Leading With Data· a Bicycle Guide
Guide highlights

The maintenance department is transformed from a reactive cost center into a proactive, strategic partner that drives profitability. Equipment is reliable, downtime is minimized, and production capacity is maximized without new capital expenditure.

  • Develop a comprehensive Maintenance/Asset Management Strategy linked to corporate goals.
  • Build the foundation by implementing an effective Preventive Maintenance (PM) program to move from reactive to proactive work.
  • Systematically implement and measure the core support functions: Stores & Procurement, Work Flow Systems, CMMS, and Training.

Book profile

Developing Performance Indicators for Managing Maintenance

One book, placed in its field — what Wireman, Terry's book gets right, where it goes further than the rest, and what the rest of the field adds.

Edited by Mike West

Choose a reading path or an exercise

Suggested sections

Choose a starting point below. Each link opens a section of this guide.

Do this now — Preventive Maintenance Program

  1. Track PM compliance as tasks completed within the allowed window divided by tasks scheduled, reported by asset criticality.
  2. Pair compliance with an outcome indicator such as repeat failures on PM-covered assets.
  3. Count the corrective work orders each PM inspection generates, and use them to prune or adjust task content.
  4. Review task frequencies yearly against failure history.

Then continue in Preventive Maintenance Program.

Edition 1·Updated 2026-10-03·22 min read

Sources

About this book

An overview of the book, with source information for further reading.

A comprehensive guide for managers to transform their maintenance department from a reactive cost center into a proactive, strategic driver of corporate profitability by implementing a hierarchical system of best practices and performance indicators.

More on this book

This book argues that maintenance is a core competency and a strategic market advantage, not just a necessary evil. It provides a comprehensive framework for managers to move their maintenance organizations from a reactive, costly 'fix-it-when-it-breaks' model to a proactive, value-adding asset management function. The book details a pyramid of maintenance best practices—from foundational preventive maintenance to advanced statistical financial optimization—and equips readers with specific, hierarchical performance indicators to measure, manage, and continuously improve every facet of maintenance. By implementing this system, organizations can dramatically increase equipment uptime and efficiency, reduce operational expenses, and ultimately boost overall profitability and competitive standing.

Movement I

Orient

In this part

What this book claims, and who wrote it.

  • — The book's one-line promise
  • — The author and where the book stands

A comprehensive guide for managers to transform their maintenance department from a reactive cost center into a proactive, strategic driver of corporate profitability by implementing a hierarchical system of best practices and performance indicators.

The need-to-know

A structured, hierarchical system of performance indicators is essential to manage and improve the maintenance function effectively. Moving from reactive to proactive maintenance (aiming for an 80/20 proactive-to-reactive work ratio) is the foundational step that unlocks significant cost savings and capacity improvements. Maintenance improvement is a systematic journey, represented by a pyramid of practices, starting with a strong Preventive Maintenance (PM) program and building up to advanced techniques like RCM and Financial Optimization.

About this guide

The guide describes these challenges, steps and possible outcomes.

Who it is for

A manager, plant engineer, or executive responsible for plant operations or maintenance who wants to stop being seen as a cost center and instead become a key contributor to the company's profitability and competitive advantage. They want to control maintenance costs, increase equipment uptime, and prove their department's value.

Challenges

  • In practice · The maintenance function is reactive, chaotic, and expensive. Equipment breaks down unexpectedly, causing costly production delays. The department is seen as a 'necessary evil,' its budget is constantly under threat, and they lack the data to justify their actions or investments.
  • For the reader · The manager feels frustrated, powerless, and constantly in 'fire-fighting' mode. They feel unappreciated and unable to demonstrate the true value of their team's work, worrying that their department is a drain on resources and that their company is falling behind competitors.

Steps to consider

  1. 1Develop a comprehensive Maintenance/Asset Management Strategy linked to corporate goals.
  2. 2Build the foundation by implementing an effective Preventive Maintenance (PM) program to move from reactive to proactive work.
  3. 3Systematically implement and measure the core support functions: Stores & Procurement, Work Flow Systems, CMMS, and Training.
  4. 4Advance to higher-level practices like Predictive Maintenance, RCM, and TPM to optimize asset performance.
  5. 5Use a hierarchical system of performance indicators (Functional -> Tactical -> Efficiency/Effectiveness -> Financial -> Corporate) to measure progress and link maintenance activities to bottom-line results.

Risks

The maintenance department remains a chaotic, expensive, and reactive 'fire-fighting' unit. Unexpected equipment breakdowns continue to cripple production and inflate costs.

Intended result

The maintenance department is transformed from a reactive cost center into a proactive, strategic partner that drives profitability. Equipment is reliable, downtime is minimized, and production capacity is maximized without new capital expenditure.

Set the record straight

What this book sets straight

The common beliefs this book pushes back on.

The myth

Maintenance is a necessary evil, a non-value-added cost center to be minimized.

The reality

Maintenance is a core competency and a strategic market advantage that directly increases profitability by improving capacity and reducing operational costs.

The myth

The best way to save money on maintenance is to cut the maintenance budget and staff.

The reality

The best way to save money is to invest in proactive maintenance practices, which are 2-4 times more cost-effective than reactive maintenance and prevent much larger costs associated with downtime and lost production.

The myth

If equipment is running, everything is fine.

The reality

Equipment might be running at significantly reduced efficiency, leading to massive hidden losses that proactive maintenance and performance monitoring can uncover and correct.

Movement II

Map

The book's main ideas and how they connect.

In this part

Developing Performance Indicators for Managing Maintenance's own model — and how it sits inside its field.

  • — 11 constructs the book works with
  • — Where it agrees with the field, exceeds it, or fills a gap
What You Design4· the levers you pull
Preventive Maintenance ProgramWork Flow System (Planning & Scheduling)Stores and Procurement SystemAdvanced Maintenance Practices (PdM, RCM)
What You Do2· the behaviours that follow
Maintenance ProactivenessMaintenance Workforce Efficiency

The constructs

Preventive Maintenance Program

The degree to which a systematic program of scheduled inspections, lubrications, adjustments, and proactive component replacements is implemented to eliminate or reduce wear on assets and prevent unplanned failures. This is the foundational element of a proactive maintenance strategy.

Work Flow System (Planning & Scheduling)

The systematic process of requesting, planning, scheduling, executing, and tracking all maintenance activities through a work order system to optimize the use of labor, materials, and time, thereby eliminating waste and non-productive time.

Stores and Procurement System

The effectiveness and efficiency of the function responsible for obtaining, storing, and providing the correct spare parts and materials at the right time for asset repairs and maintenance, aiming for high service levels without excessive inventory.

Advanced Maintenance Practices (PdM, RCM)

The application of higher-level maintenance strategies such as Predictive Maintenance (PdM) using technology to forecast failures, and Reliability-Centered Maintenance (RCM) to optimize PM/PdM tasks based on failure consequences and criticality.

Maintenance Proactiveness

The degree to which maintenance work is performed in a planned, scheduled mode rather than as an immediate reaction to an unexpected failure or breakdown. It is the opposite of reactive maintenance or 'fire-fighting'.

Maintenance Workforce Efficiency

The proportion of a craft technician's time spent on direct, value-adding maintenance work ('wrench time'), as opposed to non-productive activities like waiting for parts, travel, or getting instructions. This is a primary goal of planning and scheduling.

Equipment Availability (Uptime)the outcome

The percentage of time that an asset or piece of equipment is capable of performing its designed function when it is required for service. It is the inverse of downtime.

Asset Performance Efficiency

The degree to which an asset performs at its designed speed, capacity, and rate of output while it is running. This captures losses from running at reduced speeds or experiencing minor stoppages.

