Executive Summary
Asset management KPIs give you clear signals about cost, reliability, and utilization. Track seven core metrics to cut downtime, lower cost, and extend asset life.
Why asset management KPIs matter
Good KPIs tell you what to fix and where to spend. They turn vague problems into numbers you can act on.
Firms that move from reactive to planned maintenance commonly halve downtime. That kind of gain starts with the right KPIs and a simple dashboard.
Tip: Start with three KPIs. Add more as your data gets cleaner.
How to pick KPIs for asset management
Pick KPIs that link to cost, uptime, and asset life. Make each KPI measurable from your systems: CMMS, IoT sensors, ERP or spreadsheets.
Show trends and thresholds on the dashboard. Alert when a metric crosses the threshold.
Seven essential asset management KPIs
1. Availability (Uptime %)
Definition: Percent of scheduled time an asset is available for use.
Formula: Availability = (Available Time / Scheduled Time) × 100
Example: If a machine is scheduled 24×7 for 30 days (720 hours) and is down 12 hours, Availability = ((720−12)/720) × 100 = 98.3%.
Dashboard: Line chart with daily availability and a red band for the SLA threshold.
Action: If availability dips, check MTTR and reactive work orders.
2. Asset Utilization Rate
Definition: How much of an asset’s capacity you use.
Formula: Utilization = (Actual Output / Potential Output) × 100
Example: A printer can handle 1,000 pages/day. If it prints 650 pages/day, Utilization = 65%.
Dashboard: Heatmap by shift or location to find underused assets.
Action: Rebalance workloads or retire low-use assets.
3. Mean Time Between Failures (MTBF)
Definition: Average operating time between failures.
Formula: MTBF = Total Operating Time / Number of Failures
Example: 1,000 operating hours with 4 failures = MTBF 250 hours.
Dashboard: Rolling MTBF and a trendline to see improvement after interventions.
Action: Increase MTBF with condition monitoring and design fixes.
4. Mean Time to Repair (MTTR)
Definition: Average time to restore an asset after failure.
Formula: MTTR = Total Repair Time / Number of Repairs
Example: 40 hours of repair over 5 incidents = MTTR 8 hours.
Dashboard: Bar chart of MTTR by asset type and technician.
Action: Lower MTTR by stocking parts, training, or better procedures.
5. Maintenance Cost per Asset (or per Operating Hour)
Definition: Cost to maintain each asset or cost per hour of operation.
Formula: Cost per Hour = Total Maintenance Cost / Total Operating Hours
Example: $12,000 annual maintenance and 4,000 hours = $3/hour.
Dashboard: Trend of maintenance cost vs. production output to track efficiency.
Action: Flag assets with rising cost per hour for analysis.
6. Planned Maintenance Percentage (PMP)
Definition: Share of maintenance that is planned vs reactive.
Formula: PMP = (Planned Maintenance Hours / Total Maintenance Hours) × 100
Example: 400 planned hours and 100 reactive hours => PMP = 80%.
Dashboard: Pie chart or trend showing planned vs reactive.
Action: Push PMP higher to reduce emergency fixes and lower MTTR.
7. Spare Parts Inventory Turnover (or Stockouts)
Definition: How quickly spare parts move and whether you face stockouts.
Formula: Inventory Turnover = Cost of Parts Used / Average Inventory Value
Example: $50,000 parts used / $25,000 average stock = 2× turnover per year.
Dashboard: Days of inventory on hand and count of critical stockouts.
Action: Use reorder points for critical parts and slow-move analysis for others.
Action item: Label each KPI as leading (predicts failure) or lagging (shows past performance).
Designing an asset management KPI dashboard
Show the top 3 KPIs at the top of the dashboard. Below that show supporting KPIs and raw data.
Use color thresholds: green = good, amber = watch, red = action. Keep visuals simple.
Include a live feed of open work orders and recent failures. That links numbers to real work.
Data sources and automation
Pull data from your CMMS, sensors, PLCs, and ERP. Automate imports hourly or daily.
Set rules for alerts: availability < 95%, MTTR > 8 hours, PMP < 70%.
Use automated reports to notify maintenance leads and operations managers.
Common pitfalls to avoid
- Tracking too many KPIs. That causes noise.
- Using bad data. Garbage in, garbage out.
- No ownership. Assign a KPI owner to drive action.
- One-off targets. Use ranges and trends instead of single-point goals.
Tip: Keep KPIs to the point. Too many indicators slow decisions.
Simple action plan to get started
1. Pick three KPIs: Availability, MTTR, and Maintenance Cost per Hour.
2. Map data sources for each KPI and confirm the numbers match manual checks.
3. Build a simple dashboard with thresholds and daily refresh.
4. Assign owners and run a weekly 15-minute review meeting.
5. Improve one KPI at a time with a small test: reorder parts, schedule preventive checks, or retrain a team.
What to expect after 90 days
You should see clearer causes for downtime. One or two quick wins will prove the value of tracking KPIs.
Use those wins to expand the dashboard and automate more data feeds.
Keep in mind
KPIs only matter when they trigger action. If a metric doesn’t change decisions, drop it.
Focus on three actions: measure, display, and act.
Final takeaway
Asset management KPIs give a clear route from data to savings. Start small, pick three meaningful metrics, and build a dashboard that forces action.
One thing to do now: Choose three KPIs and add them to a simple dashboard today. Set one threshold and one owner.
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