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This is the first of a series of articles on subjects that are intended to stimulate thought and interest. Keep in touch with the website for new articles in the future. A copy of any of the articles in the form of a Word document is available by e-mail contact with PRIME. ******************************************************************************************************* PRIME
REPORT No. 1
Maintenance
Benchmarking - the PRIME
approach to kick-starting performance improvement Benchmarking
maintenance performance has little provenance in industry for a number of
perfectly valid reasons. It has no accumulated breadth or depth of historical
data on which to base decisions as to its viability. It has often tended to have
been developed and used by consultants with little or no input from industry,
and with even less input from practising maintenance professionals. What data
there is tends not to be in the public domain, and that which does freely exist
tends to be simplistic in nature and, if used without care, could often give
misleading or downright wrong indications of performance. However, like many
other things, benchmarking of maintenance can offer valuable insights into
maintenance performance which can provide the basis for an effective improvement
programme and the tools for monitoring progress. PRIME have developed some
simple protocols for using the power of benchmarking to drive the improvement
process forward, protocols which are based upon a synergistic use of both metric
and diagnostic benchmarking in harmony.
To understand the basis for the PRIME methodology
it is necessary to understand the essential differences between metric and
diagnostic benchmarking.
Metric Benchmarking involves the comparison of
performance indices. As long as the comparison is validated on an “apples with
apples” basis it is an approach which is useful in providing general
indications of how close an individual company’s maintenance operation
approaches best practice levels. In the main, difficulties involved in metric
benchmarking tend to be concerned with data interpretation and the validity of
the comparators. For instance, would you expect the same plant availability
achievement in industries as diverse as, say, mining and spray-painting?
Probably not. However, you may well expect comparisons of the percentage of
maintenance work which is pre-planned to be independent of the industry
involved. In reality, there are a number of key indicators that do tend to be
independent of the industry, and many more that can be ranked into a small
number of variants. On the downside, the most serious limitation of metric
benchmarking is that, while it may well provide useful information as to where a
company may be ranked in a particular area of measurement, it gives little or no
assistance in understanding why.
Diagnostic Benchmarking is used to explore specific
areas of both performance and practice in maintenance in a particular company.
It can assist in identifying areas of weakness, and point towards improvement
goals. However, as it is based on a self-assessment approach it is qualitative
in nature and lacks the rigour that derives from measured and quantified data.
Historically diagnostic benchmarking has a patchy track record in maintenance
because of its limited use. Where it has been applied it has been used more as a
health check for maintenance than a basis for practical improvement planning.
The PRIME methodology is to combine the strengths
of both metric and diagnostic benchmarking. By using the metrics to provide a
quantitative basis for comparison and for trend measurement, and the diagnostics
to identify the areas which would support the most effective improvement
programme, PRIME have designed a
benchmarking approach which can act as the cornerstone of a structured
performance improvement programme. It does not attempt to calculate a overall
"company rating" value, but does present comparisons with expected
World-Class levels of performance. The
metrics are presented in 4 distinct areas :
- Key
Performance Indicators, used as an overall measure of operational performance at
the business level
- Organisational Effectiveness Indicators, used to
measure improvements in the use of maintenance personnel
- Equipment Reliability Indicators, used to measure
the effectiveness of the maintenance systems
- Materials Management Indicators, used to measure
the effectiveness of stores management systems
As maintenance management practices move more and
more towards the application of proven business management tools and techniques
in the delivery of improved performance, the sort of approach that is applied to
the use of benchmarking by PRIME is likely to become the recognised basis for
continuous improvement, working in collaboration with other tools used by PRIME
. Examples of such tools are the use of the reliability-balanced scorecard in a
similar way as that developed by Kaplan for monitoring manufacturing
performance, and the PRIME Best Practice
model for developing truly integrated plans between operations, design and
maintenance functions to provide the most effective strategy in a particular
manufacturing environment. However, the kick-start to the process will come from
the benchmarking strategy which measures the starting point and sets the targets
for the future. For more information on the PRIME approach to maintenance performance improvement, contact can be made by e-mail to Frank Chambers at prime00@talktalk.net |
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