SMRP Best Practices 6th Edition PDF

© 2009-2020 Society for Maintenance & Reliability Professionals (SMRP). All rights reserved. Reproduction or transmittal of this document in whole or in part by any means including but not limited to copying, microfilming, recording, or by any information storage and retrieval system without the exp...

© 2009-2020 Society for Maintenance & Reliability Professionals (SMRP). All rights reserved. Reproduction or transmittal of this document in whole or in part by any means including but not limited to copying, microfilming, recording, or by any information storage and retrieval system without the expressed written consent of SMRP is strictly prohibited.  TABLE OF CONTENTS 1.1 RATIO OF REPLACEMENT ASSET VALUE (RAV) TO CRAFT-WAGE HEADCOUNT.................... 6 1.3 MAINTENANCE UNIT COST............................................................................................. 9 1.4 STOCKED MAINTENANCE, REPAIR AND OPERATING MATERIALS (MRO) INVENTORY VALUE AS A PERCENT OF REPLACEMENT ASSET VALUE (RAV)............................ 12 1.5 TOTAL MAINTENANCE COST AS A PERCENT OF REPLACEMENT ASSET VALUE (RAV)........ 16 2.1.1 OVERALL EQUIPMENT EFFECTIVENESS (OEE)............................................................. 21 2.1.2 TOTAL EFFECTIVE EQUIPMENT PERFORMANCE (TEEP)................................................ 30 2.2 AVAILABILITY............................................................................................................... 38 2.3 UPTIME....................................................................................................................... 45 2.4 IDLE TIME................................................................................................................... 50 2.5 UTILIZATION TIME....................................................................................................... 54 3.1 SYSTEMS COVERED BY CRITICALITY ANALYSIS............................................................. 59 3.2 TOTAL DOWNTIME....................................................................................................... 64 3.3 SCHEDULED DOWNTIME.............................................................................................. 68 3.4 UNSCHEDULED DOWNTIME.......................................................................................... 72 3.5.1 MEAN TIME BETWEEN FAILURES (MTBF).................................................................... 77 3.5.2 MEAN TIME TO REPAIR OR REPLACE (MTTR).............................................................. 80 3.5.3 MEAN TIME BETWEEN MAINTENANCE (MTBM)............................................................ 85 3.5.4 MEAN DOWNTIME (MDT)........................................................................................... 88 3.5.5 MEAN TIME TO FAILURES (MTTF)............................................................................... 92 4.1 REWORK...................................................................................................................... 96 4.2.1 MAINTENANCE TRAINING COST................................................................................100 4.2.2 MAINTENANCE TRAINING HOURS.............................................................................106 4.2.3 MAINTENANCE TRAINING RETURN ON INVESTMENT (ROI)........................................110 5.1.1 CORRECTIVE MAINTENANCE COST............................................................................116 5.1.2 CORRECTIVE MAINTENANCE HOURS.........................................................................120 2 5.1.3 PREVENTIVE MAINTENANCE (PM).............................................................................124 5.1.4 PREVENTIVE MAINTENANCE (PM) HOURS..................................................................130 5.1.5 CONDITION BASED MAINTENANCE COST..................................................................135 5.1.6 CONDITION BASED MAINTENANCE HOURS................................................................140 5.1.9 MAINTENANCE SHUTDOWN COST.............................................................................145 5.3.1 PLANNED WORK.......................................................................................................149 5.3.2 UNPLANNED WORK..................................................................................................153 5.3.3 ACTUAL COST TO PLANNING ESTIMATE.....................................................................157 5.3.4 ACTUAL HOURS TO PLANNING ESTIMATE..................................................................161 5.3.5 PLANNING VARIANCE INDEX.....................................................................................164 5.3.6 PLANNER PRODUCTIVITY..........................................................................................168 5.4.1 REACTIVE WORK......................................................................................................173 5.4.2 PROACTIVE WORK....................................................................................................177 5.4.3 SCHEDULE COMPLIANCE - HOURS.............................................................................181 5.4.4 SCHEDULE COMPLIANCE – WORK ORDERS................................................................185 5.4.5 STANDING WORK ORDERS........................................................................................188 5.4.6 WORK ORDER AGING...............................................................................................193 5.4.7 WORK ORDER CYCLE TIME.......................................................................................198 5.4.8 PLANNED BACKLOG..................................................................................................202 5.4.9 READY BACKLOG......................................................................................................206 5.4.10 PREVENTIVE MAINTENANCE (PM) & PREDICTIVE MAINTENACNE (PdM) WORK ORDER COMPLIANCE.......................................209 5.4.11 PREVENTIVE MAINTENANCE (PM) & PREDICTIVE MAINTENANCE (PdM) WORK ORDERS OVERDUE..........................................213 5.4.12 PREVENTIVE MAINTENANCE (PM) & PREDICTIVE MAINTENANCE (PdM) YIELD..........217 5.4.13 PREVENTIVE MAINTENANCE (PM) & PREDICTIVE MAINTENANCE (PdM) EFFECTIVENESS............................................................223 5.4.14 PREVENTIVE MAINTENANCE (PM) & PREDICTIVE MAINTENANCE (PdM) COMPLIANCE.............................................................228 3 5.5.1 CRAFT WORKER TO SUPERVISOR RATIO...................................................................232 5.5.2 CRAFT WORKER TO PLANNER RATIO.........................................................................235 5.5.3 DIRECT TO INDIRECT MAINTENANCE PERSONNEL RATIO...........................................238 5.5.4 INDIRECT MAINTENANCE PERSONNEL COST.............................................................244 5.5.5 INTERNAL MAINTENANCE EMPLOYEE COST...............................................................248 5.5.6 CRAFT WORKER ON SHIFT RATIO.............................................................................252 5.5.7 OVERTIME MAINTENANCE COST...............................................................................255 5.5.8 OVERTIME MAINTENANCE HOURS.............................................................................258 5.5.31 STORES INVENTORY TURNS....................................................................................262 5.5.32 VENDOR MANGED INVENTORY................................................................................266 5.5.33 STOCK OUTS..........................................................................................................270 5.5.34 INACTIVE STOCK....................................................................................................274 5.5.35 STOREROOM TRANSACTIONS..................................................................................279 5.5.36 STOREROOM RECORDS...........................................................................................283 5.5.38 MAINTENANCE MATERIAL COST..............................................................................287 5.5.71 CONTRACTOR COST................................................................................................291 5.5.72 CONTRACTOR HOURS.............................................................................................294 5.6.1 WRENCH TIME.........................................................................................................298 5.7.1 CONTINUOUS IMPROVEMENT HOURS........................................................................304 1.0 DETERMINING REPLACEMENT ASSET VALUE (RAV).......................................................309 2.0 UNDERSTANDING OVERALL EQUIPMENT EFFECTIVENESS (OEE.....................................312 3.0 DETERMINING LEADING AND LAGGING INDICATORS....................................................319 4.0 GUIDE TO MEAN METRICS...........................................................................................325 5.0 MAINTENANCE WORK TYPES.......................................................................................327 6.0 DEMYSTIFYING AVAILABILITY.....................................................................................332 7.0 MEASURING MAINTENANCE TRAINING RETURN ON INVESTMENT (ROI)........................336 GLOSSARY........................................................................................................................339 4  BUSINESS & MANAGEMENT METRIC 1.1 RATIO OF REPLACEMENT ASSET VALUE (RAV) TO CRAFT-WAGE HEADCOUNT Published on April 16, 2009 Revised August 23, 2020 DEFINITION This metric is the replacement asset value (RAV) of the assets being maintained at the plant divided by the craft-wage employee headcount. The result is expressed as a ratio in dollars per craft-wage employee. OBJECTIVES This metric allows organizations to compare the ratio of craft-wage personnel on a site with other sites, as well as to benchmark data. The RAV is used in the numerator to normalize the measurement, given that different plants vary in size and replacement value. The metric can be used to determine the standing of a plant relative to best-in-class plants which have high asset utilization and equipment reliability and generally have lower maintenance craft-wage cost. FORMULA Ratio of Replacement Asset Value ($) to Craft-Wage Head Count = RAV ($) / Craft-Wage Headcount COMPONENT DEFINITIONS Craft-Wage Headcount The number of maintenance personnel responsible for executing work assignments pertaining to maintenance activities. Includes the number of contractors’ personnel who are used to supplement routine maintenance. The headcount is measured in full-time equivalents (FTE). Page 1 of 3 6 Replacement Asset Value (RAV) Also referred to as estimated replacement value (ERV), it is the dollar value that would be required to replace the production capability of the present assets in the plant. Includes production/process equipment as well as utilities, facilities and related assets. Also includes the replacement value of buildings and grounds if these assets are included in maintenance expenditures. Does not include the insured value or depreciated value of the assets, nor does it include the value of real estate, only improvements. QUALIFICATIONS 1. Time basis: Yearly 2. This metric is used by maintenance managers to measure the effectiveness of their craft-wage workforce. 