours

Total craft hours, company or resident contractor for preventativemaintenance work performed. Includes operator hours if alloperator maintenance hours are included in Total MaintenanceLabor Hours.

5.1.4 PreventiveMaintenance Hours

Preventive MaintenanceHours (5.1.4)

The hours of maintenance labor used to perform fixedinterval maintenance tasks, regardless of the equipmentcondition at the time.

Proactive Work (5.4.2) Proactive work is maintenance work that is completed toavoid failures or to identify defects that could lead tofailures. It includes routine preventive and predictivemaintenance activities and work tasks identified from them.

Production Planner Person responsible for determining production details and

timelines.

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Quality Rate The degree to which product characteristics meet the product or

output specifications.

2.1.1 OEE

2.1.2 TEEP

Ratio of ReplacementAsset Value toCraft/Wage Headcount(1.1)

The metric is Replacement Asset Value (RAV) of the assetsbeing maintained at the plant divided by the craft-wageemployee headcount. The result is expressed as a ratio indollars per craft-wage employee.

Reactive Work (5.4.1) Reactive work is maintenance work that breaks into theweekly schedule.

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Ready Backlog (5.4.9) The metric is the quantity of work that has been fullyprepared for execution but has not yet been executed. It iswork for which all planning has been done and materials

procured but awaiting assigned labor for execution.Ready Work Work that has been prepared for execution i.e. necessaryplanning has been done, materials procured and laborrequirements have been estimated.

5.4.9 Ready Backlog

Reliability Analysis A technique (with predictive tools) used to estimate the "life" ofan asset (product). This is usually expressed in terms of hours asmean time between failure (MTBF). Reliability analysis ofsystems / assets ensures delivery of good products or services.

Analysis helps to identify and to avoid some catastrophic eventsdue to failure of component (s).

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Reliability InformationSystems

Systems that take data collected by a CMMS/ EAM system and

apply reliability algorithms for the purpose of identifying

opportunities to improve reliability in the company’smanufacturing systems/ assets.

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Repair/ReplacementEvent

The act of restoring the function of an asset after failure orimminent failure by repairing or replacing the asset.

3.5.2 MTTR

Repair/Replacement Time The time required to restore the function of an asset after failureby repairing or replacing the asset. The duration of the repair orreplacement begins when the asset ceases to operate to the timeoperability is restored. It should include time for checking theasset for its functionality prior to handing it over to Operations.

3.3 ScheduledDowntime3.4 UnscheduledDowntime3.5.2 MTTR

Replacement Asset Value

(RAV)

Also referred to as Estimated Replacement Value (ERV). This is

the dollar value that would be required to replace the productioncapability of the present assets in the plant. Includeproduction/process equipment as well as utilities, facilities andrelated assets. Do not use the insured value or depreciated valueof the assets. Include the replacement value of buildings andgrounds if these assets are included in maintenanceexpenditures. Do not include the value of real estate, onlyimprovements.

1.1 RAV to

Maintenance HourlyHeadcount, 1.4Stocked MROInventory Value as aPercent ofReplacement AssetValue (RAV), 1.5

Annual MaintenanceCost as a Percentageof Replacement AssetValue

Required Date The date when the PM or PdM work is scheduled to becompleted.

5.4.10 PM & PdMWork Order Backlog

Trend5.4.11 PM & PdMWork Orders Overdue5.4.14 PM & PdMCompliance

Return On Net Assets(RONA)

RONA calculates how well a company converts assets to sales,

and therefore income. (The simple calculation is sales minus

expenses divided by net assets).

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Rework (4.1) Rework is corrective work done on previously maintainedequipment caused by maintenance, operations or materialproblems that resulted in a premature functional failure ofthat equipment. The typical causes of rework aremaintenance, operational or material quality issues.

Root Cause Failure Analysis (RCFA)

An analysis used to determine the underlying cause or causes ofa failure so that steps can be taken to manage those causes andavoid future occurrences of the failure.

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Schedule compliance The ratio of the actual number of work orders completed eachweek divided by the total number of work orders that were on theweekly schedule.

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Schedule Compliance –Hours (5.4.3)

The metric is a measure of adherence to the maintenanceschedule expressed as a percent of total time available toschedule.

