Asset and Facility Management:
There are so many acronyms and terms in facility and asset management it's hard to know where to begin.
Asset and Facility Management: From A-Z contains a list of terms commonly heard when discussing facility and asset maintenance and operations. While not an exhaustive list, many of these terms and acronyms are used throughout the MCIM by Fulcrum Collaborations operating system and our website.
See Application Programming Interface
Application Programming Interface (API)
A set of definitions and protocols for building and integrating application software.
Evaluations of the condition, performance and compliance of a facility or its systems. The goal of assessments is to identify potential issues, to measure the performance of the systems and to ensure compliance with regulations and industry standards.
Physical items that provide a benefit to the company such as greater product quality, reduced costs, automation, or efficiency.
The period of time during which an asset is owned and used by an organization. It typically includes several stages, such as acquisition, development or construction, operation, maintenance, and disposal or decommissioning.
The measure of how effectively an organization is using its assets to generate revenue or perform a specific function. It can be calculated by dividing the amount of time the asset is in use by the total amount of time it is available for use. A high asset utilization rate indicates that the asset is being used efficiently, while a low rate may indicate that the asset is underutilized or that there is room for improvement in how it is being used.
A method of identifying and tracking assets using barcode labels. These labels are affixed to assets, such as equipment or machinery, and contain a unique barcode that can be scanned and read by a barcode scanner or smartphone. Bar coding enables the automated tracking and management of assets, providing real-time information about their location, status, and maintenance history.
Bill of Materials (BOM)
A detailed list of all the components, parts, and materials that are required to manufacture a product. It typically includes information such as item numbers, descriptions, quantities, and unit costs for each component.
A maintenance strategy that focuses on fixing equipment or machinery when it breaks down or fails. It is also known as reactive maintenance, as it responds to equipment failures as they occur, rather than proactively preventing them. Typically used when the cost of downtime is relatively low, or when the cost of preventive maintenance is higher than the cost of repairs.
The main disadvantage of Breakdown maintenance is that it can lead to frequent downtime, which can be costly in terms of lost productivity and revenue. Additionally, it can result in a higher overall cost of maintenance over time, as repairs may be more expensive than preventative maintenance would have been.
See Computer Aided Facilities Management
Condition Based Maintenance -- See Prescriptive Maintenance
See Computer Integrated Facilities Management
See Computerized Maintenance Management System
Colocation Data Center (Colo)
A type of data center facility where multiple organizations can rent space to store and manage their own servers and other IT equipment. These facilities provide a secure and reliable environment for the equipment, with features such as redundant power and cooling systems, as well as fire suppression and security systems.
Colocation data centers allow organizations to outsource the management and maintenance of their IT infrastructure, while still maintaining control over their own equipment. Colocation data centers are also known as carrier hotels, co-location facilities, or simply colos.
The process of documenting and reporting on the compliance of an organization's assets and equipment with relevant regulations and industry standards. Compliance reporting is essential for ensuring that an organization's equipment and facilities are safe, reliable, and in compliance with legal requirements.
Computer Aided Facilities Management (CAFM)
The use of computer technology to assist with the management and maintenance of a facility. This can include tasks such as space planning, asset management, and maintenance scheduling. CAFM systems can be used to track and analyze data on a facility's operations, which can help managers make informed decisions about how to improve efficiency and reduce costs.
Computer Integrated Facilities Management (CIFM)
A more advanced version of Computer Aided Facilities Management (CAFM) that integrates the use of computer technology throughout all aspects of facilities management. This includes the use of automation, data analysis, and other advanced technologies to optimize the management and maintenance of a facility. CIFM systems can be used to automate tasks such as scheduling, inventory management, and work order tracking. They also provide advanced reporting capabilities that can help managers make more informed decisions about how to improve efficiency and reduce costs.
Computerized Maintenance Management System (CMMS)
Maintenance software used to manage work orders, track assets, monitor conditions, and more. CMMS software optimizes the use, availability, and longevity of equipment, machines, fleets, infrastructure, facilities, or operations.
A CMMS allows a maintenance or facility team to organize all maintenance-related activities in one central location. For example, they can track all assets, spare parts, suppliers, work orders, preventive maintenance, and more in one software. A well-managed CMMS can dramatically increase productivity, reduce downtime, and reduce spare parts.
See also What is a CMMS (computerized maintenance management system)? How it works can change your business.
