Once you ask a layman what according to him is a successful business, the most probably answer would be ‘one that earns profit’.
A better answer would be ‘a business that makes significant profits now and also in the future’. So, success of a small business is something that you have to constantly monitor. Since you’re already too busy handling the functioning of the company, it may get tough for you to determine how well you’re doing.
Profitable businesses can have the risk of failure and unprofitable businesses may be standing right on the threshold of profitability. This is where preventative maintenance of a business comes in. In fact, studies reveal that businesses across various sectors of the industry can slash off costs by 18% by investing in preventative maintenance.
Understanding failure metrics of your business
Whether you are a property maintenance company or a food manufacturing company, a part of your success is derived by understanding the different failure metrics and utilizing them as KPIs. Here are the key metrics that you should calculate to evaluate your business time to time.
MTTR Mean Time To Repair
The average time that is spend between discovering that an equipment has broken down and the return of the equipment to its usual operational stage is called Mean Time To Repair. This comprise the time that is taken to troubleshoot the problem, the time spent on repairs, the time spent on testing before the machine is put to use again.
What is the reason behind MTTR metric being perfectly suited for being used as a Key Performance Indicator? Well, the MTTR/MTBF formula can work as an effective guide to maintenance managers in facilitating the process of decision making about:
- The decision to repair or to replace
- Level of staffing
- Required inventory levels of replacement tools
MTTF Mean Time To Failure
Initially, MTTF may seem similar to MTBF but there is a difference. While MTTF deals with items that are non-reparable, MTBF deals…
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