BENCHMARKING FOR BETTER PRACTICES · The search for industry best practices which lead to superior...
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Maintenance Management Series BENCHMARKING FOR BETTER PRACTICES
Transcript of BENCHMARKING FOR BETTER PRACTICES · The search for industry best practices which lead to superior...
M A I N T E N A N C E M A N A G E M E N T E B O O K | 1
Maintenance Management Series
BENCHMARKING FOR BETTER PRACTICES
M A I N T E N A N C E M A N A G E M E N T E B O O K | 2
What you’ll find in this book
• Why Maintenance Benchmarking 03
• What is Maintenance Benchmarking 04
• Types of Maintenance Benchmarking 05
• CMMS Benchmarking Process 08
• CMMS Benchmarking Workflow 09
• CMMS Benchmarking Goals 10
• SMART Requirements 12
• CMMS Gap Analysis 13
• Maintenance Strategy 17
• Impacts of CMMS Benchmarking 24
M A I N T E N A N C E M A N A G E M E N T E B O O K | 3
• On average, 20-25% of an organisation’s budget goes to finding and fixing issues. If the cost of repairing and replacing flawed products is added, that number rises to 30%.
• The ration of labor to material costs should always be 1:1.
• If labor costs are higher, it means either too many parts are being replaced or the labor is ineffective. Things are not getting fixed the way they should be.
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
WHY MAINTENANCE BENCHMARKING?
M A I N T E N A N C E M A N A G E M E N T E B O O K | 3
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WHAT IS MAINTENANCE BENCHMARKING
The search for industry best practices which lead to superior performance
Benchmarking evaluates performance by comparing an organization’s key metrics and process against both internal and external standards.
For example, if your organization takes 40 minutes to build a product, you’ll either compare it with your other
manufacturing units or with competitors. If they are able to do it in less than 40 minutes you can set their time as a
benchmark for measuring your own processes and procedures.
Xerox Corporation
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
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TYPES OF MAINTENANCE BENCHMARKING
Competitive Comparing KPIs and processes
with direct competitors’
Internal Comparing Metrix and processes
within the organization
Functional Comparing a similar process
independent of industry
Generic Comparing KPIs and processes across the same broad industry
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
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Comparing KPIs and processes with direct competitors’
Comparing a similar process independent of industry Comparing KPIs and processes across the same broad industry
Comparing Metrix and processes within the organization
TYPES OF BENCHMARKING
TYPES OF BENCHMARKING TYPES OF BENCHMARKING
TYPES OF BENCHMARKINGCompetitive
Functional Generic
Internal
Compare KPI and processes with collected data
Compare KPI and processes with collected data
Analyze the performance gap with the best performers
Compare process within company
Optimize process for further development
Optimize current processes based on the gathered data
Adapt or Adopt superior business processes
Optimize process for further development
Research to gather data: maintenance journals, benchmarking databases
Identify best practices in your chosen process
Study business processes outside industry
Identify KPI
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
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TYPES OF BENCHMARKINGExamples of Benchmarking
Functional
Southwest Airlines turned to NASCAR
to analyze how pit crews are able to
service race cars so quickly. They realized
that it all depends on each person’s ability
to perform clearly defined tasks within
specific time intervals. With those
insights, Southwest Airlines changed
and streamlined processes for
maintenance, cleaning, and boarding.
[ 03 ] Generic
Compare OEE of a leader in your industry
but not a direct competitor. Analyze the
performance gap and study their
performance. Adopt or adapt any of their
process that are suitable to your needs.
[ 04 ] Internal
Compare the performance of one
warehousing and shipping site to another,
similar site. Set the superior site as the
benchmark and start using their
processes and procedures at both sites.
[ 02 ] Competitive
Compare the quality of your product
with a competitor’s. Analyze what
the differences is and figure out
how to improve.
