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Maintenance: Boosting performance with KPIs

Michael Zangl

April 21, 2020

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For years, it’s been repeated like a mantra: Data determines the success or failure of companies in the digital age.  

And indeed, the link between data and business performance is evident across many areas. It’s no surprise, then, that data plays an increasingly critical role in maintenance. Its value becomes especially clear when analyzing asset inefficiencies, maintenance costs, and service activities. The goal is to minimize unplanned downtime through preventive maintenance strategies, such as condition-based or predictive maintenance. The key is identifying issues before they lead to failure. 

KPIs – often underestimated, yet essential

For many production and technology managers, the topic of KPIs still doesn’t receive the attention it deserves – even though they have long been a cornerstone of controlling. 

From valantic’s perspective, this lack of attention is a critical mistake. KPIs are a powerful tool for making the performance and costs of maintenance transparent, helping uncover important correlations. They provide the foundation for informed decision-making and targeted action, ultimately driving continuous improvements in both efficiency and effectiveness. 

Yet despite their importance, the reality often looks quite different: Companies invest considerable time and resources in collecting data, but rarely leverage it fully for analysis and optimization. 

KPIs in the context of management and controlling

KPIs only develop their full benefit as part of a management or controlling system. The low level of use is almost always due to a lack of awareness in this context. 

Initially, KPIs only reflect the business or technical reality as absolute or relative values from a certain perspective. They show either the current status quo or the desired target situation. However, without a clear frame of reference, these values say little. For example, what do a Mean Time To Repair (MTTR) of 37 minutes, a spontaneity rate of 28 percent or a failure rate of 9 percent mean? 

KPIs in comparison: benchmarking and over time

There are two common approaches to meaningfully classifying KPIs: 

  1. Comparison with values of other companies that serve as a benchmark (e.g. via the AMIS database of dankl+partner consulting | MCP Germany). 
  2. Comparison with the company’s own KPIs over time. 

Both approaches are based on the desire to continuously improve – either by catching up with leading competitors or by optimizing one’s own performance each year. This sounds simple but often falls short. 

Not every KPI is suitable for comparison. In practice, attempts to compare all KPIs often lead to a rapid loss of interest in their use. Instead, it is crucial to specifically select those KPIs that are relevant to your company. 

PDCA cycle as the foundation for continuous improvement

The relevance of specific KPIs in maintenance depends heavily on the maintenance strategy – and that, in turn, must align with the company’s overarching business objectives. 

Consider this example: A premium car manufacturer producing a low volume of high-value vehicles cannot afford production defects. For this company, the priority is flawless system performance – even if it requires daily fine-tuning. In this case, maintenance success is measured using quality-focused KPIs such as the quality factor of Overall Equipment Effectiveness (OEE) or the complaint rate. Cost-related KPIs are only of secondary importance. 

In contrast, an original equipment manufacturer (OEM) focused on producing compact and mid-range vehicles at low margins prioritizes efficiency. For them, maintenance must be as cost-effective as possible – evidenced by a low share of controllable maintenance costs – while still ensuring high availability and performance. Minor quality losses are considered acceptable in this context. 

The PDCA cycle in maintenance

Defining objectives, selecting relevant key figures, and setting target values are all core elements of the Plan phase in the PDCA cycle (Plan – Do – Check – Act). This phase also includes developing specific measures aimed at achieving the defined goals. 

For instance, daily readjustments of machinery might be introduced as a measure to reduce system malfunctions. The implementation of these measures takes place in the Do phase. The data generated during this phase is then analyzed in the Check phase. 

The focus, in this case, is on two key questions: 

  1. Were the target values achieved? 
  2. What insights can be drawn from the data? 

Does the readjustment deliver the desired effect, or could it even have an unintended negative impact on operations? 

Based on these findings, appropriate actions are taken in the Act phase – whether to adjust, refine, or replace the measures. The cycle then begins again. This creates a continuous improvement process in maintenance that remains agile and responsive to changing conditions. 

Performance and cost transparency through KPIs

Based on valantic’s experience, it is most effective to focus on a manageable set of KPIs. For roles such as maintenance foremen, planners, or technicians, five to ten KPIs per function is a realistic number. 

