KPI (key Performance Indicator) & Benchmarking
A performance indicator or key performance indicator (KPI) is a type of performance measurement. Key Performance Indicators (KPI’s) are an important management tool to measure business performance, and are often used to measure maintenance. Maintenance performance evaluation is an essential step to effect improvement in the maintenance planning, organizing and control.
Maintenance KPI’s must be integrated with other Maintenance KPI’s must be integrated in an organization. Also All Maintenance KPI’s must be tied on to long business object And . . . .
Management uses performance measurement primarily for monitoring purposes, and many performance indicators have been developed to support operational decisions. These indicators are, at best, descriptive signals that some action needs to be taken. To make them more useful, put in place decision rules, which are compatible with organizational objectives. This way, you can determine your preferred course of action based on the indicators’ values.
The most important reason for Appling a standard key performance indicator system in an organization is to influence people behavior in a way that helps achieve organizational goals.
To clarify trends when the activity level may vary over time, or when comparing organizations of different size, you can use indices to measure maintenance performance. KPIs are categorized into three categories, based on their focus:
1. Measures of equipment performance (eg, availability, reliability, and overall equipment effectiveness)
2. Measures of cost performance (eg, O&M labor and material costs)
3. Measures of process performance (eg, ratio of planned and unplanned work, schedule compliance)
Pamco. consultant and experts can help your company to design a standard key performance indicator system.