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Flevy Management Insights Q&A
What metrics should be used to evaluate the success of Autonomous Maintenance programs?


This article provides a detailed response to: What metrics should be used to evaluate the success of Autonomous Maintenance programs? For a comprehensive understanding of Autonomous Maintenance, we also include relevant case studies for further reading and links to Autonomous Maintenance best practice resources.

TLDR Evaluating Autonomous Maintenance programs involves metrics like Overall Equipment Effectiveness, Mean Time Between Failure, cost reductions, and cultural change indicators such as Employee Satisfaction, highlighting their contribution to Operational Excellence.

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Autonomous Maintenance (AM) programs are a cornerstone of Total Productive Maintenance (TPM) strategies, aiming to empower operators to maintain their equipment, thereby improving reliability and performance. Evaluating the success of such programs is critical to ensure they deliver tangible benefits and support the organization's overall Operational Excellence. The evaluation metrics should be multifaceted, incorporating aspects of performance improvement, cost reduction, and cultural change.

Evaluating Performance Improvement

The primary objective of Autonomous Maintenance is to enhance the performance and reliability of machinery and equipment. Key Performance Indicators (KPIs) to measure this improvement include Overall Equipment Effectiveness (OEE), Mean Time Between Failure (MTBF), and Mean Time to Repair (MTTR). OEE is a comprehensive metric that combines availability, performance efficiency, and quality rates to provide insight into how well equipment is being utilized. An increase in OEE post-implementation of an AM program indicates a successful enhancement in equipment performance. MTBF measures the average time between failures, where an increase suggests improved reliability. Conversely, MTTR tracks the average time taken to repair a machine after a failure, with a decrease indicating more efficient repair processes.

Real-world examples of performance improvement can be observed in manufacturing firms that have implemented AM programs. For instance, a report by McKinsey highlighted a case where a manufacturing plant witnessed a 30% increase in OEE within six months of implementing Autonomous Maintenance practices. This improvement was attributed to operators being more proactive in identifying and addressing minor issues before they escalated into major failures.

However, evaluating performance improvement requires a baseline measurement before the AM program's implementation and regular monitoring to track progress. This involves setting up a robust data collection and analysis system to ensure accurate and timely information is available for decision-making.

Explore related management topics: Key Performance Indicators Autonomous Maintenance Overall Equipment Effectiveness

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Cost Reduction Metrics

Another critical area to evaluate the success of Autonomous Maintenance programs is cost reduction. Metrics in this category include Reduction in Maintenance Costs, Inventory Cost Reduction, and Downtime Cost Reduction. Maintenance costs can decrease as operators perform routine maintenance tasks, reducing the need for specialized maintenance personnel. Inventory costs can be reduced by minimizing the need for spare parts and supplies as equipment reliability improves. Downtime costs, which include lost production and labor costs during equipment failures, are expected to decrease as the frequency and duration of equipment downtime are reduced.

Accenture's research in the area of Autonomous Maintenance has shown that companies implementing AM practices effectively can achieve up to a 20% reduction in maintenance costs. This is primarily due to the shift in maintenance work from reactive to proactive, preventing costly breakdowns and extending the life of the equipment.

It is important to note that realizing cost reductions requires a strategic approach to implementing Autonomous Maintenance, including training operators, setting clear expectations, and continuously monitoring and adjusting the program based on performance data.

Explore related management topics: Cost Reduction

Cultural Change and Employee Engagement

The success of Autonomous Maintenance programs is not solely dependent on tangible metrics like performance improvement and cost reduction. The cultural change and increase in employee engagement that AM fosters are equally important. Metrics to evaluate these aspects include Employee Satisfaction Scores, Participation Rates in AM Activities, and the Number of Improvement Suggestions Submitted by Operators. A positive shift in these metrics indicates a successful cultural transformation towards a more engaged and proactive workforce.

Deloitte's insights on change management emphasize the importance of measuring cultural change through regular employee surveys and feedback mechanisms. An example cited includes a company that saw a 40% increase in employee engagement scores after the implementation of an Autonomous Maintenance program, highlighting the program's role in empowering employees and fostering a sense of ownership over their work.

Successfully driving cultural change requires clear communication of the benefits of Autonomous Maintenance to all stakeholders, providing the necessary training and resources, and recognizing and rewarding contributions to the program's success.

