Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

ARC's Sid Snitkin ALM Presentation @ ARC Industry Forum 2009

320 views

Published on

ARC's Sid Snitkin ALM Presentation @ ARC Industry Forum 2009 in Orlando, FL.
Sustainable Operations Through Better Asset Lifecycle Management
What is Sustainability?
What Makes a Sustainable Manufacturing Operation?
How Does This Relate to Asset Lifecycle
Management (ALM)?
How Can You Use this to Develop a Strategy for
Sustainable Operations?

Published in: Technology, Business
  • Be the first to comment

ARC's Sid Snitkin ALM Presentation @ ARC Industry Forum 2009

  1. 1. Sustainable Operations Through BetterAsset Lifecycle ManagementSustainable Operations Through BetterAsset Lifecycle ManagementAsset Lifecycle ManagementAsset Lifecycle ManagementSid SnitkinVice-President & GMEnterprise Advisory ServicesARC Advisory Groupsrsnitkin@arcweb.com
  2. 2. AgendaAgendaWhat is Sustainability?What Makes a Sustainable Mfg Operation?How Does This Relate to Asset LifecycleManagement (ALM)?How Can You Use this to Develop a Strategy forSustainable Operations?Sustainable Operations?2© ARC Advisory Group
  3. 3. What is Sustainability?Many Perspectives, Many ChallengesWhat is Sustainability?Many Perspectives, Many ChallengesFocus on the Environment – Planet’s Survival• Use of Natural Resources – Renewable Rational Use etc• Use of Natural Resources Renewable, Rational Use, etc.• Product Footprint - Recyclable, Decomposable, etc• Process Footprint – CO2, Water, Other effluentsp , ,Focus on the Business - Corporate Survival• Satisfying Customer – Features, Cost, Delivery, Service, etc.y g , , y, ,• Satisfying Shareholders – Profit, RONA, etc.• Satisfying Regulators – Product Safety, OSHA, etc.Focus on Everything – “Green to Gold”• Aligning Corporate and Human Survival Goals3© ARC Advisory Group
  4. 4. What Does Sustainability Mean to Mfgrs?Operations That Meet all Sustainability GoalsWhat Does Sustainability Mean to Mfgrs?Operations That Meet all Sustainability GoalsA Sustainable Manufacturing Operation Has:• The Right Set of Assets for the Job• The Right Set of Assets for the Job• Fast, bumpless response to changing requirements• Minimum use of energy, labor and materialsTh Ri ht P ti t O ti i U f All A t• The Right Practices to Optimize Use of All Assets• Strategically - to satisfy the most important demand• Tactically - in the most efficient manner• Balanced to maximize returns x lifetime• The Right Programs to Ensure High Availability• Assets that are reliable and ready when neededy• Assets that maintain peak performance over the long run4© ARC Advisory Group
  5. 5. Sustainability = Excellent ALM PerformanceALM Provides a Good Basis for Sustainability EffortsSustainability = Excellent ALM PerformanceALM Provides a Good Basis for Sustainability EffortsThe RightCapabilityHighAvailabilityOptimalUtilizationOptimumPerformanceX X =Design MaintainOperate Win!DOM E ll i h fCapability AvailabilityUtilization PerformanceARC’s DOM Model for Asset PerformanceDOM Excellence is the outcome of a properAsset Lifecycle Management (ALM) Strategy …» Establishing a Good ALM Strategy will satisfy many» Establishing a Good ALM Strategy will satisfy manyof your Sustainability Goals» Investments in ALM can be justified on the basis ofS t i bl O timore Sustainable Operations» Making the Right Investments requires a solidunderstanding of ALM!5© ARC Advisory Group
  6. 6. ALM begins with a proper view of the AssetProductive Assets are More Than EquipmentALM begins with a proper view of the AssetProductive Assets are More Than EquipmentPrimaryF ilitiProject-CentricP j t M tHumanPhysicalFacilitiesEquipmentRemoteProject MgmtEngr/DesignProcurementConstructionSupportIT HW/SWMobileMRO MaterialAsset-CentricOperationsProcess EngrMaintenanceVirtualR f D tMRO Material MaintenanceReliabilityA ti it R dReference DataFunctionalDesignProceduralActivity RecordsCommercialStatusHistory6© ARC Advisory GroupThe Three Asset Classes are Equally Important toPlant Success !
  7. 7. Add a proper definition of an Asset LifecycleStages in the Life of a Real Physical AssetAdd a proper definition of an Asset LifecycleStages in the Life of a Real Physical AssetTimeAssetRampUpOperRdyFuncAssettsfortheARdyPeakPerfAssmAssetAsseteldProjectModsSpecofBrownfieModsP jSpecfeCyclesoLiabCashDesProjPlan7© ARC Advisory GroupLifCashIdeaBasis
  8. 8. And, the processes that must be managedALM is the Management of Several Key ProcessesAnd, the processes that must be managedALM is the Management of Several Key ProcessesTimeAssetRampUpOperRdyFuncAssettsfortheARdyPeakPerfAssmAssetAssetOperate &OptimizeeldProjectModsSpecpofBrownfieModsP jSpecDesign &BuildMaintain &ImprovefeCyclesoLiabCashDesProjPlanBuild Improve8© ARC Advisory GroupLifCashIdeaBasis
  9. 9. And, the Many Parties Involved in ALMALM Requires Extensive CollaborationAnd, the Many Parties Involved in ALMALM Requires Extensive CollaborationEngr & ProjectMgmt Services(EPC/AEC)Owner/Operator(EPC/AEC)Fabricators &ConstructorsO&M ServiceProvidersOperate&OptimizeMROMaterialIT ServicesProvidersDesign&BuildMaintain&ImproveVirtualSuppliersProviders9© ARC Advisory GroupShareholders Regulators
