Page 272 - Improving Machinery Reliability

Maintenance and Benchnrarking Reliability 243

shop floor or the office facilities that support human resources. Maintenance repre-
sents from 5% to 15% of the enterprise’s total cost of goods sold (or production
costs) and is one area in which costs are steadily increasing.
To manage any asset, those responsible for making asset decisions must measure
its operation. Without measurements, they do not know where they stand. They do
noit know when to make changes. They do not know if changes made are moving the
operation in the desired direction. They do not know whether the distance they have
mloved is toward or away from the desired goals. Without measurements, decision
makers have no perception of the possible improvement potential. These statements
seem obvious, but if they are so obvious, why isn’t more being accomplished
through the use of measurements?

‘The measurement management theory is not understood
Measurement time and costs are not justified
The importance of the functions needing measurement is not known
There is lack of knowledge of how and what to measure
e The potential improvement is unknown.

Enterprise information is as much an asset as any piece of equipment or worker.
The information collected through a measurement program is one of the enterprise’s
most valuable assets, but it is significantly underused. Information, like all other
enterprise assets, has an initial acquisition cost and a maintenance cost. As an asset,
it must be used and maintained to be of value. In most cases, collected data are not
being used efficiently.

Goals and Metrics
The starting place for any measurement program is to establish enterprise goals.
These goals establish enterprise direction. Fewer focused goals are better than many
broad goals; the ultimate enterprise goal is to expand and sustain the business (the
associated metric is the existence of the business).
A critical element of a goal is how it is to be measured. A goal without a measure-
ment has little value. Enterprise goals and their associated metrics are developed at
three levels: the strategic level, the tactical level, and the operational level.
Goals developed at the strategic level have associated elements known as critical
business issues (CBI). CBIs are the elements necessary to achieve a goal. For exarn-
ple, the goal to expand and sustain the business has a related CBI of having an effi-
cient and effective maintenance operation.
When enterprise goals, metrics, and CBIs are being developed, several elemental
interrelationships must he considered. These relationships have varying impacts.
Relationship matrices can be established to assist in developing and assessing the
goals and CBI interrelationships, Figure 4-1.
Enterprise goals and metrics should be developed from the top down. Strategic
level CBIs relating to an efficient and effective maintenance operation become a
maintenance operation’s goals. These goals and their associated metrics are at the