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Developing and implementing asset lifecycle management strategies

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Developing and Implementation of Asset Life Cycle into Maintenance Management Strategies .

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Developing and implementing asset lifecycle management strategies

  1. 1. DEVELOPING & IMPLEMENTING ASSET LIFECYCLE MANAGEMENT STRATEGIES by Ntozelizwe B. Mqenebe
  2. 2. Presenter Ntozelizwe B Mqenebe Senior Engineer ArcelorMittal South Africa, Newcastle Works Professional Engineer (Engineering Council of South Africa) Certified Plant Maintenance Manager Candidate (Association for Facilities Engineering) Certified Maintenance and Reliability Candidate (Society for Maintenance & Reliability Professionals) • 8 years in Asset Management in Water, Wastewater, Mining and Steel industry. 5/19/2012 Ntozelizwe Mqenebe 1
  3. 3. Factors in Maintenance “We have learned to live in a world of mistakes and defective products as if they were necessary to life” - Dr. W. Edward Deming 5/19/2012 Ntozelizwe Mqenebe 2
  4. 4. Factors in Maintenance “It Isn’t What You Know That Will Kill You, It is What You Don’t Know That Will” 5/19/2012 Ntozelizwe Mqenebe 3
  5. 5. Factors in Maintenance “A Proactive Reliability Process is a supply chain. If a step n the process is skipped, or performed at a substandard level, the process creates defects known as failures. The output of a healthy reliability process is optimal asset reliability at optimal cost.” - Ron Thomas, Reliability Director Dofasco Steel 5/19/2012 Ntozelizwe Mqenebe 4
  6. 6. Understanding the overall lifecycle of an asset and how it impacts maintenance management 5/19/2012 Ntozelizwe Mqenebe 5 Planning Acquisition Operations & Maintenance Disposal
  7. 7. Understanding the overall lifecycle of an asset and how it impacts maintenance management The phases through which an asset passes during its life are: The Planning process, where the requirement for an asset is identified and established having regard to service delivery considerations; The Acquisition phase, where the asset is purchased, constructed, leased or otherwise brought into service; The Operations and maintenance phase, where the asset is used for its intended purpose. This phase includes periodic maintenance, refurbishment or major repair; and The Disposal phase, initiated when the economic life of the asset has expired, or when the need for the service provided by an asset has disappeared. 5/19/2012 Ntozelizwe Mqenebe 6
  8. 8. Understanding the overall lifecycle of an asset and how it impacts maintenance management NOTE: Asset management decisions made in one phase of the Asset Life Cycle can affect the assets performance in other phases. Example: Proposals for the disposal of surplus assets should be in accordance with approved asset management plans in order for the plant to retain 75% of sale proceeds. 5/19/2012 Ntozelizwe Mqenebe 7
  9. 9. Understanding the overall lifecycle of an asset and how it impacts maintenance management Companies should ensure that Asset Management planning reflects a Life Cycle Approach. Limiting asset planning to a single phase (such as acquisition, or operation and maintenance) will not lead to sound long-term decisions about assets. Managers should be accountable for the life cycle effects of their decisions. 5/19/2012 Ntozelizwe Mqenebe 8
  10. 10. Understanding the overall lifecycle of an asset and how it impacts maintenance management • Low bid purchasing is widely used as the primary criterion for equipment or system selection. • That is, the initial procurement or acquisition cost often is the only criterion used. • For many large scales systems, the cost of system maintenance and support often ranges from 60 to 75% of the total overall life- cycle cost for that system. • Prior to the birth of a new plant, all estimated potential costs are controlled. As soon as the life of the building or component begins, the control of the total life-cycle cost of the facility diminishes. 5/19/2012 Ntozelizwe Mqenebe 9
  11. 11. Understanding the overall lifecycle of an asset and how it impacts maintenance management • Low bid purchasing is widely used as the primary criterion for equipment or system selection. • That is, the initial procurement or acquisition cost often is the only criterion used. • For many large scales systems, the cost of system maintenance and support often ranges from 60 to 75% of the total overall life- cycle cost for that system. • Prior to the birth of a new plant, all estimated potential costs are controlled. As soon as the life of the building or component begins, the control of the total life-cycle cost of the facility diminishes. 5/19/2012 Ntozelizwe Mqenebe 10
