Beyond KPI’s

Working Together or in Silos

Working Together or in Silos

In the asset management world measuring performance through the right KPI’s is important, focusing on the results of the asset management processes and adjusting regularly to the trends seen on the dashboards is vital to continuous improvements.
However it is not enough just to focus on the KPI’s, one always needs to be aware of what is behind the KPI’s, what behaviours KPI’s are driving and what is the ultimate goal for the business as a whole.

Example:
A batch production process breaks down, it is a small component that is relatively easy to change, just takes a few hours to do. However, the spare part is not available in stock and it will take 2 weeks to get that spare part. Luckily, they have two exactly the same types of processes side by side and the production batch cycles allow for the part to be taken from one manufacturing process and installing it on the other process while the batch preparation is done. Thus not affecting the production and delivery of the product is without any production losses noticeable.
So the Maintenance Supervisor adapts to this situation and had a Maintenance Technician perform the switch regularly keeping the production, as well as the customer, happy because production went as planned.
However when focusing on the maintenance KPI parameters this results in an increased Break Down Maintenance over the 2 week period, as they needed to move the part from one process to the next in line with the batch production cycles. This also resulted in non-compliance to part of the PM program, as the maintenance technician did not have the time to do all the planned PM’s because of the added Break Down Maintenance. It can also be assumed that because the PM’s where not done that could result in further unforeseen breakdowns.
The Maintenance Manager comes to the Maintenance Supervisor not happy with his decision, because he monitored the KPI’s and could see that the Maintenance KPI’s, noticeably the break down KPI and PM compliance KPI where not trending in the correct direction.
After weighing the options and understanding the story behind the KPI’s development the Maintenance Manager agreed that out of a bad situation the Maintenance Supervisor selected the best possible path.
Conclusion:
If everyone is focused on a single dominating goal, it is less challenging to adjust to situations as described in the example here above, as long as we understand the underlying attributes that affect the KPI’s developments.
However in a silo situation where there might be tension between the silo’s (e.g. production vs. maintenance). In that case the example might have developed in a different way, i.e. half the production down for 2 weeks because of a failure where the spare part cannot be delivered for 2 weeks, the maintenance KPI’s would suffer a bit (one break down) but the production KPI’s would suffer even more.
Food for thought:
Is there a clear understanding in your organization for the why’s of the decisions that are made, i.e. are there clear governing goals?
Do you sometimes sacrifice your goals for the greater governing goals? And are you recognized for that?
I welcome your feedback and discussions below this Blog post.

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Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.

Hellisheiðarvirkjun one of Icelands most impressive Geothermal power plants

Hellisheiðarvirkjun one of Icelands most impressive Geothermal power plants

Another one of Albert Einstein’s quotes starts my blog, I probably won’t make this a habit but I thought I would try.

Learning is one of the cornerstones of progress. I have the great fortune to be a part of the Icelandic Maintenance Association. This February 27th to 2nd of March the association is having a Thermal Imaging seminar at this impressive power plant in Iceland, close to the capital of Reykjavik.

It is our hope that by having great people together, sharing knowledge and ideas, learning from yesterday and living today we have great hopes for tomorrow.

This is a great opportunity if you are interested to come to a great place and learn, for further information just contact fvsi@fvsi.is. The seminar will be thought by Jim Seffrin from Infraspection. The seminar will be based on ISO 18436-7, Level 1. The curriculum can be viewed through this link.

We hope to see you there. www.fvsi.is The Icelandic maintenance association.

Hellisheiðarvirkjun

Hellisheiðarvirkjun

“Logic will get you from A to B. Imagination will take you everywhere.” – Albert Einstein

Tunnel VisionSome might wonder why my blog this time has a header with a quote from Albert Einstein. The reason is that lately I have been extremely busy and a lot of pressure put from many sources, this is just the normal environment of a Maintenance & Reliability professional.

However it is important to not forget to take a step back from the logic of our existence where we solve problems, implement better practices and processes, etc. in a logical way every day. These logical functions that we deliver makes us have a bit of a tunnel vision, like the horse that is pulling the wagon with the blinds on so he does not get distracted.

Stepping back and Imagining where we could go, what we could do better, how we can deliver better results, what we can learn from anything and use it in our Reliability & Maintenance practices. Only focusing on the problems we are in without looking around for opportunities can make us miss some extremely great opportunities.

Only focusing on the problem of being stuck in the snow far from everybody in the middle of the mountain

Could make us miss the opportunities that are all around us, the beautiful views, the nature... and of course the people around that could help out 🙂

So in the heat of the game of finding the very best Reliability & Maintenance practices don’t forget to take a step back, relax and imagine… because Imagination will take you everywhere.

Another good quote from Albert Einstein is : “Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.

But more on that later, I hope you have a great Imaginative rest of the weekend and don’t forget to comment 🙂

Warm regards, Bjarni Ellert Ísleifsson, CMRP