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 * Home
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 * Creating Kpi Dashboard

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HOW TO CREATE MAINTENANCE KPI DASHBOARDS TO IMPROVE PERFORMANCE

Duration: 8 minutes
Ricky Smith
Published on February 10, 2021

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Competition is a great motivator. Whether you’re watching children play a board
game, your favorite NFL team in the Super Bowl, or your maintenance team at your
facility, everyone wants to know the score. 

When clear goals are established, and the maintenance team knows what actions
are needed, sharing the ongoing progress through a KPI dashboard is an excellent
way to make sure everyone “knows the score.” Such a tool is an easy way to
motivate a team as well as pull everyone together toward the goal of improving
performance. 


WHAT IS A KPI DASHBOARD?

A key performance indicator (KPI) is a quantifiable measure used to evaluate
success of an organization, employee, or team in meeting objectives for
performance. A KPI dashboard is a graphical representation using the leading and
lagging KPIs to share information on how a process is performing.

For example, a KPI dashboard may help evaluate preventive maintenance
performance including planned vs. scheduled tasks, number of labor hours,
preventive maintenance costs, and overall equipment effectiveness. It serves as
an ongoing scorecard. If you cannot measure something, you cannot improve it.


GOOD DATA IS REQUIRED

Before setting up a KPI dashboard, it’s important to have good, clean data. Data
must consistently come from the same source, be accurate, be simple and
understandable, and tell a story. Metrics dashboards are critical to empowering
people to do the right thing consistently.

Besides having good data, it’s critical to share it. Everyone wants to see the
scoreboard and understand how they are doing individually, as a team, or as an
organization.


WHAT’S INCLUDED IN A MAINTENANCE KPI DASHBOARD?

A maintenance KPI dashboard shows how the processes in maintenance are
functioning in an organization. For example, a KPI dashboard for maintenance and
reliability engineers has leading indicators that come from work identification,
work planning, work scheduling, work execution, follow-up, and performance
analysis. All of these impact the lagging indicator, which is the total number
of functional failures as well as the subtotal by failure consequence, hidden
safety, environmental, and operational issues.

We can also look at maintenance-related downtime, both unscheduled and
scheduled, as well as shutdown overruns, maintenance costs, and others.

Our benchmarks include maintenance cost per unit output, maintenance cost as a
percentage of replacement asset value, total maintenance cost as a percentage of
total maintenance cost, and total maintenance cost as a percentage of total
sales. Some of these figures can be directly managed, while others can be
influenced. 


LEADING VS. LAGGING MAINTENANCE KPIS

Leading KPIs lead to the results, and lagging KPIs are the results themselves.
For example, a leading KPI could be preventive maintenance effectiveness that
looks at emergency versus preventive maintenance labor hours; preventive or
predictive maintenance compliance; percent of planned work; and rework
percentage. A lagging KPI may be the mean time between failures (MTBF).

According to Ron Thomas, a leader in maintenance and reliability, “A proactive
reliability process is the supply chain. If a step in the process is skipped or
performed at a substandard level, the process creates defects known as failures.
The output of healthy reliability processes is optimal asset reliability at
optimal cost."

KPI dashboards provide alignment, allowing everyone to focus on the right things
in order to achieve a desired outcome. Just like in any sporting event, both
players and fans are focused on the scoreboard. It’s important to know the
score.


PERFORMANCE MEASUREMENT EXPLANATION

In business, performance measurement is a fundamental principle of management.
The measurement of performance is important because it identifies the gaps
between current and desired performance and provides an indication of progress
as efforts are put into place. 

KPIs should precisely identify where actions need to be taken to improve
performance. For example, a company using emergency labor hours as a KPI may
need to look at the effectiveness of its preventive maintenance program.


MAINTENANCE DASHBOARD REQUIREMENTS

In order to set up an effective maintenance dashboard, you’ll need to measure
maintenance processes to optimize asset reliability at optimal cost. Begin by
identifying the steps in the maintenance process from preventive maintenance and
predictive maintenance through your failure reporting, analysis, and corrective
action system. This may include work identification, planning, scheduling, work
execution, work order closeout, and failure reporting.

Once those requirements are met, select KPIs that are related to where your
company is currently functioning as well as your goal. For example, if you're
mostly reactive and you're trying to move to preventive, you should be measuring
KPIs like percentage of planned work and preventive maintenance compliance.
However, if you're already doing preventive maintenance and trying to move to
predictive (PdM), you should be measuring things like defects found in PdM
inspections and number of PdM work orders executed.

