Maintenance performance measurement (MPM): issues and challenges
01 Jul 2006-Journal of Quality in Maintenance Engineering (Emerald Group Publishing Limited)-Vol. 12, Iss: 3, pp 239-251
TL;DR: In this article, the authors identify various issues and challenges associated with the development and implementation of a maintenance performance measurement (MPM) system, and propose a method to identify the most important issues.
Abstract: Purpose - The purpose of this study is to identify various issues and challenges associated with development and implementation of a maintenance performance measurement (MPM) system. Design/methodo ...
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TL;DR: In this paper, the authors present an overview of TPM implementation practices adopted by the manufacturing organizations and highlight appropriate enablers and success factors for eliminating barriers in successful TPM implementations.
Abstract: Purpose – The purpose of this paper is to review the literature on Total Productive Maintenance (TPM) and to present an overview of TPM implementation practices adopted by the manufacturing organizations. It also seeks to highlight appropriate enablers and success factors for eliminating barriers in successful TPM implementation.Design/methodology/approach – The paper systematically categorizes the published literature and then analyzes and reviews it methodically.Findings – The paper reveals the important issues in Total Productive Maintenance ranging from maintenance techniques, framework of TPM, overall equipment effectiveness (OEE), TPM implementation practices, barriers and success factors in TPM implementation, etc. The contributions of strategic TPM programmes towards improving manufacturing competencies of the organizations have also been highlighted here.Practical implications – The literature on classification of Total Productive Maintenance has so far been very limited. The paper reviews a larg...
521 citations
Cites background from "Maintenance performance measurement..."
...Parida and Kumar (2006) have identified various issues and challenges associated with development and implementation of a maintenance performance measurement (MPM) system....
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TL;DR: In this paper, a framework based on 10 common circular economy strategies (i.e. recover, recycling, repurpose, remanufacture, refurbish, repair, reuse, reduce, rethink, refuse) is applied to scrutinise the selected targets.
Abstract: The transition to a circular economy requires actions and policies. In the praxis of governance, a common way to steer the transition to a different state proceeds through the setting of targets. Thus far, no study has investigated circular economy targets in a systematic way. To bridge this gap, this study examines which targets can facilitate the transition towards a circular economy. The analysis focuses both on existing and new targets; the latter complement existing targets which are limited to a few discrete cases addressing only partially the goal of a more circular economy. A framework based on 10 common circular economy strategies (i.e. recover, recycling, repurpose, remanufacture, refurbish, repair, re-use, reduce, rethink, refuse) is applied to scrutinise the selected targets. The study clarifies that existing targets for recovery and recycling do not necessarily promote a circular economy, though they are the most commonly applied targets so far. Because of lack of efficacy of recovery and recycling, targets should instead favour other more powerful circular economy strategies. In relation to these, the study looks into new and existing targets showing how they can reduce waste, increase efficiency, close production loops, and maximise retention of the economic value of materials and products. In particular, the study proposes an expanded set of brand new targets for the transition to a circular economy together with a fresh view on targets aimed at scholars and decision-makers alike.
466 citations
Cites background from "Maintenance performance measurement..."
...In fact, maintenance can include repair, replacement, adjustment, lubrication, and/or modification activities (Parida and Kumar, 2006; Willskytt et al., 2016)....
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TL;DR: In this paper, the authors provide an overview of research and development in the measurement of maintenance performance, examining such maintenance strategies as condition-based maintenance, reliability-centred maintenance, e-maintenance, etc.
Abstract: Purpose – The purpose of this paper is to provide an overview of research and development in the measurement of maintenance performance. It considers the problems of various measuring parameters and comments on the lack of structure in and references for the measurement of maintenance performance. The main focus is to determine how value can be created for organizations by measuring maintenance performance, examining such maintenance strategies as condition‐based maintenance, reliability‐centred maintenance, e‐maintenance, etc. In other words, the objectives are to find frameworks or models that can be used to evaluate different maintenance strategies and determine the value of these frameworks for an organization.Design/methodology/approach – A state‐of‐the‐art literature review has been carried out to answer the following two research questions. First, what approaches and techniques are used for maintenance performance measurement (MPM) and which MPM techniques are optimal for evaluating maintenance str...
191 citations
Cites background from "Maintenance performance measurement..."
...…to re-evaluate and revise their maintenance policies and techniques, justify investment in new trends and techniques, revise resource allocations, and to understand the effects of maintenance on other functions and stakeholders as well as on health and safety etc. (Parida and Kumar 2006)....
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...Applying the concept of indicators and the appropriate selection of actions to perform, based on continuous improvement, will help to achieve excellence in maintenance Katsllometes [11]....
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...Therefore, according Katsllometes, a metric that begins with World Class Manufacturing (WCM) is necessary....
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...In brief, an effective MPM system should focus on measuring the total maintenance effectiveness, i.e. internal and external effectiveness Parida and Kumar (2006)....
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...Combining the two leads to the attainment of the three objectives of excellence, noted by Katsllometes (2004); efficiency, effectiveness and staff involvement....