  12. 12. Understanding the overall lifecycle of an asset and how it impacts maintenance management • Low bid purchasing is widely used as the primary criterion for equipment or system selection. • That is, the initial procurement or acquisition cost often is the only criterion used. • For many large scales systems, the cost of system maintenance and support often ranges from 60 to 75% of the total overall life- cycle cost for that system. • Prior to the birth of a new plant, all estimated potential costs are controlled. As soon as the life of the building or component begins, the control of the total life-cycle cost of the facility diminishes. 5/19/2012 Ntozelizwe Mqenebe 11
  13. 13. P-F curve 5/19/2012 Ntozelizwe Mqenebe 12
  14. 14. 5/19/2012 Author 13
  15. 15. Using CMMS tools • A Computerized Maintenance Management System (CMMS) is a tool to facilitate management of maintenance. Three phases to a successful CMMS project are: • Selection • Implementation • Utilization 5/19/2012 Ntozelizwe Mqenebe 14
  16. 16. Using CMMS tools • Proper selection of a CMMS begins with an analysis of the maintenance organization and its 3 to 5 year strategic plan. • An analysis of the CMMS in the marketplace will help an organization find a system that will assist the organization to achieve its goals. 5/19/2012 Ntozelizwe Mqenebe 15
  17. 17. Using CMMS tools • Proper implementation of a CMMS consists of standardizing, gathering, and updating information about equipment, spare parts, preventive maintenance, personnel, and purchasing. 5/19/2012 Ntozelizwe Mqenebe 16
  18. 18. 5/19/2012 Author 17
  19. 19. Using CMMS tools • The on going use of a CMMS requires staffing for system use, timely and accurate data collection, and continuous improvement in maintenance management methods. This will aid in checking the increased life cycle cost of an asset. 5/19/2012 Ntozelizwe Mqenebe 18
  20. 20. Using CMMS tools • The on going use of a CMMS requires staffing for system use, timely and accurate data collection, and continuous improvement in maintenance management methods. This will aid in checking the increased life cycle cost of an asset. 5/19/2012 Ntozelizwe Mqenebe 19
  21. 21. Using CMMS tools All features included in the CMMS are designed to provide the following advantages to the user: • Improve maintenance efficiency • Reduce maintenance costs • Reduce equipment downtime by scheduling preventive maintenance. • Increase the life of equipment. • Provide historical records to assist in maintenance planning, budgeting and equipment repair/replace decisions. • Provide maintenance report in the format required by the user. 5/19/2012 Ntozelizwe Mqenebe 20
  22. 22. 5/19/2012 Author 21
  23. 23. Using CMMS tools • Plant and equipment maintenance often comprises a large part of a company’s budget. This is because of high replacement costs a plant and equipment, the working life of present equipment must be extended as long as possible. • Achieving this goal requires that equipment maintenance be accurately scheduled and performed efficiently. NOTE: Necessary records must be kept. 5/19/2012 Ntozelizwe Mqenebe 22
  24. 24. Using CMMS tools • CMMS systems are used to track all maintenance costs and equipment repairs.  This tracking is accomplished by the monitoring of work orders.  By monitoring work-order costs and using proper scheduling of work orders, repair costs can be monitored. • This monitoring provides management with necessary information to track and plan maintenance budgets. 5/19/2012 Ntozelizwe Mqenebe 23
  25. 25. 5/19/2012 Author 24
  26. 26. Using CMMS tools • The Second method of cost control is the monitoring of inventory and purchasing.  This monitoring will tract equipment parts costs to each piece of equipment.  This part will help prevent excessive inventories.  The purchasing module helps with vendor selection and monitoring shipping time. 5/19/2012 Ntozelizwe Mqenebe 25
  27. 27. Using CMMS tools • Another prime feature of CMMS is: -  The scheduling of the preventive maintenance function. Proper scheduling of preventive maintenance can reduce “over maintenance”, increase uptime, and extend the life of plant and equipment.  There are few maintenance incurred when the system is installed. 5/19/2012 Ntozelizwe Mqenebe 26
  28. 28. 5/19/2012 Author 27
