Asset Management Reaches the Tipping-Point - … 1 - Asset Management Reaches th… · Maximo...

Maximo Middle East User Group Conference 2008

Asset Management Reaches the Tipping-Point

Noel GrinstedFounder Member Institute of AssetManagement UK

Director MCP Consulting and [email protected]

Monday, 14 January 2008

Maximo Middle East User Conference 2008


MCP Consulting & Training Global Footprint

UK Birmingham

Australasia China, Thailand Singapore ,Australia Indonesia

Europe – Austria Germany ,Benelux Portugal

USA Houston

Middle East /AfricaDubai /S Africa / India

Ireland Dublin

MCP has performed more than

4,000 Asset Management Programmes

MCP has performed more than

4,000 Asset Management Programmes


Agenda

Asset Management – What’s it all about/Why is it becoming more Important/Why is it Tipping ?

Issues and Trends driving interest in Asset Management philosophy, methods, tools and techniques

Getting it Right or Wrong ? Benefits and Penalties

What are the Common Elements for Success in Asset Management ?

PAS 55 British Standard Specification for Optimized Asset Management

Future directions for Asset Management as a Value Added Factor


Asset Management – What’s it all about ?

Responsible, Sustainable, Cost-Effective, Life Cycle Care for Built Environment Physical Assets- Public and Private Buildings/Facilities- Educational and Health Facilities- Parks, Public & Private Recreation Facilities- Communications Networks – Post, Telecom, TV- Energy Supply and Distribution – Elec, Gas- Water Utilities – Supply, Waste, Storm- Transportation networks – Road, Rail, Sea, Air- Waterways, Drainage, Flood Protection- Solid Waste Handling/Recycling Facilities- Extraction, Process and Manufacturing Infrastructure


Why is Asset Management Important ?

What Happens When we Get it Wrong ?

Maximo Middle East User Group Conference 2008Asset Management - Getting it Wrong BP Texas City Refinery Incident

Fines – $ 21.3 Million

Compensation – $ 700 Million (and rising)

Implementing Recommendations for tImprovement - $ 1,000 Million

Reputation and Share Price Damage ?


Asset Management – Getting it Right

Companies who recognise Asset Management as a Value Added Factor can achieve:- 30 to 50% Cost Reductions- Doubling of Equipment Capability and OEE- Delivery of High Reliability Environment for improved

operating efficiency, quality and safety- Assured Environmental, Regulatory and Legal and

Carbon Compliance - Improved Image and relationships with Customers,

Insurers, Regulators and other Stakeholders- Improved Profitability and Return on Capital Investment


Choose a good EAM Software SolutionBenchmark processes against World Class Best PracticeManage the Whole Asset Lifecycle Not Just Maintenance and Continuously Challenge and Improve PracticesThink in terms of Total Life Cycle Cost and Value DeliveryChallenge and reduce time-based maintenance and replace with Condition, Value and Risk Based ThinkingBuild the Asset Management knowledge base – Understand and target the tools and Engage the whole organisationAdopt a truly Holistic Joined-up Approach for SuccessImplement EAM Solution as a central element of Overall Asset Management Vision and Strategy (PAS 55 Guidelines)

Asset Management – Getting it RightWhat Do we need to Do ?


Where are we now ? Benchmarking

You are Here

StartDubai You are Here


0

1

2

3

4

5STRATEGY & POLICY

ORGANISATION

COMMUNICATION

EMPLOYEE INVOLVEMEN

WORKLOAD MANAGEMENT

MAINTENANCE REGIME

SAFETY HEALTH & ENVIRONMENT

MATERIALS MANAGEMENT

QUALITY/COST FOCUS

MEASURES OF PERFORMANCE

• If we’re going to improve………..

• How do we know where we are now.. ?

• Complex Question

• Some areas strong

• Some areas weak

• Elements of Asset Management Best Practice

• Profile Organisation

Organisational Benchmarking and ProfilingWhere are we now ?

