June 2, 2022

Using Key Performance Indicators to Track Asset Criticality

Criticality of Asset Criticality Key Performance Indicators: A blog about what KPI's to track for your maintenance management

Using Key Performance Indicators to Track Asset Criticality 

Smart facility managers know that all assets are not created equal. But determining which assets are critical to the workflow and operation of your company can be challenging. Key performance indicators (KPIs) will help you rank asset criticality and create a maintenance strategy to optimize asset performance and reduce costs and risks. 

Key Performance Indicators (KPIs) for Maintenance Management

Key performance indicators that are process-related are known as leading KPIs. A well-developed maintenance process forms the foundation for all organizational maintenance functions. Here are some examples of leading key performance indicators: 

  • Business goals and objectives 
  • Identification of maintenance work processes 
  • Work planning and scheduling 
  • Execution of maintenance activities 
  • Maintenance follow-up and analysis 

The actual results of your maintenance activities are known as lagging key performance indicators. Lagging KPIs vary depending on your industry and facility-type but typically fall under these general categories: 

  • Asset performance 
  • Reliability and efficiency ratings 
  • Repair and failure rates 
  • Life cycle costs 
  • Safety issues and risks 
  • Regulatory compliance 
  • Human safety and well-being 
  • Environmental issues and risks 
  • Business objectives, including ROI 

Using KPIs to Determine Asset Criticality 

Regardless of the maintenance strategy you currently employ, knowing which assets are critical to your operation and why can optimize operational ROI and reduce costs and risks. Ranking asset criticality depends on your individual facility’s operation and objectives. 

Darrin Wikoff, the author of an article on ReliablePlant.com, recommends setting up a criticality analysis model: 

Step One: Using these business attributes, assign each characteristic a rating from zero to 10, with the total not to exceed 100 for each asset. 

  • Mission and customer impact 
  • Safety and environmental impact 
  • Single-point-failures 
  • Preventive Maintenance (PM) history 
  • Corrective Maintenance (CM) history 
  • Failure Probability 
  • Spare parts lead time 
  • Asset replacement value 
  • Planned utilization rate 

Step Two: Once you have identified the top 15%-20% of your critical assets from Step One determine the primary characteristic that makes each asset critical. The asset data from your computerized maintenance management system (CMMS) provides asset life cycle costs, repair history, failure modes, and more—depending on your system type—and should give you the data you need. 

Step Three: By analyzing the asset data from the CMMS, especially the single-point failure rating, you can adjust your maintenance approach to these critical assets, lowering their criticality ranking and reducing your overall risks.  

Every facility manager has a “worse asset nightmare”… asset failure that has serious or catastrophic consequences. You can create an effective asset plan by using key performance indicators to identify and rank critical assets. A proactive management strategy, such as a Reliability-Centered Maintenance (RCM) approach, offers the best opportunity to align your maintenance management with organizational goals and objectives. You can prevent and even predict failure modes and optimize asset function and integrity. 

Use the CMMS Key Performance Indicators to Manage Asset Criticality 

A CMMS can help you track, measure, and prioritize your maintenance management activities: 

  • Scheduling preventive maintenance (PM) tasks can ensure that assets are managed for optimal performance, including re-assigning and re-scheduling critical asset activities. 
  • Failure modes and MTBF rates allow you to plan for timely asset replacements before they fail or ensure adequate inventory is on hand to minimize downtime. 
  • Tracking spare parts inventory through your CMMS can prevent repair backlogs or costly production delays. 
  • Failure analysis, asset reports, and life-cycle costing data are important tools for adopting maintenance “best practices” and a continuous improvement methodology. 

Setting up and using key performance indicators lets you plan, track, and measure asset activity and performance. With an accurate picture of what assets are critical to your organization, you can make sound asset management decisions for both short-term and long-term goals and objectives. Adopting a “plan, improve, control” approach is the best way to ensure optimal asset reliability at optimal cost. 

The strategic use of key performance indicators considers the overall performance, cost and criticality of IT assets. This approach can help a business decide where to invest their money, time, and resources so that they are able to identify their most critical systems by mapping KPIs for hardware, software, etc. Contact us today at marketing@tmasystems.com if you’re interested in reducing costs and risk exposure. 

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Interested in taking this to the next level? Sign up for a free demo with a TMA Systems Account Executive. Enter your email below and we will reserve a time for you to test drive WebTMA, or call us at 1.800.862.1130!

June 2, 2022

Using Key Performance Indicators to Track Asset Criticality

Criticality of Asset Criticality Key Performance Indicators: A blog about what KPI's to track for your maintenance management

Using Key Performance Indicators to Track Asset Criticality 

Smart facility managers know that all assets are not created equal. But determining which assets are critical to the workflow and operation of your company can be challenging. Key performance indicators (KPIs) will help you rank asset criticality and create a maintenance strategy to optimize asset performance and reduce costs and risks. 

