The Asset Management Process

One should never undervalue the significance of creating an asset management strategy for businesses that depend heavily on maintenance.

Asset management requires a comprehensive and methodical approach when operating a business that requires a lot of maintenance.

The wall between the production and maintenance/engineering departments needs to be taken down in order for the project to succeed.

When these two divisions run separately, most of the money opportunities lost during an asset’s lifecycle occur.  It is necessary to have an interdependent asset management culture.   It doesn’t make sense to continue down a path just because something has always been the way it is, especially if you know your business is losing a lot of money as a result.

The Maintenance & Engineering Team and the Production Team are responsible for an asset before it is purchased, during commissioning, and throughout its lifecycle.   If both departments discovered that working together makes it much easier to meet their responsibilities, the benefits would be numerous and substantial.

Spend your time putting well thought out solutions into action, rather than working your way through a list of emotional problems, I’ve written an article on this very thing.

An asset management plan must be created, approved, and implemented by the Maintenance & Engineering Team prior to commissioning assets and transferring them to the production department.

The production department’s creation, approval, and implementation of a production strategy prior to accepting any assets from the maintenance and engineering team is equally significant.

Foster Collaboration and Communication.

Collaboration and communication are critical to successful asset management. If your company fosters an interdependent asset management culture of collaboration and open communication, it will allow for better knowledge sharing, problem solving, and decision-making.

Working together to achieve a common goal is probably written somewhere in every company’s mission statement; imagine a workplace where this was actually enabled, and even enforced.  The possibilities would be limitless.

There’s normally no need to re-invent the wheel.

On this page and throughout this website I will discuss the significance of having all-inclusive/comprehensive asset management & production strategies and I’ll do my best to provide you with information that will assist with your asset management journey.

There is a plethora of approaches that can be used to help you develop quality Asset Management Strategies.

Developing a world-class asset management strategy is crucial for your business, so be sure to look into the best sources of help when compiling one.

Take your time and do the required reading then looking to optimize your operations and maximize return on investment (ROI).

Various methodologies and theories, such as Buker Business Excellence, Total Production Management, Lean Six Sigma, Failure Mode, Effects, and Criticality Analysis (FMECA), The 8 Types of Waste and the Broken Window Theory, can be utilized to enhance the overall effectiveness of your asset management plan.

Buker Business Excellence.

Buker Business Excellence is an all-encompassing strategy that aims to align different organizational processes in order to improve overall business performance.

This methodology simplifies workflows and aids in finding areas for improvement when used in asset management.

You can improve overall efficiency, lower downtime, and maximize asset utilization by putting Buker Business Excellence principles into practice.

Total Production Management.

The goal of Total Production Management (TPM) is to minimize losses and maximize the effectiveness of equipment.

You can guarantee that your assets are properly maintained, which will increase reliability and lower breakdown rates, by putting TPM practices into practice.

Along with encouraging proactive maintenance techniques and a culture of continuous improvement, TPM also places a strong emphasis on employee involvement.

Lean Six Sigma.

Combining Six Sigma and Lean Manufacturing principles, Lean Six Sigma is a potent methodology.

Lean Six Sigma can aid in the optimization of asset management procedures by getting rid of waste and decreasing process variation.

Identifying bottlenecks, streamlining workflows, and enhancing asset performance are all possible with the use of Lean Six Sigma tools and techniques like value stream mapping and root cause analysis.

Failure Mode, Effects, and Criticality Analysis (FMECA).

FMECA is a methodical technique for locating possible faults, evaluating their consequences, and setting maintenance tasks in order of importance.

You can reduce risks, proactively address possible failures, and prioritize maintenance tasks by using FMECA.

By ensuring that vital assets receive the care they require, this analysis reduces downtime and raises asset reliability levels overall.

Broken Window Theory.

According to the Broken Window Theory, observable indicators of neglect or damage can cause a rise in crime and worsen a community’s state.

The Broken Window Theory, when applied to asset management and your CMMS, highlights the significance of timely repairs, preventive maintenance and data quality upkeep.

By taking quick action to fix minor problems, you can keep them from getting worse, lower your maintenance costs overall, and prolong the life of your assets.

The 8 Types of Waste.

In the context of asset management, the concept of the 8 types of waste, originally introduced by the Toyota Production System, can be applied to identify and eliminate inefficiencies. These wastes are:

1.    Overproduction refers to producing more than what is necessary or before it is needed. In the context of asset management, overproduction can lead to excess inventory, tying up valuable resources and increasing holding costs. By identifying and eliminating overproduction, organizations can optimize their asset utilization and reduce unnecessary expenses.

