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The Cement Institute
Aerial view of cement manufacturing plant. Concept of buildings at the factory, steel pipes, giants.




Management and learning require continuous measurement of the performance of operations. If an organization wants to understand where their opportunities for improvement are, how competitive, verifiable and efficient they are, it is recommended that they analyze their operational performance.

Monitoring and Analyzing

By monitoring and analyzing performance data and comparing them with benchmarks, many sustainable opportunities for improvement can be found, hence plans for cost optimization (Capex) can and should be developed and implemented to be able to operate in this age of competitive profits.


The comparison of key performance indicators provides management with the tools to review the progress of ongoing sustainable operations, as well as the projects implemented.

Performance measurement represents a fundamental management principle. Performance measurement is important because it identifies performance gaps, between current and desired performance and provides an indication of progress towards closing gaps. The carefully selected key performance indicators identify precisely where to take measures to improve performance.

We try to identify the key performance indicators for the maintenance function, first analyzing the ways in which maintenance performance metrics relate to manufacturing metrics. Since performance measurements for maintenance should include both results metrics and metrics for the process that produces the results, this document presents a representation of the business process for maintenance. Subsequently, the document identifies the typical business process and the results metrics that can be used as key performance indicators for the maintenance function.

Maintenance system

Fig. 1 Management of manufacturing performance requirements to meet customer needs.

Physical Asset Management

The purpose of most of the equipment in manufacturing is to support the production of products for intermediate customers. Ultimately, the focus is on meeting customer needs. This is illustrated in Figure 1. Customer expectations are generally defined in terms of product quality, on-time delivery, and competitive prices. By reviewing the composite requirements of all current and potential customers in the markets in which we wish to penetrate, we can define the performance requirements of our physical assets. Manufacturing performance requirements can be associated with quality, availability, customer service, operating costs, safety, and environmental integrity.
To achieve this performance there are three entries to be managed. The first requirement is design practices. Design practices provide capable equipment “by design” (inherent capacity), to meet manufacturing performance requirements. The second requirement is operating practices that involve the use of the inherent capacity of the process equipment. The documentation of standard operating practices ensures consistent and correct operation of the equipment to maximize performance.

The third requirement is maintenance practices that maintain the inherent capacity of the equipment. The deterioration begins to occur as soon as the equipment is put into service. In addition to normal wear and deterioration, other failures can also occur. This happens when the equipment is pushed beyond the limitations of its design or operational errors occur. Degradation in equipment condition results in reduced equipment capacity. The equipment downtime, environmental excursions represent the visible result. All this can negatively impact the operating cost.

Manufacturing key performance indicators provide information on the current state of manufacturing. Asset capability, operating practices and the maintenance of asset condition all contribute to the ability to meet these performance requirements.

Some typical key performance indicators for manufacturing include operating cost; asset availability, lost time injuries, number of environmental incidents, OEE (Overall Equipment Effectiveness) and asset utilization.

Consider asset utilization, as depicted in Figure 2. Asset utilization is a manufacturing level key performance indicator. It is a function of many variables. For example, asset utilization is impacted by both maintenance and non-maintenance related downtime. Non-maintenance related downtime may be attributed to lack of demand, an interruption in raw material supply or production scheduling delays beyond the control of the maintenance function. Asset utilization is also a function of operating rate, quality and yield losses, etc. In each of these areas’ maintenance may be a factor but it is not the only contributor. To maintain and improve performance, each function in the organization must focus on the portion of the indicators that they influence.
Similarly, other manufacturing level performance indicators represent not only a function of maintenance. They are affected by causes beyond the control of the maintenance function. Asset capability, operating practices and the maintenance of asset condition all contribute to the ability to meet performance requirements. If a manufacturing level indicator is used to measure maintenance performance, improved maintenance may not result in a proportional improvement in the manufacturing metric. For instance, in the asset utilization example, cited above, the maintenance contributors may all be positive and yet the resulting asset utilization may not improve due to other causes.

A key principle of performance management is to measure what can be managed. To maintain and improve production performance, each function in the organization must focus on the part of the indicators that influence them. Maintenance performance contributes to manufacturing performance. Key performance indicators for maintenance are secondary elements of key manufacturing performance indicators.
When defining a key performance indicator for maintenance an adequate test of the metric validity is to seek an affirmative response to the question; “If the maintenance function does “everything right,” will the suggested metric always reflect a result proportional to the change; or are there other factors, external to maintenance, that could
mask the improvement?”

We try to focus on defining key performance indicators for the maintenance function, not the maintenance organization.

The maintenance function can involve other departments beyond the maintenance organization. In the same way, the maintenance department has included responsibilities beyond the maintenance function and, as such, will have additional key performance indicators to report. The key performance indicators for the maintenance organization may include key performance indicators for other areas of accountability such as health and safety performance, employee performance management, training, and development, etc.


Fig. 2 The use of assets is an example of a key performance indicator of production level.

The Asset Reliability Process

The performance management of physical assets is an integral part of business success. What we manage are the business processes required to produce results. One of these business processes is responsible for maintaining the reliability of physical assets. The Asset Reliability Process is shown in Figure 3. It is an integral part of a considerably larger business process, responsible for managing the company as a whole.
A proactive Asset Reliability Process represented by the seven (7) elements in the model aims to deliver the performance required by the enterprise to meet all of its corporate objectives. Each element within the maintenance process is in itself a subprocess. A brief description of each element follows:
Business Focus, represented by the green box above, focuses on the maintenance of physical asset reliability on the business goals of the company. The potential contribution of the asset base to these goals is evaluated. The most significant contributors are recognized as critical assets and specific performance targets identified.