Maintenance Cost Reduction

The reduction in total direct expenditures for maintenance activities, including labor, materials, and contracting, achieved by eliminating waste and moving from expensive reactive work to more cost-effective planned work.

Overall Equipment Effectiveness (OEE)

A composite measure of asset performance that combines availability, performance efficiency, and quality rate into a single metric, providing a comprehensive view of how effectively an asset is being utilized.

Corporate Profitability

The ultimate financial gain of the organization, resulting from increased revenue (via increased production capacity) and decreased expenses (via cost reductions). This is the final business outcome of an effective maintenance strategy.

How they connect (13)
  • Preventive Maintenance Program → predicts → Maintenance Proactiveness
  • Work Flow System (Planning & Scheduling) → predicts → Maintenance Proactiveness
  • Work Flow System (Planning & Scheduling) → predicts → Maintenance Workforce Efficiency
  • Stores and Procurement System → predicts → Maintenance Workforce Efficiency
  • Maintenance Proactiveness → predicts → Equipment Availability (Uptime)
  • Maintenance Proactiveness → predicts → Maintenance Cost Reduction
  • Maintenance Workforce Efficiency → predicts → Maintenance Cost Reduction
  • Advanced Maintenance Practices (PdM, RCM) → predicts → Equipment Availability (Uptime)
  • Advanced Maintenance Practices (PdM, RCM) → predicts → Asset Performance Efficiency
  • Equipment Availability (Uptime) → predicts → Overall Equipment Effectiveness (OEE)
  • Asset Performance Efficiency → predicts → Overall Equipment Effectiveness (OEE)
  • Overall Equipment Effectiveness (OEE) → predicts → Corporate Profitability
  • Maintenance Cost Reduction → predicts → Corporate Profitability

Where this book diverges from the corpus

  • lags The field treats RCM as its own construct, with function, failure-mode and consequence analysis, and puts PdM under its PM/PdM program, which is more rigorous than the book's bundled construct.
  • lags The field takes a fuller view of cost, including downtime and ownership cost and service achieved per dollar, where the book focuses on direct spend reduction.

Movement III

Master

Explore the book's ideas, examples and practical tools.

In this part

How the author makes the case — section by section, with the book's own tools.

  • — 11 sections, in the book's order
  • — The book's frameworks, checklists, and worked cases
Maintenance Workforce Efficiency
strong · 1 source
  • Developing Performance Indicators for Managing Maintenance
In this section

This section shows how to measure wrench time and the causes of lost craft time. It gives you ways to turn productivity into a diagnostic rather than a blame tool.

Maintenance Workforce Efficiency

The proportion of a craft technician's time spent on direct, value-adding maintenance work ('wrench time'), as opposed to non-productive activities like waiting for parts, travel, or getting instructions. This is a primary goal of planning and scheduling.

Why it matters. Typical wrench time is well below half the shift, so even modest recovery adds capacity worth more than hiring, but only if you know where time leaks.

Myth

Low wrench time means technicians are not working hard enough.

Reality

Most lost time comes from system failures: missing parts, unclear instructions, travel, and waiting for permits or equipment. Measuring delay categories reveals management-controlled causes that no individual effort can fix.

Tools for this
The least you need to know
  • Wrench time is a diagnostic of the planning and stores systems, not of technician effort.
  • Categorizing delays tells you which process owner must act.
  • Work sampling gives credible data; self-reported timesheets seldom do.
Master this◆ Paid

The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Wrench-Time Delay and Planning Payoff Log” tool. Included when you buy this guide.

The rest of this section

the full written section · 4 how-to steps · 2 pitfalls to watch for · 4 tools for this section. Included when you buy this guide.

Grounded in: Developing Performance Indicators for Managing Maintenance

Equipment Availability (Uptime)
strong · 1 source
  • Developing Performance Indicators for Managing Maintenance
In this section

This section covers how to define and calculate availability so that it is comparable across assets and trustworthy to operations. It explains the choices that determine what counts as downtime.

Equipment Availability (Uptime)

The percentage of time that an asset or piece of equipment is capable of performing its designed function when it is required for service. It is the inverse of downtime.

Why it matters. If availability is defined loosely, reported uptime climbs while production still suffers, and maintenance loses credibility with operations.

Myth

High availability means the asset is performing well.

Reality

Availability only says the asset was able to run; it ignores slow running and defective output, which sit in other OEE components. An asset can show 95% availability while producing far below its rate.

Tools for this
The least you need to know
  • Fix the downtime definition with operations before reporting any availability figure.
  • Pair availability with MTBF and MTTR to see whether failures or repairs drive losses.
  • Report bottleneck assets individually so averages do not mask them.
Master this◆ Paid

The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Asset Uptime and Downtime Cost Sheet” tool. Included when you buy this guide.

The rest of this section

the full written section · 4 how-to steps · 2 pitfalls to watch for · 5 tools for this section. Included when you buy this guide.

Grounded in: Developing Performance Indicators for Managing Maintenance

Asset Performance Efficiency
strong · 1 source
  • Developing Performance Indicators for Managing Maintenance
In this section

This section explains how to capture speed and minor-stoppage losses that availability misses. It shows how to build the indicator from actual versus designed rate.

Asset Performance Efficiency

The degree to which an asset performs at its designed speed, capacity, and rate of output while it is running. This captures losses from running at reduced speeds or experiencing minor stoppages.

Why it matters. Reduced-speed running and micro-stops can quietly cost as much output as breakdowns, yet no maintenance record flags them unless you measure them deliberately.

Myth

If the machine is running, the performance loss is an operations issue, not a maintenance one.

Reality

Wear, misalignment, sensor drift, and poor lubrication cause slowdowns and jams, so maintenance condition drives much of this loss. Treating it as an operations matter leaves a chronic, invisible loss unaddressed.

Tools for this
The least you need to know
  • Performance efficiency compares actual rate with a defensible ideal rate.
  • Minor stoppages and slow running often trace back to equipment condition that maintenance can fix.
  • Automated rate capture is more reliable than operator recall.
Master this◆ Paid

The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Asset Efficiency Loss and Payback Sheet” tool. Included when you buy this guide.

The rest of this section

the full written section · 4 how-to steps · 2 pitfalls to watch for · 5 tools for this section. Included when you buy this guide.

Grounded in: Developing Performance Indicators for Managing Maintenance

Maintenance Cost Reduction
strong · 1 source
  • Developing Performance Indicators for Managing Maintenance
In this section

This section covers how to measure maintenance cost so that savings reflect real efficiency rather than deferred work. It sets out indicators that normalize spend and expose its composition.

Maintenance Cost Reduction

The reduction in total direct expenditures for maintenance activities, including labor, materials, and contracting, achieved by eliminating waste and moving from expensive reactive work to more cost-effective planned work.

Why it matters. Cutting spend by deferring necessary work raises later failure costs, so a cost target without quality indicators can destroy value while looking like success.

Myth

Lower maintenance spend is always evidence of better maintenance.

Reality

Spend falls just as easily from neglect, and the bill returns as breakdowns and lost output. Meaningful cost reduction shows as a lower cost per unit of output or per asset value, with a rising planned share and stable availability.

Tools for this
The least you need to know
  • Normalize cost to asset value or output before claiming a reduction.
  • A falling spend with rising backlog or failures signals deferral, not savings.
  • Overtime and emergency purchase share show where avoidable cost sits.
Master this◆ Paid

The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Maintenance Cost Reduction Baseline and Target Sheet” tool. Included when you buy this guide.

The rest of this section

the full written section · 4 how-to steps · 2 pitfalls to watch for · 9 tools for this section. Included when you buy this guide.

Grounded in: Developing Performance Indicators for Managing Maintenance

Overall Equipment Effectiveness (OEE)
strong · 1 source
  • Developing Performance Indicators for Managing Maintenance
In this section

This section shows how to use OEE as a composite without letting it become a vanity number. It covers the build from availability, performance, and quality, and how to read losses within it.