Condition Based Maintenance (CBM)
The use of various monitoring techniques to assess the condition of equipment and systems within a facility. The goal of condition monitoring is to identify potential issues with equipment before they lead to failure or breakdowns, allowing for proactive maintenance to be performed. This can help to improve equipment reliability, increase the overall efficiency of the facility, and reduce maintenance costs.
A type of maintenance that is performed when equipment or systems fail or break down. The goal of corrective maintenance is to restore the equipment or system to its normal operating condition as quickly as possible. This type of maintenance typically involves repairing or replacing parts that have failed, and can be performed on both scheduled and emergency basis.
Corrective maintenance can be either reactive or proactive. Reactive maintenance is performed only when equipment has failed, whereas proactive maintenance is performed before failure occurs, this is often based on the data collected through condition monitoring or predictive maintenance techniques.
The maintenance activities that are deemed essential for ensuring the safe and reliable operation of equipment or assets. These activities are prioritized based on their potential impact on safety, production, or the environment.
Critical maintenance activities can include, for example, scheduled maintenance on safety equipment, such as fire suppression systems, or the maintenance of equipment that is essential for production, such as a critical production line.
The criticality of an asset is determined by the organization's maintenance strategy and can be based on several factors such as the criticality of the equipment to the production process, the impact of the equipment failure on safety, environmental or financial aspects, and the regulatory compliance requirements.
See Data Center Infrastructure Management
See Design Failure Modes and Effects Analysis
Data Center Infrastructure Management (DCIM)
The practice of managing the physical infrastructure of a data center, including the power, cooling, and environmental systems as well as the IT equipment that supports the data center operations. DCIM software is used to monitor and manage these systems to ensure that they are running efficiently and effectively, and to identify any potential issues before they lead to equipment failure or downtime.
The practice of delaying or postponing maintenance or repairs on equipment or facilities in order to save costs or address other priorities. This can occur when an organization lacks the budget or resources to address a maintenance issue in a timely manner, or when maintenance is considered less of a priority than other operational needs.
Over time, deferred maintenance can lead to equipment failure, reduced efficiency, and increased costs. For example, if a leaky roof is not repaired, the water damage may cause structural damage and mold growth, making the repair much more costly. Similarly, deferred maintenance on HVAC systems can lead to increased energy consumption and higher utility bills.
Design Failure Modes and Effects Analysis (DFMEA)
A systematic, proactive method for evaluating a product or process for potential failure modes, and for assessing the potential effects of those failure modes. The goal of DFMEA is to identify potential failure modes early in the design process, so that they can be prevented or mitigated before the product or process is released.
The period of time when equipment or assets are not available for production or operation. Downtime can be caused by a variety of factors, such as equipment failure, maintenance, or repairs. Downtime can have a significant impact on an organization, as it can lead to reduced productivity, increased costs, and lost revenue.
There are different types of downtime, such as scheduled downtime, planned downtime and unplanned downtime. Scheduled downtime is the downtime that is planned in advance, for example, for maintenance or upgrades. Unplanned downtime, also called breakdowns, are unexpected and can occur due to equipment failures, accidents, or other unforeseen events.
EAM systems can also be used to track and manage the impact of downtime, such as the costs associated with downtime, the impact on production and revenue, and the impact on customer service.
See Enterprise Asset Management System
See Environment, Health, and Safety
Enterprise Asset Management System (EAM)
A comprehensive approach to managing physical assets throughout their entire lifecycle. EAM systems are designed to track and manage all aspects of an asset's lifecycle, from acquisition and installation to ongoing maintenance and eventual replacement. EAM systems typically include work order management, asset tracking, and preventive maintenance.
See also What is Enterprise Asset Management (EAM) and why you need it
Environment, Health, and Safety (EHS)
The management of the environmental and safety risks associated with the operation of equipment and facilities. EHS management includes identifying, evaluating and controlling environmental and safety hazards, as well as ensuring compliance with relevant regulations and industry standards.
See Fixed Asset Turnover Ratio
See Failure Mode, Effects, and Criticality Analysis
See Facilities Management Information System
See Facilities Maintenance Management System
Facilities Maintenance Management System (FMMS)
A type of software that organizations use to manage and automate the maintenance and repair of their facilities and equipment. FMMS can assist with the management of maintenance activities for different types of assets such as HVAC systems, electrical equipment, mechanical systems, and building envelope, as well as scheduling and tracking of preventive and predictive maintenance activities, manage inventory and procurement of spare parts and tools, and document and track compliance with industry regulations and standards.
