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Straight Line Depreciation Formulas & Examples Straight line depreciation is the most common method that describes how the value of an asset decreases over time. Depreciation is an accounting term…
Maintenance management is the process of maintaining a company’s assets and resources. The purpose is to ensure that production proceeds efficiently and that resources are used effectively. Maintenance management is…
The most common ISO standards to follow for manufacturing facilities are ISO 55000, 55001, and 55002. All three of these standards require an asset management system. Such…
A bathtub curve is a visual representation of the failure rate of a product or group of products over time. By plotting the occurrences of failure over time, a bathtub…
When it comes to equipment failure, there are a few interesting trends that we see. In particular, we can see some of the challenges of effective reliability planning. Causes of…
In maintenance, a turnaround is an event where one or more assets are temporarily removed from service so that maintenance tasks can be performed. While specific turnaround procedures may…
You should budget approximately 2% to 5% of your total replacement asset value (RAV). This metric, known as %RAV, is calculated as a proportion of your facility’s value and spending.
A fixed asset is one of two major categories of physical property for a company and includes those items that remain in one location during business operation. Fixed assets do…
Some of the most common root cause analysis mistakes involve poor definitions or focusing too much on the wrong thing. Others simply ignore root causes entirely, rendering…
For root cause analysis to be effective, you need to dig deep. This ultimately comes down to having the right resources present and ready and asking “Why?”…
To measure performance in inventory management, one of the most common metrics to use is “number of inventory turns.” This number is calculated using the ratio of the value of…
The collection of equipment failure data over time allows for proper asset management and life-cycle analysis. From historical equipment failure data, you…
Of the numerous RCA methods used, the one you choose depends on the depth and nature of the problem. Factors such as the number of contributing causes…
In order to decide if it is time to repair or replace an asset, you must compare the current value of the asset with the cost of repair. Simply, when…
Equipment depreciation is a measure of how much a piece of equipment drops in value each year. As you calculate the depreciation of your assets, you…
An asset life cycle refers to the stages involved in the management of an asset. The life cycle of an asset starts with the planning…
While both availability and reliability metrics measure uptime or the length of time that an asset is operational, they differ in how the interval…
The SMRP distinguishes between idle time and downtime with these definitions: Idle time is the time in which an asset is either waiting to…
To get the very most out of your MRO (maintenance, reliability, and operations) inventory, you need to track data that reflects costs, turnover, workflow, and …
Criticality is a measure of how important an asset is to your process. The more critical the asset, the more of an impact it will have if…
Overall equipment effectiveness (OEE), the most common metric used to characterize the performance of a plant, is expressed as a percentage of the total planned…
Maintenance metrics are used to measure and quantify the level of achievement of a particular asset or plant process. Determining the state of the plant using…
There are numerous ways to improve your equipment uptime, each of which has to do with streamlining your maintenance processes. Improve Preventive Maintenance First off, if you’re not doing…
Manufacturing is a bit of a different beast to facilities management, which means that the most useful metrics and KPIs to track are also somewhat different. 1. Downtime Downtime…
Breakdown time is downtime that results from the equipment breaking down. You’d start counting from the time the asset fails to the time you manage to get it up and…
The maintenance unit cost is a snapshot of the total maintenance cost required to manufacture a standard unit of production during a set period of time. Although…
When implementing total productive maintenance (TPM), I think it’s best to gradually phase it in. The reason for this is it will essentially enable an…
The best way to use failure codes is a systematic one: start with analyzing the reasons for failures, code this information in a consistent way to make…
The Society for Maintenance & Reliability Professionals (SMRP) identified five pillars of maintenance and reliability to help facility managers create a framework for their businesses. The…
Although this is a complex question that can involve many metrics to answer accurately, it’s important to start setting world-class reliability goals to foster continuous improvement. One such goal is…