2.    Waiting waste occurs when assets or resources are idle due to delays or bottlenecks. This can happen when maintenance or repair tasks are not scheduled efficiently, leading to prolonged downtime. By implementing preventive maintenance schedules and streamlining workflows, organizations can minimize waiting waste and ensure assets are available when needed.

3.    Transportation waste refers to unnecessary movement or relocation of assets. This can result in increased risk of damage or loss, as well as additional costs associated with transportation. By optimizing asset placement and implementing proper storage and handling procedures, organizations can reduce transportation waste and improve asset security.

4.    Over-processing waste occurs when unnecessary steps or activities are performed during asset management processes. This can include excessive inspections, redundant paperwork, or redundant data entry. By streamlining workflows and eliminating non-value-added activities, organizations can reduce over-processing waste and improve operational efficiency.

5.    Inventory waste refers to excess or obsolete inventory that ties up valuable resources and incurs holding costs. In asset management, this can include spare parts, equipment, or materials that are no longer needed or have become outdated. By implementing effective inventory management practices, organizations can minimize inventory waste and optimize resource allocation.

6.    Motion waste refers to unnecessary movement or motion of assets or personnel. This can include searching for tools or equipment, excessive walking or reaching, or inefficient layout of workstations. By optimizing asset placement, organizing workspaces, and implementing standardized procedures, organizations can reduce motion waste and improve productivity.

7.    Defects waste refers to errors, rework, or quality issues that result in wasted time, effort, and resources. In asset management, this can include equipment breakdowns, maintenance failures, or product defects. By implementing proactive maintenance strategies, quality control processes, and continuous improvement initiatives, organizations can minimize defects waste and improve asset reliability.

8.    Skills waste occurs when employees are not fully utilized or do not have the necessary skills or knowledge to perform their tasks efficiently. In asset management, this can lead to suboptimal asset performance, increased downtime, and reduced productivity. By providing training and development opportunities, organizations can minimize skills waste and empower employees to contribute effectively to asset management processes.

The Need for Quality Asset Management Strategies.

Effective asset management is essential for maintenance-intensive companies to ensure optimal performance, reduce downtime, and extend the lifespan of their assets.

By developing well-defined asset management strategies, companies can streamline their operations, improve efficiency, and minimize costs and unnecessary losses.

My 20-Step Asset Management Process:

1.    Create Asset Requirements Package.

a)   The initial step in asset management is developing an asset requirements package.

b)  This package outlines asset-specific needs and expectations, including performance requirements, technical specifications, and other relevant details.

c)   By clearly defining the requirements upfront, organizations can ensure that the assets they procure align with their operational needs and goals.

2.    Procure Assets.

a)   Procuring assets is the process of acquiring the equipment required to support the organization’s operations.

b)   This step is critical to ensuring that the organisation has the necessary assets in place to achieve its goals.

c)   Organisations can avoid costly mistakes and improve overall operational efficiency by carefully selecting and procuring assets that are in line with the requirement package.

3.    Create Asset Master Data Files.

a)   Asset master data files provide a central repository of critical asset information, including its specifications, storage and handling requirements, proactive maintenance requirements, and other critically relevant details.

b)   By creating and maintaining accurate asset master data files, your company can easily track and manage their assets, make informed decisions, and optimize maintenance activities.

4.    Develop Asset Production Strategies for Assets.

a)   Developing asset production strategies involves determining the most effective way to utilize and maximize the productivity of assets.

b)   By developing strategies that align with the organization’s production goals, organizations can optimize asset utilization, reduce downtime, and increase overall productivity.

5.    Develop Asset Maintenance Strategies for Assets.

a)   Strategies for asset maintenance are essential to guaranteeing the dependability and durability of assets.

b)   Organisations can optimize the value of their assets by proactively identifying and resolving possible issues through the development of comprehensive maintenance strategies that are based on risk assessments.

c)   A few outputs from the maintenance strategies will include maintenance plans, the frequency of any preventive maintenance tasks, and suggestions for reducing unscheduled downtime over the asset’s entire life. By using this strategy, businesses can prevent expensive malfunctions and get the full market value of their assets.

6.    Develop Maintenance Plans & Executable Tasks for Assets.

a)   Maintenance plans outline the ‘Why and How’ for any specific activities for maintaining each asset. These plans include all information required to effectively and safely conduct any regular non intrusive inspections, preventive maintenance tasks, and any predictive maintenance requirements.

b)   By developing detailed maintenance plans, organizations can ensure that assets are properly cared for.  This minimizes the risk of failures, and optimizes their overall performance over the full life of the assets.