Facilities Management Information System (FMIS)
A type of software that organizations use to manage and automate the various tasks and processes associated with facilities management. FMIS can assist with the management tasks such as space planning and allocation, maintenance scheduling, inventory and procurement management, energy management, and compliance with industry regulations and standards. It can also provide data and analytics to support decision-making and overall facilities management planning.
Facility Condition Index (FCI)
A measure of the overall condition of a facility or building. It is used to assess the physical condition of a facility and to identify areas that may require maintenance, repair, or replacement. The FCI is a ratio of the cost to repair to the cost to replace.
The FCI is commonly used in facility management to help prioritize maintenance and capital improvement projects, by identifying the areas of the facility that require the most attention. It can also be used to identify opportunities for energy efficiency and cost savings.
See also Automate Your Facility Condition Index Scoring, Reporting, And Response with MCIM
The process of coordinating and managing the operations and maintenance of a facility, such as a building, office, or campus. The goal of facility management is to ensure that the facility is safe, comfortable, and efficient, and that it meets the needs of the organization and its occupants.
The process of identifying the cause of equipment failure and determining the necessary repairs or actions to prevent similar failures from occurring in the future. Failure analysis is often a key component of a condition-based maintenance strategy, and is used in combination with other condition monitoring techniques such as vibration analysis, oil analysis, thermal imaging, and other non-destructive testing methods to identify and track equipment failures.
Failure Mode, Effects, and Criticality Analysis (FMECA)
A systematic methodology to identify, evaluate, and prioritize potential failure modes of equipment and systems, and the effects that each failure mode would have on the overall operation of the facility. It is also used to identify the criticality of each piece of equipment or system, based on its impact on safety, production, or the environment.
Labels or markers that are used to identify equipment or assets that have failed or are in need of maintenance. These tags are typically placed on the equipment or asset itself, and can include information such as the date of the failure, the type of failure, and any relevant notes or observations.
Failure tags can be used to track and document equipment failures, and can also be used to trigger work orders for maintenance or repairs.
In addition to physical tags, the failure information can also be recorded in an EAM software, which can include a variety of fields such as the failure description, failure cause, and any corrective actions taken. This information can then be analyzed to identify trends and patterns in equipment failures, which can help organizations to improve the reliability of their equipment and reduce downtime.
The process of identifying and detecting equipment or systems failures in a facility. The goal of fault detection is to quickly identify and diagnose equipment failures, so that appropriate action can be taken to minimize downtime and prevent further damage.
Fault detection is often a key component of a condition-based maintenance strategy, and can be used in combination with other condition monitoring techniques to identify and track equipment failures. This data can be used to identify patterns and trends in equipment failures, which can help organizations to improve the reliability of their equipment and reduce downtime.
The ability of a system to continue operating, even in the event of a failure of one or more of its components. Fault tolerance can be achieved through redundancy and the implementation of maintenance strategies such as preventive maintenance, predictive maintenance, and condition-based maintenance. Additionally, EAM systems can aid in the implementation of fault tolerance by providing the necessary data, analytics and tools to schedule, track and report on critical maintenance activities.
Fault Tree Analysis
A method to identify and analyze the potential causes and consequences of equipment failures. The goal of FTA is to identify the root causes of equipment failures, and to develop strategies to prevent or mitigate the potential consequences of those failures.
Fixed Asset Management
Fixed asset management is the process of tracking, maintaining, and disposing of fixed assets, which are long-term tangible assets such as buildings, equipment, and vehicles that are used in a business's operations.
Fixed asset management helps to ensure that fixed assets are used efficiently and effectively, and it provides accurate and up-to-date information on the assets for accounting and financial reporting purposes. Additionally, it allows organizations to make better-informed decisions about the acquisition and disposition of assets, and to plan for their replacement or renewal.
Fixed Asset Turnover Ratio (FATR)
A financial ratio that measures a company's ability to generate sales from its fixed assets. It is calculated by dividing the company's net sales by the value of its fixed assets:
Fixed Asset Turnover Ratio = Net Sales / Fixed Assets
The ratio is typically expressed as a number, and a higher ratio indicates that the company is generating more sales per dollar of fixed assets.
See Geographic Information System
Geographic Information System (GIS)
A computer-based system used to capture, store, manipulate, analyze, manage, and present geographical data. GIS technology is used to create digital maps and models that can be used to visualize and analyze geographic information, such as location, terrain, and other spatial data.