3. This metric can be calculated and used to compare a process, a department or an entire facility. 4. Contractors that are employed as part of capital projects or upgrade work should not be included. 5. Contract employees who support the regular maintenance workforce and perform maintenance on a site should be included. 6. If contract costs for painting, plumbing, carpentry and similar activities are included as part of the RAV, this contract headcount should be included in the denominator. 7. A full-time equivalent should be normalized at 40 hours per week. 8. For facilities using total productive maintenance (TPM), maintenance performed by operators should be included. Page 2 of 3 7 SAMPLE CALCULATION For a given facility, the replacement asset value ($) is $624,500,000 and the craft-wage headcount for maintenance employees is 150. The Ratio of Replacement Asset Value ($) to Craft-Wage Headcount = RAV ($) / Craft-Wage Headcount The Ratio of Replacement Asset Value ($) to Craft-Wage Headcount = $624,500,000 / 150 maintenance employees The Ratio of Replacement Asset Value ($) to Craft-Wage Headcount = $4,160,000 per maintenance employee BEST-IN-CLASS TARGET VALUE There is no best-in-class target value identified at this time. CAUTIONS There are no cautions identified at this time. HARMONIZATION This metric has not been harmonized to CEN standard EN 15341. REFERENCES Approved by consensus of SMRP Best Practice Committee. Page 3 of 3 8  BUSINESS & MANAGEMENT METRIC 1.3 MAINTENANCE UNIT COST Published on April 16, 2009 Revised on August 21, 2020 DEFINITION This metric is the measure of the total maintenance cost required for an asset or facility to generate a unit of production. OBJECTIVES This metrics allows organizations to quantify the total maintenance cost to produce a standard unit of production over a specified time period (e.g., monthly, quarterly, annually, etc.). It provides a period over period trend of maintenance cost per unit produced. This measure can be applied to a specific asset, a group of assets within a facility, across an entire facility or across multiple facilities. FORMULA Maintenance Unit Cost = Total Maintenance Cost / Standard Units Produced COMPONENT DEFINITIONS Standard Units Produced A typical quantity produced as output. The output has acceptable quality and consistent means to quantify. Examples include: gallons, liters, pounds, kilograms or other standard units of measures. Total Maintenance Cost The total expenditures for maintenance labor, including maintenance performed by operators such as total productive maintenance (TPM), materials, contractors, services and resources. Includes all maintenance expenses for outages, shutdowns or turnarounds, as well as normal operating times. Also includes capital expenditures directly related to end-of-life machinery replacement so that excessive replacement versus proper maintenance is not masked. Does not include capital expenditures for plant expansions or improvements. Page 1 of 3 9 QUALIFICATIONS 1. Time Basis: Annually - If a shorter interval is used, it should include a weighted portion of planned outages or turnarounds. 2. This metric is used by maintenance, operations, finance or other departments to evaluate and benchmark maintenance cost for production units within a plant, across multiple plants or against the industry 3. To obtain data necessary for this measure, total maintenance cost includes all costs associated with maintaining the capacity to produce over a specified time period. 4. Standardized units are industry-typical measures that enable valid comparisons across similar businesses. These are the gross standard units, disregarding any first pass quality losses and must be the same for comparison purposes. 5. Output variances, such as production curtailments due to business demand or operational issues unrelated to maintenance, will negatively impact this measure. 6. Measuring maintenance cost on a specific asset within a facility will require appropriate accounting of distributed costs (e.g., infrastructure costs allocated to the asset from the site). A percentage of building and grounds costs directly associated with the preservation of the production asset should be applied to the asset. 7. The unit maintenance cost on different products can vary significantly even though they have the same units of measure. Exercise care when comparing different products or processes. SAMPLE CALCULATION The total maintenance cost for the year was $2,585,000. The total output from the manufacturing site in that same year was 12,227,500 kg. Maintenance Unit Cost = Total Maintenance Cost / Standard Units Produced Maintenance Unit Cost = $2,585,000 / 12,227,500 kg Maintenance Unit Cost = $0.21 per kg Page 2 of 3 10 BEST-IN-CLASS TARGET VALUE SMRP’s Best Practices Committee was unable to find any target ranges, minimum/maximum values, benchmarks or other references for target values for this metric. SMRP will update this metric as appropriate should future work help establish targets for this metric. While no target values are currently available, SMRP encourages plants to use this metric to help manage maintenance management process. Combined with information from other metrics and by tracking and trending this metric, plants will gain information to help make improvements to plant maintenance and reliability programs. CAUTIONS There are no cautions identified at this time. HARMONIZATION EN 15341 indicator PHA15 and SMRP metric 1.3 are similar. Note 1: The difference is that EN 15341 has a broader definition and includes depreciation of maintenance owned equipment and facilities in "Total Maintenance Cost" " (office, workshop and warehouse) Note 2: This metricators should only be used for comparable products or services. REFERENCES This metric is approved by consensus of SMRP Best Practice Committee. Page 3 of 3 11  BUSINESS & MANAGEMENT METRIC 1.4 STOCKED MAINTENANCE, REPAIR AND OPERATING MATERIALS (MRO) INVENTORY VALUE AS A PERCENT OF REPLACEMENT ASSET VALUE (RAV) Published on April 16, 2009 Revised on August 25, 2020 DEFINITION This metric is the value of maintenance, repair and operating materials (MRO) and spare parts stocked onsite and remotely to support maintenance and reliability, divided by the replacement asset value (RAV) of the assets being maintained at the plant, expressed as a percentage. OBJECTIVES This metric enables comparisons of the value of stocked maintenance inventory with other plants of varying size and value, as well as comparison to other benchmarks. The RAV is used in the denominator to normalize the measurement, given that different plants vary in size and value. FORMULA Stocked MRO Inventory Value per RAV (%) = [Stocked MRO Value ($) × 100] / Replacement Asset Value ($) COMPONENT DEFINITIONS MRO (Maintenance, Repair and Operating Materials) An acronym to describe maintenance, repair and operating materials (MRO) and spare parts. Page 1 of 4 12 Replacement Asset Value (RAV) Also referred to as estimated replacement value (ERV), it is the dollar value that would be required to replace the production capability of the present assets in the plant. Includes production/process equipment as well as utilities, facilities and related assets. Also includes the replacement value of buildings and grounds if these assets are included in maintenance expenditures. Does not include the insured value or depreciated value of the assets, nor does it include the value of real estate, only improvements. Stocked Maintenance, Repair and Operating Materials (MRO) Inventory Value The current book value per audited financial records of maintenance, repair and operating (MRO) supplies in stock, including consignment and vendor-managed inventory, to support maintenance and reliability. Stocked MRO inventory value includes the value of MRO materials in all storage locations including satellite and/or remote storeroom locations, whether or not that material is included in inventory asset accounts or an allocated portion of pooled spares. In addition, there may be a need to include estimates for the value of unofficial stores in the plant, even if they are not under the control of the storeroom or are not on audited financial records. This could include the estimated value for stocked material that may be in stock at zero financial value because of various computerized maintenance management systems (CMMS) and/or accounting idiosyncrasies, depreciation schedules, etc. These estimates should not include manufacturing and/or production-related inventory, such as raw materials, finished goods, packaging and related materials. The monetary cost of an individual storeroom item is calculated as: Monetary Cost of Individual Storeroom Item = Quantity on Hand × Individual Item Cost The aggregated cost of all storeroom items is calculated as the sum of the cost of all storeroom items. QUALIFICATIONS 1. Time basis: Annually and/or quarterly 2. This metric is typically used by corporate managers to compare plants. It is also used by plant managers, maintenance managers, materials managers, procurement managers, operations managers, reliability managers and vice presidents. Page 2 of 4 13  3. It can be used to determine the standing of a plant in a four-quartile measurement system, as in most industries. Best-in-class plants with high asset utilization and high equipment reliability have less stocked inventory value because they have a more predictable need for materials. 