Overview: Asset Management

Search for the optimum equipment availability, return on investment, and maintenance costs

Controlling the cost of industrial equipment is a permanent concern for senior industry and maintenance management. It is part of the delicate balance that must be established between the availability of equipment, the profitability of invested capital, and maintenance costs. Asset Management addresses these issues.

Context

A number of levers exist for improving equipment performance, which must be situation-and organization-appropriate. They include:

  • Adjusting maintenance policies based on required availability: preventative (planned, conditional, predictive) or corrective
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  • Implementing optimization initiatives: first-line maintenance by operators, 5S approach, application of principles derived from total productive maintenance (TPM), application of Lean Management principles to maintenance processes
  • Allocating spare parts inventory based on criticality, statistical laws of deterioration, characteristics of the spare parts logistics network and restrictions (financial, storage, etc.)
  • Implementing or developing maintenance Information Technology systems to facilitate the management of operations and resources, and to assist decision-making
  • Selecting and managing subcontractors, considering key business lines/tasks to be subcontracted
  • Adjusting and allocating staff (numbers and skills) belonging to the maintenance function, based on effectiveness and efficiency
  • Monitoring performance, through the implementation of suitable management indicators at every level of the organization.

However, these "traditional" maintenance levers must be supplemented by Design/Planning levers:

  • Trade-offs based on total cost of ownership (TCO), which factor in costs throughout the entire life cycle of the assets
  • Optimization of the investment strategy and financial allocation, based on different criteria (expected service, criticality of the asset, condition of the asset, etc.)
  • Impact of the asset's design on its operational performance and support costs
  • Consistency required between the assets to be maintained and their support system
  • Tactical management of the fleet of assets and the planning of major operations in the medium to long term.

Whereas the traditional levers are well-known (although not necessarily well-controlled), design and planning levers are far less so. Accordingly, an Asset Management initiative differs from classic maintenance approaches and offers greater potential improvements, which are more deeply rooted in processes.

Challenges

It entails many significant challenges and major financial consequences:

  • Reducing production (or service) losses and, to a greater extent, maintenance-related unavailability (reducing the frequency and seriousness of breakdowns, controlling the duration of maintenance work, coordinating maintenance work with production planning or use of the asset): 25 - 40% less downtime due to maintenance
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  • Reducing the cost of maintenance work through better planning of workforce resources: direct workforce resource requirements reduced by 10 - 30%
  • Optimizing spare parts inventory (allocation and location versus availability requirements and needs of proximity to site of use): reduction of inventory by 25 - 50%
  • Optimizing the asset maintenance and renewal policy, based on technical and economic targets, while guaranteeing operational security
  • Constantly adjusting the internal or external industrial and logistics structure to support equipment (trade-offs between medium-to-long-term loads/capacities, make-or-buy vision, etc.).

 

How can Argon Consulting help you?

  • TCO approach
  • Optimization of industrial and logistics structure, and tactical asset management
  • Spare parts and subcontracting
  • Optimization methods - computerized maintenance management system (CMMS) method
  • Equipment performance.

Based on an interactive approach, quantitative analyses, and modeling tools, our support aims to define the most relevant optimization initiatives for each context and to furnish the organization with sufficient autonomy to implement these initiatives and ensure their sustainability.