These KPIs should be directly derived from clearly defined objectives and form a cohesive KPI system. This means they must complement one another and enhance the overall informational value. 

To select the right KPIs, it’s crucial to understand the standard indicators commonly used in maintenance. This knowledge forms the foundation for making informed decisions about which KPIs best reflect the intended goals. Useful, structured guidance can be found in: 

  • DIN EN 15341 (standard) 
  • VDI 2893 (directive) 

How to systematically categorize KPIs

When selecting suitable KPIs, it’s important to ensure they can be categorized according to different perspectives – even if some overlap occurs. 

For example, DIN EN 15341 classifies maintenance KPIs into: 

  • economic indicators 
  • technical indicators 
  • organizational indicators 

In contrast, VDI 2893 categorizes them as: 

  • technical indicators 
  • cost indicators 
  • administrative indicators 

A structured approach is essential when defining and selecting KPIs. However, one principle remains central: KPIs should never be viewed as absolute truths. They offer valuable orientation but must always be interpreted within a technical and operational context. 

Five steps for the successful introduction of KPIs

valantic recommends a structured five-step approach for the effective implementation of KPIs in maintenance: 

  1. Define the scope of application: Identify the specific areas where KPIs will be applied.
     
  2. Set goals and standards for maintenance controlling: Create the necessary conditions to ensure that KPIs can be meaningfully interpreted and used.
     
  3. Select KPIs and build a KPI system: Choose the most relevant KPIs and develop a coherent, consistent system that aligns with your defined goals.
     
  4. Start with a pilot: Introduce the system in a clearly defined test area. Use this phase to gain practical experience and refine your approach.
     
  5. Roll out and expand gradually: Once the pilot is successful, extend the use of KPIs step by step to additional areas. 

 

Critical questions for selecting and applying KPIs

The five-step introduction process should be accompanied by systematic reflection. Consider the following guiding questions: 

  • Can the maintenance strategy or specific objectives be described and influenced using this KPI? 
  • Does the KPI highlight potential areas for improvement? 
  • What specific insights does the KPI provide? 
  • Is the KPI clearly understandable and easy to interpret? 
  • Does the KPI have general applicability? 
  • Can the KPI be actively influenced by actions within maintenance or related departments? 
  • Who is responsible for determining the KPI, and what systems or data sources (e.g. procurement, IT) are required? 
  • Is the KPI economically measurable – i.e. is the necessary data available and reliable? 
  • Are there content-related dependencies or overlaps with other KPIs? 
  • How frequently should the KPI be evaluated or reported? 
  • What actions or measures are triggered in case of deviations from target values? 

IT as the backbone of maintenance controlling

IT plays a central role in the effective use of KPIs in maintenance. Manual data collection and evaluation are no longer efficient – or even feasible – in today’s complex operational environments. 

In practice, however, many companies still rely on rudimentary or isolated IT systems that fail to unlock the full potential of maintenance KPIs. 

The ideal scenario is a fully integrated, IT-supported controlling process that enables: 

  • automated data collection via IT systems, sensors, distributed control systems (DCS), production data acquisition (PDA) systems, and mobile devices 
  • consolidation and structured storage of data from various sources 
  • flexible evaluation capabilities to support different decision-making horizons – ranging from daily operational control to weekly planning and long-term strategic optimization 
  • creation and visualization of KPIs, for example, as part of shop floor management 

When supported by a robust IT infrastructure, KPIs can reliably serve their intended purpose in the controlling process. 

Conclusion: Leveraging KPIs to optimize maintenance

Key performance indicators are more than just numbers – they form the foundation for transparency, strategic control, and continuous improvement in maintenance. What matters most is not the number of KPIs but their relevance and the systematic approach behind their selection and use. 

When combined with a well-designed controlling process and integrated IT support, KPIs empower organizations to make informed decisions and sustainably enhance the efficiency and effectiveness of their maintenance operations. 

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How to leverage KPIs with SAP

Learn how to build a powerful KPI system for maintenance using SAP solutions with our experts. 

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