Managing Performance in Asset Management with Scott Kelley
In this episode of the weekly podcast, the guest Scott Kelley explains the 5th cell of the Hexcellence Model. All of the previous cells of this hexagon are connected to each other and are equally important when it comes to getting the superior asset management outcomes. But when it comes to achieving optimum results for the company some sort of performance measures must be done and each of the factors involved in determining the performance level must be taken care of. Not only that you need to understand these factors deeply, you need to relate them to your baselines for budget and time as well. In this way, you will be able to meet the expectations and standards that ultimately lead to focused improvements in the long run. Now, these measures will change the behavior of your organization. So, you have to be careful while using any metrics for measurement to get those numbers that will determine the behavior of your people. A good performance metric is always balanced to avoid any counter-productive outcomes. You can create as many metrics as you want but unless those are aligned with your strategic goals, they won’t be of any help at all. That’s why all the metrics that you use should be fit for purpose—meaning that look at the overall picture and make the indicators in a comparative fashion if you want those to make sense.
There are two major types of indicators; lagging indicators that are easy to determine but hard to influence and then there are leading indicators that are in the form of some actual outcome with difficult measurement and easier to influence. These are going to impact your preventive maintenance strategies as they are the key to sustainable improvements in the organizations. When you create an indicator, you need to understand the issues involved with them too to avoid any pitfalls in the future. You have to define them so that they are understandable and perfectly clear—without any vague details and solid references. You have to see the manpower of the organizations that is responsible for defining and analyzing the KPIs. Then you need to make sure you have all the material you need and that your machines are in perfect working conditions. You will need to do the mandatory compliance as well to get the answers to what’s, why’s and who’s. There will be methods to answer the how of your processes that are going on with the measurement of performance. All of this will be in accordance with the money you are investing in your assets and the time that you are putting in the determination and improvement of your KPIs.
There are well over a hundred performance indicators used in the industries but most of them are not so useful because they are not planned in comparison with the environment of the organization. You can only make the best decisions if you have complete and right field information of all the KPIs you have documented and published.
- Eruditio, LLC
- A Smarter Way of Preventative Maintenance – Free eBook
- Maintenance Planning & Scheduling: Planning for Profitability Video Course
- Plant Hexcellence Article on Performance
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