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

In production environment today, “silo thinking” is a challenge where controlling an asset associated with several disciplines and departments can lead to a sub-optimal 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.