Schedule Compliance –Work Orders (5.4.4)

The metric is a measure of adherence to the weeklymaintenance work schedule expressed as a percent of total

number of scheduled work orders.

Scheduled Downtime(3.3)

Time to do required work on an asset that is on the finalizedweekly maintenance schedule.

3.2 Total Down Time3.5.4 MDT2.1.1 OEE2.1.2 TEEP

Scheduled WorkPerformed

Actual hours worked on scheduled work per the maintenanceschedule.

5.4.3 ScheduleCompliance - Hours

Self-directed Work Teams Self-organized semi-autonomous small group whose members determine, plan, and manage their day-to-day activities andduties (in addition to providing other supportive functions such asproduction scheduling, quality assurance, and performance

appraisal) under reduced or no supervision. Also called selfdirected team, self-managed natural work team, or self managedteam.

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Set up Time Time to set up the machine for product change over, etc. 3.3 ScheduledDowntime

Six Sigma A set of practices designed to improve manufacturing processesand eliminate anything that could lead to customerdissatisfaction. Six Sigma has a clear focus on achievingmeasureable and quantifiable returns on each executed project.

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Sound Monitoring(audible)

The use of instruments or the human ear to detect changes inloudness, pitch, tone or frequency that could indicate pendingproblems with the functioning of equipment. Personal noise

dosimetry is recommended to ensure that noise exposure for thefull-shift (typically 8-hours) is captured to compare results directlywith the OSHA limits. The results of this survey will determine ifactions are necessary to ensure compliance with the OSHAStandard (1910.95) and minimize the potential for noise inducedhearing loss. The enrollment in a HCP is required if results oftesting indicate that employee exposures exceed the ActionLevel of 85 dBA. The use of hearing protection and theimplementation of feasible engineering and administrativecontrols are also required if exposures exceed the PermissibleExposure Limit of 90dBA.

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Standard Units Produced A typical quantity produced as output. The output has

acceptable quality and consistent means to quantify. Exampleswould include gallons, liters, pounds, kilograms, or otherstandard units of measures.

1.3 Maintenance Unit

Cost

Standing Work Order(component)

A work order opened for a specific period of time to capture laborand material costs for recurring or short duration maintenancework and for work that is not associated with a specific piece ofequipment where tracking work history or formalizing individualwork orders is not cost effective or practical. Examples includeshop housekeeping, meetings, training, etc. Standing workorders are also referred to as a blanket work orders.

5.4.5 Standing WorkOrders

Standing Work Orders(5.4.5)

The metric is the ratio of the hours worked on standing workorders to the total maintenance labor hours expressed as apercentage.

Statistical ProcessControl

A method of monitoring, controlling and, improving a processthrough statistical analysis. Its four basic steps includemeasuring the process, eliminating variances in the process tomake it consistent, monitoring the process, and improving theprocess to its best target value.

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Stock Item Inventoried item that is physically stored in the storeroom(including consignment stock) and that the storeroom managesat a specified quantity.

5.5.35 StoreroomTransactions5.5.36 StoreroomRecords

Stocked MRO InventoryValue

The current book value of maintenance, repair and operatingsupplies in stock including consignment and vendor-managedinventory. Include value of MRO materials in all storagelocations including satellite and/or remote storeroom locationswhether or not that material is included in inventory assetaccounts or an allocated portion of pooled spares. Estimate thevalue of “unofficial” stores in the plant even if they are not underthe control of the storeroom and even if they are not “on thebooks”. Include estimated value for stocked material that may bein stock at zero value because of various CMMS and/oraccounting idiosyncrasies, etc. DO NOT INCLUDE raw material,finished goods, packaging materials and related materials.

The extended cost of an individual storeroom item is calculatedas: Extended Cost of Individual Storeroom Item = Quantity onHand × Individual Item Cost

The aggregated cost of all storeroom items is calculated as: ∑N

(Quantity on Hand × Individual Item Cost) i

1.4 Stocked MROInventory Value as aPercent ofReplacement AssetValue (RAV)5.5.32 VendorManaged Inventory5.5.34 Inactive Stock

Stocked MRO InventoryValue as a Percent ofReplacement AssetValue (RAV) (1.4)

The value of maintenance, repair and operating materials(MRO) and spare parts stocked on site to supportmaintenance, divided by the Replacement Asset Value (RAV)of the assets being maintained at the plant, expressed as apercentage.

