Key Areas to Focus on for High Performance in Managing Assets and Maintenance
Roger Knocker • March 19, 2024
Key Areas to Focus on for High Performance in Managing Assets and Maintenance
In the realm of managing assets and maintenance, ensuring high performance is paramount for organizational success. It is crucial to identify and address key areas that contribute to optimal asset management and maintenance practices. Here are the key focus areas:
1. Cost Management:
- Efficient management of costs associated with maintenance activities and asset upkeep is paramount.
- Analyzing and optimizing maintenance expenses can significantly impact the overall financial health of the organization.
2. Risk Management:
- Mitigating risks associated with asset failure or downtime is critical.
- Implementing proactive risk management strategies can help minimize unexpected disruptions and financial losses.
3. Technology and Automation:
- Leveraging advanced technologies and automation tools can streamline maintenance processes, enhance asset performance monitoring, and improve overall operational efficiency.
4. Regulatory Compliance:
- Adhering to regulatory standards and compliance requirements ensures that maintenance practices meet legal obligations and industry standards, thereby mitigating potential penalties and reputational risks.
5. Financial Strategy:
- Aligning asset management and maintenance practices with broader financial strategies is essential for optimizing resource allocation, capital allocation decisions, and achieving long-term financial objectives.
6. Forecasting and Budgeting:
- Accurate forecasting of maintenance needs and budgeting appropriately for asset management activities enable organizations to allocate resources effectively and prevent unexpected financial strains.
7. Financial Reporting and Analysis:
- Regular financial reporting and analysis provide insights into the performance of asset management and maintenance initiatives, enabling informed decision-making and continuous improvement efforts.
Here are some suggested Key Performance Indicators
- $ Maintenance Cost per Manufactured Unit of Measure (UOM)
- % Downtime
- % Unplanned Downtime
- % Unplanned Overtime
- $ Maintenance Cost per Sales Unit of Measure (UOM)
- % Planned Downtime to Total Downtime
- $ Asset Reliability Cost
- % Asset Availability
- $ Mean Time Between Failures (MTBF)
- % Maintenance Budget Variance
- $ Cost of Unscheduled Maintenance
- % Maintenance Compliance Rate
- $ Asset Replacement Value
- % Maintenance Schedule Compliance
- $ Mean Time to Repair (MTTR)
- % Asset Utilization
- $ Maintenance Labor Cost
- % Emergency Maintenance Work Orders
- $ Inventory Carrying Cost of Spare Parts
- % Asset Health Index
Feel free to sign up for the KPI spreadsheet to access these and additional KPIs in a structured format that offers better context.
Watch the video below to see what you will get and how to use the KPI spreadsheet to take the guesswork out of KPIs
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