Overall Equipment Effectiveness (OEE)

A composite measure of asset performance that combines availability, performance efficiency, and quality rate into a single metric, providing a comprehensive view of how effectively an asset is being utilized.

Why it matters. A single OEE percentage can guide effort toward the biggest loss category, or mislead teams into optimizing the wrong factor if its components are not examined.

Myth

A higher OEE percentage is a sufficient goal, and plants should simply compare OEE across sites.

Reality

OEE is only comparable when ideal rates and loss definitions are the same, and the aggregate hides which factor is failing. The value lies in decomposing it into availability, performance, and quality losses to choose the next action.

Tools for this
The least you need to know
  • Use OEE for its component breakdown, since the headline hides where loss occurs.
  • Consistent definitions of ideal rate and planned time are required before any comparison.
  • Focus OEE effort on bottleneck assets where gains become output.
Master this◆ Paid

The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “OEE Loss Ledger and Calculation Sheet” tool. Included when you buy this guide.

The rest of this section

the full written section · 4 how-to steps · 2 pitfalls to watch for · 2 tools for this section. Included when you buy this guide.

Grounded in: Developing Performance Indicators for Managing Maintenance

Corporate Profitability
strong · 1 source
  • Developing Performance Indicators for Managing Maintenance
In this section

This section explains how to connect maintenance indicators to financial results without overclaiming. It shows how to frame the revenue and expense effects of better asset performance.

Corporate Profitability

The ultimate financial gain of the organization, resulting from increased revenue (via increased production capacity) and decreased expenses (via cost reductions). This is the final business outcome of an effective maintenance strategy.

Why it matters. Maintenance earns budget when its effect on margin is credible, and loses it when claims are inflated or untraceable to the income statement.

Myth

Any profit improvement after a maintenance initiative can be credited to maintenance.

Reality

Profit moves with prices, volumes, and costs unrelated to maintenance, so credit requires a traceable chain: extra output sold, or spend avoided, tied to measured uptime and cost changes. Capacity only generates profit if the market will buy the added output.

Tools for this
The least you need to know
  • Link maintenance to profit through margin on additional sold output plus verified cost savings.
  • Gains from added capacity only count where demand exists.
  • Agree the valuation method with finance to keep claims credible.
Master this◆ Paid

The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 6 failure modes, and the “Maintenance-to-Profit Case Sheet” tool. Included when you buy this guide.

The rest of this section

the full written section · 4 how-to steps · 2 pitfalls to watch for · 2 tools for this section. Included when you buy this guide.

Grounded in: Developing Performance Indicators for Managing Maintenance

Preventive Maintenance Program
strong · 1 source
  • Developing Performance Indicators for Managing Maintenance
In this section

This section shows how to define and measure a preventive maintenance (PM) program so it becomes the base of your indicator set. You get the indicators that separate a real program from a calendar of tasks.

Preventive Maintenance Program

The degree to which a systematic program of scheduled inspections, lubrications, adjustments, and proactive component replacements is implemented to eliminate or reduce wear on assets and prevent unplanned failures. This is the foundational element of a proactive maintenance strategy.

Why it matters. A PM program measured only by task count produces busy technicians and unchanged breakdown rates, while one measured by compliance and failure reduction pushes work out of the reactive queue.

Myth

More PM tasks on more assets means better maintenance, so PM hours completed is the right headline indicator.

Reality

Volume is not effectiveness: over-maintenance adds intrusive handling, induces infant-mortality failures, and consumes the labor needed for corrective work. The useful indicators are PM compliance, the share of failures on assets that had current PM, and PM-generated findings that turn into planned repairs.

The least you need to know
  • Measure PM by compliance plus failure outcomes, never by task volume alone.
  • Findings generated by PM inspections show whether the program detects problems early enough.
  • Segment PM indicators by criticality so effort follows consequence.
Master this◆ Paid

The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “PM Task Card and Asset Priority Register” tool. Included when you buy this guide.

The rest of this section

the full written section · 4 how-to steps · 2 pitfalls to watch for. Included when you buy this guide.

Grounded in: Developing Performance Indicators for Managing Maintenance

Work Flow System (Planning & Scheduling)
strong · 1 source
  • Developing Performance Indicators for Managing Maintenance
In this section

This section covers the indicators that reveal whether work requests move through planning, scheduling, execution, and close-out in a disciplined way. It focuses on the measures that predict proactiveness and wrench time.

Work Flow System (Planning & Scheduling)

The systematic process of requesting, planning, scheduling, executing, and tracking all maintenance activities through a work order system to optimize the use of labor, materials, and time, thereby eliminating waste and non-productive time.

Why it matters. Without a measured work flow, planning is nominal, schedules collapse each morning, and neither proactiveness nor labor productivity can improve.

Myth

Installing a CMMS and issuing work orders means you have a work flow system.

Reality

The software only records work; the system is the discipline of prioritizing, estimating, kitting, and scheduling it before craft hands touch it. Indicators must test that discipline, such as backlog age and schedule adherence, rather than whether orders exist.

Tools for this
The least you need to know
  • Indicators should test planning and scheduling discipline, not mere work order issuance.
  • Schedule compliance with recorded miss reasons shows where the process leaks.
  • Backlog in weeks of labor is more informative than a count of open orders.
Master this◆ Paid

The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Work Order Plan-Schedule-Track Card” tool. Included when you buy this guide.

The rest of this section

the full written section · 4 how-to steps · 2 pitfalls to watch for · 7 tools for this section. Included when you buy this guide.

Grounded in: Developing Performance Indicators for Managing Maintenance

Stores and Procurement System
strong · 1 source
  • Developing Performance Indicators for Managing Maintenance
In this section

This section explains how to measure whether parts and materials arrive when the job needs them, without inflating inventory. It gives you service and cost indicators that link storeroom performance to craft productivity.

Stores and Procurement System

The effectiveness and efficiency of the function responsible for obtaining, storing, and providing the correct spare parts and materials at the right time for asset repairs and maintenance, aiming for high service levels without excessive inventory.

Why it matters. A storeroom that is slow or unreliable turns skilled technicians into waiting labor, while overstocking ties up capital in parts that never move.

Myth

A high inventory turnover or low inventory value proves the storeroom is performing well.

Reality

Cutting stock to lower value often raises stockouts and expedited purchases that stall jobs. Performance has to be read as a balance of service level against inventory investment, with attention to critical spares.

Tools for this
The least you need to know
  • Judge stores on service level and inventory investment together, never one alone.
  • Parts-related delays on work orders connect the storeroom directly to wrench time.
  • Inventory record accuracy is a precondition for trusting any storeroom indicator.
Master this◆ Paid

The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Stores Service-Level and Stock-Out Review Sheet” tool. Included when you buy this guide.

The rest of this section

the full written section · 4 how-to steps · 2 pitfalls to watch for · 2 tools for this section. Included when you buy this guide.

Grounded in: Developing Performance Indicators for Managing Maintenance

Advanced Maintenance Practices (PdM, RCM)
strong · 1 source
  • Developing Performance Indicators for Managing Maintenance
In this section

This section shows how to measure the real contribution of predictive maintenance and RCM rather than the technology deployed. It identifies indicators tied to availability and performance gains.

Advanced Maintenance Practices (PdM, RCM)

The application of higher-level maintenance strategies such as Predictive Maintenance (PdM) using technology to forecast failures, and Reliability-Centered Maintenance (RCM) to optimize PM/PdM tasks based on failure consequences and criticality.

Why it matters. Advanced methods are costly, and without outcome indicators you cannot tell whether they avert failures or just generate dashboards.

Myth

Buying condition-monitoring sensors and analytics software makes a plant predictive.

