Implementing The Maintenance Scorecard

The implementation of the MSC needs to be flexible and inclusive. While it is best applied from an organizational standpoint it can also be applied at a departmental level, a project specific level or an equipment specific level. In fact, even once the MSC has been developed and embedded within an organization, there is often a need to develop specific scorecards for specific initiatives, ensuring always that these are tied to the original MSC. The three steps to implementing the MSC are development, creation and embedding.

Development

As with any change to the way that we do things there is first a need to change the way that people think about what they are doing. This need recognizes one of the underlying truths regarding asset management. Although the results of work in this area are seen in the safe performance and reliability of machinery, asset management is about the management of people. The communication, interaction and cooperation between people in different roles throughout the organization remains the number one driver of good practices and of improvement. The development phase of the approach requires participants to understand how to create a focused indicator structure, recognize what are the common myths in measuring maintenance and how to ensure the benefits of doing so.

The development phase begins by defining the desired states of performance required to achieve corporate goals and objectives. The outcome of these actions is a series of quantified measures, goals and statements that represent the corporate objectives. At the corporate level an array of pressures, market forces and opportunities need to be analyzed. Among these are such areas as current and planned market share, current and possibly future regulation and legislation, defining tolerable risk levels, and the interaction with other corporate strategic plans.

The graphic in Figure 1.7 shows the dramatic effect of involvement of other functional areas within the organization. It is taken from an EAM benchmark study conducted by Aberdeen group in 2002 and has particular relevance to the themes within this book. The implementation of the MSC in a cross-functional manner is key to achieving the benefits of an accurately targeted organization, as well as the full achievement of the benefits that are planned.

This leads directly to the strategic level of indicator creation. At this point strategic plans are put together to ensure that the goals and objectives can be achieved. This step often acts as a reality check to show where there are differences between the physical reality and the corporate vision. It is also the level where the majority of detail is required.

This plan is usually a combination of both long-term and short-term elements. The strategic level development of indicators can relate to departmental levels, national or regional levels, or even the plant level. Much of this will depend on the size and nature of the organization. It can also cover such areas as-

-          details of the performance of crucial asset groups, systems or equipment

-          equipment or asset condition and investment levels that are targeted

-          the detail of legal and regulatory requirements

-          desired outcomes and measures

This section is also best managed via a combination of strategic analysis work and facilitated workshop sessions. In keeping with the focus on cross-functional implementation, a typical workshop for the development of the strategic level indicators and strategy may include-

-          Maintenance managers

-          Maintenance engineers

-          Operations supervisors

-          Craft level workers from maintenance and operations

-          Inventory management representatives

-          A representative from the company IS or IT department

Attempting to carry out this work in isolation can generate difficulties for an organization, particularly in the later embedding processes essential for change of corporate thinking and acceptance. However the MSC can also be implemented as a stand-alone entity focusing specifically on the desired performance requirements of a work team, specific plant or a piece of equipment.

One of the desired outcomes of this process is that of inter-departmental and inter-discipline awareness throughout the organization. The value of this cannot be underestimated, particularly in strongly integrated departments.

Among the outcomes of this stage are the following –

-          Development of causal links between the competitive advantages desired and the strategic actions that contribute to these

-          An understanding of the work to be done to achieve these indicators and a plan of the resources and timeframes to accomplish this work

-          Understanding of what indicators are to be used by which roles in the organization. This needs to be accompanied by a strong focus on the possible benefits of realizing these competitive advantages, with a view to both the financial and non-financial benefits.

-          An understanding of any processes, previously a part of the organization, that may no longer be required

-          A detailed list and detailed understanding of the Strategic Assets and Functional Level Indicators that will be required to ensure the MSC is implemented throughout the company. Functional, or tactical, indicators are the resources that will be needed to achieve the strategies set forth in the development phase.

Creation

The creation phase of the project needs to be managed in the same manner as any improvement project. During this phase much of the work defined in the development stage is carried out. In particular the creation phase focuses on the definitions that are gained for the information portfolio that is required to sustain the MSC. This is a missing part of many corporations’ approach to indicators and is an integral part of the structured implementation approach.

Throughout the development stage there is an understanding gained of what information is going to be needed in order to adequately represent the measures required, within the timeframes required and in a manner that is accessible to the roles that need to see it. This is further defined in the development stages by the adoption of strategy initiatives.

These initiatives may include putting in place business and data management processes for the capture of the information required. They may also include the initiation of reliability growth or business improvement initiatives. Each of which will need to be planned, potentially with a related scorecard, and implemented

This phase can typically include-

-          Report creation, implementation of reporting software if necessary.

-          Staged implementation of administrative processes and reliability initiatives. This part of the entire plan is a crucial element to the success or failure of the overall improvement initiative.

-          Preparation of material for the embedding process.