Abstract:
Performance measurement is a fundamental instrument of management. For
maintenance management, one of the key issues is to ensure the maintenance
activities planned and executed have given the expected results. This can be
facilitated by effective use of rigorously defined key performance indicators (KPI)
that are able to measure important aspects of maintenance function. In this paper,
an industrial survey was carried out to explore the use of performance
measurement in maintenance management. Based on survey responses, analyses
were performed on popularly used KPI, how these KPI are sourced or chosen; the
influence of manufacturing environment and maintenance objectives on KPI
choice and effective use of these KPI in decision support and performance
improvement. It was found that maintenance performance measurement is
dominated by lagging indicators (equipment, maintenance cost and safety
performance). There is lesser use of leading (maintenance work process)
indicators. The results showed no direct correlations between the maintenance
objectives pursued and the KPI used. Further analysis showed that only a
minority of the companies have a high percentage of decisions and changes
triggered by KPI use and only a few are satisfied with their performance
measurement systems. Correlation analysis showed a strong positive linear
relationship between degree of satisfaction and process changes/decisions
triggered by KPI use, with the least satisfied people having the least decisions
and changes triggered by KPI use. The results indicate some ineffectiveness of
performance measurement systems in driving performance improvement in
industries.