7.    Review and Approve Routine Maintenance Tasks for Assets.

a)   A plan for the retirement of your assets is just as important as any routine maintenance plans you develop for any assets that are purchased.

b)   Review teams are responsible for making sure that an authorized asset retirement plan is in place.  Asset retirement strategies entail making plans for an asset’s end-of-life situation.

c)   This stage ought to start a full year before any assets are scheduled to be retired.   Organisations can minimize the effects of asset obsolescence, plan for replacements, and optimize asset disposal or repurposing by proactively managing asset retirement.

d)   By taking this action, businesses can lower expenses, control risks, and guarantee a seamless rollout of new assets.  Additionally, it guarantees that the appropriate choice is made regarding what will happen to the asset after it is retired.

e)   You’ll need a thorough Asset Disposal Strategy: Managing the disposal or decommissioning of assets that are no longer functional or needed is a part of implementing asset disposal strategies.

f)   Organisations can minimize their environmental impact, comply with regulations, and maximize their return on investment by putting into practice appropriate disposal strategies.   This phase aids in cost control, upholding legal requirements, and guaranteeing prudent asset management for organisations.

8.    Commission & Handover Assets to the Production Team.

9.    Develop Routine & Corrective Maintenance Performance Measures.

10. Approve Routine & Corrective Maintenance Performance Measures.

11.  Schedule Maintenance Tasks.

12. Execute Maintenance Tasks.

a.    Implementing maintenance execution involves putting the approved maintenance schedule into action.

b.    This step involves assigning tasks to maintenance personnel, once the maintenance activities have been assigned to the schedule.  These tasks are then executed in full, on time and at specification.   The maintenance planners and supervisors ensure that the necessary resources and tools are available prior to the trades-people commencing any scheduled task.

c.    Effectively executing maintenance plans is yet another way that companies can minimize downtime, improve asset reliability, and extend asset lifespan.

d.    When breakdown or emergency maintenance occurs, this should be seen as a failure of the maintenance management system.   As such, all instances of completing this type of urgent maintenance work should be followed up with a Root Cause Analysis Session/Meeting.

e.    Root cause analysis is a critical step in asset management that involves identifying the underlying causes of asset failures or unsustainable performance issues.

f.    By conducting root cause analysis, organizations can address the root causes of problems rather than just treating the symptoms. This approach helps organizations implement targeted solutions, reduce the risk of recurring issues, and improve overall asset reliability.

13. Complete Maintenance Tasks within the CMMS.

14. Analyze Routine & Corrective Maintenance Completion Performance.

a.    Monitoring asset performance allows organizations to track the effectiveness of their implemented asset maintenance management strategies.   It will also highlight how well maintenance teams respond to unforeseen corrective maintenance needs.

b.    By collecting and analyzing data on all types of maintenance performance, organizations can identify trends, detect potential issues, and make data-driven decisions.

c.    This step enables organizations to continuously improve their asset maintenance management practices and minimize the likelihood of budget blowouts.   This information must be transparent and is best displayed via a dashboard within your CMMS.

15. Audit Maintenance Systems and Processes.

a.    Asset Maintenance System audits involve regularly assessing the condition, performance, and compliance of assets, as well as the asset management system/CMMS.

b.    By conducting asset audits, organizations can identify any potential issues, ensure assets are being properly maintained,  the health of their asset management system and if the business is complying with any statutory & regulatory requirements, as well as company policies and procedures.

c.    This step helps organizations maintain asset integrity, minimize risks, and ensure compliance with the law, industry standards and the overarching framework of the company.

d.    You will find my 5 part Maintenance Systems Auditing Guides within the Blog Page as follows:

                                         i.    Part 1

                                        ii.    Part 2

                                      iii.    Part 3a

                                       iv.    Part 3b

                                        v.    Part 4

16. Create Maintenance Systems Improvement Recommendations.

a.    Continuous improvement is a fundamental aspect of effective asset management. By regularly evaluating and enhancing asset production and maintenance management processes, organizations can adapt to changing needs, industry trends, and technological advancements.

b.    This step helps organizations stay competitive, optimize asset performance, and achieve long-term success.

c.    Embracing technology and innovation is crucial for staying ahead in asset management. By leveraging advanced technologies and embracing innovative approaches, organizations can streamline processes, improve data collection and analysis, and enhance decision-making.   Advancements in AI technology should not be overlooked.

d.    Regularly reviewing and updating asset management strategies is essential to ensure their ongoing effectiveness. By periodically evaluating the overall effectiveness of any existing asset management strategies, organizations can identify areas for improvement.   It might be that you need to adapt to changing needs, and align with changes to what’s considered to be industry best practices. This step helps organizations stay agile, optimize asset performance, and maintain a competitive edge.

e.    A Change Management System should be used to handle improvement ideas.

