Benchmarking processes

Three-phase program 1. Analysis (define project, form team) 2. Discovery (identification of best practices, recommendations for improvement) 3. Implementation Four-phase program 1.

01/01/1999


Three-phase program

1. Analysis (define project, form team)

2. Discovery (identification of best practices, recommendations for improvement)

3. Implementation

Four-phase program

1. Identify activities/processes to benchmark

2. Study/measure processes in your own company and other companies

3. Learn how to close the gap between your present and desired levels of performance

4. Develop and implement an improvement plan

Six-phase program

1. Decide what to benchmark

2. Plan the benchmarking project

3. Determine your own performance level

4. Determine the performance of others

5. Analyze the findings

6. Use the results

Eight-phase program

1. Determine which activities will benefit from benchmarking

2. Determine the key factors driving those activities

3. Identify companies with best practices in those activities

4. Study and measure those best practices

5. Measure your own performance and compare with best practices

6. Develop plans to meet or exceed best practices

7. Obtain commitment to implement plans

8. Implement plans and monitor results

Nine-phase program

1. Select practice or process

2. Identify performance

3. Train benchmarking teams

4. Measure performance

5. Identify benchmarking partner

6. Measure partner's performance

7. Identify performance gaps and priorities

8. Recommend and implement new practices

9. Determine results and remeasure

Ten-phase program

1. Identify what is to be bench marked

2. Identify comparative companies

3. Determine data collection method and collect data

4. Determine current performance gap

5. Project future performance levels

6. Communicate benchmark findings and gain acceptance

7. Establish functional goals

8. Develop action plans

9. Implement specific actions and monitor progress

10. Recalibrate benchmarks

Twelve-phase program

1. Determine who will use the information (clients)

2. "Sell" the clients on value of benchmarking

3. Test client commitment

4. Determine urgency

5. Define scope and type of benchmarking needed

6. Select and train benchmarking team

7. Coordinate benchmarking process with business plan

8. Develop and execute benchmarking plan

9. Analyze the data

10. Integrate recommended actions into business plan

11. Execute the plan

12. Implement continuous improvement

Twelve-phase program

1. Establish the scope

2. Develop the project plan

3. Select the key performance variables to benchmark

4. Identify potential participants

5. Measure your own performance

6. Measure performance of benchmarking participants

7. Compare current data

8. Identify best practices and enablers

9. Formulate your strategy

10. Implement the plan

11. Monitor results

12. Plan for problem solving


10 key indicators of maintenance performance

By Edwin K. Jones, PE, Plant Engineering and Maintenance Consulting, Newark, DE

 

- Mechanical availability (asset utilization)

The "business contribution" of maintaining personnel is to provide highly reliable equipment at the lowest possible cost. World-class plants are typically driving reliability rather than cost reduction. (Industry sensitive)

- Ratio of direct maintenance personnel to support maintenance personnel

World-class plants tend to fall in the range of 2:1 to 3:1 workers per support person. Support personnel are those who provide the supervision, parts management, planning, reliability improvement, equipment condition monitoring, and other supporting tasks for the "hands on" workers.

- Ratio of direct maintenance personnel to maintenance planning personnel

- Ratio of direct maintenance personnel to engineering and technical maintenance personnel

There is usually a correlation between this metric and a plant's equipment reliability and costs.

- Maintenance cost as a percentage of plant estimated replacement value

This value is a classic measure of maintenance cost. Unfortunately, by itself, it drives cost reduction behavior without necessarily reinforcing the need for improved maintenance practices.

- Ratio of plant estimated replacement value (in millions) to direct maintenance workers

This value is a measure of direct maintenance worker productivity ("How much plant and equipment,

in dollars, can each worker maintain?"). Many world-class plants fall into the range of $6-$9 million/worker. (Somewhat industry sensitive)

- Maintenance contracting cost as a percentage of total maintenance cost

This value is a measure for comparison, but without a "target" value. World-class plants don't shoot for a specific level; rather, they are disciplined in defining the role of contractors in maintenance, based

on business-related criteria. On average, top plants around the world contract over 30% of their maintenance work -- a little less in the United States. But, top plants are driven by a defined

strategy, not a target percentage.

- Stores parts and investment as a percentage of plant estimated replacement value

For years, the target for this measure was about 1%, but top plants around the world now routinely achieve ratios in the range of 0.25%-0.5%

- Stores turnover (ratio of annual disbursements to inventory value)

This ratio reflects stocking strategy and may run above or below 1 depending on the plant's strategy (for example, balancing risk against insurance stocks). Performance is measured against the plant's own target.

- Ratio of stores disbursements to stores personnel (dollar investment/stores person)

This value is a measure of "productivity" of the stores operation and associated personnel.





Top Plant
The Top Plant program honors outstanding manufacturing facilities in North America.
Product of the Year
The Product of the Year program recognizes products newly released in the manufacturing industries.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
September 2018
2018 Engineering Leaders under 40, Women in Engineering, Six ways to reduce waste in manufacturing, and Four robot implementation challenges.
July/Aug
GAMS preview, 2018 Mid-Year Report, EAM and Safety
June 2018
2018 Lubrication Guide, Motor and maintenance management, Control system migration
August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, programming cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
Spring 2018
Burners for heat-treating furnaces, CHP, dryers, gas humidification, and more
August 2018
Choosing an automation controller, Lean manufacturing
September 2018
Effective process analytics; Four reasons why LTE networks are not IIoT ready

Annual Salary Survey

After two years of economic concerns, manufacturing leaders once again have homed in on the single biggest issue facing their operations:

It's the workers—or more specifically, the lack of workers.

The 2017 Plant Engineering Salary Survey looks at not just what plant managers make, but what they think. As they look across their plants today, plant managers say they don’t have the operational depth to take on the new technologies and new challenges of global manufacturing.

Read more: 2017 Salary Survey

The Maintenance and Reliability Coach's blog
Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
One Voice for Manufacturing
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Maintenance and Reliability Professionals Blog
The Society for Maintenance and Reliability Professionals an organization devoted...
Machine Safety
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
Research Analyst Blog
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Marshall on Maintenance
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
Lachance on CMMS
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Material Handling
This digital report explains how everything from conveyors and robots to automatic picking systems and digital orders have evolved to keep pace with the speed of change in the supply chain.
Electrical Safety Update
This digital report explains how plant engineers need to take greater care when it comes to electrical safety incidents on the plant floor.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
Randy Steele
Maintenance Manager; California Oils Corp.
Matthew J. Woo, PE, RCDD, LEED AP BD+C
Associate, Electrical Engineering; Wood Harbinger
Randy Oliver
Control Systems Engineer; Robert Bosch Corp.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
click me