Profit loss indicator: a novel maintenance indicator applied for integrated planning

  • Harald Rø ,
  • dseth ,
  • Terje Skarlo ,
  • Per Schjø ,
  • lberg
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  • 1 Department of Production and Quality Engineering, Norwegian University of Science and Technology, Trondheim, Norway;
    2 Department of Technology, Sør-Trøndelag University College, Trondheim, Norway

Received date: 2015-02-20

  Revised date: 2015-05-06

  Online published: 2015-06-18

Supported by

We thank Center for Integrated Operations in the petroleum industry (IO Center) for funding this research. In addition, we sincerely thank the saw mill company Kjeldstad Trelast AS for making the case study possible; in particular, the support and important input from the Chief Engineer Frode Edvardsen in this company in order to perform the PLI calculations.

Abstract

In production environment today, "silo thinking" is a challenge where controlling an asset associated with several disciplines and departments can lead to a suboptimal result. This requires a more integrated approach with an integrated planning (IPL) framework. In this framework novel maintenance key performance indicators (KPIs) are needed. The purpose of this article is to develop the novel maintenance KPI profit loss indicator (PLI). This indicator is based on measuring both on the "hidden factory" and waste in production, presenting it as a financial measure. The notion "hidden factory" is used as a metaphor for measuring the time losses in industry through the maintenance KPI overall equipment effectiveness (OEE). This indicator divides the time losses into availability losses, performance losses and quality losses. In addition, a financial measure for waste based on literature from Toyota production system (TPS) and waste treatment and disposal is also included in PLI. Through a case study in the saw mill industry PLI is demonstrated and evaluated. It is expected that this indicator will be demonstrated in several industry branches in the future.

Cite this article

Harald Rø , dseth , Terje Skarlo , Per Schjø , lberg . Profit loss indicator: a novel maintenance indicator applied for integrated planning[J]. Advances in Manufacturing, 2015 , 3(2) : 139 -150 . DOI: 10.1007/s40436-015-0113-6

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