How can efficiency and effectiveness of a system be measured

Based on these expenses, the ratio of total maintenance costs to RAV is 3. Managers are responsible for determining the most appropriate mix of physical asset policies, work management, and reliability improvement processes to reduce the costs of non-value added or recurring expenses.

In my example, some expenses might be considered capital expense or improvements. Perhaps I purchase a higher quality shingle, for example. Another measure of maintenance efficiency is corrective maintenance CM versus preventive maintenance PM. Evaluating total maintenance costs to RAV does not naturally give enough detail to identify where costs are applied. Total man-hours spent on CM versus PM can help managers determine if maintenance practices are effective at preventing unscheduled downtime and reducing CM.

The percentage of work planned as opposed to emergency or corrective repairs is also an effective measure. Remember that emergency work is typically three-four times more expensive than planned work. PM ratios and a good measure for efficiency. The purpose of the PM is to schedule activities so technicians can spot deficiencies before they evolve into more costly problems.

So it is important to complete these PMs and to do so them on time. CM includes maintenance done to return items to proper condition. Why is this important? What are the consequences of failure by not achieving my schedule compliance? The rate can help you evaluate the cost to hire for budgeting purposes and highlight issues with management.

The employee rates each of the questions on a scale of 1 to 10 one being the lowest score and 10 the best one. Based on the baseline you calculated and the benchmark you can justify if you are satisfied with the performance or not. It is important to frequently build reports. Remember to acknowledge and celebrate success. Even if you are satisfied with your performance it is important to track and assess the progress on a regular basis.

Performance management is a process that should be continuously measured and adjusted to meet the everchanging needs of your employees and business.

Develop a strategy and set new goals on how to improve the deficient performance or problems in your performance management process.

Make sure to make the new goals specific, measurable, achievable, relevant and with a clear timeline. However, we are aware that implementing change in your organization can be challenging. Hence, we have created a guide to help you implement change in your organization. Build any HR process on PeopleGoal.

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