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

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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

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• 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 BENCHMARKINGWhy BenchmarkingWhat is Benchmarking

Types of Benchmarking

Benchmarking Process

Benchmarking Workflow

Benchmarking Goals

SMART Requirements

Gap Analysis

Maintenance Strategy

Impacts of Benchmarking

What’s Next

Generic Comparing KPIs and processes across the same broad industry

Internal Comparing Metrix and processes

within the organization

Competitive Comparing KPIs and processes

with direct competitors’

Functional Comparing a similar process

independent of industry

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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

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CMMS BENCHMARKING PROCESSWhy BenchmarkingWhat 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 BenchmarkingWhat 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

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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

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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

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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

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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

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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

Best is the enemy of better.

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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

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IMPACTS OF CMMS BENCHMARKINGWhy BenchmarkingWhat 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

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WHAT’S NEXTWhy BenchmarkingWhat 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

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