IT Service Management
A set of practices and processes that organizations use to manage and deliver IT services to their customers. ITSM helps ensure that IT services are delivered in a timely, efficient, and effective manner, and that IT service disruptions are quickly identified and resolved.
See Integrated Workplace Management System
The process of documenting and reporting any incidents or accidents that occur within a facility. Incident reporting is important for ensuring safety, compliance with regulations and also for liability management. It also helps to improve the overall operations of the facility, identify areas for improvement and promote a culture of safety among the employees.
Integrated Workplace Management System (IWMS)
A type of software that organizations use to manage and automate various tasks and processes associated with facility and real estate management. The goal of an IWMS is to improve the efficiency, cost-effectiveness, and overall performance of facilities management operations.
IWMS can assist with the management of facilities tasks such as space planning and allocation, maintenance scheduling, inventory and procurement management, energy management, real estate management, and compliance with industry regulations and standards. It can also provide data and analytics to support decision-making and overall facilities management planning.
The ability of a system or software to automatically inherit certain characteristics or properties from a parent or higher-level object. This allows for efficient data management and eliminates the need for manual data entry for similar objects.
It's important to note that inheritance can be used in different levels, for example, it can be used to assign characteristics to a group of assets, and then to specific assets within that group, and then to specific components within that asset. This allows for a more granular level of data management and reporting.
Internet of Things (IoT)
The connection of everyday physical objects, such as appliances, vehicles, and industrial equipment, to the internet, allowing them to send and receive data. This is achieved by embedding sensors, actuators, and other electronics into these objects, which enables them to communicate with other devices and systems over the internet.
The IoT allows for the collection and analysis of large amounts of data from connected devices, which can be used to improve the efficiency, safety, and performance of various industries and applications
Key Performance Indicator (KPI)
A measurable value that demonstrates how effectively a company is achieving its key business objectives. KPIs are used to evaluate the success of an organization, program, project or specific process in achieving their goals. Examples of KPIs include sales revenue, return on investment, and customer satisfaction.
See Lock-Out Tag-Out
Lock-Out Tag-Out (LOTO)
A safety procedure used in industry and facilities to ensure that dangerous machines and equipment are properly shut off and not able to be started up again before maintenance or repair work is completed. The procedure involves the use of locks and tags to physically prevent the operation of machinery and equipment, and to indicate that maintenance or repair work is in progress.
See Mission Critical Information Management
See Mechanical, Electrical, and Fire Protection
See Maintenance, Repair, and Operations
See Mean Time Between Failures
Machine monitoring is the process of collecting and analyzing data from industrial machinery and equipment in order to identify patterns, trends, and potential issues. This data can include information on machine performance, such as operating temperature, vibration, and energy usage. There are various ways to perform machine monitoring, including the use of sensors, cameras, and software. The data collected can be analyzed and displayed in real-time, or it can be stored for later analysis.
A list of tasks or procedures that need to be completed in order to properly maintain a piece of equipment or machinery. The checklist is used to ensure that all necessary maintenance tasks are performed on schedule and to ensure that nothing is missed.
The maintenance checklist can be integrated with an EAM system, allowing for easy scheduling and tracking of maintenance tasks, and generating maintenance reports. The maintenance team can also use the checklist to document the completion of tasks, including date, time, and any issues found. By using a maintenance checklist, the EAM system can ensure that all maintenance tasks are performed correctly and on time, reducing downtime and prolonging equipment life.
A document that summarizes the maintenance activities performed on a piece of equipment or machinery, including the tasks that were completed, the date and time they were completed, and any issues or observations noted. Maintenance reports integrated with an EAM system can provide a comprehensive view of equipment performance and facilitate proactive maintenance, reducing downtime and prolonging equipment life.
Maintenance, Repair, and Operations (MRO)
The activities that are necessary to keep equipment and machinery in good working condition, such as maintenance, repair, cleaning, and replacement of parts. They include preventive and corrective maintenance, cleaning, and replacement of parts. These activities are managed using a computerized maintenance management system (CMMS) that allows to schedule, plan and track all maintenance activities, including preventive and corrective maintenance, inventory management, and more.
Mean Time Between Events (MTBE)
The measurement of the reliability of equipment or machinery. It is calculated by measuring the total operating time of a piece of equipment and the number of times it failed or needed maintenance:
MTBE = Total Operating Time / Number of Events
The resulting value is typically expressed in hours, days or other time units. A high MTBE value indicates that the equipment is reliable and has a low frequency of failure or maintenance needs. A low MTBE value indicates that the equipment is less reliable and has a higher frequency of failure or maintenance needs.
