SMRP Best Practice Metrics 5.5.

72 Contractor Hours
A. Definition:

FOR COMMENT

Contractor Hours is the percentage of contractor labor out of the total quantity of labor used to maintain assets.

B. Objectives:
This metric allows one to determine whether the permanent maintenance workforce is appropriately sized and staffed for the maintenance workload. Top performers typically use some complement of contractors for specialty crafts and/or skills, for peak or abnormal workloads (such as outages/turnarounds/shutdowns) and for the use of specialty tools/resources (e.g., cranes, vibration measurements, etc.).

C. Formula:
Contractor Manpower (%) = Contractor Labor Hours x 100 Total Maintenance Labor Hours

D. Component Definitions
Contractor Labor Hours Hours used by contractors performing maintenance on the site. Include all hours for routine service work as well as those used on outages/shutdowns/turnarounds. Include contractor hours used for capital expenditures directly related to end-of-life machinery replacement (this is necessary so that excessive replacement vs. proper maintenance is not masked). Do not include contractor hours used for capital expenditures for plant expansions or improvements. Total hours includes all in-house maintenance (including maintenance performed by operators, e.g., TPM) and contractor labor hours for the period. Include labor hours for normal operating times as well as outages/shutdowns/turnarounds. Include labor hours for capital expenditures directly related to end-of-life machinery replacement (this is necessary so that excessive replacement vs. proper maintenance is not masked). Do not include labor hours used for capital expenditures for plant expansions or improvements.

Total Maintenance Labor Hours

2007 SMRP Prepared by: Bruce Hawkins

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DRAFT Rev 1 Date: February 7, 2007

SMRP Best Practice Metrics 5.5.72 Contractor Hours

E. Qualification: 1) 2) 3) 4)

FOR COMMENT

Time Basis : Monthly, but can be measured weekly or annually as well. Indicator type : Lagging Useful for developing trends in overall labor usage requirements Typically used by corporate managers, plant managers, maintenance managers, human resources managers, vice presidents to compare different sites.

F. Example Calculation: Following are the categories of maintenance labor used last month at the site: Plant Maintenance Craft Labor Contractors used for roofing repairs Labor applied to a chiller compressor service contract Contractor used to clean the cooling tower basin Contract thermography scan Total maintenance labor hours used Contractor labor hours used 821 hours 240 hours 13 hours 200 hours 16 hours 1290 hours 469 hours

Contractor Hours =

469 hours 1290 hours

= 36.4%

2007 SMRP Prepared by: Bruce Hawkins

Page 2 of 2

DRAFT Rev 1 Date: February 7, 2007