Speaker 1: Hello there, I'm Ryan Chan, CEO and founder of Upkeep. In this video we're going to take a deep dive into the world of maintenance metrics and key performance indicators, also known as KPIs. We'll explore how to choose the right metrics for your team and why those choices make a difference in achieving world-class maintenance in your organization. Also we will discuss the key differences between metrics and KPIs and introduce the concept of leading and lagging indicators. Now let's get started. Metrics are numbers that your organization tracks to give insight into your processes. For instance, preventive maintenance schedule compliance might not tell you a lot about your company's profitability, but it does provide insight into how your maintenance processes are going. On the other hand, a key performance indicator or KPI is a metric that provides insight into your organization's performance as a whole. They're linked with business goals. For example, a manufacturer striving for top customer satisfaction will likely use customer rejects and satisfaction as key performance indicators. Metrics and KPIs are similar, as they both measure your company's performance against particular goals. The major difference is that metrics are a measurement of progress toward a goal, KPIs are target numbers to hit. Metrics and KPIs can be classified as leading or lagging indicators. Leading indicators predict the outcome of a process or event. For instance, schedule compliance can be a leading indicator of the likelihood that an asset will experience unplanned failures and downtime. Lagging indicators measure the performance of the plant by looking at the outcomes and results of processes and operations. Examples include mean time to repair, mean time between failure, and overall equipment effectiveness. Choosing the right metrics to track can be a challenge. Here are five considerations to help in the decision-making process. 1. What are your organization's goals? For example, if your goal is to increase production, you'll need some metrics around maintenance to ensure that you're hitting your availability targets. 2. What are you already tracking? Determine what you're already tracking and start there. For some metrics, you'll need some time to get enough data to make it truly meaningful. 3. What type of assets are you tracking? Different assets have different needs and purposes, and what would make sense for one might not be right for another. 4. How critical is the asset? A non-critical piece of equipment wouldn't be as important to track as one that's core to your process. 5. Are there cause-and-effect relationships? When choosing leading indicators, you'll need to determine whether they truly have an impact on your desired results. Now let's look at some specific maintenance metrics that you can track as KPIs and leading indicators. First up, we have equipment downtime. This refers to the amount of time that equipment is not operating. The aim for unscheduled downtime should be 10% or less, meaning that a facility's equipment should be running at 90% availability or greater. Next, there's maintenance backlog, which quantifies the amount of time required for a defined number of workers to complete all pending maintenance tasks. The aim here is to have a maintenance backlog of around 6 weeks' worth of tasks per technician. Meantime between failure or MTBF indicates the duration that an equipment operates without disturbances. The aim here varies based on equipment type. Meantime-to-repair, or MTTR, is the average time it takes for equipment to be diagnosed, repaired, and recovered after experiencing a failure. There's no clear industry standard for this, but it's important to always define the methodology by which variables within the operations are measured. Overall Equipment Effectiveness, or OEE, is a standard used for measuring plant performance. The aim here is to have an OEE of 77% or greater. Planned Maintenance Percentage, or PMP, describes the amount of maintenance time used towards planned maintenance tasks, which is measured against the total amount of maintenance hours in a given time period. The aim here is to have a planned maintenance percentage of more than 85%. Schedule compliance is used by organizations to measure the effectiveness of their scheduled maintenance process. The aim here is to have 90% or more schedule compliance. There are also other important maintenance metrics to consider, such as maintenance cost as a percentage of replacement asset value, average days to complete work orders, percentage of work covered by a work order, and maintenance overtime. Remember, metrics and KPIs are the critical measuring sticks to help keep your facility up and running and operating efficiently. Choosing the right metrics is a process that depends on the asset, its criticality, and your business objectives. The Right Computerized Maintenance Management System, or CMMS, can track many different metrics, KPIs, and objectives. To recap, we've discussed the importance of metrics and KPIs, the difference between them and how they can be used as leading or lagging indicators. We've also looked at some specific maintenance metrics and how to choose the right ones for your organization. Thank you for watching this video. If you found it helpful, please give it a thumbs up and subscribe to our channel for more content like this. To learn more about how Upkeep can help your maintenance and operations teams be more successful, visit our website at upkeep.com.