Key Performance Indicators (KPIs) for Maintenance Management

Key performance indicators that are process-related are known as leading KPIs. A well-developed maintenance process forms the foundation for all organizational maintenance functions. Here are some examples of leading key performance indicators: 

  • Business goals and objectives 
  • Identification of maintenance work processes 
  • Work planning and scheduling 
  • Execution of maintenance activities 
  • Maintenance follow-up and analysis 

The actual results of your maintenance activities are known as lagging key performance indicators. Lagging KPIs vary depending on your industry and facility-type but typically fall under these general categories: 

  • Asset performance 
  • Reliability and efficiency ratings 
  • Repair and failure rates 
  • Life cycle costs 
  • Safety issues and risks 
  • Regulatory compliance 
  • Human safety and well-being 
  • Environmental issues and risks 
  • Business objectives, including ROI 

Using KPIs to Determine Asset Criticality 

Regardless of the maintenance strategy you currently employ, knowing which assets are critical to your operation and why can optimize operational ROI and reduce costs and risks. Ranking asset criticality depends on your individual facility’s operation and objectives. 

Darrin Wikoff, the author of an article on ReliablePlant.com, recommends setting up a criticality analysis model: 

Step One: Using these business attributes, assign each characteristic a rating from zero to 10, with the total not to exceed 100 for each asset. 

  • Mission and customer impact 
  • Safety and environmental impact 
  • Single-point-failures 
  • Preventive Maintenance (PM) history 
  • Corrective Maintenance (CM) history 
  • Failure Probability 
  • Spare parts lead time 
  • Asset replacement value 
  • Planned utilization rate 

Step Two: Once you have identified the top 15%-20% of your critical assets from Step One determine the primary characteristic that makes each asset critical. The asset data from your computerized maintenance management system (CMMS) provides asset life cycle costs, repair history, failure modes, and more—depending on your system type—and should give you the data you need. 

Step Three: By analyzing the asset data from the CMMS, especially the single-point failure rating, you can adjust your maintenance approach to these critical assets, lowering their criticality ranking and reducing your overall risks.  

Every facility manager has a “worse asset nightmare”… asset failure that has serious or catastrophic consequences. You can create an effective asset plan by using key performance indicators to identify and rank critical assets. A proactive management strategy, such as a Reliability-Centered Maintenance (RCM) approach, offers the best opportunity to align your maintenance management with organizational goals and objectives. You can prevent and even predict failure modes and optimize asset function and integrity. 

Use the CMMS Key Performance Indicators to Manage Asset Criticality 

A CMMS can help you track, measure, and prioritize your maintenance management activities: 

  • Scheduling preventive maintenance (PM) tasks can ensure that assets are managed for optimal performance, including re-assigning and re-scheduling critical asset activities. 
  • Failure modes and MTBF rates allow you to plan for timely asset replacements before they fail or ensure adequate inventory is on hand to minimize downtime. 
  • Tracking spare parts inventory through your CMMS can prevent repair backlogs or costly production delays. 
  • Failure analysis, asset reports, and life-cycle costing data are important tools for adopting maintenance “best practices” and a continuous improvement methodology. 

Setting up and using key performance indicators lets you plan, track, and measure asset activity and performance. With an accurate picture of what assets are critical to your organization, you can make sound asset management decisions for both short-term and long-term goals and objectives. Adopting a “plan, improve, control” approach is the best way to ensure optimal asset reliability at optimal cost. 

The strategic use of key performance indicators considers the overall performance, cost and criticality of IT assets. This approach can help a business decide where to invest their money, time, and resources so that they are able to identify their most critical systems by mapping KPIs for hardware, software, etc. Contact us today at marketing@tmasystems.com if you’re interested in reducing costs and risk exposure. 

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Ready for a Demo?

Interested in taking this to the next level? Sign up for a free demo with a TMA Systems Account Executive. Enter your email below and we will reserve a time for you to test drive WebTMA, or call us at 1.800.862.1130!

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Interested in taking this to the next level? Sign up for a free demo with a TMA Systems Account Executive. Enter your email below and we will reserve a time for you to test drive WebTMA, or call us at 1.800.862.1130!

Using Key Performance Indicators to Track Asset Criticality

Criticality of Asset Criticality Key Performance Indicators: A blog about what KPI's to track for your maintenance management

Ready for a Demo?

Interested in taking this to the next level? Sign up for a free demo with a TMA Systems Account Executive. Enter your email below and we will reserve a time for you to test drive WebTMA, or call us at 1.800.862.1130!

June 2, 2022

Using Key Performance Indicators to Track Asset Criticality

Criticality of Asset Criticality Key Performance Indicators: A blog about what KPI's to track for your maintenance management
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Ready for a Demo?

Interested in taking this to the next level? Sign up for a free demo with a TMA Systems Account Executive. Enter your email below and we will reserve a time for you to test drive WebTMA, or call us at 1.800.862.1130!