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TL;DR: In this article, a multi-criteria hierarchical maintenance performance measurement framework is proposed for developing and implementing a relevant, timely, reliable, cost and time-effective and user-friendly system for stakeholders at various levels.
Abstract: Purpose – The purpose of this study is to develop a multi‐criteria hierarchical maintenance performance measurement framework, which is balanced, holistic and integrated to various levels of the organization.Design/methodology/approach – Consolidation of published research and current practices are combined to study, identify and develop this proposed framework.Findings – A framework for maintenance performance measurement is proposed for developing and implementing a relevant, timely, reliable, cost and time‐effective and user‐friendly system for stakeholders at various levels. The indicators at the subsystem/component level, plant level and corporate level are linked with the MPIs for the organizational objectives and strategy.Practical implications – Management of maintenance performance is critical for long term economic viability of business and industry. Development of an integrated, balanced and holistic MPM system needs to consider various issues to measure the contribution of maintenance towards ...
184 citations
Cites background from "Maintenance performance measurement..."
...In this paper, the authors have made an attempt to consider various issues discussed in Parida and Kumar (2006)...
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TL;DR: In this article, the authors examined the relevant literature related to maintenance performance measurement in the manufacturing sector and classified and examined the innovative approaches and models utilized to measure and manage maintenance performance in manufacturing operational settings.
Abstract: Purpose – This research aims to examine the relevant literature related to maintenance performance measurement in the manufacturing sector. In the process, innovative approaches and models utilized to measure and manage maintenance performance in manufacturing operational settings are classified and examined. Based on this investigation, future research directions and themes are identified.Design/methodology/approach – A database of 251 peer‐reviewed publications, published during the last 30 years, was utilized for the purpose of this research. The published works included contributions from both practitioners and scholars.Findings – This literature review‐based research revealed important themes related to evolution of maintenance performance management. These themes focus on the effective utilization of maintenance resources, information systems support, and human factor management. Based on this literature review, a conceptual framework, which traces the different operational and organizational facets...
183 citations
Cites background from "Maintenance performance measurement..."
...4 industries, such as petrochemical, electrical power, and mining, maintenance related costs may surpass operational cost (Raouf, 1993; De Groote, 1995; Eti et al., 2005; Parida and Kumar, 2006)....
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...Due to the changing organizational role of maintenance, and the increasing complexity of manufacturing technologies, maintenance related costs have been on the increase (Parida and Kumar, 2006)....
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...According to Parida and Kumar (2006), the following are considered important factors, justifying the implementation of a maintenance performance measurement process: 5 - Measuring value created by the maintenance; - Justifying investment; - Revising resource allocations; - Health safety and…...
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...…need to be considered in the road toward effective performance maintenance management, as identified from the literature (Tsang, 1998; Kumar, 2006; Parida and Kumar, 2006) are highlighted below: - Measuring value created by the maintenance; - Justifying investment and maximize asset utilization;…...
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...…and the fact that organizations using integrated balanced performance management systems tend to outperform their counterparts which do not (Parida and Kumar, 2006), studies have shown that 70% of all those systems implementation initiatives have failed (Bourne et al., 2002; Bourne, 2005)....
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References
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Book•
17 Apr 2015TL;DR: A "balanced scorecard" is developed, a new performance measurement system that gives top managers a fast but comprehensive view of the business and complements those financial measures with three sets of operational measures having to do with customer satisfaction, internal processes, and the organization's ability to learn and improve.
Abstract: Frustrated by the inadequacies of traditional performance measurement systems, some managers have abandoned financial measures like return on equity and earnings per share. "Make operational improvements and the numbers will follow," the argument goes. But managers do not want to choose between financial and operational measures. Executives want a balanced presentation of measures that allow them to view the company from several perspectives simultaneously. During a year-long research project with 12 companies at the leading edge of performance measurement, the authors developed a "balanced scorecard," a new performance measurement system that gives top managers a fast but comprehensive view of the business. The balanced scorecard includes financial measures that tell the results of actions already taken. And it complements those financial measures with three sets of operational measures having to do with customer satisfaction, internal processes, and the organization's ability to learn and improve--the activities that drive future financial performance. Managers can create a balanced scorecard by translating their company's strategy and mission statements into specific goals and measures. To create the part of the scorecard that focuses on the customer perspective, for example, executives at Electronic Circuits Inc. established general goals for customer performance: get standard products to market sooner, improve customers' time-to-market, become customers' supplier of choice through partnerships, and develop innovative products tailored to customer needs. Managers translated these elements of strategy into four specific goals and identified a measure for each.
12,976 citations
"Maintenance performance measurement..." refers background in this paper
...The balanced scorecard, with its four perspectives, focuses on financial aspects, customers, internal processes, and innovation and learning ( Kaplan and Norton, 1992...
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Journal Article•
9,617 citations
TL;DR: Following a comprehensive review of the literature, proposes a research agenda that focuses on the process of performance measurement system design, rather than the detail of specific measures.
Abstract: The importance of performance measurement has long been recognized by academics and practitioners from a variety of functional disciplines. Seeks to bring together this diverse body of knowledge into a coherent whole. To ensure that the key issues are identified, focuses on the process of performance measurement system design, rather than the detail of specific measures. Following a comprehensive review of the literature, proposes a research agenda.
