Published On December 5, 2023 | 5 Min Read
A business in any industry that manages assets across one or more facilities can benefit from setting maintenance key performance indicators. Each maintenance KPI is a metric oriented towards improving the cost-effectiveness or efficiency of a maintenance program. KPIs should align with the business plan or overall strategy of an organization. Find out how to identify and set KPIs and learn more about five key KPIs related to maintenance.
Reviewing metrics is the first step toward setting KPIs for maintenance. Many professionals use the terms performance metrics and KPIs interchangeably, but performance metrics form the basis for KPIs that measure progress towards goals. These measurable values set specific targets for optimizing the efficiency of operations. Decision-makers can use KPIs to set SMART goals, or goals that are specific, measurable, achievable, relevant and timely.
It is generally a good idea to limit the number of goals in any area of operations to five. Having too many priorities in play can make objectives harder to achieve. Here are five of the most impactful KPIs for maintenance programs.
Planned maintenance is more affordable than emergency repairs and reduces unexpected downtime. This maintenance KPI is often referred to by the acronym PMP. Using a computerized maintenance management system makes it easier for stakeholders to determine how much of the total maintenance workload consists of planned tasks.
Calculate PMP by identifying a set period of time, determining the number of planned maintenance hours during this time and dividing this figure by the total number of maintenance hours during this time. Planned maintenance accounts for most of the workload in an optimized operation. Related KPIs to PMP include reactive maintenance work hours and unscheduled equipment downtime.
Tracking a KPI for the mean time between failures is one of the best ways to determine the reliability of repairable assets. This maintenance KPI measures how much time elapses between periods during which equipment cannot perform its primary function. Repairable assets are components that technicians can fix, as opposed to non-repairable assets that technicians must replace after failure.
The equation for MTBF calls for determining the total number of operating hours over a set span of time and dividing this figure by the number of asset or equipment failures that occurred during the same period. A related KPI is mean time to failure, which involves a similar equation for non-repairable assets.
Another KPI that is relevant for maintaining assets and facilities is mean time to repair. This KPI determines the typical amount of time necessary for repairs. A lower MTR indicates that operations are becoming more efficient. The facility management features of DreamzCMMS help stakeholders track repairs and provide accurate metrics for this maintenance KPI.
To calculate MTR, determine the total maintenance time over a set period and divide this figure by the number of repairs that took place during the same period. MTR can be helpful for planning preventive maintenance. Related KPIs to MTR include work order cycle time and maintenance schedule compliance.
A KPI for determining cost per unit can be useful for identifying the cost of running equipment and the profitability of an operation. This maintenance KPI indicates how much of an investment in maintenance is necessary to run equipment and manufacture standard units of production. To determine the maintenance unit cost, divide the total cost of maintenance by the number of units that equipment produces over a set period.
Calculating maintenance costs on a regular basis makes it possible to track trends over time. This calculation can apply to one asset or piece of equipment, a collection of assets, a production plant or multiple plants. The right CMMS can inform these calculations by making it easy to monitor expenditures and production rates. Related KPIs include maintenance cost as a percent of replacement asset value, utility consumption and life cycle costs.
The backlog of pending orders in a CMMS is a simple maintenance KPI to calculate. This KPI can help stakeholders determine whether staffing levels are sufficient. An extensive backlog that is longer than two weeks’ worth of work per technician indicates understaffing, while no backlog suggests that there could be too many technicians on staff. A similar KPI to a maintenance backlog is maintenance schedule compliance.
The availability of accurate data for calculating the efficiency of asset and facilities maintenance depends on setting up automated systems and requiring that technicians enter all work orders into a CMMS. A CMMS that supports the use of radio-frequency identification for assets and and internet-connected sensors for equipment can make it easier to obtain accurate metrics for calculating KPIs.
KPIs for planned maintenance, mean time between failures, mean time to repair, costs and backlog can indicate the current level of performance of a maintenance program and guide goal setting. Preventive maintenance can prolong time between failures, decrease time to repair, increase effectiveness and shorten backlogs.
One of the best maintenance KPI examples involves measuring current downtime and setting a goal to reduce this KPI. For instance, the average manufacturer has 800 hours of equipment downtime per year. A SMART goal would be to reduce this KPI by 25% to 600 hours or less. Once a maintenance program reaches a goal, it is time to refine or change KPIs goals. Stakeholders can optimize the maintenance program by tracking and adjusting KPIs over time.
The best CMMS automatically tracks equipment performance data. Setting a maintenance KPI for the percentage of work covered by work orders can also encourage technicians to enter data into the CMMS for use in analytics. DreamzCMMS provides a full suite of features for managing maintenance work orders and tracking performance. Schedule a demo to find out how our CMMS platform can reinforce KPIs for maintenance.
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