FMP key terms

Scheduled work performed on equipment at fixed intervals or meter readings to reduce failure probability and keep assets within design performance. It is planned in advance rather than triggered by a breakdown.

Work carried out after a fault is detected to restore an asset to a state in which it can perform its required function. It may be planned, as when a defect is found on inspection, or unplanned.

Using measured parameters such as vibration, temperature, oil analysis or pressure to decide when maintenance is needed. Work is triggered by evidence of deteriorating condition rather than by calendar intervals.

Forecasting remaining useful life from trend data and models so intervention happens just before expected failure. It extends condition monitoring by projecting future condition rather than reacting to a threshold already crossed.

The average operating time between successive failures of a repairable asset or system. It is used to compare reliability, plan spares and intervals, and is expressed in operating hours or cycles.

The average elapsed time needed to restore a failed asset to working order, including diagnosis, access, parts and testing. It drives maintainability, spares holding and availability calculations.

The proportion of time an asset is capable of performing its required function when called upon. For repairable systems it is commonly estimated from uptime divided by total uptime plus downtime.

A productivity measure combining availability, performance rate and quality rate into one score. Losses in any of the three areas reduce the result, pointing to where improvement effort should be directed.

A structured team review that lists the ways a component or process can fail, the effects of each failure, and its severity, occurrence and detectability. Scores prioritise which risks to address first.

A disciplined investigation that traces an undesirable event back to the underlying physical, human or system causes, rather than stopping at the immediate symptom. Findings should lead to verified corrective actions.

A change made to eliminate the cause of a detected nonconformity or fault so that it does not recur. It differs from a quick fix, which only restores the immediate condition.

A written authorisation that defines a maintenance or repair task, its scope, resources, priority and safety requirements. It also captures labour, parts and completion data for history and cost tracking.

Software that records assets, work orders, spares, schedules and maintenance history in one database. It supports planning, backlog control and reporting so decisions rest on recorded data rather than memory.

Stock of components and materials held so repairs can proceed without waiting for procurement. Holdings balance the cost of carrying stock against the downtime risk of a missing part.

Parts whose absence would cause unacceptable downtime, safety risk or regulatory breach, so they are held on site or under a guaranteed supply arrangement. Criticality, not price, drives the decision to stock.

A formal document authorising specific high-risk work under stated precautions, valid for a defined time and area. It records isolation, gas testing or other controls and is signed off before and after the task.

A procedure that isolates hazardous energy sources and physically locks them off, with a warning tag, before maintenance begins. Only the person who applied the lock may remove it under the agreed protocol.

A systematic review that identifies hazards, evaluates the likelihood and severity of harm, and records controls needed to reduce risk to an acceptable level. It should be reviewed when conditions change.

A controlled process for reviewing, approving and documenting changes to equipment, processes, materials or organisation before implementation. It checks that safety, environmental and operational impacts are understood and addressed.

A short document that authorises a project, names the project manager, and states objectives, high-level scope, key stakeholders and success criteria. It gives the team a mandate and a reference for later scope decisions.

A written description of what a project will deliver and what it will not, including deliverables, acceptance criteria and boundaries. It is the baseline used to judge whether requested additions are in or out of scope.

Uncontrolled expansion of project work through small, unapproved additions that are not matched by time, cost or resource changes. It erodes margins and is managed through formal change control.

A hierarchical breakdown of project scope into manageable work packages that can be estimated, scheduled and assigned. It forms the basis for cost and schedule planning and for progress reporting.

A scheduling technique that maps task dependencies and durations to find the longest chain through the network. Delays on the critical path push out the completion date unless the plan is changed.

The amount of time an activity can slip without delaying the project finish or a successor task. Activities with zero float lie on the critical path and need the closest monitoring.

A method that compares planned value, earned value and actual cost to measure schedule and cost performance objectively. Indexes and variances reveal whether a project is ahead or behind and by how much.

Earned value minus actual cost. A negative figure means more has been spent than the work completed is worth, signalling a cost overrun that needs explanation and corrective action.