Mean Time Between Failures (MTBF)
The measurement of the reliability of equipment or machinery. It is calculated by measuring the total operating time of a piece of equipment and the number of times it failed:
MTBF = Total Operating Time / Number of Failures
The resulting value is typically expressed in hours, days or other time units. A high MTBF value indicates that the equipment is reliable and has a low frequency of failure. A low MTBF value indicates that the equipment is less reliable and has a higher frequency of failure.
It's worth noting that MTBF is different from MTTR (Mean Time to Repair) which is a metric that measures the time it takes to repair the equipment after a failure has occurred. MTBF measures the time between failures, while MTTR measures the time to repair a failure.
Mean Time to Failure (MTTF)
The measurement of the expected longevity or lifespan of equipment or machinery. It is calculated by measuring the total operating time of a piece of equipment or a population of identical equipment and the number of times it failed:
MTTF = Total Operating Time / Number of Failures
The resulting value is typically expressed in hours, days, or other time units. A high MTTF value indicates that the equipment is expected to last a long time before failure. A low MTTF value indicates that the equipment is expected to fail sooner.
It's worth noting that MTTF is an estimation of how long an equipment is expected to last before failing, but it does not take into account the time it takes to repair the equipment after it fails. It also doesn't consider the preventive maintenance that can be applied to the equipment to prolong its life.
Mean Time to Repair (MTTR)
The measurement of the time it takes to repair equipment or machinery after a failure has occurred. It is calculated by measuring the total time spent on repairing equipment and the number of times the equipment was repaired:
MTTR = Total Repair Time / Number of Repairs
The resulting value is typically expressed in hours, days, or other time units. A low MTTR value indicates that the equipment is repaired quickly, while a high MTTR value indicates that the equipment takes a long time to repair.
It's worth noting that MTTR is a measure of how long it takes to repair equipment after it fails, and it doesn't take into account the time it takes to diagnose the failure and to order parts, if needed. It also doesn't consider the preventive maintenance that can be applied to the equipment to avoid failures.
Mechanical, Electrical, and Fire Protection (MEFP)
The three main systems that are typically installed in a building or facility to ensure its safety, functionality and comfort.
Mechanical Systems: This includes the systems that control the heating, ventilation, and air conditioning (HVAC) of a building, as well as the plumbing and other mechanical systems that are used to maintain the comfort and safety of the building's occupants.
Electrical Systems: This includes the electrical power distribution and lighting systems that are used to provide power to the building and its equipment, as well as the control systems that are used to manage the building's electrical systems.
Fire Protection Systems: This includes the fire alarms, sprinklers, and other fire suppression systems that are used to detect and extinguish fires in the building.
MEFP systems are designed to work together to ensure the safety, comfort and functionality of the building, and they are often integrated with building automation systems and energy management systems to optimize the building's energy efficiency and reduce its environmental impact.
Method of Procedure (MOP)
A detailed document that outlines the steps and procedures that need to be followed in order to safely and effectively perform a specific task or activity, such as maintenance, repair, or troubleshooting of equipment or machinery. MOPs are used to standardize the way work is performed, to ensure that the work is done safely and efficiently, and to minimize the risk of errors or accidents.
Mission Critical Information Management (MCIM)
MCIM by Fulcrum Collaborations is a comprehensive platform with a suite of best-in-class products including enterprise asset management (EAM), computerized maintenance management system (CMMS), and asset performance management (APM) functionality. Designed in the cloud, for the cloud, MCIM provides customers with the embedded analytics and AI necessary to make better facility operations decisions – mitigating the risk of impact events and maximizing uptime availability and asset-useful life across the portfolio.
See Operations and Maintenance
See Overall Equipment Effectiveness
Operations and Maintenance (O&M)
The activities that are necessary to keep equipment, facilities, and infrastructure running smoothly and safely. This includes the ongoing tasks required for the operation, monitoring, and maintenance of equipment and facilities, such as regular inspections, cleaning, and repairs, monitoring and controlling equipment and systems, ensuring safety, compliance and energy efficiency.
