However, it is possible to mask this indicator by cutting back on maintenance expenses in the short term only to incur major costs later when equipment starts to fail. Request a Demo of the Prometheus Platform. The original metric, Mission Reliability, answered the question of figure 4. Sometimes this global goal is expressed in terms of profitability, sometimes in terms of revenue, sometimes in terms of production. One of the main KPIs used in this category is called Mean Time Between Failure. During this correct operation, no repair is required or performed, and the system adequately follows the defined performance specifications. Alternatively, availability can be defined as the duration of time that a plant or a particular equipment is able to perform its intended task. The classification of availability is somewhat flexible and is largely based on the types of downtimes used in the computation and on the relationship with time (i.e., the span of time to which the availability refers). There is a generally accepted availability standard of 95 percent for equipment, but mission- critical equipment in facilities requires a much higher level of availability. Although we may be able to achieve step changes in the behavior of a maintenance and production team, the effect of these changes on the overall reliability and performance of the equipment can only be measured as a trend over time. The value of having a global KPI like this in every department is that it reminds everyone of the collective responsibility for overall performance. For industrial maintenance, the metric of Failure Rate is usually more relevant. Only by tracking these critical KPIs can an enterprise maximize uptime and keep disruptions to a minimum. These goals are determined by the individual organization. PSA can be calculated as a percentage and should be as close to 100% as possible. Once these short-term indicators are under control, the long-term trends should move in the right direction too. Reliability is the probability that a system performs correctly during a specific time duration. We can refine these definitions by considering the desired performance standards. Here you can focus on three main areas for which you can define additional KPIs: assets, operational and customers. Every part of the organization is serving the same corporate goals and objectives even though each part is playing a vastly different role and carries different responsibilities. If this doesn’t happen, then the short-term KPIs should be reviewed to ensure that the right actions and behaviors are being measured and controlled and changes should be made as necessary. Below are some practical steps to help facilitate a discussion on the right KPIs and approach for your organization. Specific metrics for measuring effectiveness in key areas such as maintenance planning and scheduling and MRO storerooms and material management. The purpose of most equipment in manufacturing is to support the production of Requirements for a Successful Reliability Team. Overall equipment effectiveness (OEE) is a measure of how well a manufacturing operation is utilized (facilities, time and material) compared to its full potential, during the periods when it is scheduled to run. The three basic metrics of RAM are (not surprisingly) Reliability, Maintainability, and Availability. Data Quality. Maintenance metrics matter. Convincing your executive team to purchase new software can be a challenge. MTBF is the average length of operating time between failures for a specific piece of equipment or component. Every part of the organization is serving the same corporate goals and objectives even though each part is playing a vastly different role and carries different responsibilities. Another major trend indicator is the financial KPI of Maintenance Cost per unit Production. equipment reliability and lower operational risks. Reliability engineering is a sub-discipline of systems engineering that emphasizes the ability of equipment to function without failure. An organization that insists on the completion of these day-to-day routines will, therefore, drive the overall performance upwards and will see the impact on the long-term trends and the achievement of the big picture KPIs. Everything goes wrong. Using the wrong maintenance metrics—or worse yet none at all—can cause or contribute to problems like the following. A simple measure for this is Production Schedule Adherence, which can be measured as: PSA = Actual Production / Planned Production. Reviews of the bill of materials for maintenance tasks can improve the planning data. These metrics were created by the SMRP’s Best Practices Committee using a rigorous development, review, and approval and harmonization process applying them to the SMRP's Five Pillars of Knowledge. All of these factors can be immediately actioned in order to resolve the problem. You know maintenance needs better software and you’ve found the perfect solution. The measures we believe are truly important are often referred to as Key Performance Indicators (KPI’s), since apparently those contain key information on performance as the wording implies. As a hypothetical example, imagine a faulty mechanical mixer. Failure rate is the number of failures per 1000 hours of operation. Another short-term KPI is the measure of completion of preventative maintenance tasks – Preventative Maintenance