Reality

Value depends on acting on detected degradation and on RCM analysis choosing the right task for each failure mode. The relevant indicators are failures caught early, lead time between detection and failure, and tasks eliminated or changed after analysis.

Tools for this
The least you need to know
  • Measure detection-to-failure lead time and resulting planned repairs, not sensor counts.
  • RCM should show up as tasks changed or removed, not only tasks added.
  • Focus advanced methods on critical assets where failure consequences justify the cost.
Master this◆ Paid

The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “PdM/RCM Readiness and Asset Decision Sheet” tool. Included when you buy this guide.

The rest of this section

the full written section · 4 how-to steps · 2 pitfalls to watch for · 3 tools for this section. Included when you buy this guide.

Grounded in: Developing Performance Indicators for Managing Maintenance

Maintenance Proactiveness
strong · 1 source
  • Developing Performance Indicators for Managing Maintenance
In this section

This section defines the indicators that show how much maintenance is planned versus reactive. It treats proactiveness as the pivot between your program inputs and your availability and cost results.

Maintenance Proactiveness

The degree to which maintenance work is performed in a planned, scheduled mode rather than as an immediate reaction to an unexpected failure or breakdown. It is the opposite of reactive maintenance or 'fire-fighting'.

Why it matters. The reactive-to-planned ratio determines whether downtime and costs fall, because emergency work costs more and disrupts production far beyond its own hours.

Myth

Proactiveness is just the ratio of PM hours to total maintenance hours.

Reality

Reactive work can still dominate if PM is badly targeted, and planned corrective work counts as proactive too. The better indicator is the share of work, by hours, that was planned and scheduled before it began, regardless of type.

Tools for this
The least you need to know
  • Define planned work before work begins, and measure it in labor hours.
  • Planned corrective work counts toward proactiveness alongside PM.
  • A rising proactive share should precede, and be checked against, gains in uptime and cost.
Master this◆ Paid

The deep drill-down: 9 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Proactiveness Baseline and Conversion Sheet” tool. Included when you buy this guide.

The rest of this section

the full written section · 4 how-to steps · 2 pitfalls to watch for · 5 tools for this section. Included when you buy this guide.

Grounded in: Developing Performance Indicators for Managing Maintenance

Movement III · The run-it-now depth

The Playbook

Practical tools and examples from this guide.

Frameworks

Frameworkfree

Advanced Maintenance Practices (PdM, RCM)

How this mechanism is run, step by step, as the literature describes it.

  1. 1Run the sequence gate first. The source places PdM and RCM after the basics: an effective PM program (reactive work under 20% of total maintenance labor, where 'reactive' means less than one week of advance planning), then organized stores with a service level above 95%. If either gate fails, fix it before buying any condition-monitoring technology.
  2. 2Free up maintenance and engineering time through operator, production and facilities involvement. That means inspecting equipment before start-up, writing work requests, recording breakdown data, basic lubrication and routine adjustments. The freed hours are what you redirect to predictive work.
  3. 3Pick the assets by problem, not by what technology is available. Use the 80/20 idea in the source: about 20% of assets create about 80% of the problems. List the chronic failures on that 20%. The source says the aim is to buy technology that solves or mitigates chronic equipment problems, not all the technology on the market.
  4. 4Match the technology to the asset type. The source gives two pairings: rotating equipment fits vibration analysis, and electrical equipment fits thermography. Where the asset is already tied to a building automation system, distributed control system or PLC, monitor its parameters in real time.
  5. 5Plan and schedule predictive inspections with the same techniques you use for PM tasks. They go on the weekly schedule with estimated time and resources, not into someone's spare moments.
  6. 6Record every reading in the CMMS, or interface the monitoring devices to it. RCM can only start once this data exists.
  7. 7Apply RCM to the combined PM/PdM program. For each asset, ask whether it is environmentally sensitive, safety related, or extremely critical to operations. If so, decide the appropriate PM/PdM technique and use it. The source text cuts off after this, so state your own rule for the remaining non-critical assets and write it down.
  8. 8Review the program periodically for cost-benefit, as the maintenance engineer's role requires. Ask whether each task is best done by operators, craft workers or contractors, and whether it needs doing at all. Keep scanning for new tools and technology, since monitoring them is a named engineering duty.
Framework◆ Paid

Asset Performance Efficiency

How this mechanism is run, step by step, as the literature describes it.

◆ The full 8-step framework — included with this guide purchase

Framework◆ Paid

Corporate Profitability

How this mechanism is run, step by step, as the literature describes it.

◆ The full 8-step framework — included with this guide purchase

Framework◆ Paid

Equipment Availability (Uptime)

How this mechanism is run, step by step, as the literature describes it.

◆ The full 8-step framework — included with this guide purchase

Framework◆ Paid

Maintenance Cost Reduction

How this mechanism is run, step by step, as the literature describes it.

◆ The full 8-step framework — included with this guide purchase

Framework◆ Paid

Maintenance Proactiveness

How this mechanism is run, step by step, as the literature describes it.

◆ The full 9-step framework — included with this guide purchase

Framework◆ Paid

Maintenance Workforce Efficiency

How this mechanism is run, step by step, as the literature describes it.

◆ The full 8-step framework — included with this guide purchase

Framework◆ Paid

Overall Equipment Effectiveness (OEE)

How this mechanism is run, step by step, as the literature describes it.

◆ The full 8-step framework — included with this guide purchase

Framework◆ Paid

Preventive Maintenance Program

How this mechanism is run, step by step, as the literature describes it.

◆ The full 8-step framework — included with this guide purchase

Framework◆ Paid

Stores and Procurement System

How this mechanism is run, step by step, as the literature describes it.

◆ The full 8-step framework — included with this guide purchase

Framework◆ Paid

Work Flow System (Planning & Scheduling)

How this mechanism is run, step by step, as the literature describes it.

◆ The full 8-step framework — included with this guide purchase

Checklists

Checklistfree

Advanced Maintenance Practices (PdM, RCM) — decision rules

  • If reactive work exceeds 20% of total maintenance labor, then fix the PM program before investing in PdM; the source says progress in the later areas is difficult until the 80/20 rule is met.
  • If spares are available less than 95% of the time, then fix stores and purchasing first, because a predicted failure you cannot repair is wasted.
  • If an asset is environmentally sensitive, safety related or extremely critical, then decide its PM/PdM techniques deliberately through RCM and apply them.
  • If a candidate technology does not address a chronic equipment problem you can name, then do not buy it.
  • If a predictive reading is not captured in the CMMS, then treat the inspection as incomplete, since RCM and cost-benefit review depend on that data.
Checklist◆ Paid

Asset Performance Efficiency — decision rules

◆ All 5 checkpoints — included with this guide purchase

Checklist◆ Paid

Corporate Profitability — decision rules

◆ All 5 checkpoints — included with this guide purchase

Checklist◆ Paid

Equipment Availability (Uptime) — decision rules

◆ All 5 checkpoints — included with this guide purchase

Checklist◆ Paid

Maintenance Cost Reduction — decision rules

◆ All 5 checkpoints — included with this guide purchase

Checklist◆ Paid

Maintenance Proactiveness — decision rules

◆ All 5 checkpoints — included with this guide purchase

Checklist◆ Paid

Maintenance Workforce Efficiency — decision rules

◆ All 5 checkpoints — included with this guide purchase

Checklist◆ Paid

Overall Equipment Effectiveness (OEE) — decision rules

◆ All 5 checkpoints — included with this guide purchase

Checklist◆ Paid

Preventive Maintenance Program — decision rules

◆ All 5 checkpoints — included with this guide purchase

Checklist◆ Paid

Stores and Procurement System — decision rules

◆ All 5 checkpoints — included with this guide purchase

Checklist◆ Paid

Work Flow System (Planning & Scheduling) — decision rules

◆ All 5 checkpoints — included with this guide purchase

Case studies — including what didn't work

Case studyfree

Advanced Maintenance Practices (PdM, RCM)

Context

This is an illustrative walk-through. The thresholds come from the source, but the plant and asset are hypothetical. A plant reviews its labor records and finds more than 20% of maintenance hours go to work started with less than a week of planning. By the source's rule the PM program is not effective, so the plant does not buy vibration sensors yet. It tightens PM and then confirms stores deliver parts at least 95% of the time. Next it lists its chronic problem assets, the roughly 20% that cause most of the trouble. One is a rotating pump that fails repeatedly. Because it is rotating equipment, vibration analysis is the natural fit. The vibration route is added to the weekly schedule like any PM task, and each reading goes into the CMMS. After the data accumulates, RCM is applied. The pump supports a safety-related process, so it keeps its PdM and PM tasks. A low-criticality asset with no failure history gets its tasks reviewed for cost-benefit instead of receiving the same monitoring.

