Asset Management Reaches the Tipping-Point - … 1 - Asset Management Reaches th… · Maximo...
Transcript of 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
Maximo Middle East User Group 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
Maximo Middle East User Group Conference 2008
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
Maximo Middle East User Group Conference 2008
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
Maximo Middle East User Group Conference 2008
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 ?
Maximo Middle East User Group Conference 2008
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
Maximo Middle East User Group Conference 2008
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 ?
Maximo Middle East User Group Conference 2008
Where are we now ? Benchmarking
You are Here
StartDubai You are Here
Maximo Middle East User Group Conference 2008
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
Maximo Middle East User Group Conference 2008
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
Maximo Middle East User Group Conference 2008
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
Maximo Middle East User Group Conference 2008
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
Maximo Middle East User Group Conference 2008
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 ?
Maximo Middle East User Group Conference 2008
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
Maximo Middle East User Group Conference 2008
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
Maximo Middle East User Group Conference 2008
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
Maximo Middle East User Group Conference 2008
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
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
Thank you