KPIs Maintanance

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Indicators for maintenance KPI

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  • 3/10/2015 MaintenanceOnlineMaintenanceKeyPerformanceIndicators

    http://www.maintenanceonline.co.uk/article.asp?id=7569&typ=latestnews 1/6

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    30/09/2013Download

    MaintenanceKeyPerformanceIndicatorsAuthor:PaulWheelhouse

    ABSTRACT

    Asummaryisprovidedofimportantconsiderationswhendesigningkey

    performanceindicatorsaspartofanyperformancemanagementsystem.

    Technical,behaviouralandpsychologicalaspectsarealltouchedupon.Important

    resultsfromphysics,statistics,informationtheoryandcontroltheoryareallused

    toprovidepracticalguidance.Keyperformanceindicatorsprovidingawindow

    sothatthesuccessorotherwiseofastrategycanbejudgedandanynecessary

    actionstakenareexplored.TheneedisemphasisedforSMARTmeasures

    whichcanbeinfluencedbytheactionsofthosewhoarejudgedbythem.

    Ensuringthatthemeasurescoverallareasintheformofabalancedscorecard,

    andarearrangedinahierarchy,ismentioned.Threedifferenttargetsetting

    approachesforkeyperformanceindicatorsarediscussed,viz.trending,

    benchmarkingandbestofthebest.Howtheorganisationalcultureand

    psychologywillinfluencetargetsettingisdiscussed.Accuracy,errorand

    uncertaintyofmeasuresareexplored,togetherwiththeneedtomeasure

    frequentlyenoughtospotchanges.Theneedtoseparatesignalsfromnoise,andonlytakeactionswhensignificantchangesoccur,is

    covered.Drawingoncontroltheory,theneedtoconsiderthedelaybetweencauseandeffectinordertoensurestabilityofthe

    performancemanagementsystemisdiscussed.Finally,achecklistguideforkeyperformanceindicatoressentialsisincluded.

    REASONSFORINDICATORS

    Keyperformanceindicatorsclosetheinputprocessoutputloopandlinkbacktowhatwasexpected,andultimatelytothestrategy.Itis

    thereforeonlybymonitoringkeyperformanceindicatorsthatwecanseeifthestrategyisactuallyworking.

    Keyperformanceindicatorsarethereprimarilytoseewhetherthestrategyisworkingandwherechangesmightberequired.Itfollows

    thereforethattheindicatorsthemselvesneedtorelatetocriticalsuccessfactorsinthestrategyitself.Inotherwords,ifsafetyfeatures

    heavilyinourstrategy,thenwemightexpecttoseeindicatorsbasedonnearmisses,incidents,accidentsandstaffbehaviours.

    Indicatorscanalsobeusedasafeedtothecontinuousimprovementprogrammeandtohelpwithareviewofplannedmaintenance

    routinesandforsupplierappraisals.

    Indicatorsthemselvesmustbepartofaperformancemanagementsystemsothatstaffactuallydoeswhatwewantthemtodointhe

    mostcosteffectivemanner.Justmeasuringsomethingaffectsbehaviour.Forexample,somewouldsay,IliketodowhatIenjoydoing

    andalsowhatmybossmeasures.Sothereneedstobecarefulchoiceofmeasurestoensurethebehaviourswewantareencouraged.

    Forexample,inrecentyears,shorttermprofitmeasuresinthebankshaveencouragedexcessiverisktakingbystaff.

    Measuresshouldbelinkedtorewardsforbothstaffandalsokeysuppliersandserviceproviders.Rewardsthemselvescanbeboth

    financialandnonfinancial.Nodoubtwehaveallseenemployeeofthemonthawardswhencheckingintohotels.

    Whoeverismeasuredbyakeyperformanceindicatormusthavethemeansandthetimetoinfluenceitsvalue.Themeasuresneedtobe

    SMART,i.e.

    Specific/simple

    Measureable

    Achievable/acceptable/attainable

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    Relevant/realistic

    Timebound

    COVERAGE

    Anorganizationcarryingoutmaintenanceislikeamachineithasfunctionsandneedstobeviewedasasystem.Thecoverageof

    indicatorsneedstobecomprehensivewithoutbeingexcessive.Withcomputersystems,itispossibletooverdoseonindicators.The

    operativewordhereiskeyindicators,solookforfewerthantenratherhaving,say,forty.Weshouldthinkofourkeyperformance

    indicatorslikefood:nottoomuch/manywithabalanceforgoodhealth.