Schedule Compliance: PMSC = Completed PM tasks / Planned PM tasks. For utility companies, reliability means success. Reliability must be sufficient to support the warfighting capability needed in its expected operating environment. Tracking the reliability of assets is one challenge that engineering and maintenance managers face daily. These KPIs can be used to directly influence the culture of an organization and direct action can often be taken in response to these indicators. Reliability describes the ability of a system or component to function under stated conditions for a specified period of time. Major deviations in this KPI indicate that there are significant factors preventing the maintenance organization from functioning efficiently. And, how can project managers ensure their teams accomplish those reliability goals? It encompasses availability, performance, and quality, and when used correctly is removing waste. Theoretically, defects can be introduced into equipment at each of the six main phases of its life cycle: Design… Maintenance and Reliability for Managers - 4 Part Series, Maintenance and Reliability Technician Core Concepts, Maintenance Storeroom and Materials Management, Maintenance and Reliability Best Practices. Inherent Availability 5. Maintenance and reliability managers must have metrics in place to identify needs for improvement. Establishing metrics is essential for demonstrating the benefits of maintenance and reliability best practices. People often confuse reliability and availability. Corporate Metrics. Equipment Metrics and Benchmarking 5 5 1. ... M-12/M-13 Automatic AC Transmission Outages Initiated by Failed Protection System Equipment / Automatic AC … Integration with other data management systems, Proper configuration and utilization of data fields in support of best practices, Utilization of metrics and Key Performance Indicators (KPIs), Developing effective metrics to show and drive continuous improvement, Training in managing and measuring with Key Performance Indicators (KPIs) to show progress and sustain proactive behaviors, Optimizing use of the CMMS/EAM reporting tools, Forming a data collection system that supports the dashboard, Leveraging trending analysis to your advantage. "The No. But you can't figure out where to start fixing your maintenance organization or how because you don't know where you're at. Using MTTR, you can find the average time it takes your maintenance staff to reinstate a machine to its optimal working condition following a breakdown. As long the preventative maintenance tasks are properly defined and are truly beneficial to ensure that equipment does not fail prematurely, then the completion of these tasks as per the plan will cause the long-term reliability trends to show improvement. It identifies the percentage of manufacturing time that is truly productive. The reliability scorecard is critical to capturing project benefits and should include the following types of measures: Transition – These are temporary project measures to indicate whether reliability changes are taking place. Planned maintenance percentage (PPC) This metrics represents the percentage of time spent on … 1 measure of reliability worldwide is mean time between failure." Asset performance metrics like MTTR, MTBF, and MTTF are essential for any organization with equipment-reliant operations. Use data-driven decision-making for equipment assets to optimize profitability, safety and compliance. Availability, also known as operational availability, is expressed as the percentage of time that an asset is operating compared to its total scheduled operation time. This could be due to things like breakdowns in equipment or a lack of availability of spares to execute the planned work. Warnings of pitfalls to avoid as part of the metrics process. It is calculated by dividing a specified period of operating hours by the number of failures. It is vital that each function and department links themselves to the overarching objective of the whole. Author, Ron Moore, suggests that process conformance can be improved through equipment reliability, proper, calibrated instrumentation, disciplined operation and quality raw material1. The last type of KPI that should be considered when building a reliability and maintenance program and measuring the performance is a KPI that measures immediate impact. Planners pad estimated work hours for orders in order to maintain schedule compliance, so you don't assign enough work to technicians as a result. Reliability = V x 100 W The frequency with which the machine breaks down and disrupts production Data Average Uptime Availability (or Mean Availability) 3. Overall Equipment Effectiveness (OEE). Everyone who has worked in a complex organizational structure like that required in manufacturing knows that there is a need to constantly fight against the tendency towards thinking in silos. Learn how digital permitting can reduce hazardous incidents, mitigate unsafe isolations and sub-par risk assessments, and ensure regulatory compliance. Instantaneous (or Point) Availability 2. Achieved Availability 6. Measuring plant performance - The need for metrics standardization. The Society for Maintenance and Reliability Professionals (SMRP), developed standard definitions for metrics used in industry. So, which metrics should utility executives care about? MPU is a simple ratio which