4. Do not rely on this metric alone, since lower stocked inventory value does not necessarily equate to best-in-class. Instead, balance this metric with stock-outs (which should be low) and other indicators of the service level of the stocked inventory. SAMPLE CALCULATION If stocked MRO inventory value (book value plus estimate, if relevant) is $1,500,000, and the replacement asset value (RAV) is $100,000,000, then the stocked MRO inventory value as a percent of RAV would be: Stocked MRO Inventory Value per RAV (%) = [Stocked MRO Value ($) × 100] / Replacement Asset Value ($) Stocked MRO Inventory Value per RAV (%) = ($1,500,000 × 100) / $100,000,000 Stocked MRO Inventory Value per RAV (%) = 1.5% BEST-IN-CLASS TARGET VALUE Generally less than 1.5%; top quartile range is 0.3% to 1.5%, varying by industry CAUTIONS Top quartile target is reasonable only if maintenance practices are advanced and mature. The target should be higher if maintenance practices are not advanced and not mature. For example, a third quartile plant with third quartile practices will have to maintain a third quartile inventory level (higher compliment of spare parts) to account for the uncertainty and unpredictable need for materials. Reducing inventory levels in a less advanced and less mature maintenance practice will result in severe stock-outs and consequential extended downtime. Page 3 of 4 14 Regarding the variation by industry, an abundance of data suggests that lighter, less complex industries (e.g., non-industrial facilities) tend to require less stocked inventory than heavier industries (e.g., mining), although the differences are quite small in the top quartile. The range shown above describes the lowest industry’s top-of-the-top quartile target (0.3%) and the highest industry’s bottom-of-the-top quartile target (1.5%). Targeting 1.5% may or may not be appropriate for a particular facility. Consultation with experts is advised to establish the appropriate target for the facility. HARMONIZATION EN 15341 indicator A&S25 and SMRP metric 1.4 are similar. Note 1: The SMRP term “Replacement Asset Value” is the same as the EN 15341 term “Asset replacement value” REFERENCES A.T. Kearny. (n.d.) Published benchmarks for the chemical processing industry. Chicago, IL. Brown, M. (2004). Managing maintenance storerooms. Hoboken, NJ: Wiley Publishing. Hawkins, B. & Smith, R. (2004). Lean maintenance–reduce costs improve quality, and increase market share. Philadelphia, PA: Butterworth Heinemann. Management Resources Group, Inc. (2002). Proprietary benchmarks for 14 industries. Sandy Hook, CT. Mitchell, J. S. (2007). Physical asset management handbook (4th ed.). London, ON: Clarion Publishing. Moore, R. (2002). Making common sense common practice. Philadelphia, PA: Butterworth Heinemann. Solomon Associates. (n.d.). Benchmarks for the oil refining, petrochemical, chemical processing and other industries. Dallas, TX. Page 4 of 4 15  BUSINESS & MANAGEMENT METRIC 1.5 TOTAL MAINTENANCE COST AS A PERCENT OF REPLACEMENT ASSET VALUE (RAV) Published on April 16, 2009 Revised on September 24, 2020 DEFINITION This metric is the amount of money spent annually maintaining assets, divided by the replacement asset value (RAV) of the assets being maintained, expressed as a percentage. OBJECTIVES This metric allows comparisons of the expenditures for maintenance with other plants of varying size and value, as well as comparisons to benchmarks. The RAV is used in the denominator to normalize the measurement given that plants vary in size and value. FORMULA Total Maintenance Cost per RAV (%) = [Total Maintenance Cost ($) × 100] / Replacement Asset Value ($) COMPONENT DEFINITIONS Annual Maintenance Cost Annual maintenance cost is the annual expenditures for maintenance labor, including maintenance performed by operators (e.g., total productive maintenance (TPM), materials, contractors, services and resources). Includes all maintenance expenses for outages, shutdowns or turnarounds, as well as normal operating times. Includes capital expenditures directly related to end-of-life machinery replacement so that excessive replacement versus proper maintenance is not masked. Does not include capital expenditures for plant expansions or improvements. When calculating, ensure maintenance expenses included are for the assets included in the replacement asset value (RAV) in the denominator. Page 1 of 4 16 Estimated Replacement Asset Value (ERV) Also referred to as Replacement Asset Value (RAV), it is the dollar value that would be required to replace the production capability of the present assets in the plant. Includes production/process equipment, as well as utilities, facilities and related assets. Does not use the insured value or depreciated value of the assets. Includes the replacement value of buildings and grounds if these assets are included in maintenance expenditures. Does not include the value of real estate, only improvements. Replacement Asset Value (RAV) Also referred to as estimated replacement value (ERV), it is the dollar value that would be required to replace the production capability of the present assets in the plant. Includes production/process equipment as well as utilities, facilities and related assets. Also includes the replacement value of buildings and grounds if these assets are included in maintenance expenditures. Does not include the insured value or depreciated value of the assets, nor does it include the value of real estate, only improvements. Total Maintenance Cost The total expenditures for maintenance labor, including maintenance performed by operators such as total productive maintenance (TPM), materials, contractors, services and resources. Includes all maintenance expenses for outages, shutdowns or turnarounds, as well as normal operating times. Also includes capital expenditures directly related to end-of-life machinery replacement so that excessive replacement versus proper maintenance is not masked. Does not include capital expenditures for plant expansions or improvements. QUALIFICATIONS 1. Time basis: Annually 2. This metric is typically used by corporate managers to compare plants. It is also used by plant managers, maintenance managers, operations managers, reliability managers and vice presidents. 3. It can be used to determine the standing of plant in a four-quartile measurement system, as in most industries. Best-in-class plants with high asset utilization and high equipment reliability spend less maintaining their assets. 4. SMRP suggests not relying on this metric alone since lower maintenance cost does not necessarily equate to best-in-class. Page 2 of 4 17 SAMPLE CALCULATION If total maintenance cost is $3,000,000 annually and the replacement asset value for the assets is $100,000,000, then the total maintenance cost as a percent of replacement asset value would be: Total Maintenance Cost As a Percent of RAV = [Annual Maintenance Cost ($) × 100] / Replacement Asset Value Total Maintenance Cost As a Percent of RAV = ($3,000,000 × 100) / $100,000,000 Total Maintenance Cost As a Percent of RAV = 3% BEST- IN- CLASS TARGET VALUE Generally less than 3%; top quartile range is 0.7% to 3.6%, varying by industry CAUTIONS Top quartile target is reasonable only if maintenance practices are advanced and mature. The target should be higher if maintenance practices are not advanced and not mature. For example, a third quartile plant with third quartile practices will have to spend at a third quartile level (more maintenance dollars) in order to maintain reasonable reliability and avoid asset degradation. Regarding the variation by industry, an abundance of data suggests that lighter, less complex industries (non-industrial facilities, for example) tend to spend less than heavier industries (mining, for example), although the differences are quite small in the top quartile. The range shown above describes the lowest industry’s top-of-the-top quartile target (0.7%) and the highest industry’s bottom-of-the-top quartile target. Targeting 1.5% may or may not be appropriate for a particular facility. Consultation with experts is advised to establish the appropriate target for the facility. HARMONIZATION EN 15341 indicator A&S1 and SMRP metric 1.5 are similar. Note 1: The difference is that EN 15341 has a broader definition and includes depreciation of maintenance owned equipment and facilities in "Total Maintenance Cost" (office, workshop and warehouse) Page 3 of 4 18 Note 2: The SMRP term “Replacement Asset Value” is the same as the EN 15341 term “Asset replacement value” Note 3: SMRP metric 1.5 is calculated on an annual basis, whereas indicator A&S1 may be calculated for any defined timeframe. REFERENCES AT Kearny. (n.d.) Published benchmarks for the chemical processing industry. Chicago, IL Gulati, R. (2009). Maintenance and reliability best practices. South Norwalk, CT: Industrial Press, Inc. Hawkins, B. and Smith, R. (2004). Lean maintenance – reduce costs, improve quality, and increase market share. Burlington, NY: Elsevier Butterworth Heinemann. Management Resources Group, Inc. (2002). Proprietary benchmarks for 14 industries. Sandy