Meaningful KPIs

How do you measure success, both personally and professionally? What are the goals we set for ourselves, at home and at work? What are the behaviors we want to encourage? What are the behaviors we want to discourage?

The following case studies reveal how these companies set goals that were both personally as well as professionally encouraging. In each of these case studies, these companies developed an environment for continually improving and measuring the performance of their asset management program as well as the performance of their people, all with safety as the overarching goal.The process however, was not as simple as delineating KPIs as part of a set of project requirements.

Meaningful KPIs

"Anything worth, doing is worth doing right."

Hunter S. Thompson

To begin with, let us examine some of the goals of these companies stated in their project requirements documents along with the resulting solutions:


Company A

  • GOAL: To achieve zero corrosion related loss of primary containment across our refining enterprise

  • SOLUTION: Develop a corrosion control plan including five major components:

    • Corrosion and Materials Diagram
    • Corrosion Control Document
    • Integrity Operating Windows
    • Risk Based Inspection Assessment
    • Risk Based Inspection Strategies

Company B

  • GOAL:

    • Meet our Process Safety Management (PSM) standards and more stringent local requirements
    • Meet asset management requirements for Mechanical Integrity as outlined in the five year PSM plan submitted to HSE
    • Understand risk in the plant, reducing unexpected failures on critical equipment
    • Demonstrate significant value
  • SOLUTION: Achieve our site goal through Risk Based Inspection and continue across our enterprise


Company C

  • GOAL:

    • Less incidents and releases that can affect our employees and our neighbors
    • Increased Operational Asset Utilization (OAU) for the site
    • Lower reactive maintenance costs
    • Better relations with our neighbors
    • Sense of "Proud Ownership" by all the employees because they know that the facility is taking reasonable and required steps to ensure their safety and the safety of the community by ensuring that the equipment used in the process is fit for service today as well as tomorrow

    ADDITIONAL QUESTIONS NEEDNG ANSWERS:

    • Do we understand the threats facing our plant?
    • Do we know the equipment integrity risks?
    • Will the RBI program find and fix problems before they become BIG EVENTS?
    • Are we inspecting the right things and do we use the right inspection methods?
    • What are others doing to improve their integrity management programs?
    • How much will it cost to achieve better reliability?
    • How do we measure the value of the program?
    • How do we measure and motivate the people managing our program?
  • SOLUTION:

    • Transition service provider project to a company owned program
    • Track performance using KPIs and reports i.e. Cumulative Risk curves as a leading indicator
    • Align lagging indicators with leading indicators tracked by RBI program
    • Process Safety Related Incidents

      • Environmental releases
      • Loss of Containment events
      • Unscheduled Production Interruptions

Many, if not all, the above GOALS and subsequent SOLUTIONS were achieved in many cases by utilizing the technology to create the relevant reports. Making the reports meaningful, however, requires additional effort with people, process and technology. We align roles and responsibilities with work processes and key performance indicators.

To affect a sustainable asset integrity management program, we worked with each client to develop a set of work processes that fit their organization. We then defined the roles and responsibilities required to successfully effect the work process along with a set of meaningful metrics to measure both the performance of the program, which included similar KPIs to the goals defined above and a set of skills validation tools to measure the on-going performance of the personnel managing the program.

An example of these "role based" KPIs can be seen in the below Cascaded KPI scorecard, provided to one of our refining clients. Once we were all aligned, AOC addressed and training and performance development of the workforce to fulfill the defined roles and responsibilities. The technology was then programmed to accommodate the needed dashboards and KPI reports to facilitate the work process.

In conclusion: How do we as asset performance management consultants measure success? What are our KPIs? Repeat business is a good measuring stick, as well as great reputation in those industries served.

Example KPIs and Scorecards

Related Knowledge

The MI Assessment - Understanding Your Mechanical Integrity Goals

Compliance? | Best Practice? | Risk Reduction? | One Step at a Time? | Capture Personnel Knowledge? | All Of The Above?

Risk Based Inspection: What To Expect

Significant findings, even after ten years.

Implementing RBI in Remote Locations

The importance of understanding risk and the significant value attainable through the implementation of risk based inspection (RBI)

Risk Based Asset Management - Delivering and Sustaining Value Across a Mid-Sized Refining Enterprise (RMC-09-45)

The business case developed for an RBI program - realized benefits and how the on-going value of the program is measured

Related Services

Mechanical Integrity: Development of Procedures, Work Processes, and Human Performance Improvement

A maintenance system designed in which elements work together as a quality system for maximum returns

RBI Implementation and Inspection Planning

AOC has delivered thousands of sustainable RBI programs earning the trust of owner operators.

Related Training

Ensuring People Performance

How do I transfer knowledge to my team and verify their skills?

So You Want To Be an RBI Risk Analyst

What does a Risk Analyst do and how do I become one?

Learning Management

Are your inspectors empowered to sustain your RBI program after the service provider completes their fixed price contract?

Requirements for Becoming a Risk Analyst

What do I need to do to be a Risk Analyst?

Learning Management

Achieve an RBI program complete with KPIs, Best Practices, and Skills Validation