    Thebalanceforindicatorscomesfromablendof:

    Financial(expenditure)andnonfinancial(numberofjobscompleted)

    Inputs(money,methods/expertise,materials/spareparts),processes(carryingoutreactivejobs)andoutputs(performance/availability)

    Leadingindicators(nearmisses)andlaggingindicators(accidents)

    Productivity(reliability),service(backlog,responsetimes)andcosts(budgetsvalueofsparepartstock)

    Typicalmaintenancemeasuresmightinclude:

    Plantdowntime

    Equipmentreliability

    Percentageovertime

    Annualmaintenancebudget/capitalcost

    Percentageofplannedjobscompletedontime

    Percentageofjobswhicharebreakdowns

    Costsversusbudgets

    Valueofspareparts

    Responsetimes

    Backlog

    Hierarchyofmeasures

    Theindicatorsneedtoformahierarchy.Thelowestleveloneswillbemeasureswhichfrontlinestaffcaninfluence.Thesecanthenbe

    combinedtogivemeasuresforthenextmanagementlevel,andsoon.Thisisbestillustratedbyanexampletherearefivemeasures

    whichthetechniciansandoperatorsonabottlingplantcaninfluence,viz.

    Firsttimepassrateforquality

    Customercomplaintsrelatingtounderfilling

    Meantimebetweenfailures(MTBF)forthefillinghead

    Meantimetorepair(MTTR)forthefillinghead

    Numberofcasesproducedpershift

    Productmix

    Thefinalmeasure,theproductmix,cannotbeinfluencedbythefrontlinestaff.Thisisultimatelydeterminedbywhatthecustomersare

    buying,butisalsogoingtobeaffectedbytheorganizationplanning,forecastingandlevelsofstockholdingaccuracies.Itneedstobe

    includedthough,becausedifferentgradeshavedifferentmaximumproductionratesandtheseratesneedtobetakenintoaccounttogive

    realistictargets.

    Thesixbasemeasuresarecombinedintoquality,availabilityandrateofworkingindicesforeachbottlingplant,whicharethenrolledup

    intoanoverallequipmenteffectivenessmeasure(OEE).TheOEEsforeachbottlingplantarethencombinedtogiveameasureof

    productivityforthewholeorganization.

    Thus,thefrontlinestaffsarejudgedonthebasemeasures.ThemanagementofeachbottlingplantisjudgedonitsOEEfigure,whichis

    derivedfromthebasemeasures.Inturn,theorganizationexecutivesinheadofficearejudgedbythecombinedOEEfiguresforthewhole

    organization.

    TARGETSETTING

    Havingdecidedonwhichindicatorstomonitor,thenextquestiontobeaskediswhatshouldbethetargetvalues?Shouldthetargets

    simplybelastyearsonesshouldtheyberatchetedupalittleorshouldatoughtargetbesettoencourageimprovements?Theanswer

    turnsouttobeamixtureofscience,organizationalcultureandpsychology.Letusdealwiththesciencefirst.

    AveragesandTrending

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    Ifourdowntimehasbeenvariablelastyear,buttheaverage(mean)figurehasbeen3%,wecouldsetthisasourtargetdowntimefornext

    yearbecauseitisrepresentativeofourdowntimeresults.However,mostvariablesareevenlydistributedaroundthemeanvaluesonext

    yearsdowntimeisjustaslikelytobelowerthanthisyearsfigureasitistobehigher.

    Trendanalysisisoftenusedwheninterpretingconditionmonitoringdataortryingtopredictwhattheyearendexpendituremaybe.Itis

    simplyplottingresultsonagraph,drawinginalineofbestfitandthenprojectingitforwardintothefuture.Thegreaterthescatterofdata

    pointsandthelongerintothefuturetheprojectionismade,thenthegreatertheerrorintheprediction.Averagesandtrendingwilltendto

    producerepresentativetargetswhicharenottoochallenging.

    BestoftheBest

    Ifweweretosetourtargetsonthebestvaluewhichhadeverbeenachievedtodate,thenthatwouldbemorechallengingthatusingsay

    anaveragevalue.Butwecangomuchfurtherthanthiswecanusethebestofthebest.Toillustratetheprinciplebehindthisconsidera

    golferwhoseresultsforfivehalfroundsofgolfareshowninFigure1,togetherwiththeparscoresforeachhole.

    Figure1Golfscores

    Anyonewhohaseverplayedgolfwillrecognisethevariationinscoresbetweenoneroundandthenextone!Thebestscoreachievedwas

    36fromroundnumber4(circled)theworstwas43.