Earned value minus planned value, showing whether work completed is ahead of or behind the baseline schedule in monetary terms. A negative figure indicates the project is behind plan.

A formal process for requesting, assessing, approving or rejecting changes to scope, schedule, cost or quality. Approved changes are reflected in updated baselines so plans stay trustworthy.

A record of people and groups affected by or able to influence a project, noting their interests, influence and engagement approach. It guides communication planning and keeps expectations managed.

A living list of identified risks with owners, likelihood, impact, response strategy and status. It is reviewed regularly so emerging threats and opportunities are tracked rather than discovered late.

Time or money set aside in the approved baseline to cover identified risks that remain after responses are planned. It is released under defined authority when a known risk actually occurs.

Spending on acquiring, building or upgrading long-lived assets that will generate benefit over several years. It is recorded on the balance sheet and depreciated rather than charged to one period.

Day-to-day running costs such as labour, energy, consumables and routine maintenance that are charged to the period in which they arise. It contrasts with spending on long-lived assets.

The systematic allocation of an asset's cost over its useful life to reflect consumption of benefit. It is a non-cash charge that reduces reported profit and book value over time.

A ratio comparing the gain from an investment with its cost, usually expressed as a percentage. It helps rank competing proposals but ignores timing and risk unless used alongside other measures.

The time needed for cumulative cash inflows to recover the initial investment. It is simple to explain and favours quick returns, but it ignores cash flows after payback and the time value of money.

The sum of a project's future cash flows discounted to today's value at a required rate, minus the initial outlay. A positive result suggests the investment adds value.

The rate used to convert future cash flows into present value, reflecting the cost of capital and the risk of the investment. A higher rate reduces the present value of distant returns.

A financial plan that allocates expected income and authorised spending to activities or cost centres over a defined period. Actual results are compared against it to control expenditure and explain variances.

Comparing actual performance or spending with the approved plan and explaining the difference. The aim is to distinguish random fluctuation from a trend that requires management action.

Totalling acquisition, operation, maintenance and disposal costs over an asset's whole life to compare options fairly. It often shows that a higher purchase price can be outweighed by lower running costs.

The full cost of acquiring and using an asset, including purchase, installation, energy, maintenance, downtime and disposal. It supports decisions that look beyond the sticker price.

A document justifying an investment by setting out the problem, options considered, costs, benefits, risks and recommended choice. It gives decision-makers an auditable basis for approval or rejection.

A measure chosen because it reflects progress towards a goal that matters to the organisation. Good indicators are few, clearly defined, owned and tied to action when performance drifts.

A performance framework that tracks financial, customer, internal process and learning perspectives together. It prevents over-reliance on short-term financial results by making other drivers visible.

A document setting out where an organisation intends to go over the medium term, the choices it will make and the resources required. It aligns departmental objectives and budgets with a shared direction.

A structured review of internal strengths and weaknesses alongside external opportunities and threats. It is used to frame strategy discussions, though it must be paired with prioritisation to be useful.

Identifying people affected by or able to influence decisions, understanding their interests, and engaging them appropriately. It reduces resistance and surfaces concerns before they become blockers.

An agreed schedule and method for sharing information with each audience, covering what, when, by whom and through which channel. It keeps stakeholders informed and reduces rumour and misunderstanding.

The structured approach to helping people adopt new processes, systems or structures. It addresses behaviour, skills and resistance, complementing the technical side of a change.

Adapting leadership style to the competence and commitment of the individual for a specific task. Directive approaches suit newcomers, while delegating suits experienced, motivated people.

Assigning a task and the authority to complete it to someone else while retaining accountability for the outcome. Clear scope, resources and checkpoints make it effective rather than mere dumping.

The ongoing cycle of setting expectations, observing performance, giving feedback and reviewing results. It links individual objectives to organisational goals and addresses shortfalls early.

Documented arrangements for keeping critical activities running, or restoring them quickly, after disruption. It identifies dependencies, fallback provisions and responsibilities, and is tested periodically.

An ongoing effort to raise performance through small, systematic changes driven by data and frontline involvement. It relies on standard work, measurement and a culture where problems are surfaced, not hidden.