Efficient Plant March 2018 - 48

column | seeking reliability

Measuring
Performance
Drew D. Troyer, CRE, CMRP
Contributing Editor

This column will explore, from a management perspective, the Five Pillars of
Knowledge, as defined by the Society for
Maintenance and Reliability Professionals
(SMRP), Atlanta (smrp.org). While many
view the pillars mainly as guideposts for
those seeking CMRP certification, anyone
can benefit from this knowledge. After
all, certification only provides value if
it delivers reliability to the plant floor.
Expanded, more technical, takes on
topics covered in this column will appear
in Efficient Plant's monthly "Reliability
Solutions" e-newsletters. This month's
focus is a topic in the first pillar,
"Business and Management." To
subscribe to our newsletters, visit efficientplantmag.com and select Subscribe
under the Magazine menu item.

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HY IS performance measurement so important? It
provides a scorecard that
enables us to effectively manage performance and serve the mission, i.e., what
gets measured, gets done.
Performance measurements, metrics,
and/or key performance indicators
(KPIs) may be lagging or leading in
nature. Simply stated, lagging metrics
are analogous to looking in a rear-view
mirror. Leading metrics are analogous to
looking ahead at a windscreen.
Most plants do a relatively good job
with lagging metrics-particularly cost
measurements. Many organizations,
however, struggle to manage leading
metrics, which are much more critical
than their lagging counterparts. Leading
metrics are what drive desired performance within an organization. Consider
overall vibration effectiveness (OVE), the
product of the percentage of machines
that comply with alignment, balance and
looseness, and resonance goals.
We know that the proactive measurement of vibration sources will increase
availability and reduce maintenance
costs. We also know what behaviors are
required to manage vibration sources,
including maintenance procedures that
specify fastener type, sequence and
tension (torque) requirements, and precision-alignment and -balance standards
and practices. By measuring OVE, we
can more effectively manage-and
reward-proactive behaviors that, in
time, will drive reliability goals.
Here's how to create an effective
system of metrics.
1. Start with Return on Net Assets
(RONA), but recognize that many
factors beyond the scope of reliability
and maintenance management affect

RONA, including market conditions.
2. Create a set of plant-performance
metrics that are leading in terms of
RONA, but lagging in terms of the
driving behaviors. While OEE is the
most common of these, cost metrics
also fall into this category.
3. Carefully evaluate the behaviors
required to optimize performance on
OEE and other intermediate performance metrics, and create a set of leading metrics focused on them. These
should include, among other things,
Overall Vibration Effectiveness (OVE),
Overall Lubrication Effectiveness
(OLE), and Overall Electrical Effectiveness (OELE).
4. Make performance-trending
data easy to collect and understand
throughout the organization. I like
percentage metrics for behavior-based
performance monitoring, and have
created dozens modeled after the very
elegant one for OEE.
5. Tie extrinsic (money) and intrinsic
(recognition) factors to leading metrics
that drive desired behaviors. They, in
turn, will drive desired results.
6. Ensure that each metric can be
mapped to show its service to RONA,
the ultimate goal. If it can't, you probably don't need it.
In reality, remember that what gets
rewarded is what gets done. Be sure to
build your maintenance and reliability
metrics to reflect this truth. EP

Based in Tulsa, OK, industry veteran
Drew Troyer is principal with Sigma
Reliability Solutions. Email
Drew.Troyer@sigma-reliability.com.

MARCH 2018

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