OPTIMIZING ASSET PERFORMANCE
Following Paul Kurchina’s introduction on the SAP EAM benchmarking in his “A Free Hidden Gem for SAP Customers” – SAP Benchmarking, I thought it would be a good idea to focus on some of key EAM metrics captured in the SAP EAM benchmarking survey. I have often encountered executives who have identified that they are not doing very well on a particular metric, but are unable to find the cure to improve performance. This post onwards I am starting a new section called “Metric of the Month” where I am going to focus on one key metric from the EAM area and recommend some of the industry best practices which have enabled organizations to become best-in-class on these metrics. These best practices might not be the silver bullet, but they would certainly give you direction on where to focus your thoughts.
METRIC OF THE MONTH
Based on SAP EAM Benchmarking, companies (across all industries) with average performance have around 76% Asset Utilization, whereas the Top 25% companies have close to 91% Asset Utilization.
Source: SAP EAM Benchmarking
Participants in SAP’s EAM Benchmarking program can have access to industry specific values for this metric.
RECOMMENDED BEST PRACTICES
- Operating asset performance can be monitored in real time and can be analyzed to identify trends as well as risks, to increase asset reliability and safety
- Sophisticated reliability based maintenance procedures and tools are utilized on a regular basis to increase asset availability
- Maintenance systems are fully integrated with inventory management, MRO purchasing, reliability engineering, planning and scheduling, finance and maintenance reporting
METRICS FOR UPCOMING POSTS
- Unplanned Downtime or Outages (in %) – September 2010
- Overall Equipment Effectiveness (OEE) (in %) – October 2010
- Weekly Maintenance Schedule Attainment Rate (in %) – November 2010