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Storeroom Clerk Any employee who has responsibility for the day-to-day activitiesin the storeroom measured as a full time equivalent (FTE). Alsoknown by other titles e.g. storekeeper, storeroom attendant, etc.

The Storeroom Clerk is typically responsible for but not limited tothe following duties: issuing parts, stocking and labeling parts,organizing inventories, shipping equipment and materials (e.g.vendor returns, repairable spares, etc.), picking, kitting, staging,delivering and related activities, counting inventory (e.g. cyclecounting), housekeeping, receiving activities (e.g. opening boxes,checking packing slips, noting discrepancies, etc.), andperforming stock equipment and material maintenance activities(e.g. rotating shafts, inspecting belts, etc.).

5.5.35 StoreroomTransactions

Storeroom Line ItemRecord

Non-inventoried item, typically purchased on an as-neededbasis.

5.5.36 StoreroomRecords

Storeroom Transaction Any materials management activity that results in the physical

handling of an inventory item (stock or non-stock) or directpurchased item or that results in the exchange of data with thestoreroom inventory management system. Inventorytransactions occur any time an item is ‘touched’ either physicallyor electronically (e.g. a pick list with ten items picked would equalten transactions. Inventory transactions include receiving,stocking, adding, picking, kitting, staging, issuing, delivering,returning, adjusting, counting inventory stock item, EOQ analysis,etc.

5.5.35 Storeroom

Transactions

Storeroom Transactions(5.5.35)

The ratio of the total number of storeroom transactions tothe total number of storeroom clerks used to manage theinventory for a specified time period.

Stock Outs (5.5.33) A measure of the frequency that a customer goes to thestoreroom inventory system and cannot immediately obtainthe part needed.

Stores Inventory Turns(5.5.31)

A measure of how quickly inventory is flowing through thestoreroom inventory system.

Supervisor A first-line leader who is responsible for work execution by CraftWorkers

5.5.1 Supervisor toCraft Ratio

Supervisor to CraftRatio (5.5.1)

The number of maintenance workers a single supervisor ismanaging.

Systems A set of interrelated or interacting elements. In the context ofdependability, a system will have: a defined purpose expressedin terms of required functions,stated conditions of operation, and defined boundaries

3.1 Systems Coveredby Criticality Analysis

Temperature Monitoring Monitoring techniques that look for potential failures that cause arise in the temperature of the equipment itself (as opposed to thematerial being processed). If related to electrical circuitry,temperature monitoring can protect electronic components frombeing subjected to high temperatures.

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Today’s date The current work day 5.4.6 Work Order Aging5.4.10 PM & PdMWork Order BacklogTrend5.4.11 PM & PdMWork Orders Overdue

Total Available Time 365 days x 24 hours 2.3 Uptime2.1.1 OEE2.1.2 TEEP

Total AvailableMaintenance Hours

Replaced with Total Maintenance Labor Hours

Total Downtime (3.2) The amount of time an asset is not capable of running. It isthe sum of Scheduled Downtime and UnscheduledDowntime.

2.3 Uptime3.5.4 MDT

Total EffectiveEquipment Performance(2.1.2)

Total effective equipment performance (TEEP) is a measureof equipment or asset performance based on actualutilization time, availability, performance efficiency, andquality of product or output over all the hours in the period.TEEP is generally expressed as a percentage.

Total InternalMaintenance PersonnelLabor Hours

Man hours of internal personnel engaged in maintenance.

The internal personnel man hours are composed of:

Direct personnel are personnel working in the field, or workshopsperforming maintenance activities (usually referred to as “bluecollar workers”)

Indirect Personnel (Managers, Staff and clerks, Supervisors,Maintenance engineering personnel, Planning and schedulingpersonnel, Tools store men, Warehouse and store workers)

Man hours of maintenance activities carried out by productionpeople are included

5.7.1 ContinuousImprovement Hours

Total Maintenance Cost Total expenditures for maintenance labor (including maintenanceperformed by operators, e.g., TPM), materials, contractors,services, and resources. Include all maintenance expenses foroutages/shutdowns/turnarounds as well as normal operatingtimes. Include capital expenditures directly related to end-of-lifemachinery replacement (this is necessary so that excessivereplacement versus proper maintenance is not masked). Do notinclude capital expenditures for plant expansions orimprovements.

