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Procedia CIRP 52 (2016) 157 160

Changeable, Agile, Reconfigurable & Virtual Production

Use of maintenance performance indicators by companies of the industrial


hub of Manaus
Marcelo Oliveiraa*, Isabel Lopes a, Cristina Rodrigues a
ALGORITMI Research Centre, Deparment of Productiond and Systems, University of Minho, Guimares, Portugal
* Corresponding author. Tel.: +351 910 304 001; E-mail address: maoliveira.0312@gmail.com

Abstract

The study presented in this paper aims to identify and analyze the use of maintenance performance indicators adopted by companies of the
industrial hub of Manaus in Brazil. A questionnaire was developed and sent to the companies of the industrial hub and the received data was
analyzed in order to identify behaviors of companies concerning the use of performance indicators of the maintenance area. The results showed
that the use of performance indicators in maintenance area is low and is dependent on the number of equipment, maintenance staff size, Total
Productive Maintenance adoption and Computerized Maintenance Management utilization. Another finding is that local and international
companies have different behaviors concerning performance evaluation. This study is part of a project that aims proposing different levels of
maturity in this area and identifying the determinants factors to achieve higher levels of efficiency and effectiveness .
2016
2016Published
The Authors. Published
by Elsevier by Elsevier
B.V. This is an openB.V.
access article under the CC BY-NC-ND license
Peer-review under responsibility of the scientific committee of the Changeable, Agile, Reconfigurable & Virtual Production Conference.
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the scientific committee of the Changeable, Agile, Reconfigurable & Virtual Production Conference 2016
Keywords: Maintenance management; Maintenance performance indicator; Maturiry level; Survey order.

1. Introduction However, very few indicators are really used by companies


and its use depends on the level of development of this area.
Maintenance is becoming increasingly important due to the The objective of this research is to empirically study the
new paradigms of production such as Lean Manufacturing, utilization of maintenance indicators and the factors that
having highly impact on product quality and productivity and hinder, encourage or facilitate its use. Through a survey, data
therefore on production costs and customer satisfaction. was collected about the maintenance performance indicators
Maintenance management is defined by EN13306 [1] as all adopted by the maintenance area of companies of the Industrial
activities of the management that determine the maintenance hub of Manaus in Brazil.
objectives, strategies, and responsibilities and implement them Based on the obtained results, hypotheses are tested in order
by means such as maintenance planning, maintenance control to analyze if the adoption of performance indicators is linked
to companies practices or characteristics such as size, number
and supervision, improvement of methods in the organization
of equipment, and use of a computerized maintenance
including economical aspects.
management system (CMMS), among others.
Tsang [2] states that maintenance performance
Therefore, the study seeks to answer the following
measurement is needed for the purpose of giving the
questions:
maintenance manager quantitative information about
maintenance goals that can be reached and what actions are
needed to be taken in order to improve the operation results to x What are the practices concerning maintenance performance
meet the goals. indicators in companies operating in Manaus Industrial hub?
The literature, in the context of maintenance, provides x Is the adoption of performance indicators associated with
various expressions and terminologies for performance different factors, such as the number of equipment or number
indicators. of members of the maintenance team, the adoption of
There are many performance indicators available in maintenance methodology such as Total Productive
EN15341 [3] and in many others publications such as: Gulati Maintenance (TPM) or owning a CMMS that allows the
[4], Campbell [5], Muchiri et al. [6], Wireman [7]. calculation of indicators?

2212-8271 2016 Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the scientific committee of the Changeable, Agile, Reconfigurable & Virtual Production Conference 2016
doi:10.1016/j.procir.2016.07.071
158 Marcelo Oliveira et al. / Procedia CIRP 52 (2016) 157 160

