Key Performance Indicators (KPIs) for Facilities Manager and Maintenance Manager

In a world where the pace and complexity of industrial and technical development is accelerating, relying on individual and personal skills or personal self-esteem is no longer sufficient to evaluate the performance of maintenance teams or the quality of their work. Hence, the role of key performance indicators, or what is known as (Key Performance Indicators - KPIs), appears as part of an indispensable strategy to measure efficiency, improve productivity, and achieve a balance between speed, quality, and cost, based on a scientific methodology known to everyone rather than the experience of one or more members of the maintenance team.

KPIs are the compass and indicator that guide teams towards achieving maintenance goals, and by extension the facility’s goals, whether those goals are related to reducing breakdowns, increasing equipment readiness, or reducing unplanned maintenance costs. By analyzing data and following indicators, maintenance managers can make decisions based on numbers and facts, and not on assumptions and judgments, which ultimately leads to improving the overall performance of the facility and increasing the life of operational assets. Even if these assumptions are sound, they will still be subject to questioning by team members, while relying on clear scientific foundations from the beginning for the evaluation keeps the maintenance team away from questioning the intentions of the evaluation process.

Maintenance performance indicators go beyond numbers recorded on a dashboard. They are a common language between engineering and administrative departments, unify the vision and support a culture of continuous improvement. With the right application, KPIs transform from a monitoring tool into a real driver of development and innovation in the maintenance profession.

What you cannot accurately measure, you cannot judge nor develop.

What are KPIs?

According to Wikipedia KPIs are being defined as performance measurement indicators as one of the tools for measuring and evaluating the performance of institutions and companies in the long term. They are usually used to measure the progress made in a particular process.

What are the KPIs in maintenance management and facility maintenance?

The objectives and nature of performance measurement indicators in the process of managing maintenance tasks and tracking assets are no different from their general concept. They are a set of indicators that help the maintenance department at its various levels in evaluating the performance of the maintenance process with its various components. We do not want to say that the use of such indicators is more important in maintenance management compared to its various other applications, but given the importance of the maintenance profession and the extent to which it is related to assets of value that sometimes reach invaluable, such as preserving human life in addition to other assets of high value, the presence of such indicators contributes significantly to the performance of maintenance roles better and more effectively.

What are the most important KPIs related to maintenance management?

There are many indicators that can be used either directly or indirectly in periodic maintenance operations, but this time we will focus on 10 performance indicators that will definitely improve your maintenance operations significantly and measurably in a short time.

Here are the top 10 performance indicators for bank teams:

• Work Order Facts

• Coastal Area Maintenance

• Average Size

• Average Resolution Time

• Energy Consumption per Square Foot

• Occupant Satisfaction Rate

• When It Happens

• Cost per Square Foot

• Injury Rate

• Asset Lifetime (ALH)

1. What is the Work Order Completion Rate (WORK)?

It is a metric used to measure the percentage of maintenance work orders completed within a specific timeframe. This metric generally helps organizations determine the efficiency of their maintenance operations, which in turn influences how they make future maintenance decisions effectively.

It can be calculated using the following formula:

WORK = (Number of Work Orders Completed / Total Work Orders) × 100

Why it matters?

This indicator directly shows the percentage of work completed, which contributes to building future plans on a scientific basis, rather than relying on guesswork.

2- What is the Preventive Maintenance vs. Corrective Maintenance ratio?

This ratio aims to increase the ratio of preventive maintenance to corrective/remedial maintenance. This helps organizations reduce downtime, which can lead to high costs due to unplanned downtime. This ratio works in parallel; while preventive maintenance indicators focus on scheduled tasks to reduce equipment failure rates and downtime, corrective maintenance indicators measure responsiveness and the speed of response to malfunctions.

Overall, this ratio aims to promote effective planning to increase reliance on preventive maintenance compared to corrective maintenance.

What is the importance of the Preventive Maintenance vs. Corrective Maintenance ratio? And Why it matters?

This ratio helps increase asset sustainability and reduces asset downtime.

3- What is the Average Response Time (ART) indicator?

This indicator shows the speed with which maintenance team members handle faults, especially critical faults that require rapid intervention and early response. It is typically categorized according to work order priority to prevent mixing critical work orders with lower-priority ones.

How is the ART calculated?

The following equation is used to calculate the ART:

Average Response Time = Total Response Time / Number of Faults

This indicator is generally used to measure the overall average response time of the team as a whole.

Some maintenance task management and asset tracking software, such as AssetsHub, now allows you to set the ART for critical faults at the work order level. This simplifies the calculation of the average response time based on actual critical faults, rather than including lower-priority faults.

Why is the ART important?

This indicator helps measure the effectiveness of work teams' response to critical calls. As everyone in the world of facilities management and maintenance knows, a fast response, especially with critical assets, can contribute to preserving lives and high-value assets that may cost the organization countless financial resources. In addition, it reduces downtime, which also costs companies and institutions high financial resources.

4- What is the Average Resolution Time (ART) indicator?

This indicator is largely similar to the previous one, except that it focuses on measuring a time period following the ART indicator. While the Average Response Time measures the time elapsed from the onset of a problem until the start of work on it, the Average Resolution Time (ART) indicator measures the time required to resolve a problem.