Case study◆ Paid

Asset Performance Efficiency

Context

A company examined the efficiency of the gas compressors on its off-shore operation. Because of age and internal wear, the compressors were running at only 61% efficiency. The company valued that gap at about $5.4M a year. The overhaul was costed at $450K, and that figure included labor, materials and the production lost to downtime. Management chose to overhaul the compressors one at a time to avoid a total shutdown. The overhaul paid for itself 28.1 days after restart, and the $5.4M of increased production was realized over the next 12 months. The sequence to copy is: measure efficiency against design, put a dollar value on the gap, cost the fix including lost production, and schedule the work to keep the plant running.

◆ What happened, and the outcome — included with this guide purchase

Case study◆ Paid

Corporate Profitability

Context

The source's own case: maintenance labor is $3M a year, and materials are typically a similar amount. Labor savings come from less overtime, less use of outside contractors, and deferred maintenance done without extra spend. If materials are also cut by one-third, about $1M, the combined savings from better maintenance efficiency and effectiveness can approach $2M a year. Those are expense dollars no longer required, so they translate to profit dollars. The source warns that the savings are not immediate. A reactive shop needs 3-to-5 years to become proactive, mostly because the culture has to treat maintenance as a core business process. On top of this, energy use falls 5-to-11 percent, and the capacity side dwarfs the pure cost savings. Where downtime averages 10-to-20 percent, recovering it adds sellable product without buying redundant equipment. In one cited case, $5.4M in increased production was realized in the 12 months after the change. So the forecast shows roughly $2M of annual cost savings phased in over several years, with the larger capacity gain stated separately.

◆ What happened, and the outcome — included with this guide purchase

Case study◆ Paid

Equipment Availability (Uptime)

Context

The source supplies its own framing rather than a plant dataset, so this example applies its figures. A company's equipment downtime averages 10-to-20 percent, so the equipment is unavailable for that share of the time it should be running. Product deliverable to the market is restricted by that amount. Some companies respond by buying backup or redundant equipment. The source warns that this hurts the return on net assets indicator and lowers investment ratings in the financial community. The better route is to measure downtime by asset, price it, and reduce it. Pricing starts with utilities, idle personnel, late delivery, and overtime. It then adds the lost sales dollars, which the source says are significantly higher than those base costs. Because the source states that the pure maintenance contribution to profitability is dwarfed by gains from added capacity (availability), recovering even part of the downtime outweighs the maintenance savings. For example, 1/3 of a $3M maintenance labor budget wasted equals $1M. Even in markets capped on volume, downtime still raises costs and blocks the low-cost-supplier goal.

◆ What happened, and the outcome — included with this guide purchase

Case study◆ Paid

Maintenance Cost Reduction

Context

The source gives a $3M annual maintenance labor budget. If 1/3 is wasted, $1M can be saved each year. That saving need not come from headcount. It can come from less overtime, less use of outside contractors, or deferred maintenance done without added spend. Studies cited in the source put the materials budget at a similar $3M. A 1/3 reduction there brings combined savings close to $2M per year, and the source says these are real expense dollars that translate to profit. The source also warns the savings are not immediate. Converting a reactive organization to a proactive best-practice one takes 3-to-5 years, so a plan should phase the $2M rather than book it in year one.

◆ What happened, and the outcome — included with this guide purchase

Case study◆ Paid

Maintenance Proactiveness

Context

The passages give no plant-level proactiveness data, so this example is illustrative and built on the glossary's one quantified claim: breakdown maintenance 'typically costs two-to-four times as much' as the same work in a planned mode. Take a pump bearing replacement that costs 100 units when planned. Done after a breakdown, it costs roughly 200 to 400 units for the identical job, before counting lost production capacity, which the source calls the 'impact cost' most companies never measure. A planner finds the pump on the breakdown Pareto and adds a PdM oil analysis (analysis of wear particles shows which part is wearing). The bearing job is then estimated, the part is pulled from stock, and the work is placed on next week's schedule. Each such conversion moves hours from the breakdown column to the planned column. It also removes the unexpected service interruption, which is where the cost multiplier sits. The reconciliation checks keep the ratio honest: if CMMS labor is below 100% of accounting labor, some hours are missing and the ratio is overstated or understated, so you trace the gap to the equipment item and correct it.

◆ What happened, and the outcome — included with this guide purchase

Case study◆ Paid

Maintenance Workforce Efficiency

Context

The source supplies the decision arithmetic. A planner spends one hour planning a job. Case A: the plan saves one hour of labor and does not reduce the required downtime. The source judges this 'not worth the effort', because you spent an hour to save an hour and gained no capacity. Case B: the same one planning hour saves two or more labor hours, or cuts downtime or the equipment required. The plan is worth it. Apply this to wrench time. An unplanned job loses technician time to logistic delays: getting the equipment shut down, organizing labor, finding and delivering spare parts, and coordinating contractors. A planned job removes those delays before the crew starts, so more of the crew's hours go to direct work. Compare two jobs of the same type on your own log: one planned, one reactive. Tag every lost hour by cause, then compare the totals. Planning effort goes to the job types where the gap is largest. It does not go to every job.

◆ What happened, and the outcome — included with this guide purchase

Case study◆ Paid

Overall Equipment Effectiveness (OEE)

Context

The source gives no numeric OEE case, so the numbers below are hypothetical and illustrate the method only. A packaging line has a design rate of 100 units/min. In a 480-minute shift it runs 420 minutes (availability 420/480 = 87.5%). In those 420 minutes it should make 42,000 units at design rate but makes 37,800 (performance efficiency 90%), a gap that includes accumulated idling and minor stoppages. Of the 37,800, 36,288 are good (quality rate 96%). Multiplying the factors gives 0.875 × 0.90 × 0.96 = 75.6%. The composite alone says '76%'. The breakdown shows performance efficiency, not breakdowns, is the cheapest gap to attack: the minor stoppages that the source warns are small to fix but large in aggregate. This matches the source's view that measures should point to what to improve tomorrow, unlike financial statements, which it calls 'damage reports'. The NASCAR analogy applies to the follow-up: operators who see the stoppages, maintenance who can fix them, and engineering who can design them out must share the data.

◆ What happened, and the outcome — included with this guide purchase

Case study◆ Paid

Preventive Maintenance Program

Context

The source gives no task-level PM case, so this example uses its stated cost and downtime figures and only simple arithmetic. The glossary says reactive work arrives with little or no notice, interrupts the weekly schedule, and costs two-to-four times as much as work that is planned and scheduled. Take a pump that fails at its bearing. Reactive repair costs 2 to 4 units for every 1 unit the same job costs when planned. Now put it on a PM program: a routine lubrication task on the bearing plus a start-up inspection of the pump's pressure and flow indicators, both on the weekly schedule with parts pre-staged. If the program converts even one breakdown into a planned bearing replacement, you save between 1 and 3 units of that cost, before counting avoided downtime. The source notes that equipment downtime in some companies averages 10-to-20 percent or more, and downtime carries utility costs and idle-production costs. The saving from avoided downtime therefore comes on top of the direct repair saving. The source also says effective maintenance strategies reduce energy consumption by 5-to-11 percent, with air and steam leak reduction as the cited example. A PM inspection route that finds leaks contributes to that saving.

