As noted previously, there are a number of qualitative measurements that can be used. Nonetheless, qualitative measurements are important KPIs that should be utilized. The second type consists of quantitative measurements, which are formulas.Ī qualitative measurement is one that has no numerical value. These include Pareto charts, milestone charts, critical analysis, and project plans. The first type consists of qualitative measurements. Performance can then be benchmarked and compared. They are ranked in four categories: C-Critical need, H-High importance, M-Moderate need, and L-Low importance.
The maintenance manager must rank the importance of each KPI to his or her needs. Listed are the required formulas and descriptions of each KPI for Stores and MRO. The accuracy of these calculations is directly dependent on the accuracy of the data in the database and the documentation of material movement. That way the manual effort is removed and replaced with an automated one. It is important to have most of the information required to calculate KPIs in the computer system or CMMS program. They can even be used to compare performance to industry best standards, plants within a corporation, and other storerooms. They provide a simple and concise method for comparing actual performance from one period to another. KPIs play a major role in gauging the success or failure of MRO and Stores. However, the old adage that if you do not measure, you cannot know where you have been or where you are headed is often true.
Stores and MRO are not always measured for their performance. Many companies use only a few KPIs to measure outcomes. These numbers are posted at work centers, strategic operations areas, and other areas where they can be readily viewed. Management then takes these measurements, that are done on a periodic basis (daily, weekly, and/or monthly), and analyzes them through trend analysis, benchmarking, and critical path analysis (PERT). Some examples of this include the measuring of inventory turns, inventory accuracy, the dollar amount spent on emergency purchases compared to the overall purchases of the company, internal and external quality defects, stock outs, service levels (customer satisfaction), and others listed in the KPIs matrix. Apply the knowledge to individual companiesĪlso discussed are a criticality matrix, benchmarking activities, and expected outcomes when implementing Key Performance measurements.Ī Key Performance Indicator (KPI) is defined as a method to measure quantifying objectives to enable the measurement of performance.Learn the formulas and the priority for each KPI for MRO and Stores.
Learning point takeaways are listed below: