The Main KPIs of Maintenance Processes: How to Ensure Efficiency and Reduce Costs

Effective management of maintenance processes is crucial for any organization wishing to maximize operational efficiency and reduce costs. However, many managers find it difficult to identify and implement the most relevant key performance indicators (KPIs) for their processes.  

In this article, we'll explore what the main KPIs of maintenance processes are, the common "pains" that managers face, and how these metrics can be the solution to optimizing operations and guaranteeing better results.

Common Challenges in Maintenance Management

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1. Lack of visibility and control

One of the biggest problems facing maintenance managers is the lack of visibility into daily operations. Without clear and concise data, it is difficult to make informed decisions, identify areas for improvement and predict failures. This lack of visibility can result in reactive maintenance, where problems are solved only when they arise, instead of being prevented proactively.

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2. Reactive Maintenance to the Detriment of Proactive Maintenance

Corrective maintenance can be costly and cause unplanned downtime, which negatively impacts operations and profitability. Many organizations have yet to implement preventive or predictive maintenance strategies, leading to a continuous cycle of emergency repairs and equipment failures, which result in increased resource efforts and impact on the day-to-day use of assets.

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3. Difficulties in Measuring Operational Efficiency

Measuring the efficiency of maintenance operations can be a significant challenge. Without clear metrics, it is difficult to assess the performance of the maintenance team, the effectiveness of the strategies implemented and the return on investment (ROI) in maintenance programs.

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4. Underutilization of Asset Management Systems

Many companies invest in Asset Management Systems (AMS) but don't make full use of them. These systems are essential for collecting data and obtaining metrics, in the form of reports or dashboards, but without the correct implementation of KPIs, the information collected may not be used effectively.

The Solution: Implementing Effective KPIs

To overcome these challenges, the implementation of well-defined KPIs is essential. KPIs offer an objective way to measure performance, identify areas for improvement and align maintenance operations with the organization's strategic objectives.  

Let's explore some of the main KPIs that can transform maintenance processes.

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1) Planned vs. Reactive Maintenance

Definition: This KPI measures the proportion of planned maintenance compared to reactive maintenance. Planned maintenance includes all preventive and predictive maintenance activities, while reactive maintenance involves emergency repairs (Corrective and Curative Maintenance).

Objective: The objective is to increase the percentage of planned maintenance in order to reduce costs, minimize unplanned downtime and increase the useful life of the equipment.

Importance:

• Cost reduction: Planned maintenance is generally more economical than reactive maintenance, as it prevents serious failures and extends the life of equipment.

• Improved Efficiency: Equipment that is regularly maintained is less likely to fail, thus increasing operational efficiency.

• Safety: Preventive maintenance can identify and resolve potential problems before they become dangerous, improving safety in the workplace.

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2. Percent Preventive of Planned Maintenance

Definition: This KPI measures the percentage of planned maintenance hours that are dedicated to preventive activities.

Aim: The aim is to ensure that the majority of planned maintenance activities are preventative, thus anticipating potential problems.

Importance:

• Failure Prevention: Preventive maintenance is essential to avoid unexpected failures and extend the useful life of assets.

• Resource optimization: Focusing on preventive maintenance allows for better allocation of resources and reduces the workload for emergency repairs.

• Improved Equipment Reliability: Implementing regular preventive maintenance increases asset reliability and availability.

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3. Equipment Availability Percentage

Definition: This KPI measures the amount of time the equipment is operational and available for use, compared to the total time available.

Goal: The goal is to maximize equipment availability by minimizing planned and unplanned downtime.

Importance:

• Maximizing utilization: Available equipment increases operational capacity and reduces the risk of impacts on day-to-day operations.

• Cost Reduction: Minimizing downtime reduces the costs associated with emergency repairs and loss of use.

• Improving customer satisfaction: The constant unavailability of equipment creates a negative impact on users of the various types of assets.

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4. Schedule Compliance

Definition: This KPI measures the percentage of maintenance tasks that are completed on time.

Objective: The objective is to ensure that all maintenance activities are completed as planned, to avoid delays and minimize the impact on use.

Importance:

• Operational Efficiency: Complying with maintenance plans guarantees the continuity of operations without unnecessary interruptions.

• Resource management: Adhering to planned deadlines optimizes the use of maintenance resources and avoids a backlog of tasks.

• Reduced downtime: Compliance with the plan reduces unplanned downtime, allowing for continuous use.