  10. 10. Results in Some Level of Asset PerformanceALM Performance = Project & Plant PerformanceResults in Some Level of Asset PerformanceALM Performance = Project & Plant Performancejj• Financial• Cost, Cash Flow• Functional• Work Quality• Design Compliance• Design Accuracy• Release Mgmt• C/N Mgmt• Equip Selection• Const Planning• Material Mgmt• Site Mgmt• Labor EfficiencyTimely, RightXDesignOptimalBuild• Design Compliance• Personal EH&S• ScheduleEquip Selection• Material Specsy• EH&STimely, Right Projecte y, gInformationMaximumOptimalXMaintainOperateExecutionALMPerformancee y, gInformationThe RightjPerformanceA tMaximumAvailabilityOptimalUtilization XX• Product Range• Throughput• Product Mix• Prod Planning• Maint Strategy Mgmt• Maint Planning• Financial• Profit, Ratios (ROA)The RightCapabilityAssetPerformanceoug pu• Quality• Product Unit Cost• EH&S Capabilityod a g• Prime %• Material Cost• Labor Cost• EH&Sa a g• Maint Efficiency• MRO Material Mgmt• Labor Cost• EH&So , a o ( O )• Functional• Process EH&S• Personal EH&S• Product/Service• Cost, Quality, Delivery10© ARC Advisory GroupOptimal Performance Occurs When all DOM Processes Are“Jointly” Optimized Across All Lifecycle Stages!
  11. 11. Developing an ALM StrategyPerformance Depends Upon Several FactorsDeveloping an ALM StrategyPerformance Depends Upon Several Factors11© ARC Advisory GroupALM Requires Strategies for Design, Operate & Maintain!
  12. 12. ALM Performance is ChallengingALM Needs Interoperability Across ALM ProcessesALM Performance is ChallengingALM Needs Interoperability Across ALM ProcessesConsistentShared GoalsStrategyOperateCompatible ToolsConsistentProcessesPeople | ProcessesTechnologyOptimumPerformanceComplementaryData ModelsInformationDesign Maintain Design Operate MaintainMaximizing Performance requires Teamwork …AIM helps Teamwork “Work” !12© ARC Advisory GroupAIM helps Teamwork Work !
  13. 13. Developing an ALM StrategyALM is a Collection of Interdependent StrategiesDeveloping an ALM StrategyALM is a Collection of Interdependent StrategiesAsset Lifecycle ManagementA Collection of Interdependent Business StrategiesCapital Projects Management(Design & Build)Capital Assets Management(Maintenance& Reliability)HumanVirtualPhysical HumanVirtualPhysicalAssetInformationManagementTimeetRampFunctional• ProcessSpecs• ProcessModels• Process Calcs• Flow Diags• Equip CalcsDesign• ProcessDesign• P&ID• Equip Layout,Design,BOMs• SystemProcedures• Project Mgmt• Install/Test• Descriptionsof Operation• Operating• Insp & Maint• CertificationCommercial• Financial Analysis• CAPEX• Depreciation• OPEX• PurchasingRecords• Warranty &Status• Project & Site• Procurement• OperationalStatus• MROInventory• TrainingHistory• Source &Build History• OperatingHistory• Maint History• InspectionRecordsBrownfieldProjectsfortheAsseUpOperRdyPeakPerfModsSpecAssmAssetFuncAsset13© ARC Advisory GroupEquip Calcs• Equip Specs• Func DesignsyDetail Design• MRO BOMs• CertificationReqs• Lockout &Safety Reqs• Warranty &Repair Records• O&M ServiceAgreementsTraining• IncidentReports• PeopleCertificationsReference Data Activity RecordsLifeCyclesofLiabCashIdeaDesBasisProjPlan
  14. 14. Where Can ALM Help with SustainabilityMany Opportunities, Many VictoriesWhere Can ALM Help with SustainabilityMany Opportunities, Many VictoriesFocus on the Environment – Planet’s Survival• Use of Natural Resources – Renewable Rational Use etc• Use of Natural Resources Renewable, Rational Use, etc.• Product Footprint - Recyclable, Decomposable, etc• Process Footprint – CO2, Water, Other effluentsp , ,Focus on the Business - Corporate Survival• Satisfying Customer – Features, Cost, Delivery, Service, etc.y g , , y, ,• Satisfying Shareholders – Profit, RONA, etc.• Satisfying Regulators – Product Safety, OSHA, etc.Focus on Everything – “Green to Gold”• Aligning Corporate and Human Survival Goals?14© ARC Advisory Group?
  15. 15. Conclusions & RecommendationsConclusions & RecommendationsAsset Lifecycle Management (ALM) programsaddress many of the issues that are now beingidentified as Sustainability Goals» Consider ALM as the foundation for your own SustainabilityProgramProgramEffective ALM strategies are based upon aproper understanding of assets, asset lifecycles,p p g , y ,ALM processes and ALM Stakeholders» ARC’s ALM research addresses these issues and may behelpful in your efforts to achieve various Sustainability goalshelpful in your efforts to achieve various Sustainability goals» Learn more about ALM through ARC’s ALM newsletter,research reports, workshops and events.15© ARC Advisory Group
  16. 16. For a free copy of a full ARC report on this topic pleasecontact the author at srsnitkin@arcweb comThank YouThank Youcontact the author at srsnitkin@arcweb.comFor more information about Asset Lifecycle Managementplease visit our web site at www.arcweb.com and look16© ARC Advisory Grouppunder “Domains/Asset Lifecycle Management”

×