Guide to Maintenance Planning and Scheduling -- Metrics: measuring planning and scheduling performance

We often refer to metrics, which is just a term meaning "to measure" (either a process or a result). A Performance Measure, or metric, is simply the measurement of a parameter of interest, such as "Labor Hours Scheduled." The combinations of several metrics yield indicators, which serve to highlight some condition or highlight a question that we need an answer to, such as "Completed Hours + Scheduled Hours." Key Performance Indicators (KPIs) combine several metrics and indicators to yield an assessment of critical or key processes.

Any endeavor needs to be able to define not only where it is headed, in terms of stated goals and objectives, but also to determine the progress being made towards those goals. This requires defining the KPI's that need to be monitored in order to gauge progress towards those goals. One of the more interesting points here is that KPIs can be created in a hierarchical and interlinked fashion which allows management to pinpoint the root causes of system failures. In order to determine maintenance planning and scheduling strengths and weaknesses, KPIs should be broken down into those areas for which you need to know the performance levels. Depending on KPI values we classify them as either leading or lagging indicators.

Leading indicators are indicators that measure performance before a problem arises. To illustrate this, think of a key performance indicator as you drive your car down a road. As you drive, you deviate from the driving lane and veer onto the shoulder of the road. The tires running over the "out of lane" indicators (typically a rough or "corrugated" section of pavement at the side of the road that serves to alert you to return to the driving lane before you veer completely off the pavement onto the shoulder of the road). These "out of lane" indicators are the KPI that you are approaching a critical condition or problem. Your action is to correct your steering to bring you car back into the driving lane before you go off the road (proactive condition). If you did not have the indicators on the pavement edge, you would not be alerted to the impending crisis and you could veer so far out of the driving lane that you end up in the ditch. The condition of your car, sharply listing on the slope of the ditch, is a lagging indicator. Now you must call a wrecker to get you out of the ditch (reactive condition). Lagging indicators, such as your budget, yield reliability issues, which will result in capacity issues.

1. PLANNING AND SCHEDULING PERFORMANCE INDICATORS

1.1 Labor Performance

Accuracy of job plans and achievability of work schedules have a tremendous effect on maintenance labor performance. Of course, the skills, work ethics, supervision quality, maintenance stores and a number of other factors also impact maintenance trades performance levels. Labor performance measures can be trended over time to provide an indication of improvement levels of all contributing factors, in particular a recent start-up of the planning/scheduling functions. Labor performance can be in the form of:

-- Labor Efficiency is the traditional efficiency report calculation (standard or estimated labor hours divided by actual labor hours). The measure indicates how well the crew is performing in relation to the expectation.

Variance from estimate might indicate poor crew performance, inaccurate estimate, or inaccurate work scope. The labor efficiency number as a percentage is:

-- (Total Estimated Hours for Work Orders Completed/Total Actual Labor Hours for the Same Work Orders) • 100

--Schedule Compliance = Scheduled Work Completed (hours) + Scheduled Work (hours).

Schedule Compliance is merely a number that indicates a quantitative value of work completed vs. work scheduled. While important, a more qualitative report that considers the "whys" of nonconformance is more important to more people. In order to provide the most accurate compliance number, the hours of scheduled work used in the calculation should be the sum of the adjusted daily scheduled hours for each workweek.

Calculations should be made weekly and should be made at the supervisory level--all crews responsible to given supervisor or foreman. The one-week period puts several jobs into the calculation, allowing for an averaging of unusually difficult job occurrences with unusually easy occurrences.

Accuracy on individual jobs is not reliable, but accuracy over the several jobs completed by a crew on a given week is acceptably accurate: particularly for measuring performance trends.

Individual (as opposed to crew) performance can be calculated periodically, but only to guide necessary training to the critical needs and never for disciplinary reasons. The use of work measurement for discipline detracts from more important applications such as backlog control, work scheduling and group performance trends.

1.2 Job Planning and Scheduling

The planning and scheduling functions are inextricably linked to each other in their effect on overall maintenance effectiveness. As a result, it is often difficult to gauge the planning effort effectiveness and the scheduling effort effectiveness separately. There are a few measures and indicators that are predominantly influenced by one or the other. In order to gauge planning accuracy, measurement of the cost of completed, planned work together with completed work order data can provide:

--Planning Accuracy = (# WOs completed within estimate [+15%]) + (# WOs completed)

On the other hand, without regard for estimates of cost and time, the amount of pure "wrench time" is mostly determined by work scheduling effectiveness. Combining payroll data with completed work order data can provide:

--Labor Utilization = Labor Productive Time (wrench time) + Labor Paid Time

The target percentage is 80% The remaining measures can be dominated by either planning effectiveness or scheduling effectiveness or can be influenced equally by them as well as by factors outside the planning/scheduling functions. Nonetheless, because the P/S influence exists, the following indicators should also be monitored and trended:

--Schedule Effectiveness and Schedule

Performance are two additional scheduling metrics that assist Maintenance Management to fully understand how their labor resources are being utilized. The data for these metrics comes from the same sources as Schedule Compliance and Labor Efficiency.