    Thegolfercouldsetatargetof36forfuturerounds.Thiswouldbeatargetbasedonthebestresult.Amorechallengingtargetwouldbe

    whatiscalledtheeclecticscore:therearenineholessowhatwouldbethetotalscoreifwecouldcombinethelowestscoreforeachhole

    irrespectiveofwhichroundthatscorewasachieved?Theseeclecticscoresareconnectedbytheheavylinesshownintheabove

    diagram.Addingthemtogetherwegetatotalof28.Thisislessthantheparvalueforthenineholesthataprofessionalgolfercouldbe

    expectedtoachieve.

    Thiseclecticscoreisanexampleofabestofthebestvalue.Thesameprinciplecould,ofcourse,beusedforexpenditure,availability,

    tasklengths,etc.Bestofthebesttechniquesproduceverychallengingtargets,buttheindividualvalueshaveallbeenachieved,soit

    couldbearguedthatthesetargetsareachievable.Stretchtargetssuchasthesecanthereforebeusedtoaccelerateimprovementsin

    performance.

    Benchmarking

    Benchmarkinghasbeenwidelyusedtosettargets.Itcanbedoneinternallywithinasingleorganizationorexternallyacrossdifferent

    organizations.Internalbenchmarkinghastheadvantagethateveryoneisusingthesameorganizationproceduresand,asconfidentiality

    isnotanissue,itisstraightforward.Itsdisadvantagesarethatinternalpoliticscandistorttheresultstheinitiativecouldalsobeseenas

    lowpriorityandtheopportunityforlearningsomethingentirelynewisrestricted.Externalbenchmarkinghastheadvantagethatsomething

    entirelynewcouldbelearnedbylookingatanissuefromanentirelydifferentpointofview.However,confidentialitycouldbeaproblem

    therecouldbelegalissuesifcompetitorsshareinformation,andapplyingnewproceduresfromanotherorganizationisnotwithoutrisk.

    CombinationTechniques

    Oneoftheabovetargetsettingtechniquescouldbeusedindependentlyorseveralcouldbeusedincombination.Forexample,consider

    thetableofFigure2,wheredifferentaspectsofmaintenancehavebeenestablishedforfouridenticalfactories.

    Figure2Annualtotalcostofmaintenanceinfourfactories

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    ThebenchmarkfactoryintheabovegroupisFactory2.Itstotalcostofmaintenanceisthelowestat10.3millions.Thelowestcostsfor

    eachitemmakingupthetotalcostofmaintenanceareshowninbold.Addingthesetogethergivesatotalcostof7.2millions.Thisvalue

    wasderivedbybenchmarkingallfourfactoriesandthenapplyingthebestofthebestprinciple.

    OrganizationalCultureandPsychology

    Organizationshavepersonalitiesjustlikepeople:wecanthinkofeachorganizationhavingitsownculture.Oneaspectofcultureishow

    theorganizationwillreactifakeyperformanceindicatordoesnotachieveitstarget.Ifpunitiveactionswouldresult,thenonewouldbe

    advisedtoseteasilyachievabletargets!

    Conversely,ifanorganizationencouragesthesettingofstretchtargetswithrewardforeffort,evenifaverytoughtargethasnotquite

    beenachieved,thenthebestofthebestcouldbeusedasatargetsettingtechnique.Incidentally,organizationswhichsetstretchtargets

    anddontachievethemareoftenbetteroffthanthosewhichalwaysplaysafebecauseIfyoureachforthestarsyoumaygettothe

    moon.

    Psychologyalsoappliestokeyperformanceindicators.Anincrementalincreaseinatargetwillnottriggeranydifferentbehaviouror

    searchingforbettersolutionspeoplewilljusttendtocontinuetodothesamethings.However,aradicallydifferenttarget(suchashalving

    plantdowntime)willtriggeroutoftheboxthinkinganddifferentwaysofviewingtheissues.

    InthebookGoodtoGreat(2001)byJimCollinsgreatleaderswerefoundtouseambitioustargetsasawayofdrivingupperformance.

    AftertheUSSRhadachievedearlysuccessesinspacePresidentKennedyannouncedthattheUSAwouldputamanonthemoonwithin

    tenyears.Inthelate1960sBoeingdecidedtoproduceawidebodiedpassengeraircraft(the747)thatwouldbefarbiggerandmuchmore

    complicatedthananythingavailableatthetime.

    Thesetwoexamplesshowhowtoughtargetscanbeusedtomotivate.Thereisofcourse,afinebalancetobeachievedbetweenatough

    targetwhichwillbedifficulttoachieveandonewhichstaffthinkisimpossible.Obviously,settingatargetwhicheveryoneviewsasbeing

    impossiblewilljustactasademotivator.Highachieverstendtolikethechallengefromtryingtoachievesomethingwhichisviewedas

    beingaround50%possible.