x Is the behavior of local and international companies similar indicators can be incorporated into various CMMS software
concerning performance evaluation? and reports. When a computerized system is adopted, the
calculation of performance indicators is easier and allows
This paper is organized as follows. The second section making analyses and comparisons with the goals.
presents literature review about maintenance performance Many authors believe that the level of maturity and
measurement and performance indicators. The third section organizational culture are determinant factors for the results to
presents data collection and results analysis. The last section be achieved (Marquez & Gupta [14]; Garg & Deshmukh [15];
presents the conclusion. Fernandez & Labib [16]). Bortolotti et al. [17] sustain that
organizational culture is crucial for implementing the Lean
2. Maintenance performance measurement methodology and many authors follow similar statement (Liker
[18]; Atkinson [19]). McDermott [20] shows that cultural
The measurement of performance allows identifying characteristics are significantly related to advanced
performance gaps between current and desired performance manufacturing technology (AMT) and that culture does have a
and provides indication of progress towards closing the gaps connection to this area. Alsyoulf [21] identifies many
(Weber [8]). Following the author, managers must set a clear maintenance practices in Swedish industry but did not analyze
direction, focusing on the company vision and they must adopt whether there were differences related to cultural aspects or
management tools to help them steer the organization and to origin of the companies. Some authors consider that the origin
monitor and evaluate the progress. All functions and levels of of the company can affect the organizational culture (Folan
management require a kind of performance measure, and when [22]; Valmohammadi [23]; Craig [24]). Consequently, it seems
defining these measures, maintenance leaders have to relevant to analyze of the influence of companies origins in
understand its need, precision, source and applicability in order their behaviors concerning performance evaluation.
to indicate those that are most suitable, among many available.
Muchiri et al. [6] sustain that indicators should support the 3. Data collection and analysis
monitoring and control of performance, help the identification
of performance gaps, support learning and continuous This paper presents results from a survey named Study of
improvement, support maintenance actions towards attainment Maintenance Practices Adopted by Companies in the Manaus
of objectives and provide maintenance resources to areas that Industrial Pole. The survey intends to study the organization
affect manufacturing performance. In general, indicators are and maintenance management practices adopted by Manaus
measures or numerical data set about processes that we want to industrial hub companies, in Amazonas state (Brazil).
control and improve. The Industrial hub of Manaus is one of the most modern in
Several authors have discussed the design of performance Latin America, bringing together major industries, local and
indicators, such as Crawford and Cox [9], House and Price international, in the areas of electronics, motorcycles, optical
[10], and all claim that performance measures must be clear, products, computer products, chemical industry.
meaning simple to understand, must have visual impact, should There are approximately 430 companies registered and
focus on improving and be visible to everyone. operating in the industrial hub of Manaus, according to the
The literature provides various expressions and terminology official document provided in 2014 by Suframa [25], which is
for performance indicators. Wireman [7] proposed a set of the agency that manages the industrial hub of the region.
performance indicators to support maintenance management The questionnaire was sent by email to all companies
related to preventive maintenance, purchasing, workflow registered in the industrial hub and was addressed to the main
systems, CMMS, asset management systems (EAM), training responsible of each managing maintenance department. The
technical and interpersonal, predictive maintenance, sample has a total of 72 respondents, resulting in a response
operational involvement, Reliability Centered Maintenance rate of 16.74%.
(RCM), TPM, statistical financial optimization and continuous The maintenance managers position was mainly
improvement. maintenance coordinator or maintenance leader (52.78%) and
EN15341 [3] highlights that maintenance performance is the maintenance supervision (27.78%). Subsequently, based on the
result of complex activities, which can be evaluated by company activity sector, each respondent company was
appropriate indicators to measure actual and expected results, classified in one area of activity: 1) electrical & electronic; 2)
grouping them in economic, technical and organizational metallurgical/metal-mechanic, 3) automotive industry &
indicators. components, 5) plastics & molding injection, 7) food, 8)
Arts et al. [11] discuss performance indicators for the personal care and 9) others. The results are summarized in
evaluation of the maintenance activities indicating that Table 1.
performance measurement is needed on the strategic, tactical
and operational levels.
According to Muchiri et al. [12], companies customize
indicators to fit their industrial requirements. Therefore, the
activity sector, the amount of equipment, the maintenance staff Table 1. Respondents position (n=72)
size may influence the behaviours of companies concerning the Maintenance Position Percentage
use of performance indicators.
Coordinator or Leader 52.78%
Kumar et al. [13] indicate that predefined performance
Supervisor 27.78%
Marcelo Oliveira et al. / Procedia CIRP 52 (2016) 157 160 159

