TABLE OF CONTENTS After a close look at the maintenance function and its various functional components, as well as the related functional performance indicators, it would be beneficial to review the performance indicator pyramid presented in the introduction. The correct way to develop performance indicators is to work from the top or corporate level, then develop indicators at each subsequent level to allow the indicators to be connected. If the indicators are selected at the bottom and then built upward, they may be conflicting rather than supportive.
These indicators are the long-term strategic indicators that upper management utilizes for business planning. The window of planning is typically for the three-to-five-year strategic plan.
This indicator compiles all the costs needed to produce a product. It is used to calculate the profit margin because the difference between this cost and the sales revenue is profit. This cost is important to the maintenance function because maintenance makes up a percentage of this cost. This cost is further analyzed by the following financial indicators:
This facility measure compiles all the costs needed to occupy a facility. This cost is important to the maintenance function, which makes up a percentage of this cost. This figure is further analyzed by the financial indicators.
This indicator measures the profit earned compared to the net value of the company assets. The impact that maintenance has on profits is a major factor in calculating the...
