Asset Management involves managing the capital investment towards a long-term program of increasing the ROA. This is a top-down function of setting a performance specification for each major operating unit, identifying the critical components of performance, and systematically improving the key controllable variables of operation.
Managing assets strategically involves every function in the plant working towards the same goals. Operations and maintenance are rewarded for creating and utilizing the capacity of their units. Purchasing has its main goal as operating reliability, with cost as an important but secondary goal. Engineering is based on total lifecycle value created, including product characteristics, maintainability, operability, and total cost per output unit.
Once a business model is developed, each party sets goals and works toward a combined action plan. The initial action plan is usually an improved planned maintenance environment, depending on the benchmark position on the Maturity Continuum. Implementation requires the proper structure, measures, information and commitment. Each major factor of implementation is identified.
Once a proper maintenance process is established, the plant will continue improvement by adopting more proactive maintenance approaches in a staged and measured environment. The key to success is knowing all the factors involved, and institutionalizing change in work and process before proceeding with additional stages of development.
Our goal, then, will always be to manage our resources to gain profits, while safeguarding our people, property, community and environment. This means we need to understand the key levers to unlocking equipment asset potential, by building our capabilities in a systematic way.