Modular-Based Framework of Key Performance Indicators Regulating Maintenance Contracts

Abstract

Key performance indicators (KPI) are necessary for regulating maintenance performance, setting goals as well as for follow up and improvement. Several standards and models for measuring maintenance performance exist today, but these are mainly developed for in-house maintenance. For outsourced maintenance, which is regulated in a service contract, other kinds of KPIs are needed. The procurement of maintenance and contract forms is also changing; an alternative to the traditional maintenance contract based on fixed price and predetermined activities are the performance-based contracts. Cooperation contracts based on mutual trust and fairness for all parties are also available. New KPI models for regulating maintenance service contracts are therefore needed. In this paper, a KPI framework for maintenance contracts based on the concept of modular maintenance offerings is proposed. Modular maintenance offerings is a way to classify maintenance services offerings with increasing integration of the offering, and increasing focus on utility for the customer and the business ecosystem. The KPI framework proposes indicators for regulating contracts on three levels (resource, performance and utility level) and includes six categories of indicators: economic, technical, organisational, quality, safety and health, and relationship between actors.