Hook, CT. Mitchell, J. S. (2007). Physical asset management handbook (4th ed). South Norwalk, Industrial\ Press, Inc. Moore, R. (2002). Making common sense common practice. Burlington, NY: Elsevier Butterworth Heinemann. Solomon Associates. (n.d.). Benchmarks for the oil refining, petrochemical, chemical processing and other industries. Dallas, TX. Townsend and Associates. (n.d.). Benchmarks for the polymers industry. Page 4 of 4 19  MANUFACTURING PROCESS RELIABILITY METRIC 2.1.1 OVERALL EQUIPMENT EFFECTIVENESS (OEE) Published on April 16, 2009 Revised on September 25, 2020 DEFINITION This metric is a measure of equipment or asset system performance based on actual availability, performance efficiency and quality of product or output when the asset is scheduled to operate. Overall equipment effectiveness (OEE) is typically expressed as a percentage. OBJECTIVES This metric identifies and categorizes major losses or reasons for poor asset performance and scheduling. It provides the basis for determining and setting improvement priorities as well as justifying beginning root cause analysis activities. OEE should not be used as a stand-alone program, but as a measurement system defined in a Key Performance Indicator (KPI) line-up. It is considered a Lagging KPI. OEE frequently is used as a KPI as a tracking measurement for Continuous and Lean improvement programs. OEE is intended for all employees. Correctly applied OEE measures should foster cooperation and collaboration between operations, maintenance, and equipment engineering to identify, reduce, or eliminate the major causes of poor asset performance and scheduling. Maintenance, operations, and equipment engineering teams working alone cannot improve OEE. FORMULA Overall Equipment Effectiveness Formula Overall Equipment Effectiveness (%) = Availability (%) × Performance Efficiency (%) × Quality Rate (%) Availability Formula Availability (%) = [Uptime (hrs) × 100] / [Total Available Time (hrs) – Idle Time (hrs)] Uptime Formula Uptime (hrs) = Total Available Time (hrs) – [Idle Time (hrs) + Total Downtime (hrs)] 21 Total Downtime Formula Total Downtime (hrs) = Scheduled Downtime (hrs) + Unscheduled Downtime (hrs) Performance Efficiency Formula Performance Efficiency (%) = [Actual Production Rate (units per hour) / Best Production Rate (units per hour)] × 100 Quality Rate Formula Quality rate % = [(Total Units Produced – Defective Units Produced) / Total Units Produced] × 100 COMPONENT DEFINITIONS Actual Production Rate The rate at which an asset actually produces product during a designated time period. Availability The percentage of the time that the asset is actually operating (uptime) compared to when it is scheduled to operate. Also called operational availability. Best Production Rate The rate at which an asset is designed to produce product during a designated time period or the demonstrated best sustained rate, whichever is higher. Defective Units Produced The number of unacceptable units produced during a time period (e.g., losses, rework, scrap, etc.). Downtime Event An event when the asset is down and not capable of performing its intended function. Idle Time The time an asset is idle or waiting to run. The sum of the times when there is no demanded administrative idle time (e.g., not scheduled for production). Does not include equipment downtime (scheduled or unscheduled) and no feedstock or raw materials. Lagging Indicator An indicator that measures performance after the business or process result starts to follow a particular pattern or trend. Lagging indicators confirm long-term trends, but do not predict them. Performance Efficiency (Rate/Speed) The degree to which the equipment operates at historical best speeds, rates and/or cycle times. 22 Quality Rate The degree to which product characteristics meet the product or output specifications. Scheduled Downtime (Hours) The time required to work on an asset that is on the finalized weekly maintenance schedule. Scheduled Hours of Production The amount of time an asset is scheduled to run (e.g., total available time, less idle time and less scheduled downtime). Total Available Time Annual Basis: 365 days/year x 24 hours/day = 8760 hours per year (Note: The addition of one more day per year must be made for leap year). Daily Basis: 24 hours Total Units Produced The number of units produced during a designated time period. Unscheduled Downtime The time an asset is down for repairs or modifications that are not on the weekly maintenance schedule. Uptime The amount of time an asset is actively producing a product or providing a service. It is the actual running time. QUALIFICATIONS 1. Time Basis: Real Time – Hourly or per operating shift Daily – Summary report of (OEE) performance Period Trending – Daily, weekly, monthly, quarterly and/or annual comparisons 2. Requires daily input into a database or information collection method, to capture asset performance data; typically, by production personnel. There are programs that auto collect data requiring hardware and software application. Used primarily by maintenance, reliability, production personnel and industrial engineers to review asset performance data to identify improvement opportunities. 3. Also used by operations, maintenance and plant engineers as a relative indicator of asset performance from period to period to evaluate equipment stability and potential capacity for the purposes of production scheduling, budgeting, and capital investment justification. 23 4. Caution should be used when calculating (OEE) at a plant or corporate level. (OEE) percentage is a better measurement of specific equipment effectiveness. 5. (OEE) is not a good measurement for benchmarking assets, components or processes because it is a relative indicator of specific asset effectiveness over a period of time. 6. The (OEE) percentage should be used primarily as a relative, internal improvement measurement for a specific asset or single-stream process. 7. (OEE) is not a measurement of maintenance effectiveness since most factors are not within the control of the maintainers. 8. Planned and scheduled maintenance performed during idle time (i.e. when there is no demand for the asset), is not considered downtime. (Note: This can result in misleading production availability values if demand increases, reducing or eliminating the opportunity to do planned and scheduled maintenance while the asset is idle. 9. Performance efficiency value cannot exceed 100%; to ensure this does not happen, the best production rate must be specified correctly. When determining best speed, rate or cycle time, plants must evaluate this based on historic information and whether or not the best speed is sustainable. Typically, the time basis is the prior year. Sustainability varies by type of asset, but typically is greater than 4 hours with good quality production or 4 days with large process plants. 10. The quality rate should be first pass first time, meaning quality standards are met at the time of manufacturing without the need for rework. 11. OEE should not be used as a stand-alone program, but as a measurement system defined in a Key Performance Indicator (KPI). It is considered a Lagging KPI. 12. OEE frequently is used as a KPI as a tracking measurement for Continuous and Lean improvement programs. OEE is intended for all employees. 24  QUALIFICATIONS CONT. Newer developments with OEE systems define OEE 1 and OEE 2: OEE 1, Overall time looking at utilization of the asset or scheduling deficiencies. (Total Available Time): OEE 2, looking at deficiencies only while the asset is scheduled to produce. (Uptime) (See below) OEE 1 Total Available Time (365 days x 24 hours per day) utilization of asset Idle Scheduled scheduling deficiencies Scheduled Hours of Production Time Downtime Uptime: Actual to Scheduled Production Unscheduled Availability Hours Downtime Best Production Rate OEE 2 Speed deficiencies Speed Actual Production while Losses asset is Actual Production scheduled (Uptime) "First Time Quality Pass" Quality Saleable Losses Production Pictorial Overview: 8 Big Losses Example 25  Traditional OEE methodologies focus on asset in plant use; but nontraditional methodologies can be applied to a broad spectrum of reliability instances where information can be obtained. This would be done by changing the (8 big losses, column) to measurable losses/defects or cause failures. (Ex. Fleet Operations: by changing “setup” to “vandalism”, and “#7” from startup losses to on-road hazards Etc.) (See graphic above) SAMPLE CALCULATION An example of the OEE percentage calculation based on OEE data for one day (24 hours) for Machine D operation is shown in Table 1 on the following page. Table 1. Example Calculation of OEE Components Data Comments Total available time 24 hours 24 hours in one day Idle time 8 hours Not required eight hours per day Scheduled downtime No production, breaks, shift change, etc. 0.66 hours Meeting & shift change Planned maintenance 1.00 hours Monthly PM Total scheduled downtime 1.66 hours Unscheduled downtime Waiting for operator 0.46 hours Operator distracted, on other tasks Failure or breakdowns 0.33 hours Mechanical drive coupling Set-ups & changeover 0.26 hours Two size changes Tooling or part changes 0.23 hours Screw station bits Startup & adjustment 0.30 hours First shift Monday Input material flow 0.50 hours Waiting for raw materials Total unscheduled downtime 2.08 hours Total downtime (scheduled + unscheduled) 3.74 hours 1.66 + 2.08 = 3.74 hours Uptime 12.26 hours (24 – 8) – 3.74 = 12.26 hours Availability 76.63% 12.26 / (24-8) x 100 = 76.63% Performance efficiency losses (Count) Minor stops 10 events Machine jams 26  Best Production Rate OR Design 100 vs.167 Reduced speed or cycle time Rate: What is Best = 12.5 units units/hour 1* Performance efficiency2 59.88% (100 / 167) x 100 = 59.88% Quality & yield losses (Count) Scrap product/output 2 Waste, non-salvageable Defects, rework 1 Yield/transition 5 Startup & adjustment related Rejected units produced 8 2+1+5=8 Good units produced 92 100 – 8 = 92 good units Quality rate 92% (92 / 100) x 100 = 92% Overall equipment effectiveness 42.21% 76.63 x 59.88 x 92.00 = 42.21% Machine D averaged 42.21% in the current period. Assuming that Machine D OEE averaged 50.2% year-to-date and 45.06% in the prior period, an OEE trending downward warrants a review and analysis to understand the root causes and to identify and prioritize opportunities for improvement. 