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
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