can be measured against benchmarks for each specific industry. You can use our product to measure the performance metrics of your equipment and keep track of your assets more efficiently! Reliability follows an exponential failure law, which means that it reduces as the time duration considered for reliability calculations elapses. There are loads of metrics that are relevant and important to utilities, but three, in particular, are crucial for tracking reliability success. The fact is that in actual practice when operations and maintenance are jointly responsible for equipment reliability the opportunity to improve is significantly increased. It's necessary to change their opinion by changing your perspective. Originally published in 1986, SEMI E10 Specification for Definition and Measurement of Equipment Reliability, Availability, and Maintainability (RAM) is the ‘granddaddy’ of SEMI equipment performance and productivity metrics and is one of the most widely used SEMI standards. Contact People and Processes to learn more about the maintenance metrics and Key Performance Indicators that your organization may be overlooking or ignoring, thereby keeping you from creating a proactive, reliability-centered culture. There are many KPIs that enable us to monitor the long-term trends in reliability and maintenance performance. These KPIs help us to determine if all the little day to day adjustments and changes are actually having the desired effect over time. The financial impact of unexpected equipment failure can be costly, as AK Steel Corp. shared recently. Can we control both long-term trends and short-term changes in culture and behavior? While the availability of the faulty mixer may still be quite high if opera… It is important as a reliability and maintenance professional to focus daily attention on the short-term KPIs in order to drive the behavior and cultural change that is needed in an organization. Metrics are also extremely important for validating whether the maintenance team is headed in the right direction to achieve the organization’s goals and objectives. Steady State Availability 4. Insight into behaviors that are encouraged by the use of those metrics. What is Equipment Reliability? Once we have the big picture firmly in the minds of every department and person in the organization, we can begin to monitor the general trends that show the effectiveness of our reliability and maintenance strategies. However, new technology only enables an ineffective maintenance program to be more efficient at being ineffective. Another metric that relates to the duration that an equipment operates is reliability. Investigations into the causes of failures can help prevent breakdowns. EZOfficeInventory is the leading equipment management software used by companies worldwide. For the unfamiliar, mean time between failures is the average length of operating time between one failure and the next of an asset. Say the mixer shuts off every hour, while a properly functioning mixer can continuously work for 24 hours without issues. When objectives are reached, you can remove these measures from the scorecard and add new transition measures. Which ones do we focus on and why? Is the probability that an asset, item, or unit will perform its prescribed duty without failure for a given time in a specified environment. Interested in breaking information silos, standalone solution, and inconsistent processes in your organization? Reliability metrics are best stated as probability statements that are measurable by test or analysis during the product development time frame. In other words, reliability of a system will be high at its initial state of operation and gradually reduce to its lowest magnitude over time. Industry Data. ISPM helps asset-intensive industries improve equipment availability and minimize hazards with high-quality equipment reliability data. The goal of a main-tenance and reliability program is to deliver a proper balance of maintenance activities — primarily those aimed at … If our maintenance and reliability strategies are effective and are solving the problems that cause failures in our equipment, this should show a continuous upward trend, which stabilizes at industry benchmark levels. Simply put availability is a measure of the % of time the equipment is in an operable state while reliability is a measure of how long the item performs its intended function. Check out our handy guide for clearing the last hurdle: executive buy-in. Allocating equipment and inventory to selected employees or teams; Predicting the budget for future equipment and maintenance costs; Five metrics you can use to evaluate Asset Reliability at your plant are: 1. Technicians can extend the equipment’s availability by increasing its reliability. However, in most cases, the exponential distribution is used, and a single value, the mean time to failure (MTTF) for non-restorable systems, or mean time between failures (MTBF for restorable systems are used). People and Processes, Inc.P.O. However, the result of this change may only be noticeable in the reduction of failures over a period of weeks and months. While general metrics work well for gauging the overall performance of any business, equipment rental firms need to go beyond general metrics to get the most accurate results. One example of a corporate-level KPI is the measure of how well the manufacturing