1According to Stevenson, “Operations Management” Design Rate / Capacity: The Maximum output rate or service / run capacity an operation, process, or facility is designed for. “Best Production Rate” or effective capacity is the best rate the machine is able to produce. 2 “Performance efficiency” is the ratio of actual output to effective or best rate capacity. 27 BEST- IN- CLASS TARGET VALUE 85% to 100% batch type manufacturing 90% to 100% continuous discrete manufacturing 95% to 100% continuous process Availability >90% Quality >99% Performance >95% equals a 85% to 100% OEE CAUTIONS Caution should be used when calculating OEE at a plant or corporate level. OEE percentage is a better measurement of specific equipment and/or production line effectiveness. To calculate OEE at a plant level you must take each element to its basic form before combining availability, quality and performance since each element is a percentage. OEE is not a good measurement for benchmarking assets, components or processes because it is a relative indicator of specific asset effectiveness over a period of time. The OEE percentage should be used primarily as a KPI as a relative, internal improvement measurement for a specific asset or single-stream process. OEE is a Lagging Indicator, not a measurement of maintenance effectiveness since most factors are not within the control of the maintainers. If planned and scheduled maintenance is performed during idle time (e.g. when there is no demand for the asset), the time is not considered downtime. Note: This can result in misleading production availability values if demand increases, reducing or eliminating the opportunity to do planned and scheduled maintenance while the asset is idle. The performance efficiency value cannot exceed 100%. To ensure this does not happen, the best production rate must be specified correctly. OEE cannot exceed 100%. HARMONIZATION This metric has not been harmonized to CEN standard EN 15341. 28 REFERENCES Abe, T. (2007). TPM encyclopedia - keyword book. Tokyo, Japan: Japan Institute of Plant Maintenance. Hartmann, E. H. (1992). Successfully Installing TPM in a Non-Japanese Plant. Allison Park, PA: TPM Press, Inc. Hansen, R. C. (2001). Overall Equipment Effectiveness – A Powerful Production / Maintenance Tool for Increased Profits. South Norwalk, CT: Industrial Press, Inc. MacInnes, J. (2002). The Lean Enterprise Memory Jogger. Salem, NH: Goal/QPC. Raupp, R. (n.d.). Asset Utilization Measures. Chicago, IL: A.T. Kearney. The Productivity Development Team. (1999). OEE for Operators: Overall Equipment Effectiveness. Portland, OR: Productivity Press. Williamson, R. W. (2006). Using Overall Equipment Effectiveness: The Metric and the Measures. Columbus, NC: Strategic Work Systems, Inc. Harman, M.; Delahay, G. (2012) VDM Value Driven Maintenance, New Faith in Maintenance. (3rd.edition) www.mainnovation.com. Stevenson, W. J. (2012) Operations Management. 11th edition, McGraw Hill / Irwin: New York, New York. 29  MANUFACTURING PROCESS RELIABILITY METRIC 2.1.2 TOTAL EFFECTIVE EQUIPMENT PERFORMANCE (TEEP) Published on June 7, 2010 Revised on September 24, 2020 DEFINITION This metric is the measure of equipment or asset performance based on actual utilization time, availability, performance efficiency and quality of product or output over all the hours in the period. Total effective equipment performance (TEEP) is expressed as a percentage. OBJECTIVES This metric allows organizations to measure how well it extracts value from its assets. It provides the basis for setting improvement priorities and root cause analysis. Production losses are graphically depicted in Figure 1 based on the time elements in Figure 2. FORMULAS Total Effective Equipment Performance Formula TEEP (%) = Utilization Time % × Availability % × Performance Efficiency % × Quality Rate % Utilization Time Formula Utilization Time % = [Total Available Time (hrs) – Idle Time (hrs)] / Total Available Time (hrs) Availability Formula Availability % = Uptime (hrs) / [Total Available Time (hrs) – Idle Time (hrs)] × 100 Uptime Formula Uptime (hrs) = Total Available Time (hrs) – [Idle Time (hrs) + Downtime (hrs)] Downtime Formula Downtime (hrs) = Scheduled Downtime (hrs) + Unscheduled Downtime (hrs) Page 1 of 8 30 Performance Efficiency Formula Performance Efficiency % = [Actual Production Rate (units per hour) / Best Production Rate (units per hour)] × 100 Quality Rate Formula Quality Rate % = [(Total Units Produced – Defective Units Produced) / Total Units Produced] × 100 COMPONENT DEFINITIONS Actual Production Rate The rate at which an asset actually produces product during a designated time period. Availability The percentage of the time that the asset is actually operating (uptime) compared to when it is scheduled to operate. Also called operational availability. Best Production Rate The rate at which an asset is designed to produce product during a designated time period or the demonstrated best sustained rate, whichever is higher. Defective Units Produced The number of unacceptable units produced during a time period (e.g., losses, rework, scrap, etc.). Downtime Event An event when the asset is down and not capable of performing its intended function. Idle Time The time an asset is idle or waiting to run. The sum of the times when there is no demanded administrative idle time (e.g., not scheduled for production). Does not include equipment downtime (scheduled or unscheduled) and no feedstock or raw materials. Operational Availability The percentage of the time that the asset is actually operating (uptime) compared to when it is scheduled to operate. Also called availability. Performance Efficiency (Rate/Speed) The degree to which the equipment operates at historical best speeds, rates and/or cycle times. Page 2 of 8 31 Quality Rate The degree to which product characteristics meet the product or output specifications. Scheduled Downtime The time required to work on an asset that is on the finalized weekly maintenance schedule. Scheduled Hours of Production The amount of time an asset is scheduled to run (e.g., total available time, less idle time and less scheduled downtime). Total Available Time Annual Basis: 365 days/year x 24 hours/day = 8760 hours per year (Note: The addition of one more day per year must be made for leap year.) Daily Basis: 24 hours Total Units Produced The number of units produced during a designated time period. Unscheduled Downtime The time an asset is down for repairs or modifications that are not on the weekly maintenance schedule. Uptime The amount of time an asset is actively producing a product or providing a service. It is the actual running time. Utilization Time Time when the asset is scheduled to run divided by total available time, expressed as a percentage. QUALIFICATIONS 1. Time basis: Monthly, quarterly and/or annually 2. This metric is used by corporate and plant product, operations and engineering groups to determine how well the organization is extracting value from its assets. 3. Caution should be used when calculating TEEP on a plant or corporate level. TEEP percentage is a better measure of specific equipment effectiveness. Page 3 of 8 32 4. Caution should be used when using TEEP for benchmarking different assets, equipment or processes because it is a relative indicator of specific asset effectiveness over a period of time. 5. TEEP is not primarily a measure of maintenance effectiveness since most of the factors are outside the control of the maintainers. 6. If TEEP is higher than OEE, there is an error in the calculation. 7. The performance efficiency value cannot exceed 100%. To ensure this does not happen, the best production rate must be specified correctly. 8. Best speed, rate or cycle time must be based on historic information and whether or not the best speed is sustainable. Sustainability varies by type of asset, but typically is greater than four hours with good quality production or four days with large process plants. 9. The quality rate should be first pass, first time. This means quality standards are met at the time of manufacturing without the need for rework. 10. It is assumed that the asset runs productively 24 hours a day, 365 days a year. 11. This metric can be used to identify idle time and potential capacity. Page 4 of 8 33  SAMPLE CALCULATIONS TEEP data and calculation for one day (24 hours) of operation of a given asset are shown in Table 1 and Figure 1 on the next two pages. Table 1. Example Calculation of TEEP Components Data Comments and Calculation Total available time 24 hours 24 hours in one day Idle time 8 hours Not required 8 hours per day Utilization time 66.67% (24 – 8) / 24 x 100 = 66.67% Scheduled downtime No production, breaks, shift change, etc. 0.66 hours Meeting & shift change Planned maintenance 1.00 hours Monthly PM Total scheduled downtime 1.66 hours Unscheduled downtime Waiting for operator 0.46 hours Failure or breakdowns 0.33 hours Mechanical drive coupling Set-ups & changeover 0.26 hours Two size changes Tooling or part changes 0.23 hours Screw station bits Startup & adjustment 0.30 hours First shift Monday Input material flow 0.50 hours Waiting for raw materials Total unscheduled downtime 2.08 hours Total downtime (scheduled + unscheduled) 3.74 hours 1.66 + 2.08 = 3.74 hours Uptime 12.26 hours (24 – 8) – 3.74 = 12.26 hours Availability 76.63% [12.26 / (24-8)] x 100 = 76.63% Performance efficiency losses (Count) Minor stops 10 events Machine jams Reduced speed or cycle time 100 v.167 units Design rate: 12.5 units/hour Performance efficiency 59.88% (100 / 167) x 100 = 59.88% Quality & yield losses (Count) Scrap