Asset Performance Management_Deepak Sahoo_v0.2

Asset
Performance
Management
Leading the industry
in a new way.
Prepared By :
DEEPAK KUMAR SAHOO
CMRP, SSBB, Lean Expert
PG in Engineering Management, B.Tech in Mechanical
View & Download

An effective Asset Performance Management System
can improve EBITDA as much as 15-25%
01

Why Industry need to focus on Asset
Performance Management.03
08
24
32
39
47
Asset Performance Management
the Core.
New era of ISO 55000 Series.
Integrate management initiatives with Asset
Performance Management.
Making Assets work for you. Developing
robust Asset Performance Management System.
Focus on future uncertainty and long term
strategy for better profitability and sustenance.
Prepared by : - Deepak Kumar Sahoo | defydk@hotmail.com | +1 – 310 929 7404 | DD14PA16 Oct – 2015 | Asset Performance Management
CONTENTS I

03 Why Industry need to
focus on
Asset Performance Management ?
GO TO
CONTENTS SLIDE

04 This is APM.
“APM goes beyond maintenance: It cuts across many boundaries. The
bottom line is return-on-assets [ROA]”
ARC Advisory Group
“We need to send the correct data to the right people to
make a good decision”
Parthasarathy Kannan
Meridium EMEA APM Forum

 Performance Criteria Used
to Identify Best-in-Class
BENCHMARKING THE BEST IN CLASS 05
Best-in-
Class
Industry
Average
Laggard
Operational Equipment
Effectiveness (OEE)
Asset Downtime
88% 81% 75%
02% 11% 18%
Return on Asset vs Plan 25% 07% - 10%
Source : Aberdeen Group

GOALS FOR TOP MANAGEMENT (CFO/COO/CEO) 06
Source : Aberdeen Group
Reduce
Operating
Expense
Revenue
Growth
Improve
Profitability
Customer
Satisfaction
Risk
management
63% 46% 40% 28% 24%
Sample Size, n=139

Demonstrated compliance
Enhanced reputation
Improved organizational
sustainability
Improved efficiency and
effectiveness
Improved Financial
Performance
Informed Asset Investment
Decisions
Managed risk
Improved services and outputs
Demonstrated social
responsibility
BENEFIT’S OF APM 07
Improve Financial Performance such as
Profits, Return on net Assets, Efficiency,
Service Factor,
Manage and Optimize Risk level.
Improve Financial Performance such as
Profits, Return on net Assets
Enhance reputation, Brand Image.
Improve Organizational sustainability
and demonstrated Social responsibility.
APM
BENEFIT’S

08
ASSET
PERFORMANCE
MANAGEMENT
THE CORE.
GO TO
CONTENTS SLIDE

 Something you own that has value.
 There can be assets that gain value over time or lose value over time
ABOUT ASSET 09
Human
Virtual
Physical
ASSET TYPE

ASSET LIFE CYCLE 10

RETURN ON ASSET 11
ROA
Return On Asset

12 BRIDGING THE GAP
BETWEEN
CAPEX
&
OPEX

 Asset Performance Management :
APM is a holistic approach used to ensure that the business of caring for
corporation’s maintainable assets is done in the most cost-effective manner to
promote asset longevity, performance and capability.
 It cultivates a partnership between operations and maintenance, whose
common goal is equipment uptime.
 APM optimize the equipment performance and reliability on daily basis.
 It will help to identify the current asset health and able to provide a long
term view to drive capital planning.
 Visibility into complete lifecycle of asset – Understanding the Economic
Value Add
 Aligning asset performance to corporate performance
An effective APM process involves the development and implementation of reliability
programs for operational assets coupled with application of ongoing performance
monitoring and improvement to drive program optimization overtime.
ASSET PERFORMANCE MANAGEMENT 13

BASIC MODULES OF APM 14
Strategy &
Planning
•Asset Management
Policy
•AM Strategy &
Objectives
•Demand Analysis
•Strategic Planning
•AM Planning (AMP)
Decision-
Making
•Capital Investment
•Operation &
Maintenance
•Lifecycle Value
Realization
•Resourcing Strategy
•Shutdown and
Outage Strategy
Organization
and People
•AM Leadership
•Organization
structure
•Organization Culture
•Competence
Management
Lifecycle
Delivery
•Technical Standards
and Legislation
•Asset Creation &
Acquisition
•System Engineering
•Configuration
Management
•Maintenance
Delivery
•Reliability
Engineering
•Asset Operations
•Resource
Management
•Shutdown & Outage
Management
•Fault & Incident
Response
•Asset
Decommissioning
and Disposal
Asset
Information
•Asset Information
Strategy
Standard
System
•Data and
information
Management
Risk and
Review
•Risk Assessment and
Management
•Contingency
Planning & Resilience
Analysis
•Sustainable
development
•Management of
Change
•Asset performance
and health
monitoring
•AM System
monitoring
•Management
Review, Audit &
Assurance
•Asset costing &
Valuation
•Stakeholder
Engagement
1 2 3 4 5 6