Overall Equipment Effectiveness (OEE)
A metric used to measure the performance of production equipment. It is a composite metric that takes into account factors such as availability, performance, and quality to give an overall measure of how effectively the equipment is being used. OEE is typically used to identify areas for improvement in the production process, such as reducing downtime or increasing production speed, in order to improve efficiency and reduce costs
See Process Failure Modes and Effects Analysis
Scheduled interruptions of production or other operations in order to perform maintenance, repairs, or upgrades on equipment. This type of downtime is typically planned in advance and is scheduled to minimize the impact on production or other operations. Examples of planned downtime include scheduled maintenance, equipment upgrades, and shutdowns for facility or equipment inspections.
Predictive Maintenance (PdM)
A strategy used to predict when equipment or machinery will need maintenance or repairs before it fails. This is done by analyzing data from equipment sensors and other sources to detect signs of wear or other issues that may indicate an impending failure. By identifying and addressing issues before they cause equipment failure, PdM aims to reduce the amount of unplanned downtime, increase equipment reliability, and reduce maintenance costs.
A strategy used to optimize maintenance and repair activities based on the current condition of equipment. This approach uses sensor data and other information to continuously monitor the condition of equipment, and then uses advanced analytics and machine learning to determine the best course of action to maintain or repair the equipment. Also known as Condition-Based Maintenance.
Prescriptive maintenance goes one step further than Predictive Maintenance. Once the Predictive Maintenance system predicts an equipment failure, Prescriptive Maintenance uses the data it collected, and the knowledge of the experts to prescribe the optimal maintenance strategy, taking into account the specific equipment, its use, the environment, and other factors.
Preventative Maintenance (PM)
A strategy used to schedule regular maintenance and repairs on equipment or machinery in order to prevent breakdowns or failures. This type of maintenance is typically performed on a regular schedule, such as daily, weekly, monthly, or annually, depending on the equipment and its usage.
The goal of preventative maintenance is to identify and address potential equipment issues before they cause a failure or breakdown, and to ensure that equipment is operating correctly and efficiently. This can help to reduce unplanned downtime, increase equipment reliability, and prolong the lifespan of equipment.
A strategy used to take preventative and predictive measures to avoid equipment failures and downtimes by identifying potential issues and taking action before they occur. This approach goes beyond traditional Preventative Maintenance and Predictive Maintenance, by utilizing advanced analytics and monitoring equipment conditions in real-time, to anticipate and prevent equipment failures, before they occur.
Proactive maintenance is considered to be a more advanced form of maintenance management, as it uses real-time data, advanced analytics, and machine learning to predict and prevent equipment failures, rather than simply reacting to them.
Process Failure Modes and Effects Analysis (PFMEA)
A methodology used to identify and assess the potential failure modes of a production process and the effects that those failures would have on the process, the equipment, and the end product. The goal of PFMEA is to identify potential failure modes early in the design process, so that appropriate measures can be taken to prevent or mitigate them.
A matrix barcode that can be scanned to find information about the item to which it is attached. QR codes often contain data for a locator, identifier, or URL. QR Codes can contain more information than standard UPC barcodes. Short for "Quick Response Code."
See Reliability-Centered Maintenance
Reliability-Centered Maintenance (RCM)
A systematic approach to identifying the maintenance tasks that are necessary to keep equipment operating at its optimal level, with the goal of improving reliability and reducing downtime.
RCM typically follows a structured process that includes analyzing the equipment's function, identifying failure modes, determining the causes of failures, and developing a maintenance strategy that addresses these causes. The process involves identifying the specific maintenance tasks that will prevent or reduce the likelihood of equipment failures.
Return on Fixed Assets (RoFA)
A measure of the profitability of a company's fixed assets, such as buildings, equipment, and machinery. It is calculated by dividing the net income of a company by its total fixed assets.
A higher ROFA ratio indicates that a company is generating more income from its fixed assets, which is considered a good sign for the company's financial health. A low ROFA ratio, on the other hand, may suggest that the company is not effectively utilizing its fixed assets to generate income.
Risk-Based Maintenance (RBM)
A maintenance strategy that is based on the risk level of equipment failures. It is a proactive approach that prioritizes maintenance activities based on the potential consequences of equipment failure and the likelihood of the failure occurring.
RBM is an effective way to balance the costs and benefits of maintenance, by focusing on the most critical equipment and ensuring that they are maintained in a way that minimizes the risk of failure and maximizes their availability. It also allows organizations to make informed decisions on how to allocate maintenance resources.
