CMRP Performance Indicator Management 2 — Questions and Answers
Question 1: What is the difference between leading and lagging maintenance KPIs?
- Leading are more important
- Leading predict future performance; lagging measure past results (Correct answer)
- Lagging are always financial
- There is no difference
Correct answer: Leading predict future performance; lagging measure past results
Leading indicators measure proactive activities driving future results; lagging indicators measure outcomes that have already occurred.
Leading indicators include PM completion rate, schedule compliance, and training hours. Lagging indicators include availability, MTBF, MTTR, and unplanned downtime. A balanced set includes both types.
Question 2: How is equipment availability calculated?
- Run hours divided by operators
- Uptime divided by uptime plus downtime, as a percentage (Correct answer)
- Repairs divided by equipment count
- Output divided by target
Correct answer: Uptime divided by uptime plus downtime, as a percentage
Availability = Uptime / (Uptime + Downtime) x 100%.
Inherent Availability considers only corrective downtime. Achieved Availability includes PM downtime. Operational Availability includes all downtime including logistics and administrative delays.
Question 3: What is schedule compliance and why is it important?
- Equipment meeting production schedules
- The percentage of scheduled maintenance work completed within the scheduled week (Correct answer)
- Regulatory compliance rate
- Spare parts delivery timeliness
Correct answer: The percentage of scheduled maintenance work completed within the scheduled week
Schedule compliance measures the percentage of scheduled work actually completed as planned.
Best-in-class target is 90% or higher. High schedule compliance enables reliable production planning since operations can count on equipment being available after maintenance.
Question 4: What is the balanced scorecard approach to maintenance performance?
- To balance the budget
- To measure across financial, customer, process, and learning perspectives (Correct answer)
- To count balanced equipment
- To equalize workload
Correct answer: To measure across financial, customer, process, and learning perspectives
A balanced scorecard evaluates performance from multiple perspectives to prevent overemphasis on any single dimension.
Financial perspective includes maintenance cost per RAV. Customer/Operations includes availability and response time. Internal Process includes PM compliance. Learning and Growth includes training hours and skills coverage.
Question 5: What is Mean Time To Repair (MTTR) and how does it differ from Mean Time To Restore?
- They are identical
- MTTR measures active repair time; Mean Time To Restore includes all downtime from failure to full operation (Correct answer)
- MTTR is always longer
- Mean Time To Restore only applies to IT
Correct answer: MTTR measures active repair time; Mean Time To Restore includes all downtime from failure to full operation
MTTR measures active repair time, while Mean Time To Restore includes diagnosis, waiting, logistics, and restart time.
Total downtime includes detection, diagnosis, waiting for parts and resources, active repair, testing, and restart. Focusing only on MTTR misses significant improvement opportunities in other downtime components.
Question 6: What is the purpose of maintenance cost tracking by cost type?
- To satisfy tax requirements
- To understand spending distribution across labor, materials, contractors, and overhead (Correct answer)
- To calculate bonuses
- To determine product pricing
Correct answer: To understand spending distribution across labor, materials, contractors, and overhead
Tracking costs by category reveals spending patterns and identifies where optimization will be most effective.
Typical distribution is 30-40% labor, 30-40% materials, 15-25% contractors, 5-10% overhead. Best-in-class organizations further separate value-adding and non-value-adding maintenance spending.
CMRP Performance Indicator Management 2
What is the difference between leading and lagging maintenance KPIs?