5.5.71 Contractor Cost1.3 Maintenance UnitCost5.1.9 MaintenanceShutdown Costs 1.5

Annual MaintenanceCost as a Percentageof Replacement AssetValue 5.1.3 PreventiveMaintenance Cost5.1.5 Condition BasedMaintenance Cost5.5.38 MaintenanceMaterial Cost

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Total Maintenance LaborCost

Total maintenance labor cost is expressed in dollars, includingovertime. Total cost includes all maintenance labor hoursmultiplied by the labor rate, plus any production incentive but notprofit sharing. Include maintenance labor costs for normaloperating times as well as outages/shutdowns/turnarounds.Include labor for capital expenditures directly related to end-of-life machinery replacement (this is necessary so that excessivereplacement versus proper maintenance is not masked). Do notinclude labor used for capital expenditures for plant expansionsor improvements. Typically, it does not include temporarycontractor labor cost.

5.5.7 OvertimeMaintenance Cost

Total Maintenance LaborHours

Total maintenance labor is expressed in hours and includes allmaintenance labor hours for normal operating times as well asoutages, shutdowns and turnarounds. If operator hours spent onmaintenance activities are captured, they should be included inthe numerator and denominator of all applicable metrics. Include

labor hours for capital expenditures directly related to end-of-lifemachinery replacement so that excessive replacement versusproper maintenance is not masked. Do not include labor hoursused for capital expansions or improvements.

5.4.5 Standing WorkOrders5.14.2 OvertimeMaintenance Hours5.5.72 Contractor

Hours 4.1 Rework5.4.1 Reactive Work5.4.2 Proactive Work5.1.2 CorrectiveMaintenance Hours5.3.1 Planned Work5.3.2 Unplanned Work5.1.4 PreventiveMaintenance Hours

Total Number of InventoryRequests

The total of all requests for items listed as stocked in thestoreroom inventory system.

5.5.33 Stock Outs

Total Number of

Scheduled Work Orders

Total number of work orders on the weekly schedule 5.4.4 Schedule

Compliance – WorkOrders

Total ProductiveMaintenance (TPM)

A holistic approach to maintenance that involves all plantdepartments and employees to ensure reliable equipmentcapacity.

1.1Ratio ofReplacement AssetValue (RAV) to CraftWage Headcount

Total Time Available toSchedule

The total craft hours available to schedule. Do not includevacation, illness or injury, and other similar time off.

5.4.3 ScheduleCompliance

Total Uni ts Produced The number of units produced during a designated time period. 2.1 .1 OEE2.1.2TEEP

Total Work See Total Maintenance Labor Hours

Total Work Time The total time that maintenance craft workers are being paid toaccomplish work, commonly referred to as being “on the clock”.This includes straight time and over time whether scheduled orunscheduled.

5.6.1 Wrench Time

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Training The training is provided in a formal setting, and will typicallyinclude classroom and hands-on training with testing to confirmcomprehension.Examples of training are safety (LOTO, JSA, etc.), interpersonal

skills development (leadership, ESL, supervisory, etc.), mathskills, computer skills, use of CMMS, job planning, reliability(FMEA, RCFA, etc.), problem solving, blueprint reading,alignment, balancing, lubrication, welding, all certifications(SMRP, vibration, Thermography, etc.), pneumatics, hydraulics,fasteners, use of specialized tools, equipment specific training,etc.

Attendance at conventions and seminars is also credited astraining, as long as the subjects fall within the SMRP Body ofKnowledge.

4.2.1 MaintenanceTraining Costs

Training Costs Training costs include all costs for formal training that aredirected at improving job skills. Training costs should include allemployee labor, travel expenses, stationary, registration fees,instructor fees, etc.