Chief 9.72% 3- The technical team knows how to interpret


the values of management indicators adopted 59.72% 40.28%
Manager 6.94%
by the maintenance area?
Director 2.78%

Regarding the frequency of utilization of performance


For the company characterization, each respondent also indicators by maintenance (1-never to 5-very often), companies
indicated the number of equipment under maintenance typically use more frequently availability, downtime and
responsibility and the maintenance team dimension (both were economic indicators to support maintenance staff in improving
closed questions with several answer options). Table 2 its efficiency and effectiveness. Concerning MTBF (Mean
summarizes the company characterization. Time Between Failures) and MTTR (Mean Time to repair)
Table 2. Company characterization (n=72)
despite been indicators that allow to monitor the results and
efficiency of the maintenance sector, the gathered date indicate
Characteristics N % that they are weakly used. Table 4 summarizes results.
Activity Sector To analyse the impact of the performance indicators and of
Electrical & Electronics 27 37.50% the improvement initiatives in the area, the respondents
Metallurgical/ metal-mechanic 12 16.67% indicated their level of agreement (1-completely disagree to 5-
Automotive industry & components 12 16.67% completely agree) with statements related to downtime,
Plastics & Molding injection 10 13.89% resolution time and waiting time.
Food 5 6.94%
Table 4. KPI frequency of utilization (by average in decreasing order)
Personal care 3 4.17%
Others 3 4.17% KPI Min Max Average Standard
Deviation
Number of equipment under maintenance
responsibility Downtime 1 5 3,38 1,596
Less than 20 6 8.33%
Availability 1 5 3,13 1,661
[20-50[ 16 22.22%
Economic 1 5 3,13 1,565
[50-100[ 12 16.67%
MTTR by machine 1 5 2,88 1,618
[100-200[ 11 15.28%
OEE 1 5 2,63 1,69
[200-400[ 15 20.83%
MTBF by machine 1 5 2,58 1,563
Over 500 12 16.67%
MTTR by line 1 5 2,56 1,6
Maintenance team dimension
Backlog 1 5 2,42 1,499
Less than 5 15 20.83%
[5-10[ 24 33.33% MTBF by line 1 5 2,08 1,451
[10-20[ 16 22.22% MWT 1 5 1,94 1,331
[20-40[ 9 12.50%
Over 40 8 11.11% From the time on which a company uses performance
Origin of the company indicators, both its proper management and the consequent
National (Brazilian) 31 43.06% improvement in the maintenance results are expected. A
International (Not Brazilian) 41 56.94% positive impact on the maintenance team activities is expected
as a result of the effort in this area such as the decrease of
The questionnaire began by accessing information about the equipment downtime due to failures, the reduction of waiting
performance management. More specifically companies were time and of the period for the resolution of a certain problem,
asked to indicate if they use maintenance performance increasing availability. Results are presented in Table 5.
indicators (Yes/No) and if indicators were released to the
Table 5. Maintenance performance: the impact of performance indicator
technical team (Yes/No). According to the data obtained in the
survey, the majority of the companies manage the maintenance Activity Min Max Average Standard
Deviation
area based on performance indicators (77.78%).
The results of maintenance indicators to the maintenance The downtime due to
stoppages is considered 1 5 2,99 1,136
staff were disclosed by 73.61% of the respondents companies. high
Besides, 59.72% of the maintenance staff knows how to The resolution time of
interpret the values of performance indicators adopted by the malfunctions is 1 5 2,99 0,985
considered high.
company's maintenance area. When considering only those
The waiting time for
companies that use performance indicators, 94.64% of them starting a repair is 1 5 2,71 1,144
disclose results. The results are summarized in Table 3. considered high.

Table 3. Performance indicators use and disclosure


In addition to descriptive statistics, whenever possible we
Questions used in the research Yes No test hypotheses of independence between the response to a
1- The performance of the maintenance area given research question and the answers to questions related to
77.78% 22.22%
is managed based on performance indicators? the characterization of the company (industrial sector, number
2- Maintenance indicators are released to the
73.61% 26.39% of equipment under maintenance responsibility, maintenance
technical team?
staff size, origin of the company), the use of maintenance
160 Marcelo Oliveira et al. / Procedia CIRP 52 (2016) 157 160

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