[ 01 ]
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
M A I N T E N A N C E M A N A G E M E N T E B O O K | 8
CMMS BENCHMARKING PROCESSWhy Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
[ 02 ]
Search & Observe
• What companies are
better at maintenance?
• Which company(s) is
considered the best?
• What can we learn if we
benchmark this company?
• How do they measure
their maintenance
performance?
[ 03 ]
Analyze
• What is the nature of
the performance gap?
• What is the size of the
performance gap?
• Which characteristics
make their process
superior?
• What activities do
we need to change to
achieve parity?
[ 04 ]
Adapt
• How does the knowledge
gained enable us to
improve our maintenance
process?
• Should we adjust or
completely change our
performance measures?
• Which best practices
can be included in our
maintenance process?
[ 05 ]
Improve
• What have we learned
about better processes?
• How can we implement
changes in the
maintenance process?
• How long should it
take to implement
these changes?
[ 01 ]
Plan
• What are the maintenance
mission and objectives?
• What is the maintenance
process?
• What are the KPIs?
• How is the maintenance
process currently seen as
performing?
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Identify Areas for Improvement
Compile ResultsDevelop and Implement Improvements
Find PartnersMake Contact, Develop Questionnaire,
and Perform Site VisitsConduct Internal
Analysis
CMMS BENCHMARKING WORKFLOWWhy Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
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CMMS BENCHMARKING GOALS
• Provide a measure for the benchmarked process
• Describe the organization’s performance gap when compared with the measure
• Identify the best practices and enablers that produced the superior performance
• Set performance improvement goals
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
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Why BenchmarkingWhat is BenchmarkingTypes of Benchmarking
Benchmarking Process Benchmarking Workflow Benchmarking Goals
SMART Requirements Gap AnalysisMaintenance Strategy
Impact of Benchmarking What’s Next
If you don’t measure it, you don’t manage it.
Peter Drucker
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SMART REQUIREMENTS
RealisticFocused on a business objective
MeasurableRequires quantifiable measures
SpecificEnsures the project is focused
AchievableEnsures that it is within a business objective
Time framedProject should have a start
and end date
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
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CMMS GAP ANALYSIS
[ 01 ]
Baseline
The foundation or where the company is
at the start.
[ 02 ]
Entitlement
The best the company can achieve with
effective utilization of current resources
[ 03 ]
Benchmark
The best practice performance of a truly
optimized process
There are three main phases:
TYPES OF BENCHMARKINGKey components for achieving SMART objectives.
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
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TYPES OF BENCHMARKINGGap Analysis: Baseline
Compare the company’s process in quantifiable terms to the best practice results that were observed.
Best Practices
Your Performance
Today Time
Benchmarking Gaps
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
Perf
orm
ance
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TYPES OF BENCHMARKINGGap Analysis: Entitlement
Achieving the level of performance the best practice company has currently reached
Your Performance
Best PracticesToday T1 Time
Parity GoalParity GoalAchieving the kind of performance the competitor is currently achieving
T1 is the time to achieve this level of performance
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
Perf
orm
ance
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TYPES OF BENCHMARKINGGap Analysis: Benchmark
Compare the company’s process in quantifiable terms to the best practice results
Today T1 T2 Time
Real Parity
Leadership Goal
Perf
orm
ance
Real ParityWhen you’ve reached the level of your competitor
Leadership GoalWhen you’ve exceeded competitor’s position
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
M A I N T E N A N C E M A N A G E M E N T E B O O K | 1 7
MAINTENANCE STRATEGY
Strategy to ensure that all company assets meet and continue to meet the design function of the asset.
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
Stores and
Procurement
Work Flow
System
CMMS/EAM
Technical &
Interpersonal
Training
Predictive
Maintenance
Operations
Involvement
Reliability
Centered
Maintenance
Total Productive
Maintenance
Financial
Optimization
Continuous
Improvement
Maintenance /Asset Strategy
Preventive Maintenance
M A I N T E N A N C E M A N A G E M E N T E B O O K | 1 8
TYPES OF BENCHMARKINGMaintenance Strategy: Step 1Preventive Maintenance
• Reduces the amount of reactive maintenance to a level that allows the other
practices in the maintenance process to be efficient.
