25/06/2013

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Asset Management focusing on developing maintenance strategies and improving performance

A new book edited by Dr Alan Wilson
Published by Conference Communication

Compiled by an expert in the asset management and maintenance field, and with in-depth contributions from industry professionals, consultants, university instructors, and experts in specific asset management and maintenance techniques, this edition contains a wealth of information never before gathered together in one package.  Structured in an approach recommended for co-ordinating asset management and maintenance functions, this comprehensive reference contains a wide scope of experience and examples. It will be used by corporate directors, asset and maintenance managers and operations managers or superintendents of any discipline looking to develop their maintenance strategies; and by those looking to develop their careers.

Key Features

  • Recommends an approach for integrating maintenance principles and practices with those for asset management
  • Reviews six major policy sectors:
    • asset management and maintenance,
    • policies and objectives,
    • assets performance and costs,
    • risk and integrity management,
    • asset strategies,
    • management audit, strategy and budgets.
  • Provides options for how asset maintenance managers can:
    • involve and gain the support of management colleagues.
    • develop and implement new maintenance management strategies aimed at improvements in performance and cost.

The book costs £77 including p&p in the UK; £85 to be sent to Europe and £98 to all non-European destinations.  Click on the correct destination option at the bottom of this page to order online and pay via Paypal.  Alternatively telephone +44 (0)1252 783111 or email info@maintenanceonline.co.uk 

FOREWORD TO THE NEW BOOK AND ITS CONTENTS

Introduction

The managers of physical assets, and particularly of maintenance, have created many opportunities for improving the professionalism of their contribution in recent years, for example from:

  • the development, during asset design, of the maintenance ‘supply and demand’ requirements; a process otherwise known as Early Asset Management,
  • the wider use of external contractors and of more competitive global equipment supply chains,
  • the co-ordination of maintenance processes into those used site-wide for procurement, operations, finance, etc, leading to better compliance with regulatory requirements,
  • the wider application of targets directly related to the corporate objectives, and of benchmarking for the comparison of progress and improvements,
  • the availability of additional internationally recognised training courses to MSc degree level in maintenance and asset integrity management.

In parallel with those and similar management opportunities, the directors of organisations who are responsible for the upkeep of assets, ranging from refineries to roads and to hospitals, etc, have a strong appreciation of how to obtain the optimum value from asset investments. With regard to maintenance, those directors have always been aware of the maintenance budget costs and spend.

Today, they are more aware of the consequences of variable asset design and build quality on the subsequent combined cost of operations and maintenance; and that this latter combined cost can dwarf the capital cost.

Two Strategies

The asset management business demands maintenance foresight and strategic management. A beginning to this is an appreciation by managers of maintenance that, for them, ‘strategies’ are composed of two fundamental forms. One is the Asset Strategy, which is the collection of different activities chosen to be carried out on the assets in order to sustain their performance and  which are coordinated into an overall Asset Management Plan. The second is the Maintenance Management Strategy which links the maintenance policies and objectives with the corporate aims, and then details the chosen practices for managing safety, organisation, processes and systems, and the people capabilities, etc.

 A general sequence for how the various considerations for preparing the two strategies may be applied is shown in Figure 1 - Considerations leading to two fundamental strategies.

 

 

 

 

 

 

 

 

 

 

With regard to Asset Strategy, a challenge for managers of maintenance is to obtain the correct balance between the costs of gaining asset availability against the consequences of not having it, as illustrated in Figure 2 - A consequence / availability cost balance.

 

 

 

 

 

 

 

 

 

 

 

 

The question is - how to mitigate the failures which compromise the specified targets for asset availability, safety, compliance, etc. The answers form the basis of those individual asset strategies, arrived at by an approach which may differ according to the organisation`s maintenance policies. For example, some organisations prefer to go straight for the planned preventive activities handed down and across their sites over time and augmented with condition based maintenance. Others prepare their total plan using the techniques of Life Cycle Costing, Risk Based Inspection and Reliability-centred Maintenance, etc.

With regard to the Maintenance Management Strategy, and how to implement the Asset Strategies, this requires an appreciation of where development or change of the practices is necessary to influence and meet the objectives of the business. Developed from the top-down, a number of choices and permutations of maintenance practices are available. However, keeping a view on the corporate policies for people management is essential. It is not unusual for ideas to be moderated or require additional support in light of the degree of change that the people will accept and support. Anyone who has combined practices into the basic tactics of a management strategy for any organisation will know that that there are various approaches that can be used at different sequences and speeds.

Demands and measures

In to-day’s financial volatility, boardroom accountability and performance is questioned frequently by stakeholders generally. In turn, the demands and pressures experienced by asset management functions, in addition to the support for how they are organised and operate, ultimately evolve from that boardroom. It follows that the directors require a professional response from ‘maintenance’ of how to manage asset performance within the financial fluctuations and constraints being focused on by the Board, and in terms that the Board appreciate.