--The schedule effectiveness number as a percentage is: (Direct Scheduled Hours Completed/Labor Hours Available) x 100

The target percentage is 65%

--The schedule performance number as a percentage is: (Scheduled Hours Complete (Direct & Indirect)/Labor Hours Available) x 100

The target percentage is 80%

--Another powerful metric of tracking performance of the scheduling process captures the percent of work that was planned for the scheduled week. Trending this metric on a weekly basis provides a clear picture of the relationship of labor planned versus breakdowns.

The percent planned work number as a percentage is: (Hours on Planned Work/Total Hour Worked) x 100

Additionally, there are several general maintenance operation indicators that are influenced by the P/S function to a greater or lesser extent depending on the maturity of the function. These are generally monitored by maintenance management as overall indicators of maintenance department effectiveness, but may be used to provide additional refinement of the P/S performance metric.

--OEE=AxPxQ

where OEE is Overall Equipment Effectiveness, and A is Asset Availability, P is Asset Performance and Q is Quality of Output.

--Maintenance Cost Per Unit Produced = Number Units Produced + Total Maintenance Costs (for a given report period)

2. RELIABILITY EXCELLENCE (Rx) AND THE P/S FUNCTION

Rx is that state of maintenance management and performance that effectively applies the leading edge policies, procedures, systems, structures, methods and technologies available for the maintenance function. The keys to achieving Rx do not involve any new concepts. They have always been and still remain, "get the basics right and make continuous improvement towards Rx a goal of the entire organization." At the very top end of the Rx level of operations is the World Class operation. World Class refers to that state of readiness and application that classifies an organizational entity (business, operation, function) competitive with "the best of the best" in the world.

There are many common attributes possessed by World Class maintenance operations. The following are some of the most prevalent and are also considered to be some of the most important:

1. management awareness of, commitment to and appreciation for the importance of maintenance in order to realize the total organization's overall objectives and vision;

2. focus on service to the internal customer;

3. a proactive, rather than reactive, approach;

4. equipment stewardship and custodianship;

5. focus on root causes analysis, knowledge of machine condition and first time quality of the ultimate product;

6. maintenance/production partnership;

7. participative, Empowered Teams;

8. planned blurring of traditional inter-functional barriers and job jurisdictions;

9. operator participation in preventive maintenance inspections and other routine maintenance activities;

10. self-motivation and direction (empowerment);

11. continual training, cross training and multiple skills development;

12. continuous process improvement through a value-added focus;

13. information sharing;

14. benchmarking;

15. effective application of advancing technology.

The "quest" must be for Reliability Excellence at the World Class level, rather than merely reduction of maintenance costs.

As organizations pursue a World Class level of operation, they need comparative measures showing their own progress relative to progressive, highly regarded organizations, which have earned their reputation for being world class. Such organizations focus on customer service (internal as well as external), first-time quality and highly productive work teams. For the Maintenance Planning and Scheduling functions, the comparative measures are those delineated in Section 1.

There are no magic solutions, no short cuts to developing the ideal maintenance program. In order to obtain the highest return on investment, a comprehensive program encompassing all variables relating to maintenance must be developed. The optimum maintenance operation is a result of serious, continuing attention given to a large number of items, many of which involve not only maintenance but also: management, the internal customer and those organizations to which maintenance is the internal customer.

Often, before a program can be successfully launched, management must first be acquainted, even educated, about the relationship between quality and maintenance.

3. SUMMARY: CHARACTERISTICS OF RELIABILITY EXCELLENCE

In order for a plant to operate at the level of Rx, the maintenance organization and the plant's supporting structure for the maintenance operation, should display these characteristics:

1. A set of "Shared Beliefs" is apparent throughout the organization, thereby enabling the "Cultural Transition" from Reactive to Proactive Maintenance, in support of "World-Class Operations."

a. Organizational focus is on Rx. Maintenance cost reduction will ultimately become a by-product, but in the short term must not undermine the long-term viability of the maintenance operation.

