This benchmark investigates the ways top performing companies develop corporate cultures of reliability and leverage investments in advanced Asset Performance Management (APM) capabilities to improve operational performance by optimizing asset availability, utilization, and flexibility. Top performing companies are optimizing asset performance and integrating operational metrics with financial metrics for top line and bottom line improvement in performance.
Ground Up Strategies for
Asset Performance Management September 2007 Ground Up Strategies for Asset Performance Management Page 2
Executive Summary
This benchmark investigates the ways top performing companies develop corporate cultures of reliability and leverage investments in advanced Asset Performance Management (APM) capabilities to improve operational performance by optimizing asset availability, utilization, and flexibility. Top performing companies are optimizing asset performance and integrating operational metrics with financial metrics for top line and bottom line improvement in performance.
Best-in-Class Performance Aberdeen used four Key Performance Indicators (KPIs) to differentiate "We launched a strategic Best-in-Class, and they averaged the following performances: initiative for asset performance improvement two years ago . 89% Overall Equipment Effectiveness (OEE) focused on OEE and Maintenance cost reduction . 96% On-Time Delivery (OTD) among others. There is . executive ownership to each of 97% plant throughput these initiatives. This is . 95 % asset effectiveness considered a critical success factor in our organization to improve performance. The Competitive Maturity Assessment plant maintenance processes Survey results show that the firms enjoying Best-in-Class performance are standardized across the shared several common characteristics: sites with site specific differences. The strategic goal . Best-in-Class performers are twice as likely as the Industry Average and of improving OEE is focused on ten-times as likely as Laggard to standardize asset performance by both operation and management to optimize asset availability and utilization. maintenance teams through setup time reduction, increased . The Best-in-Class are 6.7 times more likely than Laggards to have reliability, etc. We measure our established cross-functional teams to create a corporate culture of KPIs in real time and the reliability actionable intelligence is used by management and department heads across the Required Actions organization to influence In addition to the specific recommendations in Chapter Three of this decisions." report, to achieve Best-in-Class performance, companies must: ~ Manufacturing,
. Align management goals, objectives, and metrics across various teams Large Semiconductor Company
. Establish cross-functional teams to foster a corporate culture for reliability . Invest in APM capabilities such as condition based monitoring, reliability centered maintenance, performance monitoring, and analytics . Focus on driving business process interoperability across functional organizations
Table of Contents Executive Summary.......................................................................................................2 Best-in-Class Performance.........................................................................2 Competitive Maturity Assessment...........................................................2 Required Actions .........................................................................................2 Chapter One: Benchmarking the Best-in-Class .....................................................4 Balancing Customers and Shareholders..................................................4 Maturity Class Framework ........................................................................4 The Best-in-Class PACE Model ................................................................6 Strategy in Action ........................................................................................6 Chapter Two: Benchmarking Requirements for Success....................................8 Competitive Assessment............................................................................8 A Culture of Reliability (and Responsibility)..........................................9 Standardized and Reflexive Processes...................................................10 Technology is a Key Enabler of Performance......................................12 Interoperability......................................... [download for more]