◆ What happened, and the outcome — included with this guide purchase

Case study◆ Paid

Stores and Procurement System

Context

The source gives a materials-budget case. A company has a $3M annual maintenance labor budget, and studies show the materials budget is a similar amount. The source says one third of maintenance spending is wasted through inefficient and ineffective use of resources. One third of $3M in materials is $1M that is not required, and it flows to profit as expense dollars. Add the equal labor saving and the combined figure approaches $2M per year. To work the stores side, take that $3M materials line and split it into critical spares and routine parts. Critical spares may be about 10% of items yet up to half the value, so up to roughly $1.5M of the $3M could sit in that small group. Reviewing that group first targets the largest dollars with the fewest line items. The source warns the savings are not immediate when improving a reactive organization, so expect them to build over time.

◆ What happened, and the outcome — included with this guide purchase

Case study◆ Paid

Work Flow System (Planning & Scheduling)

Context

The source describes a reactive maintenance organization with a $1,000,000 budget. In that mode it may be wasting about $300,000, the 'up to one-third' the source cites. The fix is planning and scheduling: move to the point where 80-90 percent of activities are planned and scheduled weekly. Technician wrench time rises from about 25 percent to as much as 60 percent. By simple arithmetic on those figures, each paid hour then yields about 2.4 times as many productive hours (60/25). The same crew can then absorb work that was going to overtime or contractors, which lowers cost while service improves. Breakdown work is also typically two to four times as costly as the same job done in planned mode, so every job moved from emergency to planned status adds to the saving. None of this can be verified without work order data on labor, materials, and repair duration, so the work order is the measurement point for the result.

◆ What happened, and the outcome — included with this guide purchase

Templates

Templatefree

PdM/RCM Readiness and Asset Decision Sheet

Template◆ Paid

Asset Efficiency Loss and Payback Sheet

◆ The fillable template — included with this guide purchase

Template◆ Paid

Maintenance-to-Profit Case Sheet

◆ The fillable template — included with this guide purchase

Template◆ Paid

Asset Uptime and Downtime Cost Sheet

◆ The fillable template — included with this guide purchase

Template◆ Paid

Maintenance Cost Reduction Baseline and Target Sheet

◆ The fillable template — included with this guide purchase

Template◆ Paid

Proactiveness Baseline and Conversion Sheet

◆ The fillable template — included with this guide purchase

Template◆ Paid

Wrench-Time Delay and Planning Payoff Log

◆ The fillable template — included with this guide purchase

Template◆ Paid

OEE Loss Ledger and Calculation Sheet

◆ The fillable template — included with this guide purchase

Template◆ Paid

PM Task Card and Asset Priority Register

◆ The fillable template — included with this guide purchase

Template◆ Paid

Stores Service-Level and Stock-Out Review Sheet

◆ The fillable template — included with this guide purchase

Template◆ Paid

Work Order Plan-Schedule-Track Card

◆ The fillable template — included with this guide purchase

Items marked Paid are included when you buy this guide.

Movement IV

Reflect

Consider the book's evidence, limitations and how it compares with other sources.

In this part

How good is it — where the book stands against the field, what it leaves open, and when to trust it.

  • — Its positioning, its critique, its blind spots
  • — When to apply it — and when not
  • — The evidence behind the advice

Book profile · in the corpus

This book’s model, against the corpus

11 of 11 constructs align with the field · 0 the book adds · 2 where it diverges · the field spans 35 constructs across 11 books

shared with the corpusthe corpus adds (other sources)where it diverges

Shared with the corpus — corroborated by other sources

Preventive Maintenance ProgramWork Flow System (Planning & Scheduling)Stores and Procurement SystemAdvanced Maintenance Practices (PdM, RCM)Maintenance ProactivenessMaintenance Workforce EfficiencyEquipment Availability (Uptime)Asset Performance EfficiencyMaintenance Cost ReductionOverall Equipment Effectiveness (OEE)Corporate Profitability

Where it diverges — the book and the field pull apart

Advanced Maintenance Practices (PdM, RCM)Maintenance Cost Reduction

The corpus adds — from 10 other sources this book doesn't cover

The full field guide folds in ideas this book doesn’t reach — drawn from 10 further sources and cited in the full model.

This book’s place in the corpus

1 of 11
sources in this corpus
11
constructs contributed
11
corroborated by others

Why the corpus guide, not just this book

The book builds on the standard reliability and planning-and-scheduling canon and gives a clean causal chain from practices to availability, OEE and profit. It is most authoritative on the practical PM, work-flow and stores basics. The reconciled field-guide still adds the enabling conditions the book omits: leadership support, planner staffing, data quality, organizational structure and the human-error side, plus a more rigorous treatment of RCM and cost.

This guide stands on the shoulders of this book and 10 other sources — every claim cited, the disagreements named.

Read the reconciled Maintenance Repair Leadership guide →

Read it closely

The book, examined

Not a summary — a close analytical reading: how the book is built, what it leaves open, and where it falls short.

How it’s built — the argument in order

  1. 01
    Reframing maintenance as strategic — Establishes the thesis that maintenance is a core competency and market advantage rather than a cost center, connecting it directly to corporate profitability.
  2. 02
    The foundational shift: reactive to proactive — Argues for moving from a 'fix-it-when-it-breaks' model to a proactive one, targeting an 80/20 proactive-to-reactive ratio as the base enabler of savings.
  3. 03
    The pyramid of best practices — Lays out the hierarchical journey beginning with a strong Preventive Maintenance program, then work flow (planning & scheduling), stores/procurement, up through advanced practices (PdM, RCM) and financial optimization.
  4. 04
    The hierarchical indicator system — Introduces tiered performance indicators for each facet (workforce efficiency, availability, OEE, cost) to measure, manage, and continuously improve maintenance.
  5. 05
    Linking to corporate financials — Closes the loop by showing how measured improvements reduce direct expenses and increase capacity without capital, translating into profitability and competitive standing.

What it leaves unsolved

How does an organization sustain the proactive culture once initial gains are captured?

The book frames the reactive-to-proactive shift as foundational but focuses on system and metric design rather than the long-term human and organizational forces that erode discipline.

What is the correct sequence and pace for a given organization to climb the pyramid?

The pyramid implies an order, but readiness, industry type, and asset criticality vary; the book presents a general model without contingent adaptation rules.

How should indicators be weighted or reconciled when they conflict?

A hierarchical indicator system can produce tensions (e.g., cost reduction vs. availability), and the book asserts integration without resolving trade-off arbitration.

Does the 80/20 ratio hold across all equipment and industries?

It is offered as a target, but the book does not establish the empirical or theoretical basis for that specific proportion being optimal universally.

Where it falls short — a fair critique

incomplete

The framework is rich on technical systems and metrics but light on change management—how to secure executive buy-in, overcome operator resistance, and fund the transition during the reactive phase when firefighting dominates.

illogical

Presenting improvement as a linear pyramid assumes lower tiers must be mastered before higher ones, yet RCM and PdM insights can profitably reshape a PM program, suggesting the relationship is iterative rather than strictly bottom-up.

uninformed

The claim that maintenance is a 'strategic market advantage' driving profitability leans on internal-efficiency logic; it underengages with strategy literature on what constitutes a durable competitive advantage versus a table-stakes operational necessity.

misinformed

Treating the 80/20 proactive-to-reactive ratio as a general target risks overgeneralization; for some assets run-to-failure is genuinely optimal, so a blanket ratio may misdirect investment away from criticality-based prioritization the book itself endorses via RCM.

incomplete

The profitability argument attributes gains to maintenance improvements but does not address how to isolate maintenance's contribution from confounding factors, leaving the measured link between indicators and financial outcomes weakly defended.