Evaluating the success of Autonomous Maintenance programs involves a comprehensive approach that looks beyond immediate financial gains. It requires a balanced scorecard that includes performance improvements, cost reductions, and cultural change metrics. By systematically measuring these aspects, organizations can ensure that their Autonomous Maintenance programs are effectively contributing to their Operational Excellence goals and delivering sustainable benefits over the long term.

Explore related management topics: Operational Excellence Change Management Balanced Scorecard Employee Engagement

Best Practices in Autonomous Maintenance

Here are best practices relevant to Autonomous Maintenance from the Flevy Marketplace. View all our Autonomous Maintenance materials here.

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Explore all of our best practices in: Autonomous Maintenance

Autonomous Maintenance Case Studies

For a practical understanding of Autonomous Maintenance, take a look at these case studies.

Operational Excellence in Power & Utilities

Scenario: The organization is a regional power utility company that has been facing operational inefficiencies within its maintenance operations.

Read Full Case Study

Autonomous Maintenance Initiative for Packaging Industry Leader

Scenario: A leading packaging firm in North America is struggling to maintain operational efficiency due to ineffective Autonomous Maintenance practices.

Read Full Case Study

Autonomous Maintenance Initiative for Maritime Shipping Leader

Scenario: The organization, a prominent player in the maritime shipping industry, is grappling with inefficiencies in its Autonomous Maintenance program.

Read Full Case Study

Autonomous Maintenance Enhancement in Telecom

Scenario: A telecom firm in North America is struggling with its Autonomous Maintenance program.

Read Full Case Study

Enhancement of Jishu Hozen for a Global Manufacturing Firm

Scenario: A large multinational manufacturing firm is struggling with its Jishu Hozen, a key component of Total Productive Maintenance (TPM).

Read Full Case Study

Autonomous Maintenance Improvement Initiative for a Global Manufacturing Firm

Scenario: A multinational manufacturing company has witnessed a steady decline in machine efficiency and an increase in unplanned downtime, affecting overall production output.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

What are the key strategies for embedding Jishu Hozen principles into an Operational Excellence framework?
Embedding Jishu Hozen into an Operational Excellence framework involves Strategic Alignment, Leadership Commitment, Employee Empowerment, Skill Development, Process Integration, and a commitment to Continuous Improvement, enhancing equipment reliability and efficiency. [Read full explanation]
How can companies ensure that the empowerment given to employees through Jishu Hozen does not lead to inconsistencies in maintenance practices?
Implementing Jishu Hozen effectively involves Comprehensive Training, Standardization of Maintenance Procedures, and fostering a Culture of Continuous Improvement to empower employees without sacrificing operational consistency. [Read full explanation]
What impact could the increasing adoption of IoT devices have on the scalability of Autonomous Maintenance programs?
The adoption of IoT devices revolutionizes Autonomous Maintenance by improving Predictive Maintenance, Operational Efficiency, and necessitating strategic data management and skill development for scalability. [Read full explanation]
How can companies integrate Autonomous Maintenance with existing digital transformation efforts?
Integrating Autonomous Maintenance with Digital Transformation enhances Operational Excellence by focusing on Strategic Planning, Technology Integration, Employee Empowerment, and Continuous Process Optimization for improved productivity and equipment reliability. [Read full explanation]
How does Jishu Hozen contribute to achieving Operational Excellence in highly regulated industries?
Jishu Hozen, as part of TPM, empowers operators for proactive maintenance, enhances compliance and quality assurance, and drives Continuous Improvement and Innovation, crucial for Operational Excellence in regulated industries. [Read full explanation]
What synergies exist between Jishu Hozen and Total Productive Maintenance for maximizing asset lifecycle?
Jishu Hozen and Total Productive Maintenance synergize to significantly improve Preventive Maintenance, Overall Equipment Effectiveness, and foster Cultural Change, leading to enhanced productivity and operational efficiency. [Read full explanation]
How are advancements in AI and IoT transforming Autonomous Maintenance strategies for better asset management?
AI and IoT are transforming Autonomous Maintenance by enabling Predictive Maintenance, optimizing maintenance schedules and resource allocation, and promoting a culture of Continuous Improvement and Innovation in asset management. [Read full explanation]
What role does Jishu Hozen play in achieving Operational Excellence in service industries?
Jishu Hozen, or autonomous maintenance, is key in achieving Operational Excellence in service industries by empowering employees, improving service delivery, reducing errors, and fostering a culture of continuous improvement. [Read full explanation]

Source: Executive Q&A: Autonomous Maintenance Questions, Flevy Management Insights, 2024


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