Aberdeen Group’s latest benchmark report, “Asset Performance Management: Driving Excellence through a Reliability Approach,” has correlated specific business capabilities and technology enablers to best-in-class operational performance. For the purposes of this study, Aberdeen has evaluated and classified manufacturers based on three key performance indicators: Overall Equipment Effectiveness (OEE), complete and on-time shipments and unscheduled asset downtime. Best-in-Class manufacturers are defined as the top 20% of performers in a weighted average across the aforementioned three KPIs, and results show that Best-in-Class companies are performing at the following levels:
- 89% OEE (30% improvement as compared to laggards)
- 97% complete and on-time shipments (17% improvement as compared to laggards)
- 2% Unscheduled asset downtime (22% improvement as compared to laggards)
“The main goal of Asset Performance Management is to synchronize operations, maintenance, IT and corporate goals to improve profitability and shareholder value. This requires visibility into all aspects of the asset lifecycle in addition to having real-time information about the asset condition,” says Mehul Shah, research analyst. “Best-in-class companies are leveraging dashboards, analytics, risk management and remote-monitoring devices to ensure that asset and production information is available to their employees and is integrated with business systems to enable timely and informed decisions. The report provides a roadmap for organizations planning to implement a successful asset performance management initiative based on practices adopted by best-in-cass companies.”
Based on the above findings, Shah adds the following recommendations to achieve best-in-class performance:
- Establish support from the executive management for asset performance strategies across the enterprise.
- Invest in Reliability Centered Maintenance (RCM) and Condition-Based Maintenance (CbM) to proactively monitor and manage asset performance.
- Invest in analytics to truly understand the value of asset and production data and enable effective decisions.
- Align operations performance to financial and corporate performance by integrating EAM solutions with business solutions such as Business Intelligence (BI) and Enterprise Resource Planning (ERP).
A complimentary copy of this report is made available due in part to the following underwriters: IBM Maximo, Infor, Management Resources Group (MRG) Inc. and Oniqua. To obtain a complimentary copy of the report, visit http://www.aberdeen.com/link/sponsor.asp?spid=30410182&cid=5377.
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