 The processes an organization uses to undertake strategic asset management planning.
 The activities to develop the Asset Management plans that specify the detailed activities and resources,
responsibilities and timescales and risks for the achievement of the asset management objectives.
APM MODULES -||- STRATEGY & PLANNING 15
 Asset Management Policy
 Asset Management Policy providing a framework for the development and implementation of the asset
management strategic plan and the setting of the asset management objectives.
 AM Strategy & Objectives
 The strategic plan for the management of the assets of an organization that will be used to achieve the
organizational corporate objectives.
 Demand Analysis
 The processes an organization uses to both assess and influence the demand for, and level of service from,
an organization's assets.
 AM Planning (AMP)
 Strategic Planning

 The management activities and processes involved in determining the Operations and Maintenance
requirements in support of the Asset Management objectives and goals.
APM MODULES -||- DECISION-MAKING 16
 Determining the activities and processes to be undertaken by an organization in order to procure and use
people, plant, tools and materials to deliver the Asset Management Objectives and Asset Management
Plan(s).
 The activities taken by an organization to develop a strategy for shutdown and outages.
 Capital Investment Decision-Making
 The processes and decisions to evaluate and analyses scenarios for decisions related to capital investments
of an organization. These processes and decisions may relate to new assets for the organization (e.g.
Greenfield projects) and/or replacements of assets at end of life (CAPEX sustaining programs).
 Operations & Maintenance Decision-Making
 Lifecycle Value Realisation
 The activities undertaken by an organization to balance the costs and benefits of different renewal,
maintenance, overhaul and disposal interventions. This processes an organization uses to both assess and
influence the demand for, and level of service from, an organization's assets.
 Shutdown and Outage Strategy
 Resourcing Strategy

APM MODULES -||- ORGANIZATION AND PEOPLE 17
 The processes used by an organization to systematically develop and maintain an adequate supply of
competent and motivated people to fulfil its asset management objectives including arrangements for
managing competence in the boardroom and the workplace
 Asset Management Leadership
 The leadership of an organization required to promote a whole life asset management approach to deliver
the organizational and Asset Management objectives of the organization.
 Organizational Structure
 The structure of an organization in terms of its ability to deliver the organizational and Asset Management
objectives.
 Organizational Culture
 The culture of an organization in terms of its ability to deliver the organizational and Asset Management
objectives.
 Competence Management

 A management process for establishing and maintaining consistency of a product's physical and functional
attributes with its design and operational information throughout its life.
APM MODULES -||- LIFECYCLE DELIVERY - I 18
 Technical Standards & Legislation
 The processes used by an organization to ensure its asset management activities are compliant with the
relevant technical standards and legislation.
 Asset Creation & Acquisition
 An organization's processes for the acquisition, Installation and commissioning of assets.
 Systems Engineering
 An interdisciplinary, collaborative approach to derive, evolve and verify a life cycle balanced system
solution which satisfies customer expectations and meets public acceptability.
 Configuration Management

 Implementing the Resourcing Strategy to manage the use of funds, people, plant, tools and materials in
delivering asset management activities.
APM MODULES -||- LIFECYCLE DELIVERY - II 19
 Maintenance Delivery
 The management of maintenance activities including both preventive and corrective maintenance
management methodologies.
 Reliability Engineering
 The processes for ensuring that an item shall operate to a defined standard for a defined period of time in a
defined environment.
 Asset Operation
 The processes used by an organization to operate its assets to achieve the business objectives.
 Resource Management

APM MODULES -||- LIFECYCLE DELIVERY - III 20
 Shutdown and Outage Management
 An organization's processes for identification, planning, scheduling, execution and control of work related
to shutdowns or outages.
 Fault and Incident Response
 Responding to failures and incidents in a systematic manner, including incident detection and
identification, fault analysis, use of standard responses, temporary and permanent repairs as well as the
taking over and handing back of sites.
 Asset Decommissioning & Disposal
 The processes used by an organization to decommission and dispose of assets due to ageing or changes in
performance and capacity requirements.

