From asset management to asset optimisation
By Rachel Scott and Jarrod Chesher
We have previously written about the maturity of asset management, and how organisations move from ad-hoc to proactive to predictive approaches. The next focus in asset management is on optimisation - making sure that assets are utilised in the most effective way possible.
For insights into this progression, read our guide: Navigating the terrain of asset management maturity.
Business strategy
It is important to consider the company's overall business strategy when developing an asset optimisation plan. What are your company's goals? What are the risks and opportunities associated with those goals? How can assets be best utilised to achieve those goals?
It is important to engage all stakeholders in the asset optimisation process. This includes managers, operators, maintenance staff, and other individuals who have a vested interest in the performance of assets. By involving all stakeholders, you can ensure that everyone is working towards the same goal.
Learn more about achieving strategic success in our article: The importance of an asset management plan: unlocking strategic success.
How assets are being used
Utilisation is a key metric in asset optimisation. If assets are not being used effectively, they may need to be re-allocated or removed from service. Utilisation can be measured through a number of metrics including uptime, throughput, and cycle time. It is important to keep in mind that optimisation is a continuous process. As conditions change, asset utilisation plans may need to be adjusted accordingly. Regular reviews of asset utilisation metrics can help identify areas where improvements can be made.
The cost of assets
Optimising asset utilisation can also help to reduce the overall cost of ownership. By tracking and comparing costs across assets and asset classes, concerning trends and characteristics for further investigation can be identified. Understanding the highest cost assets will support investigation of root causes and determination of corrective actions. You may want to consider depreciation and other accounting concepts when considering the cost of your assets when determining your optimisation strategies.
The risk associated with assets
In some cases, it may be necessary to accept a higher level of risk in order to achieve greater asset utilisation. For example, an organisation may choose to operate a piece of equipment at or near its maximum capacity in order to meet customer demand, however this may increase the risk of failure or of not having spare capacity when required to meet customer expectations.
How assets are being maintained
In order to optimise asset utilisation, it is important to ensure that assets are properly maintained. This includes regular inspections, preventive maintenance, and other activities designed to keep assets in good working condition.
The lifecycle of assets
The end of an asset's useful life can also have a significant impact on optimisation. Repair or replace decisions should be planned well in advance of the asset end of life to support efficient decisions as soon as sustainment of the assets is no longer cost effective. As technology changes, it is important to consider how that will impact the utilisation of existing assets. When an asset is retired or replaced, it may be necessary to re-evaluate utilisation and cost metrics to ensure that the new asset is being used in the most effective way possible.
Conclusion
Organisations that are able to effectively optimise their assets will be well-positioned to improve their overall performance and competitiveness. By taking a proactive approach to asset management, organisations can ensure that their assets are being used in the most efficient way possible.
For help with your asset management needs contact our team to discuss your specific needs and requirements.
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