What is Asset Management?
Loosely defined, it is the management of your assets from birth to grave. Birth includes the design and specification of the asset, manufacturing, installation, operation and continues oversight until the end of life of the asset.
ISO 55000 I believe is the mother of asset management as we see it today. Digitization has escalated our abilities to document our assets and when married into the functions of asset reliability and maintenance, you have roughly rounded elements of asset management in the full measure.
Why do I need Asset Management?
There are benefits that flow out of an asset management system.
- Asset management system provides a balance of asset performance, asset costs and asset risk.
- Asset management drives the value of an asset.
- Growth of demand by forecasting future needs. One of the interesting aspects of the COVID event was equipment continued to produce as demand for products increased. When the details of an asset’s capability is understood and documented, growth of demand becomes a need that can be addressed by pushing the limits of the asset or installing newer equipment that provides for the growth of demand.
- Transparency. Detailed asset management records create a solid source of information that can be used as a justification for capital expenditures.
- Whole life Asset Life Cycle. Asset aging, asset valuation – tracking the asset age leads to clarifying when a specific piece of equipment needs to be replaced.
- Asset Management provides direction of Planning in the Long Term.
- Asset Management bonds the goals of the organization with the needs of the stakeholders while serving support for solving customer issues.
- Asset management systems build team collaboration.
- Asset management facilitates the move to agency wide digitization.
How is Asset Management managed and by whom?
Great question. And the answer is varied depending upon the structure of your organization, the variety and complexity of your assets and who holds the capability and authority to develop asset programs.
With the day-to-day demands of the senior management team, in all likelihood, you will want to assign the duties of asset management to a key member of the team. Someone who holds an understanding of the goals of the organization, holds a clear idea of process and culture, is versed in equipment operation and maintenance, is an effective communicator and has the respect of their colleagues.
It could begin with one of your reliability engineers who becomes a dedicated champion of the program. It should not be assigned to an individual who is responsible for other duties in the organization. I say this because the deeper you move into asset management developing program directions and operating procedures, the other duties will likely prevail with a loss of asset focus.
While you may begin with one person assigned, Asset Management will drive continuous improvements that will require full team involvement in input, discussion and decisions.
Can we have Asset Management as a stand-alone function in our company?
Yes. Asset Management in its bare bones function can be a program where, for example, you begin recording activity by operations and maintenance when an asset is touched.
Within the bigger picture, Asset Management should become an embedded philosophy of continuous improvement that offers a journey and not a destination. While you can have a stand-alone asset management program, you can not have an asset management system without asset management functions, collaboration and senior management endorsement and support.
Where do I begin?
A great first step is to watch the informational videos posted below.
Next, hold discussions and establish some goals and objectives within a framework that supports the needs of the organization.
A good next step is to begin recording all of the assets within the organization broken into sectors. You can do this independently or you can work with an outside contractor who is familiar with your plant and operations.
When we talk about assets, it includes the land, the facilities, production equipment and everything that is considered a fixture within and without the structure.
Where to begin is one of the daunting tasks and questions you will face. It is similar to attempting to climb a mountain. Not only where to begin, but how do we document, where do we document? Take a look at the information videos posted below and then give us a call.
Is there formal training available?
Absolutely! There are several excellent training programs available, some that require class participation and others that are available by on-line distant education.
For a basic introduction of asset management, the INSTITUTE of ASSET MANAGEMENT has an excellent informational video that can be found here:
https://theiam.org/knowledge-library/the-big-picture
PEMAC Asset Management Association of Canada – informal video:
https://www.pemac.org/the-case-for-asset-management
For more specific information such as certification of your asset management director, there are programs provided by the following organizations:
PEMAC: PEMAC Asset Management Association of Canada
Northern Lakes College: AMP – Asset Management Professional
Northern Lakes College: CAMA – Certified Asset Management Assessor
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