Root Cause Analysis (RCA)
A method used to identify the underlying cause of a problem or failure in equipment or a process so it can be corrected or prevented from happening again in the future.
Rough Order of Magnitude (ROM)
A broad approximation of the cost of a proposed project or program. ROM estimates are usually based on limited information and are intended to provide a general idea of a project's cost and feasibility. They are often expressed in terms of a range of costs, such as $500,000 to $1,000,000, rather than a specific dollar amount. ROM estimates are often used to help decision-makers determine if a project should move forward and to identify potential cost savings opportunities.
The regular and planned maintenance tasks that are performed on equipment and machinery to ensure that it continues to operate at its optimal level. The frequency and type of routine maintenance will depend on the equipment and its usage, and it can be scheduled, or triggered by certain condition.
A type of maintenance strategy in which equipment or machinery is only repaired or maintained after it has failed or broken down. This approach is also known as Reactive Maintenance.
Run-To-Failure maintenance can be less efficient and more costly than Proactive Maintenance because it often involves emergency repairs, which can be more expensive than scheduled maintenance. It can also lead to unexpected downtime and increased costs if the equipment fails at an inopportune time. It's often used as a last resort when other types of maintenance have been unsuccessful, or when the equipment is too expensive to replace.
See Standard Operating Procedure
The degree to which maintenance and other work activities are completed in accordance with the planned schedule. Schedule compliance can be measured in various ways, such as the percentage of planned maintenance tasks that were completed on time, or the total number of days that equipment was offline due to maintenance.
A high schedule compliance indicates that the maintenance activities are being performed according to the planned schedule and that the assets are available for production most of the time. A low schedule compliance may indicate that there are problems with the maintenance schedule or that maintenance activities are not being performed efficiently. In such cases, organizations may need to review their maintenance processes and procedures, and identify ways to improve their schedule compliance.
Standard Operating Procedure (SOP)
A set of written instructions that outline the steps required to perform a specific task or process. These procedures are used to ensure that tasks are performed consistently and safely, and that equipment and facilities are maintained in compliance with regulations and industry standards.
See Total Productive Maintenance
Total Cost of Ownership (TCO)
A financial metric used to evaluate the overall costs associated with owning and maintaining an asset over its entire life cycle. TCO includes both direct and indirect costs, such as the cost of the asset itself, installation and commissioning costs, operating costs, maintenance costs, and decommissioning or disposal costs.
Total Productive Maintenance (TPM)
A maintenance strategy that aims to involve all employees in the maintenance and improvement of equipment and facilities. TPM is focused on increasing the overall effectiveness and efficiency of equipment, by maximizing the uptime and availability of assets. It typically involves a combination of preventive maintenance, autonomous maintenance (performed by operators), and planned maintenance activities.
The amount of time that equipment or facilities are available and in operation. It is often expressed as a percentage, calculated by dividing the total operating time by the total time (including planned and unplanned downtime). High uptime is desirable as it means that assets are available for use and generating revenue for the organization.
See also Maximize data center uptime with these 3 tips
A document that contains instructions and information for maintenance, repair, or other work to be performed on equipment, facilities, or other assets. A Work Order is typically generated based on a Work Request, and it contains details such as the location of the asset, the type of work to be performed, and any relevant instructions or specifications. Work orders may also include information about the required tools, materials, and personnel needed to complete the work, as well as any safety precautions that must be taken.
Work orders are usually prioritized and scheduled based on the urgency and importance of the request, and the availability of resources. Work orders can be created manually, or automatically generated by an EAM system based on predefined rules or equipment conditions.
See also What is a Work Order? And 5 Expert Benefits to Digitizing Them
A request for maintenance, repair, or other work to be performed on equipment, facilities, or other assets. The main purpose of a Work Request is to initiate a maintenance process, and it typically triggers a series of actions, such as the creation of a work order, the assignment of personnel, and the scheduling of the work. Once the work is completed, a work completion report is generated to document the work done, and to update the maintenance records of the equipment or asset.
The amount of time that maintenance personnel spend physically working on equipment, as opposed to other activities such as planning, scheduling, or sourcing parts. Wrench time is often used to measure the productivity of maintenance personnel and to identify areas for improvement. For example, a low wrench time percentage may indicate that maintenance personnel are spending too much time on non-maintenance activities, such as searching for parts or waiting for equipment to be available for maintenance. High wrench time percentages, on the other hand, may indicate that maintenance personnel are overworked and may need additional resources to meet the demands of the maintenance schedule.