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Developing Performance Indicators for Managing Maintenance is designed to provide the key details on how to measure and improve one of the most important functions in an organization today: Equipment or Asset Maintenance Management.
Developing Performance Indicators for Managing Maintenance
(Predictive Maintenance)

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   by Terry Wireman
Published By:
Industrial Press Inc.
Provides the key details on how to measure and improve equipment and asset management. SALE! Use Promotion Code TNET11 on book link to save 25% and shipping.
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1. Predictive Maintenance Activities as a Percent of

Total Maintenance Activities

This indicator examines the percent of maintenance activities that are predictive compared to the other categories of maintenance work. There are two ways to view the indicator. The first is by total hours of predictive maintenance (PDM) time compared to all other hours of maintenance work. The second is by total expense for the PDM program compared to the total dollars spent on maintenance. Most of the PDM work is labor-intensive inspections. Few spare parts are used. However, if the work tracking system can be used to highlight corrective work resulting from predictive inspections, then the ability to compare additional cost benefits will be available.


For Hours:

Hours of Predictive Maintenance Activities*

Total Maintenance


For Costs:

Predictive Maintenance Costs*

Total Maintenance Costs


These indicators can be derived by dividing the total hours (or costs) of the predictive maintenance activities by the total hours (or costs) worked by the maintenance department. The resulting percentages can be trended over time to show the level of hours or costs invested in the predictive maintenance program. In calculating these indicators, it is best to use a weekly total and then trend the indicator over a 12-month window.



This indicator is useful for highlighting the level of predictive maintenance activities and insuring that the PDM activities are consistent. They prevent the predictive maintenance efforts from losing focus. If any negative trends are noted, they can be corrected before serious problems develop with the predictive maintenance program.



There are no major weaknesses with this indicator. They should be used by any organization serious about the predictive maintenance program.


2. Savings Attributed to Predictive Maintenance Activities

This indicator highlights the savings attributed to the predictive maintenance program. It should include equipment breakdowns that were eliminated or prevented due to a predictive inspection. Although this may be difficult to calculate, a real attempt should be made to quantify the savings, thereby insuring the ongoing organizational support for the predictive program. The three major areas of saving are:


  1. Increased Equipment Uptime or Downtime Avoidance Cost
  2. Increased Equipment Capacity or Increased Performance of the Equipment (not uptime, but performance efficiency)
  3. Decreased Maintenance Expense (it is less expensive to make a repair in a planned mode)


These indicators should be tracked on a monthly basis and trended over a year. They should include an annual summary of the yearly savings since the program’s inception.



These indicators are useful for obtaining and maintaining organizational support for the predictive effort. They can also be used as an educational tool, helping the organization understand the impact equipment reliability has on the profits of the company.



The major weakness is the difficulty in calculating the cost avoidance. It may be easier if cost data for a previous breakdown were accurately recorded in the CMMS. The downtime should have been a part of the record and the loss can be calculated from that figure. Capacity increases can compare current production rates to the rates before the predictive program was started


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