Despite short-term urgencies, World-Class organizations do not lose sight of the long-term mission, objectives and goals.

b. A "Maintenance Mission Statement" is prominently displayed and emphasized to assure a well-ingrained vision with sustained understanding, commitment and support of the proactive Rx process. The maintenance function is responsible for Maintenance & Repair (M&R). Although Rapid Response/Repair of true emergency and urgent conditions (unplanned and unscheduled line support) is necessary in support of daily production, it is Important Proactive Maintenance (planned and scheduled backlog relief and Preventive Maintenance) that ultimately improves Asset Reliability and thereby preserves long-term viability of the maintenance operation.

c. A well-conceived "Master Plan for Maintenance Improvement" exists with actual progress charted relative to the plan. The program is holistic, integrated, cooperative, participative and proactive with continual emphasis upon The Basics.

d. The Maintenance Organization exhibits Functional Professionalism and Marketing. Thereby, Maintenance is recognized as a " Contributing Resource Center" and "Proactive Messages" are continually conveyed throughout the organization.

2. There is every indication that the chosen "CMMS/EAM" is fully functional, including all modules. Workload cannot be defined without benefit of an Effective Work Order System.

3. Equipment Configuration is complete. Equipment and Material Databases are fully loaded and reference documentation (prints, procedures, etc.) is available on-line.

4. Evidence exists that "Cost Distribution" to Work Orders is complete and accurate (Labor, Material, Contract Services).

5. "Work Programs" define the balance between resources and workload.

Hourly as well as salaried resources must be kept in balance with workload to avoid deferred maintenance and ineffective functional management, each of which perpetuates the state of reactive/unreliable maintenance.

6. A well-conceived and quantified "Organizational Structure" is established by which proper distribution of resources to the three forms of maintenance is achieved.

7. Clear "Job Descriptions" and Responsibilities (hourly and salaried) are established and available for the benefit of all parties.

8. The "Baseline of Critical Maintenance Measures" is defined and quantified with relative improvement routinely measured (reference the iceberg). Elements of cost and profit that can be favorably impacted by improved maintenance are identified and measured.

9. Quantified "Goals" with progressive interim "Targets" (milestones) relative to the Baseline Measurements are established and quantified.

10. Work is performed efficiently as a result of organized planning, effective material support plus coordinated, scheduled and well led work execution.

11. Well-defined "Job Plans" are established, cataloged, issued and utilized/referenced.

12. "Weekly Schedules by crew, day, individual and job" are developed, adhered to and monitored in cooperative, coordinated partnership with the internal customer. Thereby, effective application and utilization of all maintenance resources as well as "Service to the Internal Customer" are assured.

13. "Equipment Uptime" is Continually Improving through the establishment of a reliable Preventive Maintenance program designed, directed and monitored by strong Maintenance Engineering support.

"Maintenance Engineering" continually refines the "PM Routines" through application of "RCM, Root Cause Analysis, Maintenance Optimization and Machine Condition Based Maintenance" wherever feasible and the PM Program is conducted as a "Controlled Experiment" with "Programmed Equipment Access" providing for "Proactive Maintenance." Continued refinement is documented and quantified.

14. It is evident that "Equipment History" is meaningful and effectively utilized--with good descriptions of work performed.

15. "Job Estimates" are continually refined and thereby reflect improving accuracy and consistency by providing accurate, as well as challenging, expectancies.

16. "Budgetary Procedures" and results indicate effective control--with Production involvement in regard to control of volume variances.

17. There is an ongoing and effective "Maintenance Skills Training Program" for the development of individual team members; capturing their full potential and contribution, providing a sense of job fulfillment and accomplishment for each individual.

18. The "Production Process, Maintenance and Quality Improvement Processes" are "ONE" and embody Team concepts. Quality maintenance service in support of operational needs is evident.

19. "Trend Charts of Progress Relative to the Goals and Targets" are charted and displayed. Associated levels and points-in-time from which progress toward plotted Goals and Targets is monitored and plotted. These charts include trends of:

a. Resource Distribution--Consumption

i. The three forms of Maintenance; ii. Maintenance vs. Nonmaintenance; iii. Direct vs. Indirect Activities

b. "Weekly Schedule Compliance, Performance and Effectiveness"

c. "PM Schedule Compliance"

d. "Crew Efficiency" showing that it is steadily improving.

20. There is continual search for and application of "Advancing and Applicable Technology."

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