International Journal of Production Research vol:48 issue:20 pages:5905-5924
Performance measurement is a fundamental instrument of management. For maintenance management, one of the key issues is to ensure the maintenance activities planned and executed have given the expected results. This can be facilitated by effective use of rigorously defined key performance indicators (KPI) that are able to measure important aspects of maintenance function. In this paper, an industrial survey was carried out to explore the use of performance measurement in maintenance management. Based on survey responses, analyses were performed on popularly used KPI’s, how these KPI’s are sourced or chosen; the influence of manufacturing environment and maintenance objectives on KPI choice and effective use of these KPI’s in decision support and performance improvement. It was found that maintenance performance measurement is dominated by lagging indicators (equipment, maintenance cost and safety performance). There is lesser use of leading (maintenance work process) indicators. The results showed no direct correlations between the maintenance objectives pursued and the KPI used. Further analysis showed that only a minority of the companies have high percentage of decisions and changes triggered by KPI use and only a few are satisfied with their performance measurement systems. Correlation analysis showed a strong positive linear relationship between degree of satisfaction and process changes/decisions triggered by KPI use, with the least satisfied people having the least decisions and changes triggered by KPI use. The results indicates some ineffectiveness of performance measurement systems in driving performance improvement in industries.