APM MODULES -||- ASSET INFORMATION 21
 The data and information held within an organization's asset information systems and the processes for the
management and governance of that data and information.
 Asset Information Strategy
 The strategic approach to the definition, collection, management, reporting and overall governance of asset
information necessary to support the implementation of an organization's asset management strategy and
objectives.
 Asset Information Standard
 The specification of a consistent structure and format for collecting and storing asset Information and for
reporting on the quality and accuracy of asset information.
 Asset Information System
 The asset information systems an organization has in place to support the asset management activities and
decision-making processes in accordance with the Asset Information Strategy.
 Data and information Management

 An organization's processes for the identification. assessment, implementation and communication of
changes to people,processes and assets.
 The processes and measures used by an organization to assess the performance and health of its assets using
performance indicators.
APM MODULES -||- RISK AND REVIEW - I 22
 Risk Assessment and Management
 The policies and processes for identifying, quantifying and mitigating risk and exploiting
opportunities.
 Contingency Planning & Resilience Analysis
 The processes and systems put in place by an organization to ensure it is able to continue either to continue
to operate its assets to deliver the required level of service in the event of an adverse impact or maintain the
safety and integrity of the assets (whether or not the operate).
 Sustainable Development
 The interdisciplinary, collaborative processes used by an organization to ensure an enduring, balanced
approach to economic activity, environmental responsibility and social progress to ensure all activities are
sustainable in perpetuity.
 Asset Performance and Health Monitoring
 Management of Change

 The methods an organization uses to engage with stakeholders.
APM MODULES -||- RISK AND REVIEW - II 23
 Asset Management System Monitoring
 The processes and measures used by an organization to assess the performance and health of its Asset
Management System.
 Management Review, Audit & Assurance
 An organization's processes for reviewing and auditing the effectiveness of its asset management processes
and asset management system.
 Asset Costing & Valuation
 An organization's processes for defining and capturing 'as builL maintenance and renewal unit costs and the
methods used by an organization for the valuation and depreciation of its assets.
 Stakeholder Engagement

24
New era of
ISO 55000 Series.
GO TO
CONTENTS SLIDE

 ISO 55000: Asset Management - Overview, Principles and Terminology.
 ISO 55001: Asset Management – Management Systems - Requirements.
 ISO 55002: Asset Management — Management systems - Guidelines for
the application of ISO 55001
 Asset Management Fundamentals :
ISO 55000 SERIES STRUCTURE 25
AssuranceLeadershipAlignmentValue

 Value: Assets exist to provide value to the organization and its stakeholders.
Asset management does not focus on the asset itself, but on the value that the asset can provide to
the organization. The value (Which can be tangible or intangible, financial, or non financial) will
be determined by organization and its stakeholder in accordance with the organizational
objectives.
 Alignment: Transform organizational objectives into technical and financial
activities, decisions and tasks
Asset management translates the organizational objectives into technical and financial decision,
plans and activities.
 Leadership: Leadership and workplace culture are determinants of value realization.
leadership and commitment from all managerial levels is essential for successfully establishing,
operating and improving asset management within the organization.
 Assurance: Asset management enables the assets to fulfil their required function
The need for assurance arise from the need to effectively govern an organization. Assurance
applies to asset, asset management and the asset management system.
THE FUNDAMENTALS OF ASSET MANAGEMENT 26
VALUE ALIGNMENT LEADERSHIP ASSURANCE

FUNDAMENTALS : VALUE 27
VALUE
ALIGNMENT
LEADERSHIP
ASSURANCE
 Value: Assets exist to provide value to the organization and its
stakeholders.
Asset management does not focus on the asset itself, but on the value
that the asset can provide to the organization. The value (Which can be
tangible or intangible, financial, or non financial) will be determined by
organization and its stakeholder in accordance with the organizational
objectives.
 Existing Focus
 Lifecycle cost
 Total Cost of Ownership (TCO)
 Future Focus
 Value Creation
Its Like Your Car...
People buy cars
to realize value.

