AAOM Handbook

Quantity One decision whether the confidence level specified for a performance parameter is met by the predicted performance.

Quality • Performance target characteristics may include; o effectiveness (units output per time period),

o sustainability (the material and social requirements for continuing effectiveness), o efficiency (the resources consumed per unit of output). • A performance target may include the; o lower specification limit, o upper specification limit, and o target mean. • Each target must include at least a lower or upper specification limit. If any of the other two specification values is significant in evaluating the performance of the asset it shall also be specified in the target. • For all performance targets except integrity – Performance forecasts for an asset shall be developed and presented as a histogram of the predicted performance distribution with the; • The confidence level for each performance target shall be calculated as the area of the predicted performance histogram that overlaps with the area of the target specification. If a target mean value has been specified the ratio of the predicted performance mean and target mean shall also be given. • For integrity performance targets – Performance forecasts shall be developed and presented as two histograms, one of the distribution of HSE threat rating values and the other of the distribution of Business threat rating values. • The confidence level shall be calculated from the percentage of potential threats that have a forecast threat rating below the target upper specification limit. • The confidence level for all performance targets shall be supported with; o a specification of the opportunities and threats that could significantly affect the outcome, and o the control actions that will be implemented to reduce threats and deliver opportunities. Time The Performance Target confidence levels shall be determined at each Business Planning Cycle. o upper control limit, o lower control limit, o mean, and o target specifications, identified on the histogram.

© McAlear Management Consultants 2006

Operational Planning: Set Performance Targets

Updated: August 2018

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