Solomon Associates created a methodology to measure the performance of the oil companies: Comparative Performance Analysis (CPA), started in 1980. Their registered motto is: measure, manage, maximize.
One of the essential concepts is that only through this comparison process you can truly identify the areas where your facilities could improve.
The main oil companies of the world require their services to understand how competitive they are.
There are different indexes under this methodology:
- “Reliability and Maintenance Effectiveness Index” (RAM EI): Lost margin (due to RAM causes) and maintenance cost.
- “Maintenance Index” bench-marking services also examine petrochemical and refinery performance.
- “Net Cash Margin Measurement, Management, and Maximization” (NCM³®) methodology: points to areas for improvement through an effective mix of no- or low-cost projects.
- “Start Reliability” and “Lost Revenue” Opportunity services: use proprietary metrics to analyze the performance of power generation facilities.
- Start “Equivalency Ratio” and Hour Equivalency Ratio™ services benchmark power production facilities using proprietary metrics.
- “Equivalent Generation Complexity” (EGC) services: to help improve process performance by comparing it to Solomon’s database of industry leaders.
In terms of RAM EI, you are not a world-class performer if:
- Maintenance costs are not below 1,4% of PRV (Plant Replacement Value).
- Mechanical availability is not above 96,7%