facility performs in terms of meeting the planned production that is laid out for it by the business. Reliability uses many metrics for evaluating equipment and systems. Everyone who has worked in a complex organizational structure like that required in manufacturing knows that there is a need to constantly fight against the tendency towards thinking in silos. There are literally hundreds of KPIs published that we are told should help us to measure and control our manufacturing, reliability and maintenance performance. Before diving into the reliability program key elements, we must understand the meaning of equipment reliability. How should we respond to changes in the KPI we are measuring? Equipment Metrics and Benchmarking 5 5 1. I prefer total effective equipment performance (TEEP) which is based on 365 days x 24 hours availability, so the focus can truly be on continuous improvement. The reliability scorecard is critical to capturing project benefits and should include the following types of measures: Transition – These are temporary project measures to indicate whether reliability changes are taking place. To calculate availability, use the formula of MTBF divided by (MTBF + MTTR). The KPIs that we are looking for here are ones that measure trends over a longer time frame. Equipment fails. Departments throughout your organization, including Maintenance, Operations, Materials Management, Planning and Scheduling and Purchasing, all play vital roles and contribute to the company's bottom line but most are unmeasured. Reliability can be characterized in terms of the parameters, mean, or any percentile of a reliability distribution. Reliability measures the probability that the system will perform without failure over a specified interval under specified conditions. Box 460Yulee, FL 32041-0460Call us: 1-843-814-3795. Sometimes this global goal is expressed in terms … © 2020 Prometheus Group All Rights Reserved. Considerations of reliability must support both availability metrics. Adequate Level of Reliability (ALR) Metrics. Employees gripe. Reliability may be As a result, there are a number of different classifications of availability, including: 1. dated equipment with the latest technology. A trend upwards in this ratio indicates that there is a problem in the maintenance and reliability performance, while a trend downwards indicates a positive trajectory. Your Computerized Maintenance Management System (CMMS) or Enterprise Asset Management (EAM) system provides useless information or you don't use data properly. Reliability differs from availability by quantifying the probability that an equipment will work as intended without any failures, as opposed to just measuring the time it is in operation. You can try us out by signing up today for a free 15-day trial. Customer usage and operating environment: The demonstrated reliability goal has to take into account the customer usage and operating environment. MPU = dollars spent on maintenance / production achieved. It is vital that each function and department links themselves to the overarching objective of the whole. When measuring reliability, consideration must be given to the data contained in management reports. A key short-term KPI is the measure of compliance with the maintenance plan – Maintenance Schedule Compliance: MSC can be calculated as a percentage and should be as close to 100% as possible. Reliability Consultant, Ivara Ron Thomas Director of Reliability Practices, Dofasco ... relate to manufacturing metrics. One of the challenges of building and maintaining an effective reliability and maintenance strategy for any manufacturing organization is the task of sifting through the many proposed measures of success to come up with a KPI matrix that is relevant, easy to understand and actually drives the behaviors and performance in the right direction. Equipment reliability assures that subsystems and components function as intended without failure for desired periods during their design life. Taxonomy Definitions. Keeping an eye on the big picture will help to ensure that everyone is on the same page, knowing that the collective effort of every individual and department is leading to the achievement of the corporate business goals and performance. PMSC can also be calculated as a percentage and should be as close to 100% as possible. Monitoring the long-term trends will show whether these daily activities are having the desired effect on the performance and highlight where some tweaking is required. Since MTBF indicates the operating time of an asset, it is a metric that is closely related to the calculation of the reliability of plant and equipment, as much as metrics used to calculate the operating availability of the machine, in particular OEE (Overall Equipment Effectiveness). Inventory Turns. Without them, you wouldn’t know how you were doing, much less how you can improve. It is the big picture that all of our own individual contributions and department goals are helping to achieve. MTTR, also referred to as maintainability measures the ability to do maintenance to keep or restore equipment to a specified operating condition. For example, a radical improvement in the management of lubricating oils for rotating equipment can be achieved with the introduction of a new system of sampling, testing, and flushing. 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