How to set up a maintenance decision model based on Life Cycle Costing and KPIs
Maintenance managers take decisions and make (improvement) proposals to management every day. This often happens with a lot of goodwill, but not always with sufficient quantitative and financial substantiation.
In order to meet the expectations of management or the financial manager, there are various solutions, such as Life Cycle Costing (LCC) & Key Performance Indicators (KPIs).
During this training you learn to set up a balanced system of key figures with respect for the actual life phase of your installation. The correct use of financial indicators is an asset when proposing and evaluating improvement proposals. Attention is also paid to Risk-Based Decision Making, a method that is rapidly gaining in importance.
Learning objectives
Knowledge
- Key Performance Indicators:
- Knowing the criteria for KPIs;
- Knowing the common KPIs for a maintenance process;
- Knowing the models that form the basis of a KPI system;
- Understand and be able to use concepts such as Leading, lagging and balancing;
- Life Cycle Costing:
- Understand the method of Life Cycle Costing (LCC);
- Knowing the difference between standard costing and LCC;
- Knowing the concepts of Net Present Value (NPV) and Internal Rate of Return (IRR);
- Being able to express maintenance activities in financial terms;
- Knowing what Risk-Based Decision Making is and how it is applied;
- Knowing the differences between process model, innovation model, policy deployment and balanced scorecared;
- Be able to use reference documents such as those of the EFNMS and SMRP;
- Understand and be able to estimate the effect of KPIs on employee behaviour.
Skills
- Draw up a step-by-step plan for implementing and monitoring KPIs;
- Calculate KPIs according to company and industry standards;
- Select KPIs in function of the maturity phase;
- Develop scorecards so that key figures can be used in a result-driven way without conflict;
- Calculating the total cost of ownership;
- Calculate NPV and IRR;
- Develop improvement proposals with sufficient financial backing.
About the speaker
Guido Verrept has been active as a trainer and improvement coach for over 30 years. Helping companies and their employees get ahead in their goals is what drives him. Guido started his career as a design engineer at Atlas Copco, before joining ABB as Maintenance Manager. As a teacher Guido has been active all over the planet: from Australia and Africa to Brazil and of course Europe. Within the unified I-care, Guido is Performance & Compliance Officer since 2021.
Whi is this training for?
Production managers, maintenance managers, team leaders, quality and business process managers, reliability engineers, and anyone who wants to take a deeper look at the financial picture of maintenance.
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