Before you apply it

Using it well

Where the method fits, who it’s for, and the honest case for and against — so you apply it where it works.

Is this book for you?

For you if

  • You manage a maintenance or asset-intensive operation
  • You need to prove maintenance value in financial terms
  • You want a structured improvement roadmap not ad hoc fixes

Skip it if

  • Your operation has minimal physical equipment
  • You already run mature RCM and financial optimization
  • You want quick tactical repair tips, not systemic change

Need first

  • A functioning Preventive Maintenance program
  • Basic work order and asset data collection
  • Executive buy-in for a multi-year improvement journey

When it applies — and when it doesn’t

Use it
  • Asset-heavy plant stuck in reactive firefighting mode — exactly the reactive-to-proactive transformation the book targets
  • Building a maintenance KPI system tied to financial goals — the hierarchical indicator framework is the core deliverable
  • Justifying maintenance investment to executives — explicitly links uptime and cost to corporate profitability
Adapt it
  • Small shop with few machines and no maintenance staff — pyramid overhead may exceed the scale of the operation
  • Organization lacking basic PM discipline or asset data — advanced practices presuppose a foundational PM program first
Not here
  • Software or service business with negligible physical assets — framework assumes equipment-centric operations

The honest case

Strongest case for

  • Uptime and cost gains flow directly to profit without capital spend
  • Hierarchical KPIs make an opaque function measurable and manageable
  • The pyramid gives a sequenced, non-overwhelming path to maturity
  • Reframing maintenance as strategic wins resources and organizational status

Strongest objection

  • Heavy indicator systems can breed metric-gaming and bureaucracy over real reliability
  • The 80/20 ratio and pyramid may be prescriptive where context-specific tradeoffs matter
  • Cultural resistance and data quality, underweighted here, often sink such programs
Source notes

The model's constructs are drawn from the source element(s); load-bearing constructs are corroborated across the shelf, emerging ones are flagged.

Ideas covered by the source notes

  • Preventive Maintenance Program
  • Work Flow System (Planning & Scheduling)
  • Stores and Procurement System
  • Advanced Maintenance Practices (PdM, RCM)
  • Maintenance Proactiveness
  • Maintenance Workforce Efficiency

Movement V

Measure

Use available assessments to reflect on what you have learned.

In this part

A way to gauge yourself against the book's model, and the instruments it gives you.

  • — A self-check built from the book
  • — Instruments and what you'd measure next

Learning curriculum

After this book, you can…

The book's learning objectives, classified by Bloom's taxonomy and ordered so each builds on the ones before it.

01Foundational — know & understand
  1. explain
    After this book you can explain why maintenance is a strategic core competency and market advantage rather than a peripheral cost center.
    Check: Written response articulating the strategic value of maintenance and contrasting the reactive cost-center view with the proactive value-adding view
  2. describe
    After this book you can describe the pyramid of maintenance best practices and identify where each practice sits in the hierarchy.
    Check: Diagram and label the maintenance pyramid from foundational PM up to RCM and financial optimization, explaining the dependencies between levels
  3. distinguish
    After this book you can distinguish reactive from proactive maintenance and explain the 80/20 proactive-to-reactive work ratio target.
    Check: Classify sample work orders as proactive or reactive and calculate the proactive ratio against the 80/20 benchmark
02Working — apply
  1. calculate
    After this book you can calculate equipment availability, asset performance efficiency, and Overall Equipment Effectiveness (OEE) for an asset.
    Check: Given uptime, speed/output, and quality data, compute availability, performance efficiency, and composite OEE
  2. apply
    After this book you can apply advanced maintenance strategies such as Predictive Maintenance (PdM) and Reliability Centered Maintenance (RCM) to forecast and prevent failures.
    Check: Select and justify appropriate PdM technologies and an RCM analysis approach for given equipment failure modes
  3. structure
    After this book you can structure a work flow system that requests, plans, schedules, executes, and tracks maintenance through a work order system.
    Check: Map a complete work order lifecycle and configure planning and scheduling processes for a maintenance department
  4. measure
    After this book you can measure maintenance workforce efficiency by quantifying wrench time versus non-productive activities.
    Check: Conduct a wrench-time study and compute workforce efficiency ratios, identifying sources of non-productive time
03Advanced — analyze & judge
  1. quantify
    After this book you can quantify maintenance cost reduction achieved through eliminating reactive work and improving labor, material, and contracting expenditures.
    Check: Analyze cost data before and after proactive improvements and attribute savings to specific practice changes
  2. analyze
    After this book you can analyze how proactive maintenance increases production capacity and reduces operating expenses to boost corporate profitability.
    Check: Build a business case linking uptime and efficiency gains to increased capacity and reduced expenses, showing profitability impact
04Mastery — synthesize & create
  1. design
    After this book you can design and implement a foundational Preventive Maintenance program of scheduled inspections, lubrications, adjustments, and component replacements.
    Check: Produce a PM program plan for a set of assets including task lists, frequencies, and proactive replacement schedules
  2. develop
    After this book you can develop a hierarchical system of performance indicators linking functional-level maintenance activities to corporate strategic goals.
    Check: Construct a linked indicator hierarchy from technician-level metrics up to corporate financial measures with defined relationships
  3. evaluate
    After this book you can evaluate and improve a stores and procurement system to ensure correct spare parts and materials are available.
    Check: Audit a stores/procurement function against best-practice criteria and recommend improvements to parts availability and inventory efficiency
  4. assess
    After this book you can assess a maintenance organization against best-practice criteria and prioritize an improvement roadmap along the maintenance pyramid.
    Check: Perform a maturity assessment of a maintenance department and produce a prioritized, hierarchical improvement plan
  5. design
    After this book you can design an integrated asset management strategy that continuously improves maintenance and demonstrates measurable financial impact.
    Check: Produce a comprehensive asset management strategy integrating practices, indicators, and continuous improvement with projected profitability outcomes
  6. advocate
    After this book you can advocate for whole-organization involvement in asset performance following the TPM philosophy, including operator involvement and training.
    Check: Design an engagement plan for operators and other departments and present a rationale for cross-functional ownership of asset performance

How to measure it

Turning each idea into a measure

For each construct: how to operationalize it, the observable signals to look for, and how well it holds up.

Preventive Maintenance Program

The extent to which a complete, cost-effective PM program, including inspections, adjustments, lubrication, and proactive component replacements, is implemented and adhered to for all critical plant equipment. Operationally measured by PM schedule compliance rates and the percentage of overdue PM tasks.

Observable signals
  • Existence of documented PM tasks for critical equipment.
  • Logs of completed PMs.
  • Reduction in breakdown-related downtime.
  • Number of overdue PM tasks.
Scale

Typically measured through archival metrics like 'Preventive Maintenance Tasks Completed / Tasks Scheduled' and 'Number of PMs Overdue'.

Work Flow System (Planning & Scheduling)

The degree to which all maintenance activities are captured in a work order system and are effectively planned (job requirements analyzed, materials and tools determined in advance) and scheduled (built into a weekly schedule for the maintenance staff).

Observable signals
  • Percentage of maintenance work captured on a work order.
  • Existence of dedicated maintenance planners.
  • Publication of a weekly maintenance schedule.
  • Percentage of scheduled work completed on time.
Scale

Measured via archival metrics such as '% of Maintenance Work Orders Planned', '% of Maintenance Labor Costs Planned', and 'Schedule Compliance %'.