product/output 2 Waste, non-salvageable Page 5 of 8 34 Defects, rework 1 Yield transition 5 Startup & adjustment related Quality rate 92.00% (92 / 100) x 100 = 92.00% Total Effective Equipment Performance 66.67 x 76.63 x 59.88 x 92.00 = 28.14% (TEEP) 28.14% In the example, since the asset is not required 24 hours per day, the TEEP is low. There is capacity available. Total Available Time (365 days x 24 hours per day) Idle Scheduled Availability Scheduled Hours of Production Time Downtime Unscheduled Uptime Hours of Actual Production Downtime Best Production Rate Speed Speed Actual Production Losses Actual Production Quality "First Time Pass" Quality Saleable Losses Production Figure 1. Total Effective Equipment Performance Timeline Page 6 of 8 35  Total Available Time Available to Run Total Downtime Scheduled Unscheduled Uptime Idle Time Downtime Downtime Examples of Idle Examples of Scheduled Downtime Examples of Unscheduled Downtime Time Scheduled repairs No demand Unscheduled repairs Not scheduled for PM/PdM External factors production Turnarounds No raw material Set-up No feed stock Figure 2. Time Element Chart BEST-IN-CLASS TARGET VALUE SMRP’s Best Practices Committee research indicates that best-in-class values for this metric are highly variable by industry vertical and type of facility. SMRP recommends organizations become involved in trade associations within their industry vertical, as these groups often publish such data about their industry. SMRP also encourages plants to use this metric to help manage your maintenance management process. Combined with information from other metrics and by tracking and trending this metric, plants will gain useful information to help make improvements to plant maintenance and reliability programs. CAUTIONS There are no cautions identified at this time. Page 7 of 8 36 HARMONIZATION EN 15341 indicator PHA6 and SMRP metric 2.1.2 have the same performance. Note 1: SMRP metric 2.1.2 measures the full year (365x24) whereas indicator PHA6 measures the required time which could be less than 365 x 24. Note 2: Utilization time is a component included in SMRP metric 2.1.2 but is incorporated in the PHA6 calculation. Note 3: The indicator PHA6 only includes the losses caused by maintenance, whereas metric 2.1.2 counts all the losses regardless of the cause. Note 4: Indicator PHA6 counts the losses for availability, performance and quality in time, whereas SMRP metric 2.1.2 counts the losses in time, production rate, and quality defects. Note 5: Using the calculation formula will give a higher value for indicator PHA6 compared to using SMRP metric 2.1.2. Care must be taken in choosing the components included in the calculation. REFERENCES Hansen, R. C. (2001), Overall Equipment Effectiveness, Industrial Press Raupp , R. Asset Utilization Measures, A.T. Kearney Robert M. Williamson (2006), Using Overall Equipment Effectiveness: The Metric and the Measures, Strategic Work Systems, Inc. The Productivity Development Team (1999), OEE for Operators: Overall Equipment Effectiveness, Productivity Press. TPM Encyclopedia - Keyword Book, Japan Institute of Plant Maintenance Page 8 of 8 37  MANUFACTURING PROCESS RELIABILITY METRIC 2.2 AVAILABILITY Published on October 12, 2010 Revised on September 24, 2020 DEFINITION This metric is the percentage of time that the asset is actually operating (uptime) compared to when it is scheduled to operate. This is also called operational availability. OBJECTIVES Availability provides a measure of when the asset is either running or is capable of performing its intended function. It is a measure of an asset’s ability to be operated if required. FORMULA Availability Formula Availability % = {Uptime (hrs.) / [Total Available Time (hrs.) – Idle Time (hrs.)]} x 100 Uptime Formula Uptime = Total Available Time – (Idle Time + Downtime) Downtime Formula Downtime = Scheduled Downtime + Unscheduled Downtime COMPONENT DEFINITIONS Idle Time The time an asset is idle or waiting to run. The sum of the times when there is no demanded administrative idle time (e.g., not scheduled for production). Does not include equipment downtime (scheduled or unscheduled) and no feedstock or raw materials. Operational Availability The percentage of time that the asset is capable of performing its intended function (uptime plus idle time). Also called availability. Page 1 of 7 38 Scheduled Downtime The time required to work on an asset that is on the finalized weekly maintenance schedule. Total Available Time Annual Basis: 365 days/year x 24 hours/day = 8760 hours per year (Note: The addition of one more day per year must be made for leap year.) Daily Basis: 24 hours Unscheduled Downtime The time an asset is down for repairs or modifications that are not on the weekly maintenance schedule. Uptime The amount of time an asset is actively producing a product or providing a service. It is the actual running time. QUALIFICATIONS 1. Time Basis: Weekly, monthly, quarterly and annually. 2. This metric is used by corporate and plant managers to capture asset performance data as a basis for specific improvements related to design, operations and/or maintenance practices. 3. It should be used in conjunction with overall equipment efficiency (OEE) and total effective equipment performance (TEEP) in evaluating overall performance. 4. Do not confuse availability with reliability. 5. There are several variations of the definition of availability. SMRP’s chosen definition is commonly used at the plant level. Academic definitions, such as achieved availability or inherent availability, correctly relate availability to mean time between failures (MTBF) or mean time to repair (MTTR). SMRP Guideline 6.0, Demystifying Availability, relates the SMRP definition to academic definitions and other variations. Page 2 of 7 39  SAMPLE CALCULATION An example of the availability calculation based on a performance period of one month (720 hours) for a single piece of equipment is shown in Table 1. Table 1. Example Calculation of Availability Components Data Comments Total available time 720 hours 24 hours for 30 days Power outage 20 hours, no demand Idle time 240 hours 220 hours Downtime Summary Scheduled downtime Preventative maintenance 30 hours 30 – 1 hour daily PMs Scheduled shift breaks 19.8 hours Total scheduled downtime 49.8 hours 30 for PMs +19.8 shift breaks Unscheduled downtime Waiting for operator 13.8 hours Failures or breakdowns 9.9 hours Setups and changeovers 16.8 hours Tooling or parts changes 6.9 hours Startups and adjustments 15.0 hours No feedstock 30.0 hours Total unscheduled downtime 92.4 hours Uptime 337.8 720 – 240 – 49.8 – 92.4 Availability: (% of time an asset is operating) 70.38% 337.8 / (720 – 240) x 100 = 70.38% Page 3 of 7 40  Total Available Time (365 days x 24 hours per day) Idle Scheduled Availability Scheduled Hours of Production Time Downtime Unscheduled Uptime Hours of Actual Production Downtime Best Production Rate Speed Speed Actual Production Losses Actual Production Quality "First Time Pass" Quality Saleable Losses Production Figure 1. Overall Equipment Effectiveness Timeline Page 4 of 7 41  Total Available Time Available to Run Total Downtime Scheduled Unscheduled Uptime Idle Time Downtime Downtime Examples of Idle Examples of Scheduled Examples of Unscheduled- Downtime Time Downtime No demand Scheduled repairs Unscheduled repairs Not scheduled for PM/PdM External factors production Turnarounds No raw material Set-up No feed stock Figure 2. Time Element Chart BEST-IN-CLASS TARGET VALUE SMRP’s Best Practices Committee research indicates that best-in-class values for this metric are highly variable by industry vertical and facility type. SMRP recommends organizations become involved in trade associations within their industry vertical, as these groups often publish such data about their industry. SMRP also encourages plants to use this metric to help manage the maintenance management process. Combined with information from other metrics and by tracking and trending this metric, plants will gain useful information to help make improvements to plant maintenance and reliability programs. This metric is aligned with 2.1.1 Overall Equipment Effectiveness (OEE) and 2.1.2 Total Effective Equipment Performance (TEEP). CAUTIONS Availability target should be set during the long-term or annual plan and based on business drivers. Drivers in determining the availability target can be raw product availability, market sales, spare capacity and higher than normal scheduled or unscheduled maintenance. Page 5 of 7 42 HARMONIZATION EN 15341 indicator PHA8 and SMRP metric 2.2 have the same performance. Note 1: Both SMRP metric 2.2 and the EN15341 PHA8 indicator use the term availability. The different use of the term availability reflects the cultural difference. Note 2: Scheduled time in SMRP metric 2.2 is equal to required time in EN15341 indicator PHA8. Note 3: Operating time is the same in both SMRP metric 2.2 and EN15341 indicator PHA8. Note 4: Idle time is outside of either scheduled time or required time. Note 5: If an asset is operating 24/7, then downtime is the sum of planned and unplanned downtime, and if the asset is operating less than 24/7, then downtime is, in general only planned downtime. Note 6: EN 15341 indicator PHA8 counts only corrective and preventive maintenance as unavailability. This will give a higher value for availability. SMRP metric 2.2 counts scheduled (turnarounds and set ups) and unscheduled (external factors, no raw materials, no feed stock) as unavailability. This will give a lower value for availability. REFERENCES Association for Manufacturing Technology. (2002). Production equipment availability – A measurement guideline (3rd ed.). McLean, VA: AMT. Hansen, R. C. (2001). Overall equipment effectiveness. South Norwalk, CT: Industrial Press, Inc. ISO/14226/. (2006). Key performance indicators and benchmarking. Geneva, Switzerland: International Standards Organization. McKenna, T. and Oliverson, R. (1997). Glossary of reliability and maintenance terms. Houston, TX: Gulf