3,290 citations
TL;DR: The Balanced Scorecard as mentioned in this paper is an approach that combines financial measures with non-financial measures, such as customer relationships, innovative products and services, high-quality and responsive operating processes, skills and knowledge of the workforce, information technology that supports the work force and links the firm to its customers and suppliers, and the organizational climate that encourages innovation, problem-solving, and improvement.
Abstract: Several years ago we introduced the Balanced Scorecard (Kaplan and Norton 1992). We began with the premise that an exclusive reliance on financial measures in a management system is insufficient. Financial measures are lag indicators that report on the outcomes from past actions. Exclusive reliance on financial indicators could promote behavior that sacrifices long-term value creation for short-term performance (Porter 1992; AICPA 1994). The Balanced Scorecard approach retains measures of financial performance--the lagging outcome indicators--but supplements these with measures on the drivers, the lead indicators, of future financial performance. THE BALANCED SCORECARD EMERGES The limitations of managing solely with financial measures, however, have been known for decades. [1] What is different now? Why has the Balanced Scorecard concept been so widely adopted by manufacturing and service companies, nonprofit organizations, and government entities around the world since its introduction in 1992? First, previous systems that incorporated nonfinancial measurements used ad hoc collections of such measures, more like checklists of measures for managers to keep track of and improve than a comprehensive system of linked measurements. The Balanced Scorecard emphasizes the linkage of measurement to strategy (Kaplan and Norton 1993) and the cause-and-effect linkages that describe the hypotheses of the strategy (Kaplan and Norton 1996b). The tighter connection between the measurement system and strategy elevates the role for nonfinancial measures from an operational checklist to a comprehensive system for strategy implementation (Kaplan and Norton 1996a). Second, the Balanced Scorecard reflects the changing nature of technology and competitive advantage in the latter decades of the 20th century. In the industrial-age competition of the 19th and much of the 20th centuries, companies achieved competitive advantage from their investment in and management of tangible assets such as inventory, property, plant, and equipment (Chandler 1990). In an economy dominated by tangible assets, financial measurements were adequate to record investments on companies' balance sheets. Income statements could also capture the expenses associated with the use of these tangible assets to produce revenues and profits. But by the end of the 20th century, intangible assets became the major source for competitive advantage. In 1982, tangible book values represented 62 percent of industrial organizations' market values; ten years later, the ratio had plummeted to 38 percent (Blair 1995). By the end of the 20th century, the book value of tangible assets accounted for less than 20 percen t of companies' market values (Webber 2000, quoting research by Baruch Lev). Clearly, strategies for creating value shifted from managing tangible assets to knowledge-based strategies that create and deploy an organization's intangible assets. These include customer relationships, innovative products and services, high-quality and responsive operating processes, skills and knowledge of the workforce, the information technology that supports the work force and links the firm to its customers and suppliers, and the organizational climate that encourages innovation, problem-solving, and improvement. But companies were unable to adequately measure their intangible assets (Johnson and Kaplan 1987, 201-202). Anecdotal data from management publications indicated that many companies could not implement their new strategies in this environment (Kiechel 1982; Charan and Colvin 1999). They could not manage what they could not describe or measure. INTANGIBLE ASSETS: VALUATION VS. VALUE CREATION Some call for accountants to make an organization's intangible assets more visible to managers and investors by placing them on a company's balance sheet. But several factors prevent valid valuation of intangible assets on balance sheets. …
2,065 citations
"Maintenance performance measurement..." refers background in this paper
...Subsequently, various researchers have developed frameworks considering non-financial measurements and intangible assets to achieve competitive advantages ( Kaplan and Norton, 2001...
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Journal Article•
TL;DR: Industry and trade associations, consulting firms, and public accounting firms that already have well-developed methods for assessing market share and other performance metrics can add to the revolution's momentum--as well as profit from the business opportunities it presents.
Abstract: The leading indicators of business performance cannot be found in financial data alone. Quality, customer satisfaction, innovation, market share--metrics like these often reflect a company's economic condition and growth prospects better than its reported earnings do. Depending on an accounting department to reveal a company's future will leave it hopelessly mired in the past. More and more managers are changing their company's performance measurement systems to track nonfinancial measures and reinforce new competitive strategies. Five activities are essential: developing an information architecture; putting the technology in place to support this architecture; aligning bonuses and other incentives with the new system; drawing on outside resources; and designing an internal process to ensure the other four activities occur. New technologies and more sophisticated databases have made the change to nonfinancial performance measurement systems possible and economically feasible. Industry and trade associations, consulting firms, and public accounting firms that already have well-developed methods for assessing market share and other performance metrics can add to the revolution's momentum--as well as profit from the business opportunities it presents. Every company will have its own key measures and distinctive process for implementing the change. But making it happen will always require careful preparation, perseverance, and the conviction of the CEO that it must be carried through. When one leading company can demonstrate the long-term advantage of its superior performance on quality or innovation or any other nonfinancial measure, it will change the rules for all its rivals forever.
1,360 citations