Stores and Procurement System

The performance of the inventory and purchasing function, measured by its ability to fulfill requests for parts on demand while optimizing inventory value. Key metrics include service level, stock outs, and inventory turns.

Observable signals
  • Rate of stock outs.
  • Number of rush purchase orders.
  • Total inventory valuation.
  • Time spent by craft technicians waiting for or looking for parts.
Scale

Measured by archival data such as 'Service Level of the Stores (%)', 'Stock Outs (%)', and 'Stores Annual Turns'.

Advanced Maintenance Practices (PdM, RCM)

The extent to which the organization utilizes predictive technologies (vibration analysis, thermography, etc.) and RCM methodologies to manage asset reliability, moving beyond simple time-based preventive maintenance.

Observable signals
  • Use of predictive technologies like vibration analysis or oil analysis.
  • Existence of an RCM decision process for determining maintenance tasks.
  • Reduction in failures for equipment monitored by PdM.
  • Documentation of root cause analysis for equipment failures.
Scale

Measured by the percentage of maintenance resources dedicated to PdM/RCM activities and the reduction in failures on covered equipment.

Maintenance Proactiveness

The proportion of total maintenance labor hours expended on planned and scheduled activities (including preventive and predictive maintenance) versus hours spent on unplanned, emergency, or breakdown work. The book's target for a best-practice organization is 80% or more proactive work.

Observable signals
  • Percentage of 'Emergency' work orders.
  • Ratio of planned vs. unplanned work on weekly schedules.
  • Frequency of schedule interruptions for emergency work.
Scale

Measured by the archival metric: '(Total Manhours - Manhours Spent on Emergency Jobs) / Total Manhours'.

Maintenance Workforce Efficiency

The percentage of a maintenance technician's shift spent performing hands-on work at the job site. This is typically measured through work sampling studies or day-in-the-life-of (DILO) observations.

Observable signals
  • Observed time technicians spend waiting for parts or tools.
  • Travel time between jobs.
  • Time spent obtaining work permits or instructions.
Scale

The book suggests that in reactive organizations, wrench time can be as low as 25%, while good planning can increase it to 60%.

Equipment Availability (Uptime)

Calculated as the total time the equipment is scheduled to be available minus the total downtime, divided by the total scheduled time. Downtime includes all lost time, whether due to maintenance, operations, or other causes.

Observable signals
  • Downtime logs from production or CMMS.
  • Production reports showing hours of operation vs. scheduled hours.
  • Number of breakdown incidents.
Scale

Calculated as a percentage. It is one of the three components of the Overall Equipment Effectiveness (OEE) metric.

Asset Performance Efficiency

Calculated as the actual output (units produced) during the scheduled operating time divided by the theoretical maximum output based on the equipment's design speed for that same time period.

Observable signals
  • Production logs showing units produced per hour.
  • Records of machine cycle times compared to design specifications.
  • Observations of idling or minor stoppages.
Scale

Calculated as a percentage. It is one of the three components of the Overall Equipment Effectiveness (OEE) metric.

Maintenance Cost Reduction

The measured decrease over time in key financial indicators for maintenance, such as the total direct cost of maintenance, maintenance cost as a percentage of replacement asset value, or maintenance cost per unit produced.

Observable signals
  • Trends in the total maintenance budget.
  • Overtime costs for maintenance personnel.
  • Expenditures on expedited parts and shipping.
Scale

Measured using various financial indicators detailed in Chapter 14.

Overall Equipment Effectiveness (OEE)

Calculated as the product of three ratios: Availability Rate (actual run time / scheduled run time), Performance Efficiency Rate (actual output / potential output during run time), and Quality Rate (good units / total units produced).

Observable signals
  • Downtime records.
  • Production output counts.
  • Quality control reports on defects and rework.
Scale

Expressed as a percentage. The book identifies a world-class target of 85% (90% availability x 95% performance x 99% quality).

Corporate Profitability

Measured through corporate-level financial metrics such as Return on Net Assets (RONA), Return on Fixed Assets (ROFA), profit margins, and total cost to produce. An effective maintenance strategy positively impacts these figures by increasing capacity (revenue potential) and reducing operating expenses.

Observable signals
  • Quarterly and annual financial reports.
  • Company stock price.
  • Cost-to-produce reports.
Scale

These are standard corporate financial metrics reported in monetary values or percentages.

Self-assessment

Where would you like to improve?

This is a structured self-diagnostic built from the model — a mirror for reflection, not a validated psychometric scale. For validated measurement, see the instruments below.

1 = Strongly Disagree · 7 = Strongly Agree

Capabilitythe practices and skills you deploy
  • We follow a written schedule of inspections, lubrication, adjustments, and planned component replacements on our critical equipment.
  • Maintenance jobs at my site are often started without a work order that has been planned, scheduled, and tracked.
  • The spare parts and materials we need for maintenance jobs are usually in stock and easy to get when we need them.
  • We use condition-monitoring tools or reliability analysis to predict equipment failures and decide what maintenance to perform.
  • Most of our maintenance work is planned and scheduled in advance rather than done in response to breakdowns.
Alignmentthe outcomes you steer toward
  • Our critical equipment is ready to run whenever production needs it.
  • Our equipment often runs slower or at lower output than its designed rate while it is operating.
  • Our total maintenance spending on labor, materials, and contractors has gone down over the past few years because we have reduced waste and emergency repairs.
  • We regularly measure Overall Equipment Effectiveness (OEE) on our key equipment and use the results to drive improvements.
  • Our maintenance improvements have measurably increased our organization's profit through higher production capacity and lower costs.
0 of 10 answered

Proposed measures — starter instruments where no validated one was found

Preventive Maintenance Program Implementation Index

proposed · not validated

Rated for your team or hiring process — not a personal self-check.

  1. Every critical asset has a documented PM schedule with defined inspection, lubrication, adjustment, and component-replacement tasks and intervals.
  2. PM work orders are generated automatically from the schedule, and the completion rate against schedule is tracked and reviewed monthly.
  3. PM task content and frequencies are revised on a documented basis using failure history, condition data, and technician feedback.

Scale: 1–7 (Strongly Disagree → Strongly Agree), rated by an evaluator or the team. Average the items; treat ≤3 as a gap to close in the process.

Maintenance Work Flow System Index

proposed · not validated

Rated for your team or hiring process — not a personal self-check.

  1. Every maintenance request enters a single work order system, where it is prioritized and approved against defined criteria before work is assigned.
  2. Planned jobs have written job plans with labor, parts, tools, and safety requirements identified before they are placed on a weekly schedule.
  3. Completed work orders are closed with recorded labor, parts used, failure information, and findings, and backlog and schedule compliance are reported regularly.

Scale: 1–7 (Strongly Disagree → Strongly Agree), rated by an evaluator or the team. Average the items; treat ≤3 as a gap to close in the process.

Stores and Procurement System Index

proposed · not validated

Rated for your team or hiring process — not a personal self-check.

  1. Every stocked spare part has a unique catalog record with a defined storage location, and inventory records are verified through regular cycle counts.
  2. Stocking levels and reorder points are set using documented criteria such as criticality, usage history, and lead time, and stockout rates are tracked.
  3. Parts for planned jobs are reserved and kitted through the work order system, and issues are recorded against the work order or asset.

Scale: 1–7 (Strongly Disagree → Strongly Agree), rated by an evaluator or the team. Average the items; treat ≤3 as a gap to close in the process.

Sources

  • Developing Performance Indicators for Managing Maintenance — Wireman, Terry · A comprehensive guide for managers to transform their maintenance department from a reactive cost center into a proactive, strategic driver of corporate profitability by implementing a hierarchical system of best practices and performance indicators.

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