    DETAILEDCONSIDERATIONS

    Asfaraskeyperformanceindicatorsareconcerned,aswithmanythings,thedevilisinthedetail.Error,accuracy,anddynamicsneed

    tobeconsideredinanyperformancemanagementsystem.

    Accuracy,ErrorandUncertainty

    Theaccuracyrequiredforourpurposesmustbeestablished.Forexample,failureratesaccuratetowithinafactoroftwomaybe

    acceptableforreliabilitycalculations,whereasexpendituremustbetrackedtothenearestpenny.Allparametersareuncertaintodiffering

    degrees,and,anysignalwillhavesomeformofassociatederrorandnoise.Thiserrorwillneedtobeassessedandtakenintoaccount

    withintheperformancemanagementsystem.

    Errorscanbebothsystematicandrandom.Supposeouroperatorsareaskedtorecorddowntime.Iftheyareinstructedtoignoreall

    eventswhichresultinlessthanfiveminutesdowntime,thenthiswillresultinasystematicerrorandtherecordeddowntimewillalways

    belessthanthetruefigure.Iftheyareinstructedtologdowntimeeventstothenearesthouronly,thiswillresultinrandomerrorsinthe

    measurement.However,systematicandrandomerrorcanbeassessedbyacombinationofcalibrationandrepeatedmeasurements.

    Statisticaltechniquescanbeusedtoassessifasignalisabovethelevelofexpectednoise.Clearlyweonlywanttotakeactionswhena

    significantchangehasoccurred.Takingactionsbasedonnoisealoneisarecipefordisaster.

    Oftentheparameteritselfcanallowustomakesomeinformedestimatesoflikelyerror.Supposethatsafetyperformanceisimportant

    andthatwehavedecidedtomonitorthenumberofnearmisseseachyear.Lastyearsfigurewas4andthisyearitwas3.Isitpremature

    tostartcongratulatingourselves?Measuresbasedonsmall,discrete,numberstendtofollowthePoissondistribution.Thestandard

    deviationofthisdistributionisalwaysthesquarerootofthemeanvalue.Thesquarerootof4is2,sowemightexpectthataround70%

    oftheannualfiguresforournearmisseswillbeintherange2to6.Therefore,thefigureof3nearmissesthisyearisnotsignificantly

    differentfrom4lastyearandcongratulationswouldbepremature.

    Itisimportanttobeabletospotagrosserrorwhichmightdistortourkeyperformanceindicators.Thisissometimesreferredtoasbeing

    abletospotastranger.Supposeoneofourtechnicianshasloggedaseriesofvibrationmeasurementsasfollows:

    Suspicionfallsonthevalue26.54becauseitissomuchlargerthantheothervaluesforexample,coulditbethatitwasactually2.65

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    whichwaswronglyrecorded?

    Thehighestnumberinthissetis26.54andthelowestis1.04,thereforetherangeis25.5.Ifweignorethesuspiciouslyhighnumberthen

    thenewrangeis9.721.04or8.68.Theratioofthesetworangesis25.5/8.68orapproximately3.Ifthehighnumberweregenuine,then

    thisratioshouldbenolargerthan2.Thereforethelargenumberisspuriousandweshouldeithertakethereadingagain,or,ifthatisnot

    practical,thenignorethelargenumberandnotuseitbecauseitsinclusionwilldistortouranalysis.

    FrequencyofMeasurement

    Someofthekeyindicatorswillbeavailablecontinuously:motorelectriccurrentdrawnbyacriticalpieceofequipment,forinstance.

    However,otherindicatorsperhapshavetobemeasuredperiodicallytherefore,wemustdecidehowoftenthisneedstobedone.Youmay

    havenoticedinoldHollywoodcowboyfilmsthatthestagecoachwheelsseemtobemovingbackwards,eventhough,thestagecoachis

    clearlymovingforward.Inoldernewsreportsthehelicopterrotorssometimesappeartobemovingerratically,insteadofsmoothly.Bothof

    theseexamplesaretheresultoftheshutterspeedofthecamerabeingtooslowtoaccuratelyrecordthemovement.

    Inordertorecordaparameterfaithfullyitmustbesampledatdoublethehighestfrequencyitexhibits.(SeeHartley/Tuller/Shannon

    samplingtheorem,1948).Therefore,tofaithfullyrecordaudiosignalsonaCD,thedigitalsamplesarerecordedat38kHzsincethe

    highestaudiofrequencypresentis19kHz.Ifweconsiderthatpumpperformancewilldeteriorateovera12weekperiod,thenwemust

    checkitatleastevery6weeks.Thereisnoharminsamplingmoreoften,providedhighcostsarenotinvolved,asthesamplingtheorem

    merelysayswhattheminimumneedstobe.