Directors have become increasingly adept at setting measures and targets for managers based on asset performance and cost. For example, such a target is the very simple - total asset cost for operations and maintenance, divided by the total assets replacement value, to achieve a specified asset availability. This is a top-down target which is now applied in many situations internationally to monitor operations and maintenance, and which can be directly related to shareholder value, as follows:

  • Stock market price is related to asset value - “...stock markets move in long cycles, which can be measured by long term measures of valuation. The two best are the ‘q ratio’, which compares a stock’s market value to the replacement value of the assets, etc...” (From the John Authers’ article in the Financial Times of 6th. Feb. 2009).
  • As the combined value of a company’s assets has a direct effect on its profit and loss account, so the policies for refurbishment, maintenance or replacement may be directly influenced by that ‘value’.

It follows that the need for assets and maintenance functions to perform in meeting a wide range of measures such as those for ‘total productive maintenance’ and ‘asset risk’, cannot be ignored or taken lightly. Managers need a clear strategic plan to survive and, in most occasions, even succeed. No wonder that the function of asset and maintenance management can be seen to be a challenge even to those managers of a more robust nature.

The identification, formulation, and the implementation of a future maintenance strategy is arguably a major part of the manager’s job. The methodology for carrying it out and the basic tactics and associated practices involved is the essence of this new edition, the approach to which is the development of management actions related to physical asset management. This second edition is therefore named ‘Asset Management, focusing on developing maintenance strategies and improving performance’. The first edition of the book was issued in 1999. Since its original publication, it has been translated into Arabic and into Chinese and has been published in London, New York, Riyadh and Beijing.

The purpose of this up-dated book is to integrate the opportunities created within the last decade into the development of asset and management strategies. As always, key aims are to promote discussion and opinion on the management of physical assets with a focus on maintenance, and to support the people practising it. The scope of the purchasers of the book include company directors, existing operations / asset and maintenance managers, through to the superintendants of oil and industrial installations; as well as experienced maintenance supervisors, and technicians, or students who are looking to develop their careers in any of those directions. A number of factors and developments have influenced the up-dating of the book, including:

  • The EU Leonardo da Vinci Project named ‘Euromaint’, which was supported by maintenance practitioners and academics from throughout Europe. These included the editor of this book, who took a major role in the preparation of the Euromaint booklet, Guide to Maintenance Management, in which reviews were included of:
    •  the required competencies of an asset maintenance manager,
    •  a format for an MSc curriculum in maintenance management.
  • The maintenance application of asset management processes:
    • of PAS-55 for asset management, which is published by the BSI, with support by the 
      Institute of Asset Management; and of the forthcoming ISO 5500X
    • of ISO 15288, which is applied in the asset lifecycle phases of assets design, build,  operation, etc, and supported by the Asset Management Council of Australia.
  • Contributions from colleagues who kindly continue to support the book.

Two volumes

This second edition is in two volumes. As with the first edition of the book, the chapters are arranged in ‘policy sectors’. Figure 3, illustrates the ‘policy sectors’ in the sequence presented in the book for Part I.

This first volume aims to develop options for how to:

• formulate the asset strategies,
• coordinate them into an asset management plan,
• prepare the maintenance management strategy for implementation of the plan.

Part II of the book will be concerned with examining the contents of the ‘engine room’ of asset management, with a focus on maintenance. These are the topics which deliver and control the implementation of the asset and maintenance management strategies. They will include the organisation aspects, processes, systems, and not least the people skills and their development.

Application of the Book

The content of this second Edition attempts to give weight to the ever increasing international commentary and cooperation on asset management and maintenance. Contributions continue to be received from colleagues who are well known for their expertise and for their ability to review their topics in an objective manner. The comments are those of the authors set within a framework for the book as a whole. It is believed that a balanced and unbiased view has been presented. As ever, the contributions to the book are invited from a range of opinions, and no effort is made to diminish any conflicting views.

The book is not prescriptive. Some readers may find it suits them to follow the six sectors closely in the order presented. This may apply to readers who need to carry out a complete review of their current situation, and from this, formulate a way forward for their immediate or long-term requirements. Other readers may find that the priority order for applying the sectors of importance will depend on the circumstances existing, as will its speed of application. The personal goals and knowledge of the individual manager often determines the scope and the speed of the changes sought. A manager who can accept or justify the financial risk, obtains support from the Board and whose confidence is high, will look for bold decisions and a speedy approach to implementation of the improvements. The resultant prizes are often worth having.

Such an approach is not time dependant, and was described in the Financial Mail in 1996 - “Leaders need to adopt the skills used in white water rafting, coping with the rapids of change while steering a profitable course towards an unknown future” (The Financial Mail, 26th Sept. 1996 of ‘The Future of Leadership’ by Hodgson, Craner and White (Ashbridge). This statement is as applicable to managers of maintenance and asset management as it is to military or business leaders. The challenges can be as complex and as motivating, and every campaign needs a strategy.

Download the pdf available from the top of this page for:

    • Detailed contents - chapter by chapter
    • Acknowledgements
    • The Editor

Published: June 2013

ISBN: 978 095 064 6565

ORDER YOUR COPY NOW

Book can be ordered online (payment by Paypal) by using the relevant link below, alternatively telephone + 44 (0) 1252 783111 or email info@maintenanceonline.co.uk

UK PURCHASES - cost £77 including p&p in the UK. 

EUROPEAN PURCHASES - cost £85 inc p&p within Europe. 

REST OF THE WORLD PURCHASES - cost £98 in p&p.