4.2.1 MaintenanceTraining Costs4.2.3 MaintenanceTraining ROI

Training Hours Includes all time spent on formal training that is designed toimprove job skills. The training is provided in a formal settingand typically includes classroom and hands-on training withtesting to confirm comprehension. Training can include but is notlimited to safety, leadership, technical, computer, planning,reliability, problem solving, and similar training. Attendance atconventions, seminars and workshops is credited as training, aslong as the subjects fall within the SMRP Body of Knowledge.

4.2.2 MaintenanceTraining Hours

Training Time The time when a maintenance craft worker is receiving formal orinformal training. This can be in a classroom or on-the-job.

5.6.1 Wrench Time

Travel Time The time when a maintenance craft worker is traveling regardlessof the reason or the mode of transportation (e.g., walking, riding,etc.)

5.6.1 Wrench Time

Twelve Month Rollingperiod

A 12 month period that starts from the current month and goesback 12 months. For a metric that comes out in May 2006 the 12month period would be May 2005 through and including April2006

1.3 Stores InventoryTurns

Unplanned Work (5.3.2) Unplanned work is the hours of maintenance work that wascompleted but not formally planned versus the totalmaintenance labor hours expressed as a percentage.

Unplanned Work(component)

Unplanned work is work that has not gone through a formalplanning process (e.g. reactive work).


Unplanned WorkExecuted

Unplanned work that has been completed. 5.3.2 Unplanned Work

Uptime (2.3) The amount of time an asset is actively producing a product orproviding a service. It is the actual running time.

2.3 Uptime

Uptime 2.1.2 TEEP

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Unscheduled Downtime(3.4)

The time an asset is down for repairs or modifications that arenot on the finalized weekly maintenance schedule.

3.2 Total Downtime3.5.4 MDT2.1.1 OEE2.1.2 TEEP

Unscheduled Work Work not on the weekly schedule 4.1 Rework

Utilization Rate (2.5) The amount of runtime of an asset in a year(Year =365x24 hours = 8670 hours/year)

Utilization Time Time when the asset is scheduled to run divided by Total Available Time expressed as a percentage

3.1 TEEP

Ultrasonic Testing A technique of locating defects in a material by passing acousticenergy in the ultrasound range through it. It can be used forpinpointing surface as well as deep defects.

BM Survey

Value of Stock on Hand

The current value of the stock in inventory. 5.5.31Stores InventoryTurns

Value of Stock Purchased

The value of the inventory items purchased in the period forwhich the metric is being calculated.

5.5.31 Stores InventoryTurns

Vendor ManagedInventory (5.5.32)

Vendor Managed Inventory is the ratio of the number of stockeditems (measured as individual stock keeping units – SKUs) thatare managed by the vendor or supplier to the total number ofstocked items held in inventory. This metric may also beexpressed as a percentage based on costs (value ($) of theVendor Managed Inventory to the Stocked MRO Inventory Value($)).

Vendor ManagedInventory (5.5.32)

Vibration Monitoring A monitoring technique used to determine asset condition, andpotentially predict failure. Assets are monitored usinginstrumentation such as vibration analysis equipment or thehuman senses.

BM Survey

Waiting Time The time when a maintenance craft worker is waiting regardlessof the reason.

5.6.1 Wrench Time

Weekly Schedule The list of maintenance work to be done in the week. It is usuallyfinalized three to four days before the start of the work week.

3.2 Total Down Time3.3 ScheduledDowntime3.4 UnscheduledDowntime5.4.1 Reactive Work

Work Distribution byPriority

Scheduling work based on priority which is driven by assetcriticality and defect severity.

BM Survey

Work Order Aging(5.4.6)

A measure of the current age of all active work orders in thesystem. It uses the “Work Order Creation Date” and compares itto Today’s Date to determine the Work Order Age.

Work Order CompletionDate

The date that the work order was completed by the tradesperson 5.4.7 Work OrderCycle Time

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Work Order Creation Date The date the original work order was written and entered into themaintenance management systemCould be called a work request or notification, depending on the

maintenance management system being utilized.

5.4.6 Work Order Aging5.4.7 Work Order

Cycle TimeWork Order Cycle Time(5.4.7)

Work Order Cycle Time is the time from the creation of a workorder in the Computerized Maintenance Management System(CMMS) until it is completed by tradesperson.

5.4.7 Work OrderCycle Time

Documents

SMRP Best Practice Metric 2009.10