    SystemResponse

    Keyperformanceindicatorsarepartofamethodorsystem.Allsystemstaketimetorespondandthisresponsetimeneedstobetaken

    intoaccount,otherwise,theresultwillbewildoscillationsinthemeasuredvalues.

    Considerthisscenario.Igointomykitchenfirstthinginthemorningandturnonthehottap.Foraperiodoftimethewaterremainscold

    asallofthestandingwaterinthepipebetweenthetapandthehotwatertankisdisplaced.Thenthewatertemperaturestartstorise,this

    isnotimmediate,because,thehotwaterlosessomeenergyasitwarmsthepipeworkbetweenthehotwatertankandthetap.Eventually,

    thehotwaterachievesasteadyvalue.AplotofhotwatertemperatureatthetapversustimewilllooklikethatinFigure3.

    Figure3PlotofTemperaturevs.Time

    ThebehaviourshowninFigure3adeadtimefollowedbyacharacteristicrisetimeisthesimplestresponseasystemcanexhibit.

    Morecomplexsystemscanexhibitlongerdelaysandmorecomplicatedresponsecurves.Wheneverachangeismadetooursystem,it

    willtaketimeforthekeyperformanceindicatortochangeitsvalue.Ifweexpectanimmediatechangeandkeepmakingchangesuntil

    somethingeventuallyhappensthentheindicatorwilleventuallyovershootandfurtherchangeswillresultincontinuedoscillations.We

    needtobepatientand,aftermakingachange,waituntilafteranydeadtimeperiodandcharacteristictimeconstant,toseewhatthetrue

    effectthechangeshavehad.Thatway,theperformancemanagementsystemwillstayincontrol.

    CONCLUSIONS

    Maintenancekeyperformanceindicatorsprovideawindowonourstrategytheyletusseehowwellitisworking.Inordertoachievea

    robustperformancemanagementsystemweneedtobecarefulinourchoiceofmeasures,toconsiderimperfectionsinthem,thedelay

    betweencauseandeffectandhowtheywillinfluencebehaviours.

    ChecklistofKeyPerformanceIndicatorsEssentials

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    Simpleperformancemeasuresforservice,performanceandcost,linkedtotheorganizationsneeds,aredisplayed,understoodand

    ownedbyall

    Global,comprehensiveandaccurateequipmenthistorysystemwithastandardizedassetstructurefacilitatesinternalandexternal

    benchmarkingactivities

    Trendsinmaintenanceandreliabilityperformancearerecognisedandrootcausessought

    Plantkeyperformanceindicatorsarebuiltintoahierarchywhichisusedbytheorganizationwideperformancemanagementsystem

    Stretchtargetsareusedtoaccelerateimprovementsinperformance

    THEAUTHOR

    PaulWheelhouseisadirectorwiththeconsultancycompanyRedWheelSolutions,whichspecialisesinmaintenance,assetmanagementandreliabilityimprovement.(For

    furtherdetailsseewww.redwhweelsolutions.com)HeisalsoavisitinglecturerwithManchesterUniversitywherehelecturesontheMaintenance&AssetManagementMSc

    programme.TogetherwithStuartEmmett,hecoauthoredthebookcalledExcellenceinMaintenanceManagement,ISBN9781903499658.

    Email...| http://www.redwheelsolutions.com

    SpurGearPumpVibrationAssessment1comment2yearsago

    GuillermoIVelascoThanks.Excellentarticle,valuableInfo..

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    SauroRiccettiFrommanufacturingmanagers,maintenanceisoftenseenasadisturbancetotheproductionactivity.Lackofknowledgeandashort

    OneDayValueDrivenMaintenanceMasterClass3comments2yearsago

    MaintenanceOneSteve,MarkHaarmanisdefinitelypresentingattheVDMMasterClass,takingplaceon23October.See

    AssetManagementAreYouQualified?1commentayearago

    MaintenanceOneISO55000AssetManagementOverview,principlesandterminology(launchedJanuary2014).Viewdetails

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    SauroRiccetti ayearago

    KeyPerformanceIndicatorsenable,amongtomanydifferentmanagementfunctions,tochallangeequipmentoperatorsthatareresponsibleoftheline/machine.TheregularanalysisofKPIshowsthetrendoftheline,enablecomparisonandcontrastwithhistoricalfigurestochallange,asresult,equipmentoperatorstodiscoverpotentialareasofimprovement.

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