FUNDAMENTALS : ALIGNMENT 28
VALUE
ALIGNMENT
LEADERSHIP
ASSURANCE
 Alignment: Transform organizational objectives into technical
and financial activities, decisions and tasks
Asset management translates the organizational objectives into
technical and financial decision, plans and activities.
 Objectives into actions
 Integration
 A supporting Asset Management System

FUNDAMENTALS : LEADERSHIP 29
VALUE
ALIGNMENT
LEADERSHIP
ASSURANCE
 Leadership: Leadership and workplace culture are determinants
of value realization.
leadership and commitment from all managerial levels is essential for
successfully establishing, operating and improving asset management
within the organization.
 Workplace culture
 Roles and responsibilities and authority
 Awareness
 Stakeholder involvement

FUNDAMENTALS : ASSURANCE 30
VALUE
ALIGNMENT
LEADERSHIP
ASSURANCE
 Assurance: Asset management enables the assets to fulfil their
required function
The need for assurance arise from the need to effectively govern an
organization. Assurance applies to asset, asset management and the
asset management system.
 Assets fulfill purpose
 Processes
 Connection to organizational objectives
 Continual improvement
 Necessary resources

FROM ORGANIZATION TO PORTFOLIO 31
Managing
the
Organization
Asset
Management
Asset
Management
System
Asset
Portfolio
Coordinated activity of an
organization to realize value
from assets.
Set of interrelated or
interacting elements to
establish APM policy, APM
objectives and processes to
achieve those objectives.
Assets that are within the
scope of the asset management
system.

32
Integrate
Management Initiatives with
Asset Performance Management.
GO TO
CONTENTS SLIDE

MISSING LINK 33
 Normally 15-25% Cost Avoidance
is achieved when Asset
Performance Management System
is used effectively.
 It has been shown that typically
equipment reliability problems
accounts for about 38 percent of all
unplanned slowdowns or
shutdowns.
 Problems with Data Quality,
Data Entry, Completion.
 No synchronize among
people, Process and
Application.
 End users are not reliability
oriented.
 No Standardizations.
Strategy
& Programs
People &
Processes
DISCONNECTED
Applications & Information

APM : THE MISSING LINK 34
 APM provides asset owners with a
single point of access to a
collaborative transactional
workspace to manager their assets
throughout their productive
lifecycle.
 Asset performance management is
the backbone of reliability culture.
 APM enables organizations
to identify, contain, analyze
and remove production losses
and thus improve production
performance
Strategy
& Programs
People &
Processes
APM
Applications & Information

DEVELOP KAI FROM VISION 35
KMI
KPI
KAI
Top Management | KMI : Key Management Index
Middle Management | KPI : Key Performance Index
Front line Workforce | KAI : Key Activity Index

INTEGRATE MANAGEMENT INITATIVES 36
APM
ISO
Series
Operational
Excellence
Integrate
all Management System
towards company Vision

APM INTEGRATION WITH OTHER INITIATIVES 37
APM
TPM
TQM TPS
SIX SIGMA
Maintenance
Optimization
Program
LEAN
ISO - 9001
Customer
Satisfaction
Index
Data Analytics
Web Penetration
WCM
KAIZEN
RELIABILITY
FI
Inventory
Management
VSM
Condition Monitoring
5S

Better-performing Assets
make better-performing Companies
38

39 Making Assets work for you.
Developing robust
System.
GO TO
CONTENTS SLIDE

FOCUS ON TEEP & OEE 40
Total Effective Equipment
Performance (TEEP)
The ratio of the good product produced to maximum possible
production over a given calendar time period
Overall Equipment
Effectiveness (OEE)
The ratio of the good product produced to planned
production over a given calendar time period

DESIGNING THE APM SYSTEM 41
Real Time
Visibility
Flexible &
Robust Data
Collection
APM
System
Design
Operational
Governance
Empowering
the
Workforce
Driving
Accountability
 Flexible, Robust Data Collection
 Real-Time Visibility
 Operational Governance
 Empowering the Workforce
 Driving Accountability

 Provides robust automated data collection through System Platform objects.
 Leverages System Platform device connectivity to interface to any plant
information source
 Supports multiple methods for manual data collection such as HMI, Web
and Mobile.
 A platform for standardization in support of industry standards.
 Data Collection in support of OEE – Overall Equipment Effectiveness.
APMSD : FLEXIBLE & ROBUST DATA COLLECTION 42
Flexible & Robust
Data Collection
Real Time
Visibility
Operational
Governance
Empowering
the Workforce
Driving
Accountability
Asset
Performance
Management
System Design

 Drive better equipment utilization through operator awareness
 Provide visibility to key performance metrics in real-time
 Drive consistent “action” to normal activities (e.g. line setup/change over),
as well as abnormalities.
 Get instant notifications of alarms and out of range data points.
 Take action, share data and notify colleagues with a click.
 Multi-platform support.
 Advanced Reporting & Analytics, Single & Multi-Plant.
 Easier Dashboard and multi-format report generation.
APMSD : REAL TIME VISIBILITY 43
Flexible & Robust
Data Collection
Real Time
Visibility
Operational
Governance
Empowering
the Workforce
Driving
Accountability