A planner may go back into the system and pull a random number of work orders to
see if they are closed accurately. Be sure to identify the metric used in each
step and post to the maintenance dashboard for specific audiences.

A dashboard can help a team understand if they are using the company’s resources
effectively, including specific players in an organization. As a result, a
maintenance dashboard should be posted where everyone can see it. Maintenance
score dashboards should tell a story, good or bad. When people know the score,
reflected with consistent, accurate data, they are able to make better daily
decisions.

For instance, it’s critical that work orders are closed out correctly. Thus, a
supervisor should review the work order, and a planner should close the order to
ensure it’s not done haphazardly in the middle of other pressing priorities for
the day. This can help ensure that the data going into the computerized
maintenance management system (CMMS) is accurate, clean, and usable for the
future.


ESTABLISHING GOALS AND TARGETS

It’s important to establish some goals and use the KPI dashboard to communicate
progress. Here are possible examples:

 * Storeroom Service: Set your storeroom service level goal at a certain level
   or for a certain improvement goal.
 * Vendor Performance: Measure how frequently your vendors achieve on-time
   delivery.
 * Material Parts Turn: Find out how long items sit in a storeroom without being
   used or on a store shelf without being purchased.   


STEPS TO CREATING THE RIGHT METRICS

In order to create the right metrics, you’ll need to follow these steps:

 * Assemble Team: Put together a group of influential stakeholders, which may
   include a positive maintenance technician, a difficult maintenance
   technician, a maintenance supervisor, a store manager, and a reliability
   engineer.
 * Create Vision and Mission: This group should put together a vision and
   mission statement that supports the company’s overall vision.
 * Step-by-Step: The team should establish interim goals and targets because you
   can’t go from zero to hero overnight.
 * Leading/Lagging KPIs: Identify them for all maintenance processes from
   preventive maintenance to failure reporting. Identify consistent definitions
   and measurements using something like SMRP, which is essentially a metrics
   manual.
 * Possible Metrics: Examples include measuring what percent of preventive and
   predictive maintenance was scheduled and executed, what amount of rework was
   needed on a particular piece of equipment, and when work orders were closed
   out.


EXAMPLE OF A PROACTIVE MAINTENANCE PROCESS

One example of a proactive maintenance process is the performance of an electric
motor. Start by measuring the MTBF. Then make an intervention or improvement to
address the discovered issues. Finally, measure on a regular basis, share the
progress with all, and strive for world-class standards.

Remember that your end goal is failure elimination on critical equipment. Record
and collect accurate data on failures and work to reduce and eliminate them
every day. Close work orders with all codes identified, so CMMS data is
accurate. 


STRIVING FOR WORLD-CLASS STANDARDS

Be sure to set high standards for your maintenance organization. World-class
standards may seem unreachable but strive for them anyway. World-class
maintenance costs are low, overtime is low, production delays are low, and
production output is high. On the other hand, worst-in-class companies struggle
with high maintenance and overtime costs as well as production delays and low
output levels.

Consider how much your maintenance and reliability process impacts cost, output,
and quality Look at your maintenance cost as a percentage of replacement asset
value. Remember that this is industry, operations, and equipment specific. Where
do you sit? How can you move in the right direction? 

Start with production and what they require. You have to start with the endgame.
Determine things like rate, pressure, overall equipment effectiveness,
availability, throughput, and cost. As we continue the process, reliability
engineers ensure all asset reliability meets full functional requirements. The
maintenance team must maintain equipment to those specifications with repeatable
procedures.


CREATE SCORECARDS THAT PROVIDE THE "SCORE"

The most important part of the process is to create scorecards that provide us
with a score. Use KPI dashboards as a screensaver. Post them on a big screen in
the maintenance shop. Make it the first and last thing technicians see as they
arrive and leave work each day. You need to give people the score in the game,
and people need to see it all the time.

When your team knows your organization is reaching for world-class goals, is
empowered to make needed changes, and sees the score on an ongoing basis, you
have a recipe for long-term, improved performance.

Note: This article is based on a webinar “How to Create Maintenance KPI
Dashboards to Improve Performance” with Ricky Smith. To view the recording of
the webinar, visit this link.






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PREVENTIVE MAINTENANCE VS. RELIABILITY-CENTERED MAINTENANCE: 7 QUESTIONS YOUR
TEAM SHOULD UNDERSTAND

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UpKeep Staff


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