17. Review and Approve Maintenance Systems Improvement Recommendations.

18. Develop Performance Measures for Maintenance Systems Improvements.

19. Implement Maintenance Systems Improvement Recommendations.

20.Review Performance of Implemented Maintenance Systems Improvements.

Creating an Asset Requirements Package is Essential.

Is your company is seeking an effective way to make sure their operations will be effectively optimized for peak performance operate with maximize efficiency?

If so, the answer to this question begins well before any assets within your operation are commissioned.

One crucial aspect that often goes overlooked is the development of a Production Requirements Statement (PRS) for any intended asset purchases.

A PRS is a comprehensive document that outlines the specific requirements and expectations for any assets a company intends to purchase.

Developing a PRS is essential for several reasons. Firstly, it ensures that the company clearly defines its needs and objectives before entering the market. By clearly outlining the requirements for the assets, the company can avoid unnecessary purchases or investments that do not align with its goals (current and future).

This helps in preventing wastage of resources and ensures a more focused approach to procurement.

Secondly, having a PRS in place allows for a more efficient and effective evaluation of tenders received from potential suppliers. When suppliers receive a PRS, they can tailor their proposals to meet the specific requirements outlined in the document.

This enables the company to make more informed decisions when selecting the most suitable supplier, as they can compare proposals based on their alignment with the PRS.

Furthermore, a PRS also serves as a reference point throughout the procurement process. It provides a clear framework for evaluating the performance of the purchased assets and ensures that they meet the company’s expectations.

This helps in minimizing any potential disputes or issues that may arise during the implementation phase. Developing a PRS should involve collaboration between various departments within the company, including operations, maintenance & engineering, health and safety, purchasing and warehousing and finance.

By involving key stakeholders in the process, a more holistic and comprehensive document can be created, ensuring that all relevant requirements are considered.

Developing a Production Requirements Statement (PRS) is a crucial step for any company before embarking on asset purchases. It helps in defining the company’s needs, streamlining the procurement process, and ensuring that the purchased assets meet the desired objectives. By investing time and effort in creating a PRS, companies can make informed decisions, optimize their operations, and ultimately achieve greater success in their endeavors.

The Need for a comprehensive Production Strategy for Assets.

When it comes to managing complex and expensive assets, such as machinery or equipment, a well-developed production strategy is crucial. This strategy serves as a roadmap for the production department, outlining the steps and considerations necessary to ensure a smooth and successful commissioning process.

One of the primary reasons why developing a production strategy is essential is the complexity of these assets. Complex assets often involve intricate systems, multiple components, and advanced technologies. Without a clear plan in place, the production department may struggle to understand the asset’s functionality and how to optimize its performance.

Additionally, expensive assets come with significant financial implications. The production department must carefully consider the costs associated with commissioning and operating the asset. By developing a production strategy, they can identify potential cost-saving measures, allocate resources efficiently, and maximize the return on investment.

A production strategy also enables the department to address any potential risks or challenges that may arise during the commissioning process. By conducting thorough risk assessments and contingency planning, the team can proactively mitigate any issues that could impact production timelines or asset performance.

Furthermore, a well-designed production strategy promotes collaboration and alignment within the organization. It ensures that all stakeholders, including production managers, engineers, and maintenance personnel, are on the same page regarding the asset’s objectives, requirements, and operational procedures.

Ultimately, developing a production strategy for complex and expensive assets is a proactive approach that minimizes risks, optimizes performance, and maximizes the asset’s value. It allows the production department to streamline operations, reduce downtime, and deliver products or services efficiently, resulting in improved customer satisfaction and a competitive edge in the market.

‘Develop a Plan’ and then ‘Stick To It’.

Maintenance-intensive organisations must have effective asset management in place to ensure long-term success.  Staying on the path requires a high level of commitment, and both internal and external pressures can make it extremely difficult at times.

It is essential that you have the courage to ‘stick your hand up’ and get some help when staying on the path is ‘all of a sudden’ becoming difficult.

Do not allow your company to deviate from the path to successful asset management for any longer than necessary.  There is too much at stake to let pride get in the way of doing important work.

Consider reading my article on how the Broken Window Theory can be applied to Asset Management Systems.

By implementing the asset management steps you develop at your company, you can optimize your resources, create a plan to reduce downtime, and ensure the longevity of your assets.

Your organization can achieve operational and maintenance excellence and thrive in today’s competitive business landscape by carefully selecting assets, planning them, performing proactive maintenance, and implementing continuous improvement.

Finally, try not to be overly cost-conscious when it comes to the hardware that powers your multi-million dollar asset management software.  Desktop computers, laptops, and monitors are now significantly less expensive than they were in the past.   If there are people on your team who believe they could accomplish more with three or four monitors rather than two, let them try.   Is it really worth holding them back for $300?