Measure What Business Benefits Maintenance is Achieving
Maintenance makes serious money for a company by delivering operating equipment reliability and operating equipment risk reduction. You see the effects of both good and bad maintenance in the cost of your products. Bad maintenance policies and practices add operating cost whereas excellent maintenance policies and practices lower costs.
A useful site level maintenance KPI to measure is the proportion of operating costs attributable to Maintenance per unit of production. The Maintenance Group then has bottom level KPIs identifying where the cost contributions come from that make-up the maintenance proportion of the unit cost of production. This KPI directly links Maintenance to operating profit. You would be aiming to get a steady downward trend in maintenance cost per unit of production as evidence of continual improvement. The unit cost of production values may need to be identified by using Activity Based Costing, since financial accounting is often not detailed enough to differentiate the individual cost components of your products.