VisualiseVisualise AnalyseAnalyse

ImproveImprove

Maximo Middle East User Group Conference 2008Understand where you are now relative to World ClassProgress To World Class Through Benchmarking

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

k

Assessments First Second ThirdBenchmark Score

World Class

European Manufacturing Sites


ConfigurationManagement

Systems EngineeringDemand Management

DemandAnalysisDemandAnalysisDemand

AnalysisDemandAnalysis

AssetSolution

AssetSolution

Non AssetSolutionNon AssetSolution

NeedsDefinition

NeedsDefinition Concept

ExplorationConcept

Exploration

ConceptValidation

ConceptValidation

ProductionMaintenanceIntegration

OperationsManagement

OperationsManagement

ContinuousImprovement

HistoryKnowledge

HistoryKnowledge

Stakeholder NeedsStakeholder Needs

EngineeringChange

EngineeringChange Process

ChangeProcessChange Process

AuditProcess

Audit

IntegratedSupport

Spares and PersonnelSpares and Personnel

Manuals and TrainingManuals and Training

Support Equip & FaciltsSupport Equip & Facilts

Computer SupportComputer Support

Pkg, Hand, Stor & TransPkg, Hand, Stor & Trans

MaintenanceManagementMaintenanceManagementSpecificationSpecification DesignDesign Support

AnalysisSupportAnalysis Maintenance PlanMaintenance Plan

Manufacture/InstallManufacture/Install

Define Need Design Solution ImplementSolution

SustainSolution

ImproveSolution

Concept and Specify Acquire Use/MaintainImprove

Manage the Whole Asset Lifecycle Continuously challenge and Improve Practices


System DesignConceptualDesign

Operations,Maintenance,

Disposal

% OfLCC

25

75

100

5066%

95%

85%

Funds Committed

EndOf Life

StartOf Life Life Cycle Span

LCC Cost Reduction Opportunity

Acquisition Cost Sustaining Cost

0

Funds Expended

Engineering,Construction,Commissioning

Projects & Maintenance need to Work Together

Organise around true Life Cycle Asset Management processesEquipment Life Cycle Commitment And Expenditure Trends


Comparative Direct Maintenance Costs

0

20

40

60

80

100

120

Level 1 Level 3

Traditional Reactive Maintenance

Conventional Time-Based Preventive Maintenance

•EAM-Enabled Condition, Value & Risk Based Approach

Level 2

•Most companies are Here•Large value locked up

Challenge and reduce time-based work and replace with Condition, Value and Risk Based Thinking


MTTR

MTT

F

AcuteAcuteTransientTransient

TerminalTerminalChronicChronic

•Problem 1

•Problem 2

•Problem 3

•Problem 4

•Problem 5

•Problem 6

RCMEAM

D4R

TPM

Build the Asset Management knowledge base – Understand and target the tools and Engage the whole organisation

Which Sector are our Problems in ?


Success

Confusion

Frustration

Anxiety

Ineffective

Slow

Temporary

Vision Resources Skills Action Plan Commitment Incentive Measurements Results

Failure

Adopt a truly Holistic Approach for Success Close The Gaps


Part 1 (“PAS 55-1”) – The Specification (21 requirements)

Part 2 (“PAS 55-2”) – Guidelines for application of PAS 55-1

PAS 55 – British Standards Institution Specification for the optimized management of physical infrastructure assets

Maximo Middle East User Group Conference 2008PAS 55 Maturity Levels

PASMAP 55 2006 & MatMatrix Connections Working Copy V9.xls


Agenda - Recap

Asset Management – What’s it all about/Why is it becoming more Important/Why is it Tipping ?

Issues and Trends driving interest in Asset Management philosophy, methods, tools and techniques

Getting it Right or Wrong ? Benefits and Penalties

What are the Common Elements for Success in Asset Management ?

PAS 55 British Standard Specification for Optimized Asset Management

Future directions for Asset Management as a Value Added Factor


Asset Management – Getting it Right

Companies who recognise Asset Management as a Value Added Factor can achieve:- 30 to 50% Cost Reductions- Doubling of Equipment Capability and OEE- Delivery of High Reliability Environment for improved

operating efficiency, quality and safety- Assured Environmental, Regulatory and Legal and

Carbon Compliance - Improved Image and relationships with Customers,

Insurers, Regulators and other Stakeholders- Improved Profitability and Return on Capital Investment

PAS 55 is a useful element of an Integrated Asset Management Strategy to help deliver these benefits


Asset Management Reaches the Tipping-Point

Noel GrinstedFounder Member Institute of AssetManagement UK

Director MCP Consulting and [email protected]

Monday, 14 January 2008

Maximo Middle East User Conference 2008

Thank you

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