Here are three of KPIs that can help companies of all sizes assess and improve MRO performance.
Maintenance, repair and operations (MRO) spending continues to rise. One quarter of enterprises increased their MRO budgets for 2018, a step 22 percent took the year prior, according to market analysis from Peerless Research and Logistics Management. Why? Organizations are intent on improving asset reliability and performance by lending MRO teams the resources they need to effectively care for and optimize mission-critical equipment.
However, investment alone cannot catalyze MRO transformation. Businesses intending to improve in this area must implement various key performance indicators (KPIs) designed to lend operational leaders insight into MRO effectiveness and ensure the tools and systems they implement make an impact. Here are three KPIs that can help companies of all sizes assess and improve MRO performance:
Inventory accuracy: This metric measures the number of items listed as in-stock against the total found within spare part and raw material caches. Manufacturing.net reported that this figure should be in the 95 percent range.
Slow-moving and obsolete inventory: These associated KPIs help MRO stakeholders pinpoint items in inventory that are rarely used or are no longer mechanically fit for installation. According to Modern Materials Handling, 10 percent is the optimal target for both metrics.
Amount spent on emergency purchases: This performance indicator tells operational leaders how much of the budget is going toward part or material purchases made at the moment of need. These costs should be as low as possible.
Businesses that incorporate these KPIs into their MRO efforts can gain insight into mission-critical workflows and make changes that increase productivity and boost the bottom line.
Here at RFgen, we equip companies with the data-collection solutions they need to track KPIs like these. Connect with us today to learn more.