  29. 29. Involving the maintenance functions as a key contributor to the asset acquisition phase Asset Acquisition It is the key strategic asset management activity. It is imperative, therefore, that acquisition decisions be taken within an integrated planning framework that takes account of service delivery needs, corporate objectives, financial and budgetary constraints, and the Governments overall resource allocation objectives. 5/19/2012 Ntozelizwe Mqenebe 28
  30. 30. Involving the maintenance functions as a key contributor to the asset acquisition phase Project Initiation process This is a significant component of strategic asset management, ensuring that new investments in assets are only utilized where they clearly support improved service delivery outcomes. It establishes a structured framework followed by Companies for projects proposed for inclusion in the Capital Investment Program. 5/19/2012 Ntozelizwe Mqenebe 29
  31. 31. Involving the maintenance functions as a key contributor to the asset acquisition phase Project Initiation process: - Facilitates capital investment decision making through a framework whereby Companies are required to rigorously evaluate proposals for capital works projects at the earliest stage. NOTE: No mention of maintenance functions. 5/19/2012 Ntozelizwe Mqenebe 30
  32. 32. Involving the maintenance functions as a key contributor to the asset acquisition phase Proper Analyses in support of the project, they must include: - Value management; Cost-benefit analysis; Risk analysis; and (through Maintenance History) Statutory and planning issues 5/19/2012 Ntozelizwe Mqenebe 31
  33. 33. Involving the maintenance functions as a key contributor to the asset acquisition phase Operational Plans: - • Companies should establish and maintain management processes to regularly monitor and assess the assets under their control. • Operational plans enable companies to ensure that existing assets are being managed and maintained efficiently and effectively, and that they fully support the delivery of services. • The physical, operational, functional and financial performance of assets should be monitored continually, and processes established both to address any performance deficiencies and to increase performance. 5/19/2012 Ntozelizwe Mqenebe 32
  34. 34. Involving the maintenance functions as a key contributor to the asset acquisition phase Operational Plans should address: - Responsibility for the asset; Arrangements for monitoring asset performance; Operational training; and Estimated operating costs. 5/19/2012 Ntozelizwe Mqenebe 33
  35. 35. Involving the maintenance functions as a key contributor to the asset acquisition phase Maintenance Plans: - • Usefulness of an asset depends on how effectively it meets its purpose. For many types of asset, this will depend on the regularity and appropriateness of its maintenance. • While regular maintenance will help to preserve an asset value, maintenance should only be undertaken where it will preserve the asset’s service delivery potential. • Deferred maintenance across the portfolio of assets controlled by Companies is a significant issue to be addressed within the strategic planning process. 5/19/2012 Ntozelizwe Mqenebe 34
  36. 36. Involving the maintenance functions as a key contributor to the asset acquisition phase Maintenance Plans: - • The preparation of asset maintenance plans will ensure that maintenance activity is undertaken in a targeted and timely manner which facilitates the most cost-effective use of maintenance resources. 5/19/2012 Ntozelizwe Mqenebe 35
  37. 37. Involving the maintenance functions as a key contributor to the asset acquisition phase The outcomes of effective asset maintenance include: A long-term reduction in life cycle costs; Better asset performance and service; Optimization of asset life; and Improved public perception of the asset’s service and safety standards. 5/19/2012 Ntozelizwe Mqenebe 36
  38. 38. Involving the maintenance functions as a key contributor to the asset acquisition phase A Maintenance Plan: - • Defines the asset and the level to which it is to be maintained, Usefulness of an asset depends on how effectively it meets its purpose. For many types of asset, this will depend on the regularity and appropriateness of its maintenance. • While regular maintenance will help to preserve an asset value, maintenance should only be undertaken where it will preserve the asset’s service delivery potential. • Deferred maintenance across the portfolio of assets controlled by Companies is a significant issue to be addressed within the strategic planning process. 5/19/2012 Ntozelizwe Mqenebe 37

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