 Define and institutionalize operational practices to sustain improvements
 Coordinate disparate people and applications into effective processes
 Measure the effectiveness of your practices
 Easily adapt and change practices to drive further gains.
APMD : OPERATIONAL GOVERNANCE 44
Flexible & Robust
Data Collection
Real Time
Visibility
Operational
Governance
Empowering
the Workforce
Driving
Accountability
Ensure that Improvements are Sustained…

 Enables people to own and participate in the change management process.
 Coordinates and facilitates communication amongst the team members.
 Aligns the cross-functional team with business objectives and priorities.
 Facilitates and guides the change management process.
APMD : EMPOWERING THE WORKFORCE 45
Flexible & Robust
Data Collection
Real Time
Visibility
Operational
Governance
Empowering
the Workforce
Driving
Accountability
Ownership Drives Adoption…

 Define “action plans” that align with your organizational objectives – close
the loop!
 Define how each role in the organization participates in those plans
 Measure the effectiveness of the teams and how well they react and respond
 Appropriately escalate processes to ensure that they are addressed in a timely
manner
APMD : DRIVING ACCOUNTABILITY 46
Flexible & Robust
Data Collection
Real Time
Visibility
Operational
Governance
Empowering
the Workforce
Driving
Accountability
Establish Processes to Drive Accountability…

47
Focus on
future uncertainty
& long term business strategy
for better Profitability & sustenance.
GO TO
CONTENTS SLIDE

APM : SUSTENANCE 48
DATA
QUALITY
ADAPTABILITY
LEADERSHIP

SUSTAINED RESULTS 49
CONTENT
CHANGE

Asset Performance
Management is
Cyclical
but each time
through the cycle
there is
improvement.
50

Books and Standards
 Asset Management: Whole Life Management by Chris Lloyd
 Asset Management Excellence by John D. Campbell, Andrew K.S. Jardine, Joel McGlynn
 Benchmarking Best Practices for Maintenance, Reliability and Asset Management by Terry Wireman
 Physical Asset Management Handbook by John S. Mitchell
 Maintenance Best Practices by Ramesh Gulati
 Physical Asset Management by Nicholas Anthony John Hastings
 The Asset Management Landscape
 Sustainable Asset Management by Roopchan Lutchman
 Operational Excellence by John S. Mitchell
 The (New) Asset Management Handbook – The Guide to ISO 55000
 Leader's Guide to ISO 55001: Asset Management System Requirements by Darrin J Wikoff
 The Asset Management Landscape
White Papers & Presentations
 Asset Performance Management by Mehul Shah, Matthew Little field
 Asset Performance Management:Bridging the Gap Between CapEx and OpEx by Sandra DiMatteo
 Strategic Asset Management Planning Presented by Howard Bulmer
 Top Strategies for Asset Performance Management by Mehul Shah
REFERENCE 51

CONTACTS END
If you have any queries regarding this
presentation then contact me.
DEEPAK KUMAR SAHOO
Mobile : +966 – 568 390 270
+1 – 310 929 7404
Email : defydk@hotmail.com
dksahoo2@gmail.com
 Post graduate in Engineering Management (RCM, TPM,
CBM) followed by B.Tech in Mechanical Engineering having
over 8 years of experience in the field of Reliability
Improvement, Operational Excellence, and Asset
Management domain.
 Certified Maintenance & Reliability Professional - CMRP in
2015, Six Sigma Black Belt Certified, TPM facilitator and Lean
Expert.
 Worked in multiple industries such as Petrochemicals, Steel,
Ferro-Alloys, FMCG, Facilities Management sectors in Asia
Pacific, Middle-East, Eastern Europe and North Africa
regions.
 Imparted Training on various aspect of OE, Reliability
Engineering such as Root Cause Analysis, Lean
Manufacturing, Value Stream Mapping, Total Productive
Maintenance, Kaizen, Small group Activities, Reliability
Analytics, 4.5G maintenance Strategy, Loss, Operator based
Reliability, SMED, Six Sigma, ISO – 55000, Asset
Performance Management and various continuous
improvement Tools.
 Published white papers and presented seminars in various
international forum.
 Educational committee member in GSMP, Bahrain.
View and Download QR Code About myself

Asset Performance Management_Deepak Sahoo_v0.2

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