Developing an Asset Management Strategy

We’ve previously discussed the benefits of  Implementing A Reliability Centered Maintenance Program and thought we would expand on that subject. Manufacturing plants, utilities and chemical process faciities are asset-intensive organizations that depend on superior management of physical assets. Some owners may confuse capital asset replacement plans with strategic asset management. Unlike replacement plans, they are proactive and work to reduce costs and risk all while extending the life of assets.

What is Strategic Asset Management?

Strategic Asset Management, also known as SAM, is a model maximizing the value for all physical assets. It is a comprehensive, top-down approach to managing equipment as well as personnel for optimum profitability. The most important aspect of SAM is its fact-based management of the plant’s potential profitability that centers on market conditions and other variables that exist within the plant. It begins with sales forecasting all through production planning and manufacturing numbers all the way to product delivery.

How Plants Can Develop a Strategic Asset Management Plan

All plants are different, but you should center your SAM on several core principles that are well defined before initiating the plan.

• Realize your plant exists for one main purpose: to produce as much of your product as possible. This includes products done to specification that meet delivery schedules fabricated at the lowest sustainable price.
• You may need to undertake fundamental changes in your culture and discipline starting with your management. They will then be in charge of leading the rest of the workforce.
• Get everyone in the plant to realize they are on the same team with the same goals and encourage all to participate. The goal is to create a shared vision of how the plant will operate in the future.
• A SAM often includes a multi-year plan that allows for your team to learn new skills, techniques, and tools for asset management.
• Your SAM should also have a business case that continuously emphasizes bottom-line value.

You begin by identifying the potential capacity of your plant along with the profitability. Develop an overall plant production map to determine the theoretical maximum capacity and the best performance of the asset. This is your most difficult task due to the number of factors, unknown information, all leading to a potentially painful conclusion. Your potential capacity may be double what is achieved, and your ideal performances can identify a large gap with your plant’s current state.

You should also identify maintenance costs if and how they should change. There is more labor and parts available during continuous repair operations compared to when equipment health is excellent. Maintenance cost reduction potential is also an important component to your SAM strategy.

Houston Dynamic Supply Component Maintenance & Repairs

We are an experienced equipment repair and maintenance shop based in Houston that can test the components of your equipment assets, and then recommend the wisest course of action to get maximum performance and extended life from your equipment. Call us today to find out about how much affordable it is to rebuild critical equipment – than to purchase new.