Publishing Company. Moore, R. (1999). Making common sense common practice – Models for manufacturing excellence. Houston, TX: Gulf Publishing Company. Page 6 of 7 43 Moore, R. (2004). Making common sense common practice – Models for manufacturing excellence (3rd ed.). Burlington, NY: Elsevier Butterworth Heinemann. Narayan, V. (2004). Effective maintenance management: risk and reliability strategies for optimizing performance. South Norwalk, CT: Industrial Press, Inc. SAE JA 1010-1. (2004). Maintenance glossary of terms, definitions. Warrendale, PA: SAE International. SMRP Guideline 6.0. (2010). Guideline 6.0 – Demystifying availability. Atlanta, GA: Society for Maintenance and Reliability Professionals. Page 7 of 7 44  MANUFACTURING PROCESS RELIABILITY METRIC 2.3 UPTIME Published on April 17, 2009 Revised on August 23, 2020 DEFINITION This metric is the amount of time an asset is actively producing a product or providing a service. It is the actual running time. See Figure 2. OBJECTIVES This metric allows the evaluation of the total amount of time the asset has been capable of running to produce a product or to perform a service. It is used to compare the actual run time to planned potential capacity predictions. FORMULA Uptime = Total Available Time – (Idle Time + Total Downtime) COMPONENT DEFINITIONS Idle Time The time an asset is idle or waiting to run. The sum of the times when there is no demanded administrative idle time (e.g., not scheduled for production). Does not include equipment downtime (scheduled or unscheduled) and no feedstock or raw materials. Scheduled Downtime (Hours) The time required to work on an asset that is on the finalized weekly maintenance schedule. Scheduled Hours of Production The amount of time an asset is scheduled to run (e.g., total available time, less idle time and less scheduled downtime). Total Available Time Annual Basis: 365 days/year x 24 hours/day = 8760 hours per year (Note: The addition of one more day per year must be made for leap year.) Daily Basis: 24 hours Page 1 of 5 45 Total Downtime The amount of time an asset is not capable of running. The sum of scheduled downtime and unscheduled downtime. Unscheduled Downtime The time an asset is down for repairs or modifications that are not on the weekly maintenance schedule. Uptime The amount of time an asset is actively producing a product or providing a service. It is the actual running time. QUALIFICATIONS 1. Time Basis: Monthly and yearly (should coincide with financial reporting periods) 2. This metric is used by plant and/or corporate managers for improvement initiatives, capital investment justification, and asset rationalization. It is also used to identify latent capacity. SAMPLE CALCULATION A given asset is idle for 27 hours and down for 8 hours during a one-month period. Note: In the sample calculation a 30-day month (720 hours) is assumed Uptime = Total Available Time – (Idle Time + Total Downtime) Total Available Time = 30 days/month × 24 hours/day = 720 hours/30-day month Idle Time = 27 hours Total Downtime = 8 hours Uptime = 720 – (27 + 8) = 685 hours Uptime can also be expresses as a percentage (e.g., 685 hours / 720 hours = 95.1%) Page 2 of 5 46  Total Available Time (365 days x 24 hours per day) Idle Scheduled Availability Scheduled Hours of Production Time Downtime Unscheduled Uptime Hours of Actual Production Downtime Best Production Rate Speed Speed Actual Production Losses Actual Production Quality "First Time Pass" Quality Saleable Losses Production Figure 1. Overall Equipment Effectiveness Timeline Page 3 of 5 47  Total Available Time Available to Run Total Downtime Scheduled Unscheduled Uptime Idle Time Downtime Downtime Examples of Idle Examples of Scheduled Examples of Unscheduled Downtime Time Downtime No demand Scheduled repairs Unscheduled repairs Not scheduled for PM/PdM External factors production Turnarounds No raw material Set-up No feed stock Figure 2. Time Element Chart BEST-IN-CLASS TARGET VALUE Greater than (>) 98% for continuous processing Greater than (>) 95% for batch processing CAUTIONS The target value will vary by industry and process and does not take into account sites that maybe curtailed. HARMONIZATION EN 15341 indicator M10 and SMRP metric 2.3 have the same performance. Note 1: SMRP metric 2.3 calculates uptime based on the available time - in general 8760 hours. Note 2: Indictor M10 using the required time as the denominator. This can be lower than the 8760 hours used by the uptime. Page 4 of 5 48 Note 3: The SMRP definition for unscheduled downtime has a broader scope than the EN 15341 definition. The SMRP unscheduled definition includes external factors and no raw material. Note 4: The SMRP definition of uptime is when producing a product or a service. The EN 15341 definition for uptime is being able to produce. Note 5: In indicator M10 standby time and production time is equal to the SMRP definition Uptime. REFERENCES Gulati, R. (2009). Maintenance and reliability best practices. New York, NY: Industrial Press. Moore, R. (2004). Making common sense common practice – Models for manufacturing excellence (3rd ed.). Burlington, NY: Elsevier Butterworth Heinemann. Moore, R. (2012). Making common sense common practice – Models for manufacturing excellence (4th ed.). Fort Meyers, FL: ReliabilityWeb Rothenberg, J. (2011, November). What is the difference between AU and OEE. RxPlant. Retrieved February 6, 2013 from http://www.reliableplant.com/Articles/Print/19529 Vorne Industries (n.d.). The fast guide to OEE. Itasca, IL. Page 5 of 5 49  MANUFACTURING PROCESS RELIABILITY METRIC 2.4 IDLE TIME Published on April 17, 2009 Revised on August 23, 2020 DEFINITION This metric is the amount of time an asset is idle or waiting to run. It is the sum of the times when there is no demanded administrative idle time (e.g., not scheduled for production). Does not include equipment downtime (scheduled or unscheduled) and no feedstock or raw materials, as shown by Figure 2. OBJECTIVES This metric is used to evaluate the total amount of time, or percentage of time, the asset is idle or waiting to run. The metric is used to identify reasons for a loss in potential capacity. FORMULA Idle Time (IT) (hours) = No Demand (ND) + Administrative Idle Time (AIT) IT = ND + AIT Idle Time Percentage = Idle Time (IT) (hours) / Total Available Time (TAT) (hours) IT (%) = IT (hours) / TAT (hours) COMPONENT DEFINITIONS Administrative Idle Time The time that an asset is not scheduled to be in service due to a business decision (e.g., economic decision). Idle Time The time an asset is idle or waiting to run. The sum of the times when there is no demanded administrative idle time (e.g., not scheduled for production). Does not include equipment downtime (scheduled or unscheduled) and no feedstock or raw materials. Page 1 of 4 50 No Demand The time that an asset is not scheduled to be in service due to the lack of demand for the product. Total Available Time Annual Basis: 365 days/year x 24 hours/day = 8760 hours per year (Note: The addition of one more day per year must be made for leap year.) Daily Basis: 24 hours QUALIFICATIONS 1. Time basis: Monthly and yearly 2. This metric is used by plant, operations and corporate managers and production planners to identify latent capacity. 3. It can also be used for improvement initiatives, capital investment justification and asset rationalization. SAMPLE CALCULATION During a given month, an asset is down for 36 hours due to the failure of a downstream piece of equipment (no demand) and eight hours due to a shift change (administrative). Idle Time (hours) = No Demand + Administrative Idle Time Idle Time (hours) = 36 hours + 8 hours Idle Time (hours) = 44 hours Idle Time can also be expressed as a percentage. A 30 day month = 30 days × 24 hours/day = 720 hours Idle Time (percentage) = 44 hours / 720 hours Idle Time (percentage) = 6.1% Page 2 of 4 51  Total Available Time (365 days x 24 hours per day) Idle Scheduled Scheduled Hours of Production Availability Time Downtime Unscheduled Uptime Hours of Actual Production Downtime Best Production Rate Speed Speed Actual Production Losses Actual Production Quality "First Time Pass" Quality Saleable Losses Production Figure 1. Overall Equipment Effectiveness Timeline Page 3 of 4 52  Total Available Time Available to Run Total Downtime Scheduled Unscheduled Uptime Idle Time Downtime Downtime Examples of Idle Examples of Scheduled Examples of Unscheduled Downtime Time Downtime No demand Scheduled repairs Unscheduled repairs Not scheduled for PM/PdM External factors production Turnarounds No raw material Set-up No feed stock Figure 2. Time Element Chart BEST-IN-CLASS TARGET VALUE By definition, most idle time is beyond plant control; however, the value is still important to the business. Idle time represents capacity that has been paid for but is not being used – less is better. CAUTIONS There are no cautions identified at this time. HARMONIZATION This metric has not been harmonized to CEN standard EN 15341. REFERENCES This metric is approved by consensus of SMRP Best Practice Committee. Page 4 of 4 53  MANUFACTURING PROCESS RELIABILITY METRIC 2.5 UTILIZATION TIME Published on April 17, 2009 Revised on August 23, 2020 DEFINITION This metric measures the percent of total time that an asset is scheduled to operate during a given time period, expressed as a percentage. The time period is generally taken to be the total available time (e.g., one year). OBJECTIVES The objective of this metric is to assess the amount of time an asset is intended to be service. FORMULA Utilization Time (percentage) = [Total Available Time (hrs.) – Idle Time (hrs.)] / Total Available Time (hrs.)] × 100 COMPONENT DEFINITIONS Idle Time The time an asset is idle or waiting to run. The sum of the times when there is no demanded administrative idle time (e.g., not scheduled for production). Does not include equipment downtime (scheduled or unscheduled) and no feedstock or raw materials. Operating Time An interval of time during which the asset or component is performing its required function. Total Available Time Annual Basis: 365 days/year x 24 hours/day = 8760 hours per year (Note: The addition of one more day per year must be made for leap year.) Daily Basis: 24 hours Page 1 of 4 54 Utilization Time Time when the asset is scheduled to run divided by total available time, expressed as a percentage. QUALIFICATIONS 1. Time basis: Annually 2. This metric is used by corporate and plant product, operations and engineering groups to determine how well the organization is extracting value from its assets. 