What MRO metrics should be monitored in production?

Maintenance and repair (MRO) affects many production and management departments of the enterprise. Therefore, in the planning process, attention should be paid to the comprehensive coordination of their activities.
The first steps in this direction involve the creation of a unified technical and economic strategy, an analysis of the available funds and the selection of suitable service methods.

How to create a KPI system for a maintenance service

To understand how effective your maintenance and repair service will be, it is worth developing a system of performance indicators of the processes being implemented (KPI).

Let’s make a reservation right away that the KPI system for maintenance and repair will differ depending on the industry, manufacturability of production, tactical and strategic goals of a particular company. However, there is a list of the most popular metrics.

They meet five basic criteria (SMART):

– Specific – specific, simple, but effective KPIs, the analysis of which will help prevent the repetition of past mistakes;

– Measurable – measurable metrics that allow you to apply methods to optimize quantitative indicators to better match current processes with the maintenance plan;

– Attainable – achievable metrics that take into account the real possibilities of production, team and budget;

– Realistic – realistic metrics that focus on the current, not the desired production conditions;

– Timely – indicators that reflect the timeliness of achieving the set goals, taking into account reasonable, not optimistic time frames.

When creating a KPI system, they often make a mistake – they are guided by the desired performance indicators. This should not be the only goal of MRO optimization.

Remember that the selected indicators are only a tool for quantitative analysis of the effectiveness of the applied equipment maintenance methods. Divide the results of the KPI analysis into indicators of the success of maintenance and repair management, the degree of impact of the implemented processes on the business, and the positive impact of the strategy on the reliability and availability of assets.

We pass from theory to practice – we will study in detail the most popular MRO metrics.

Downtime

This indicator plays a key role in assessing the stability of production. You analyze the total time during which the equipment was inactive or unavailable.

For these KPIs, the optimal value is 10%. This means that the asset’s uptime should aim for 90%. If the value is lower, it is worth optimizing the preventive maintenance strategy and taking care of creating a high-quality infrastructure for monitoring operational indicators (based on IIoT). This is made possible, for example, by the SmartEAM system, which our partners use to create a Predictive Maintenance strategy.

Compliance with the schedule

Planned Maintenance Compliance (PMC) demonstrates the compliance of the maintenance schedule with the established maintenance plan. In addition to statistical data, this metric also provides unique information: performance indicators of the entire maintenance and repair team – from service managers and foremen to production department operators.

Thanks to PMC, you can estimate the time required for maintenance, overhaul, scheduled and unscheduled repairs. But more importantly, you can measure the level of employee engagement. If the KPI does not correspond to 90% or more, then you need to take action.

Overall Equipment Effectiveness (OEE)

Overall equipment efficiency is one of the most important indicators of the success of a maintenance strategy and one of the most attractive indicators for enterprise managers. The metric reflects the availability of assets, the speed of the production process and the economic value of the products created without any disruption.

To calculate the KPI, you must take into account:

– availability (comparison of downtime and uptime);

– performance (comparison of current indicators with forecasts or declared characteristics);

– quality (comparison of total production volumes with the amount of scrap).

For most businesses, OEE should aim for 77%, although global industry leaders are already targeting rates above 85%.

Mean Time Between Failures (MTBF)

MTBF is the period between unplanned equipment failures. KPI characterizes the reliability of assets and the effectiveness of activities within the MRO plan. The metric takes into account both cases of manufacturing defects and software errors. For the calculation, the duration of the breakdown of the asset must be deducted from the total working time.

Regardless of the industry or type of equipment, this figure should be as high as possible. To assess the effectiveness of maintenance, compare the current MTBF with the metrics before the implementation of new initiatives.

Mean Time To Repair (MTTR)

MTTR reflects the time it takes for a team to perform corrective maintenance after a failure. The metric allows you to analyze the maintenance efficiency of an individual asset, component, production line, or the entire enterprise.

Unlike the previous metric, the average time between repairs should be kept to a minimum.

Planned Maintenance Percentage (PMP)

Percentage of scheduled maintenance displays the time spent on scheduled maintenance activities. The KPI demonstrates the effectiveness of the preventive maintenance strategy in the context of the justification for each operation and the time spent on it.

A PMP of 85% and above is in line with the global industry average.

Outcomes

What is the global goal of the KPI system? MRO KPIs give management a clear picture of the successes and failures of the chosen strategy. This allows you to focus on achieving the most important production or financial goals. Based on the analysis of the information obtained, a reasonable action plan is created to optimize MRO.

Read more about the organization and work of maintenance and repair in our other materials.