Work Identification, as a process, produces technically based Asset Reliability Programs. Program activities identify and control failure modes impacting on the equipment’s ability to perform the intended function at the required performance level. Activities are evaluated to judge if they are worth doing based on the consequences of failure.

Planning develops procedures and work orders for these work activities. The procedures identify resource requirements, safety precautions and special work instructions required to execute the work.

Scheduling evaluates the availability of all resources required for work “due” in a specified time frame. Frequently this work requires the equipment to be shut down. A review of production schedules is required. Resources are attached to a specific work schedule. The use of resources is balanced out.

In the Execution process, trained, competent personnel carry out the required work.
The Follow-up process responds to information collected in the execution process. Work order completion comments outline what was done and what was found. Actual time and manpower, to complete the job, is documented. Job status is updated as complete or incomplete. Corrective work requests, resulting from the analysis of inspection data, are created. Requests are facilitated changes to drawings and procedures.

Asset reliability process

Fig. 3 The asset reliability process identifies what is required to manage the maintenance function.

The process of Performance Analysis evaluates maintenance program effectiveness. Gaps between actual process performance and the required performance are identified. Historical maintenance data is compared to the current process performance. Maintenance activity costs are reviewed. Significant performance gaps are addressed by revisiting the Work Identification function.
Each element is critical to provide an effective maintenance strategy. Omitting any element will result in poor equipment performance, increased maintenance costs or both.
For example, Work Identification systematically identifies the Right Work to be performed at the Right Time. Without proper Work Identification, maintenance resources may be wasted. Unnecessary or incorrect work will be planned. Once executed, this work may not achieve the desired performance results, despite significant maintenance costs. Without Planning the correct and efficient execution of the work is committed to chance. The Planned Maintenance Process comprise a cycle. Maintenance work is targeted to achieve the required asset performance. Its effectiveness is reviewed, and improvement opportunities identified. This guarantees continuous improvement in process performance impacted by Maintenance.
Within the Planned Maintenance Process, two internal loops exist. Planning, Scheduling, Execution and Follow Up make up the first loop. Once maintenance activities are initially identified, an asset maintenance program, based on current knowledge and requirements, is initiated. The selected maintenance activities will be enacted at the designed frequency and maintenance tolerance limits. The process is self-sustaining.
The second loop consists of the Work Identification and Performance Analysis elements. This is the continuous improvement loop. Actual asset performance is monitored relative to the required performance (driven by business needs). Performance gaps are identified. The “cause” of these gaps is established, and corrective action recommended.

Performance Metrics for the Maintenance Function

The Asset Reliability Process represents the collection of “all” tasks necessary to support the maintenance function. The process is a supply chain. If a step in the process is omitted or performed at a poor level, the process creates defects known as failures. The result of a healthy reliability process is the optimal reliability of the assets at an optimal cost.
Asset reliability process measures are main indicators. They supervise if they are carrying out the tasks that will lead to results. For example, a leading process indicator would monitor whether the planning function was being carried out. If people are doing all the right functions, the results will follow. The main “process” indicators are more immediate than the results measurements.
Result measures monitor the products of the Asset Reliability Process. Result measures include maintenance cost (as a contributor to total operating cost), asset downtime due to plan and unplanned maintenance (as a contributor to availability) and a number of failures on assets (The measure of reliability: this can then be translated into mean time between failures.). Results measures lag. Failure is a good example. Typically, the same piece of equipment doesn’t fail day after day. Take a pump for example. Say the pump fails on average once every 8 months. If we improve its reliability by 50 %, it will now fail every 12 months. You have to wait at least 12 months to observe the improvement.

Key performance indicators for the maintenance function need to include both leading (maintenance process) measures and lagging (result) measures. This paper focuses on identifying both leading and lagging measures of maintenance performance. Collectively, these measurements are the key performance indicators for the maintenance function.

Reliability Process Key Performance Indicators – Leading Measures

The maintenance process is made up of elements. All elements are required to complete the supply chain. Key performance indicators of the maintenance process are process assurance measures. They answer the question “how do I know that this maintenance process element is being performed well?” The day-to-day execution of maintenance is addressed through the seven elements of the Reliability Process: Business Focus, Work Identification, Work Planning, Work Scheduling, Work Execution, Follow-up and Performance Analysis. Key performance indicators for each element are recommended.

  1. Commercial approach
  2. Work identification
  3. Work planning
  4. Work Schedule
  5. Work Execution
  6. Follow up
  7. Performance analysis

It should be noted that variations of these metrics may be defined, or additional performance metrics may be used. The metrics presented here provide a clear indication if the requirements of each element are being satisfied and, if not, what action should be initiated to correct the lack of maintenance process adherence.


Key Cement KPI's


Want to know more about the maintenance KPI‘s and the cement plant’s KPI‘s, please join our upcoming seminar:

Cement Reliability Maintenance Seminar

Seminario de Mantenimiento Basado en Confiabilidad

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