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5. Maintenance Cost per Unit of Production

Definition: This KPI measures the total cost of maintenance divided by the number of units produced, offering a clear view of the financial impact of maintenance on production operations.

Objective: The aim is to reduce the cost of maintenance per unit of production by optimizing maintenance processes to increase profitability.

Importance:

• Cost Analysis: This KPI helps to identify areas where maintenance costs can be reduced without compromising quality.

• Improved profitability: Reducing the cost of maintenance per unit of production increases the profit margin and competitiveness in the market.

• Process optimization: Analysis of costs per unit of production makes it possible to identify inefficiencies and areas for improvement in maintenance processes.

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6. Inventory Turns

Definition: This KPI measures the frequency with which the spare parts inventory is used and replenished over time.

Objective: The aim is to optimize inventory management, ensuring that spare parts are available when needed, but avoiding excesses that could result in unnecessary costs.

Importance:

• Cost management: Efficient inventory turnover reduces storage costs and prevents parts obsolescence.

• Parts availability: Ensuring that the necessary parts are available minimizes downtime and interruptions in operations.

• Resource optimization: Effective inventory management improves resource allocation and reduces waste.

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7. Overall Equipment Effectiveness (OEE)

Definition: OEE is a comprehensive metric that evaluates the effectiveness of equipment, taking into account availability, performance and quality.

Objective: The objective is to maximize OEE, ensuring that equipment operates with the maximum possible efficiency and quality.

Importance:

• Comprehensive measurement: OEE provides a complete overview of equipment performance, allowing detailed analysis of areas for improvement.

• Increased Productivity: Improving OEE results in increased productivity and operational efficiency.

• Waste reduction: OEE analysis helps to identify and eliminate waste in production and maintenance processes.

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8. Percentage of Planned Work Orders Completed

Definition: This KPI measures the percentage of planned work orders that are completed as scheduled.

Goal: The goal is to maximize the completion of planned work orders, ensuring that all maintenance activities are carried out efficiently and on time.

Importance:

• Effective Planning: Complying with planned work orders improves the effectiveness of planning and executing maintenance activities.

• Cost reduction: Minimizing delays and ensuring that tasks are completed as planned reduces operating costs and increases efficiency.

• Improved Stakeholder Satisfaction: Fulfilling planned work orders demonstrates a commitment to quality and punctuality, increasing stakeholder confidence.

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9. Loss Opportunity due to Equipment Failure

Definition:This KPI measures production opportunities lost due to equipment failures, highlighting the impact of failures on operating results.

Objective: The aim is to minimize opportunities for loss by implementing effective maintenance strategies to reduce failures and maximize production.

Importance:

• Failure Identification: This KPI helps to identify frequent failures and develop strategies to reduce them.

• Increased Productivity: Minimizing loss opportunities improves productivity and the overall efficiency of operations.

• Risk Management: Analyzing opportunities for loss allows risk mitigation strategies to be developed, guaranteeing the continuity of operations.

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Conclusion

The effective implementation of KPIs in maintenance processes is key to ensuring efficiency, reducing costs and maximizing productivity. These indicators provide a clear view of the performance of maintenance operations, allowing areas for improvement to be identified and maintenance strategies to be aligned with the organization's strategic objectives. By focusing on key KPIs, organizations can transform their maintenance operations, ensure continuous equipment availability and improve overall profitability.

With the growing importance of asset management in organizations, it is essential that maintenance managers understand and implement the most relevant KPIs for their operations. Investing in technology, such as EAM systems, and ensuring that the data collected is used effectively through well-defined KPIs, is essential for long-term success in maintenance management.

Explore Nextbitt's Products and Services

If your organization is looking for an effective solution to optimize maintenance processes and maximize operational efficiency, explore Nextbitt's products and services.  

With extensive experience in asset management, Nextbitt offers:

• Enterprise Asset Management (EAM) solutions: A complete system that integrates maintenance data, planning and execution, allowing total control over operations.

• Personalized Consulting: Nextbitt's experts work in partnership with your organization to identify the best maintenance strategies and implement effective KPIs.

• Training and Ongoing Support: Dedicated support teams ensure that your company is always up to date with the best practices and technologies available.

Increase efficiency, reduce costs and improve profitability with Nextbitt's solutions. Contact us today to find out more about how we can help your organization achieve its maintenance goals.

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