• Efficient PM activities enable a company to achieve a ratio of 80 percent
proactive maintenance to 20 percent (or less) reactive maintenance.
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
M A I N T E N A N C E M A N A G E M E N T E B O O K | 1 9
TYPES OF BENCHMARKINGMaintenance Strategy: Step 2
Inventory & Procurement
• Focus on providing the right parts at the right time. The goal is to have
enough spare parts, without having too many.
Work Flows & Controls
• Documenting and tracking maintenance work. Using work order system
to initiate, track, and record all maintenance activities.
CMMS/EAM Software
• An efficient maintenance strategy needs regular feed of data get better.
• CMMS / EAM software facilitates the collection, processing, and analysis
of the data, and provides support
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
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TYPES OF BENCHMARKINGMaintenance Strategy: Step 3
Predictive Maintenance
• Using technology that solves or mitigates chronic equipment problems.
Predictive maintenance should be planned and scheduled using the same
techniques for scheduling preventive maintenance tasks.
Operational Involvement
• Inspecting equipment prior to start-up
• Filling out work requests for maintenance and completing work orders
• Recording breakdowns or malfunctions
Reliability-Centered Maintenance
• If a particular asset is environmentally sensitive, potentially unsafe, or critical to
the operation, the appropriate PM/PDM techniques are decided upon and utilized.
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
M A I N T E N A N C E M A N A G E M E N T E B O O K | 2 1
TYPES OF BENCHMARKINGMaintenance Strategy: Step 4
Total Productive Maintenance
• Total Productive Maintenance (TPM) is like Total Quality Management:
everyone in the company understands that their job performance impacts
the capacity of the equipment in some way.
Financial Optimization
• Combines all of the relevant data about an asset, such as downtime cost,
maintenance cost, lost efficiency cost, and quality costs. It then balances
that data against financially optimized decisions, such as when to take the
equipment offline for maintenance, whether to repair or replace an asset,
how many critical spare parts to carry.
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
M A I N T E N A N C E M A N A G E M E N T E B O O K | 2 2
Why BenchmarkingWhat is BenchmarkingTypes of Benchmarking
Benchmarking Process Benchmarking Workflow Benchmarking Goals
SMART Requirements Gap AnalysisMaintenance Strategy
Impact of Benchmarking What’s Next
Best is the enemy of better.
M A I N T E N A N C E M A N A G E M E N T E B O O K | 2 3
TYPES OF BENCHMARKINGMaintenance Strategy: Step 5
The goal should not be to become the best and then to stop there. The goal should always be to strive to be better and become a leader in maintenance.
Continous Improvement
• Appropriate PM/PDM techniques are decided upon and utilized depending
on the criticality and importance of the asset.
Why Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
M A I N T E N A N C E M A N A G E M E N T E B O O K | 2 4
IMPACTS OF CMMS BENCHMARKINGWhy Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
Maintenance Materials
Increased Availability
Maintenance Labor
Maintenance Contracting
Increased Asset Efficiency
Energy
Decrease
Expenses
Increased
ProfitsMaintenance /
Asset Management
Strategy Impact
Increased Capacity
/ Maintain
Fixed Costs
Preventive Maintenance
M A I N T E N A N C E M A N A G E M E N T E B O O K | 2 5
WHAT’S NEXTWhy Benchmarking
What is Benchmarking
Types of Benchmarking
Benchmarking Process
Benchmarking Workflow
Benchmarking Goals
SMART Requirements
Gap Analysis
Maintenance Strategy
Impacts of Benchmarking
What’s Next
Schedule a consultation to optimize your maintenance
Turn-key CMMS Implementation Contact Us
M A I N T E N A N C E M A N A G E M E N T E B O O K | 2 5
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