Purpose - The purpose of this study is to identify various issues and challenges associated with development and implementation of a maintenance performance measurement (MPM) system. Design/methodology/approach - An analytical approach is adopted to identify the issues and challenges associated with MPM. Findings - The study finds that for successful implementation of MPM all employees should be involved and all relevant issues need to be considered. Furthermore, the traditional overall equipment effectiveness (OEE) used by the companies is inadequate, as it only measures the internal effectiveness. For measuring the total maintenance effectiveness both internal and external effectiveness should be considered. Practical implications - What cannot be measured cannot be managed effectively. To manage maintenance process operating managers and asset owners need to measure the contribution of maintenance towards their business goals. This paper discusses issues and challenges associated with MPM system, there by helping the managers to take care of the pitfalls of the MPM system and advocates that managers should focus on measuring the total effectiveness of maintenance process. Originality/value - The paper presents a concept of total maintenance effectiveness with focus on both internal and external effectiveness, and integration of the hierarchical levels and multi-criteria maintenance performance indicators of MPM system.