How is it calculated?

Using the following equation:

Average Resolution Time = Total Resolution Time / Number of Faults

What is the importance of the Average Resolution Time (ART) indicator?

This indicator clearly measures the efficiency of the work team in handling faults according to their category. Therefore, it helps the maintenance department and other departments identify the types of training, qualification, and improvement needed for the work team, if necessary.

5. What is the Energy Consumption indicator per square foot, and how is it measured?

This KPI provides a clearer picture of areas and times of excessive energy consumption, which contributes to inflated and rising operating costs.

How is the Energy Consumption indicator measured?

Methods and tools for measuring energy consumption typically vary from team to team and from organization to organization. Despite these differences, organizations are still required to strive for continuous improvement.

Why is the Energy Consumption indicator matters?

It helps track sustainability and cost-efficiency efforts.

6- What is the Occupant Satisfaction Rate?

This indicator is difficult for most organizations to track due to the varying meanings and degrees of occupier satisfaction. The difficulty in accurately measuring this indicator often stems from the lack of a clear definition of the concept. However, organizations can approach measuring this indicator more effectively by establishing clear agreements among stakeholders, developing performance evaluation methods and questionnaires, and continuously updating these questionnaires to reflect changes in teams and the different evaluation parties.

What is the importance of measuring the Occupant Satisfaction Rate?

Measuring the level and rate of occupier satisfaction provides the organization with a clearer picture of the other party's/end-user's perspective on the quality of maintenance work. This enables the organization to improve communication methods and enhance team skills based on the evaluation.

7- What is the Facility Downtime Index (FDI)? And what is its importance?

First, it's important to highlight the significance of this indicator, as it provides the organization with a clear indication of the extent of downtime for assets undergoing maintenance. This enables the organization to calculate the actual downtime and, consequently, the downtime costs relative to the final performance of the assets. Furthermore, it links downtime to the impact on production in industrial facilities.

What is the importance of the Facility Downtime Indicator?

It tracks unplanned downtime and helps identify areas that need improvement.

8- What is the Cost Per Square Foot (CPSF) Index?

The Cost Per Square Foot (CPSF) Index is an important indicator for evaluating the efficiency and operational effectiveness of facilities and properties.

A high CPSF value typically indicates underutilized space or high costs, while a low CPSF value indicates high maintenance effectiveness and efficient resource utilization.

How can the Cost Per Square Foot (CPSF) Index be calculated?

By the following equation:

CPSF = Total facility management costs / Total facility area in square feet

9. What does the APM (Asset Management Performance) Compliance Rate mean?

APM is also referred to as the Compliance Rate. This metric measures adherence to asset management and maintenance protocols, which can lead to improved ROI (Return on Investment) metrics. High compliance rates indicate optimal asset utilization, while low rates may indicate underlying problems that could jeopardize the organization.

Why is measuring the APM important?

Measuring the APM ensures operational efficiency and strategic alignment within organizations. This key performance indicator is a primary indicator of an organization's ability to effectively manage assets and align them with strategic objectives.

10. What is the Asset Lifetime Index (ALI)?

Also known as Asset Uptime, this is one of the most important and widely recognized performance indicators. It is considered a critical metric in certain sectors, such as healthcare and manufacturing. Asset uptime reflects the efficiency of the operational and maintenance teams. A high uptime indicates a significant problem with maintenance and tracking processes within the facility. Its importance stems from its direct impact on productivity in some cases, such as in manufacturing, and its direct impact on human lives in other sectors, such as healthcare and fire safety.

How can the Asset Uptime Index be measured?

Using the following equation:

Asset Uptime = (Total Operating Time / Total Time) × 100

Why is measuring the Asset Uptime Index important?

This index directly reflects the operational efficiency of manufacturing and maintenance processes. It enables organizations that track it to identify bottlenecks and optimize resource allocation more effectively.

How can I start adopting and choosing the most suitable performance indicators (KPIs) for my maintenance team and the organization I represent?

To avoid over- or under-application of these indicators, the answer depends on several factors. These include the size of the maintenance team, the importance of the assets and whether they are considered critical, the availability of necessary information, and the organization's readiness to adopt these indicators in the future. Many maintenance task management and asset tracking systems offer some or all of these indicators, but the organization's readiness to implement one of these systems is a crucial factor to consider.

Does AssetsHub CMMS & EAM support key performance indicators?

Yes, AssetsHub CMMS & EAM supports the inclusion of one or more performance indicators, and you can easily design your own through the available app store.

Conclusion

In conclusion, the world is rapidly moving towards a data-driven world, with the wider adoption of artificial intelligence technologies and the development of how different decisions are made based on actual data rather than subjective estimations. Adopting modern systems for managing maintenance tasks, tracking assets, and adopting effective performance indicators is no longer a form of luxury or side development, but has become one of the pillars of the industry, and its optimal exploitation is one of the most important assets and resources for the organization.

Sources

Some of the information and explanations in this article are taken from the following sources.

• Performance indicator [wikipedia]

• kpidepot

• LinkedIn post for Mr Syed Mansoor Hussain