3. Utilization time is a component of SMRP Metric 2.1.2 Total Effective Equipment Performance (TEEP). SAMPLE CALCULATION A given asset is idle for 2,890 hours during a year. Utilization Time (%) = [Total Available Time (hrs.) – Idle Time (hrs.)] / Total Available Time (hrs.)] × 100 Utilization Time (%) = [[8670 (hrs.) - 2890 (hrs.)] / 8670 (hrs.)] × 100 Utilization Time (%) = 0.667 × 100 Utilization Time (%) = 66.7% Page 2 of 4 55  Total Available Time (365 days x 24 hours per day) Idle Scheduled Availability Scheduled hours of Production Time Downtime Unscheduled Uptime Hours of Actual Production Downtime Best Production Rate Speed Speed Actual Production Losses Actual Production Quality "First Time Pass" Quality Saleable Losses Production Figure 1. Overall Equipment Effectiveness Timeline Total Available Time Available to Run Total Downtime Scheduled Unscheduled Uptime Idle Time Downtime Downtime Examples of Idle Examples of Scheduled Downtime Examples of Unscheduled Downtime Time Scheduled repairs No demand Unscheduled repairs Not scheduled for PM/PdM External factors production Turnarounds No raw material Set-up No feed stock Figure 2. Time Element Chart Page 3 of 4 56 BEST-IN-CLASS TARGET VALUE SMRP’s Best Practices Committee was unable to find any target ranges, minimum/maximum values, benchmarks or other references to target values for this metric. SMRP will update this metric as appropriate should future work help establish targets for this metric. While no target values are available, SMRP encourages plants to use this metric to help manage the maintenance management process. Combined with information from other metrics and by tracking and trending this metric, plants will gain useful information to help make improvements to plant maintenance and reliability programs. CAUTIONS Utilization time is impacted by many factors unrelated to elements of reliability, including market demand, availability of raw materials, availability of qualified labor resources, adequate price margins and other internal or external factors. Analysis of utilization time brings value in understanding true capacity. HARMONIZATION This metric has not been harmonized to CEN standard EN 15341. REFERENCES Campbell, J. and Reyes-Picknell, J. (2006). Uptime: strategies for excellence in maintenance management. New York, NY: Productivity Press. Geitner, F. and Bloch, H. (2006). Maximizing machinery uptime. Burlington, NY: Elsevier Butterworth Heinemann. Gulati, R. (2009). Maintenance and reliability best practices. South Norwalk, CT: Industrial Press, Inc. Mitchell, J. (2002). Physical asset Management Handbook (3rd ed). South Norwalk, CT: Industrial Press, Inc. Moore, R. (1999). Making common sense common practice – Models for manufacturing excellence. Houston, TX: Gulf Publishing Company Page 4 of 4 57  EQUIPMENT RELIABILITY METRIC 3.1 SYSTEMS COVERED BY CRITICALITY ANALYSIS Published on February 23, 2010 Revised on August 23, 2020 DEFINITION This metric is the ratio of the number of systems in a facility for which a criticality analysis has been performed divided by the total number of systems in the facility, expressed as a percentage. OBJECTIVES This metric helps focus attention on those systems which pose the most serious consequences or adverse effects should they fail. FORMULA Systems Covered by Criticality Analysis (%) = [Number of Critical Systems (for which a criticality analysis has been performed) / Total Number of Systems] × 100 The formula is depicted graphically in Figure 1. COMPONENT DEFINITIONS Critical Systems The systems that are vital to continued operations, will significantly impact production or have inherent risks to personnel safety or the environment should they fail. Criticality Analysis A quantitative analysis of events and faults and the ranking of these in order based on a weighted combination of the seriousness of their consequences and frequency of occurrence. Page 1 of 5 59 Systems A set of interrelated or interacting elements. In the context of dependability, a system will have the following: (a) a defined purpose expressed in terms of required functions; (b) stated conditions of operation and (c) defined boundaries. QUALIFICATIONS 1. Time Basis: Annually 2. This metric is used by corporate and plant risk managers and reliability engineers. 3. It should be calculated at the start of a maintenance improvement initiative and tracked in accordance with the initiative reporting schedule. 4. The assets included in each system should be defined by the management of that facility or organization. The term system must be related and transferred to the facility’s technology (e.g., assets, functional locations, etc.). 5. The type of criticality analysis used can range from a simple criticality table to a formal failure modes and effects criticality analysis (FMECA). 6. Considerations for criticality analysis should include the environment, safety, production, quality and cost. 7. The analysis should be formally documented. 8. Criticality analysis should be performed on new systems prior to commissioning. 9. Before performing a criticality analysis, systems should be ranked and/or assessed to identify critical systems. 10. Critical systems should be separated from non-critical systems. See Figure 1. 11. The goal should be to have all critical systems covered by a criticality analysis. 12. Non-critical systems should be reviewed periodically to determine if anything has changed since the original assessment, installation and operation. Page 2 of 5 60 SAMPLE CALCULATION At a given plant, criticality analyses were performed on 337 of the facility’s 1,811 systems. Systems Covered by Criticality Analysis (%) = [Number of Critical Systems (for which a criticality analysis has been performed) / Total Number of Systems] × 100 Systems Covered by Criticality Analysis (%) = (337 / 1811) × 100 Systems Covered by Criticality Analysis (%) = 0.186 × 100 Systems Covered by Criticality Analysis (%) = 18.6% All systems Critical systems Non-critical systems Systems Systems with without criticality criticality analysis analysis Systems Systems with criticality analysis x 100 covered by criticality = analysis (%) All systems Figure 1. Calculation of the Metric: Systems Covered by Criticality Analysis Page 3 of 5 61 BEST-IN-CLASS TARGET VALUE SMRP’s Best Practices Committee was unable to find any target ranges, minimum/maximum values, benchmarks or other references for target values for this metric. SMRP will update this metric as appropriate should future work help establish targets for this metric. While no target values are available, SMRP encourages plants to use this metric to help manage the maintenance management process. Combined with information from other metrics and by tracking and trending this metric, plants will gain useful information to help make improvements to plant maintenance and reliability programs. CAUTIONS There are no cautions identified at this time. HARMONIZATION EN 15341 indicators E3 and E7 and SMRP metric 3.1 are identical. Note 1: SMRP metric 3.1 is the product of indicators E3 and E7 (metric 3.1 = E3 x E7) Note 2: SMRP metric 3.1 counts systems, whereas indicators E3 and E7 count items. Since the same units are used in the denominator and numerator, the difference is balanced. REFERENCES ANSI/Z94.0. (2000). Industrial engineering terminology. Norcross, GA: Institute of Industrial Engineers ASQ Six Sigma Forum (n.d.). Retrieved from http://asq.org/sixsigma Dhillon, B.S. (1999). Engineering maintainability. San Antonio, TX: Gulf Coast Publishing. Hawkins, B. & Smith, R. (2004). Lean maintenance–reduce costs improve quality, and increase market share. Burlington, NY: Elsevier Butterworth Heinemann. ISO/9000. (2005). Quality management systems – Fundamentals and vocabulary. Geneva, Switzerland: International Standards Organization. Page 4 of 5 62 ISO/14224. (2006). Petroleum, petrochemical and natural gas industries – Collection and exchange of reliability and maintenance data for equipment. Geneva, Switzerland: International Standards Organization. Mitchell, J. (2002). Physical Asset Management Handbook (3rd Ed). Houston, TX. Clarion Technical Publishers. Smith, R. and Mobley, K (2008). Rules of thumb for maintenance and reliability engineers. Burlington, NY: Elsevier Butterworth Heinemann. Wilson, A. (2002). Asset maintenance management. South Norwalk, CT: Industrial Press, Inc. Page 5 of 5 63  EQUIPMENT RELIABILITY METRIC 3.2 TOTAL DOWNTIME Published on February 23, 2010 Revised on August 23, 2020 DEFINITION This metric is the amount of time an asset is not capable of running. The sum of scheduled downtime and unscheduled downtime. See Figure 2. OBJECTIVES This metric allows the evaluation of the total amount of time the asset has not been capable of running. The metric can be used to identify problem areas and/or potential capacity in order to minimize downtime. FORMULA Total Downtime = Scheduled Downtime + Unscheduled Downtime COMPONENT DEFINITIONS Scheduled Downtime (Hours) The time required to work on an asset that is on the finalized weekly maintenance schedule. Total Available Time Annual Basis: 365 days/year x 24 hours/day = 8760 hours per year (Note: The addition of one more day per year must be made for leap year.) Daily Basis: 24 hours Unscheduled Downtime The time an asset is down for repairs or modifications that are not on the weekly maintenance schedule. Weekly Schedule The list of maintenance work to be done in the week. It is usually finalized three to fou