Asset Management Audit - The fourteen points towards business success

Nowadays, Asset Management (AM) seems to be at the center of the attention of medium and big corporations. Even those small ones seem somehow worried about the theme. And this is a positive thing. If from one side, it is an ample opportunity towards business success; from the other side, unfortunately, it is just one more "fancy" thing for some… A thing of the moment. For them, asset management would be able to be summarised only to preventive maintenance (PM), and perhaps (for those who are able to understand a little bit more) condition-based maintenance (CBM). Replacement of assets and components based on time would be the "main thing" when they are trying to argue about such a subject.

Yes, indeed, PM and CBM are well advisable maintenance strategies welcomed to asset management and an important piece of such this "big puzzle", as considered by some. However, we need to pay attention. AM is way far away from it. It starts on the top of the organisation, covered many themes. All of them are essential for the success of the corporation as a business.

And Asset Management Audit plays a crucial role currently in the industrial market. How are you able to define your main targets if, in fact, you cannot understand where you are? That's why the audit approach is such an elemental tool to define your strengths and weakness.

On one side, the old conventional way to "increase performance": a material or service supplier specialist, occasionally even the Original Equipment Manufacturer (OEM), goes to the client and shows hundreds of options to increase plant output. The customer takes a few important choices, tests, and then a beautiful "improvement case" or perhaps even a Six Sigma analysis is ready to be shown to the management board. Some of them work well; most of them, unfortunately not. They did not work because of their potential and improvement results as a service or material. Most of them don't work because they are not able to bring value to the company as a business. And this is a critical factor when performing Asset Management.

On the other hand, the AM audit. Through a very methodological process, a Reliability Engineering and Asset Management (REAM) expert with tactics and strategical knowledge (if required, even multiple auditors) perform a presential visit to the client. The audit happens basically in three different ways: Making dozens of questions (interviewing) to key personnel in the most diverse departments; Analysing strategical documentation (procedures, flowcharts, drawings, etc.); And done by the site visit itself through the auditor's perception. The analyser no longer takes a look into a case and works for its improvement. The auditors perform a 360 degrees analysis, covering all the topics that strongly impact the business. They are: Leadership & Communication; Asset Management Policy, Strategy & Objectives; Business Planning; Organisation; Training & Development; Involvement & Engagement; Risk Management; Safety, Health, Environmental and Quality (SHEQ); Design; Operate; Maintain; Performance Management; Value Focus; and Information Management.

After the assessment completion, the auditor is able to deliver a technical report to the client, stating the fortitudes and drawbacks. A complete statement for each point is performed, with a solid prioritised action plan that will guide the company to improve its performance.

On the list below, a small summary of each point, stating the main key aspects when improving them.

 Leadership & Communication

One of the critical elements of Asset Management, aims the best optimisation methods of communication. There is clear support demonstrated from the Board to the shop floor through leadership that is highly committed, technical expert, and aligned among the different levels of the organisation.

Asset Management Policy, Strategy & Objectives

Great level of alignment of such three topics is the main core of this theme, strongly supported by the Board and recognised as key factors in achieving Organisational Objectives.

Business Planning

A clear business planning aligned from Strategic Objectives to Services/Products delivered through the assets is one of the primary targets when looking to achieve asset management excellence.

Organisation

A strong and well-defined term of reference for Asset Owners, System Architects, Asset Engineers, and Maintenance Team & Operators is one of the key factors when working for improvements in such a field. Furthermore, a cross-link between asset whole life perspective and Ownership/Responsibilities has the capability to fortify the company organisation, promoting a sense of proprietorship and extracting a good potential from the assets.

Training & Development

It could be a game without training, but certainly, the path towards success is made through preparation. And preparation means the right training to the right people. To achieve the best, the organisational asset management competencies must be reviewed alongside individual staff developments needs.

Involvement & Engagement

How much does it cost a delayed decision? Perhaps a decision that could be taken by the staff but still awaits some sort of command chain. This theme is strongly responsible for having the staff empowered to take decisions. Through a clear line of sight, the individuals are allowed to understand how their efforts contribute to the business performance.

Risk Management

A sensitive, well common subject discussed among high-class operations, risk management has its place in the industrial sector. Being essential from small to the biggest companies, risk management should be assessed by the whole organisation and customers using standard risk assessment approaches plus scenario modelling. Cost impacts are applied to all risks.

SHEQ

Starting from the top, Health & Safety, Environmental and Quality must be part of the culture from the board level down. It must be considered in supply chain activities, asset design, incorporated into work processes & procedures and routinely audited.

Design

Perhaps the more controversial subject discussed between the maintenance and operation team, design has a clear effect on maintainability and reliability. Decisions made in the past affect the present directly. The asset whole-life cost & performance should be considered in asset and system design, commissioning and handover. As said, design for maintainability and reliability should always be used.

Operate

Being part of the daily business, the operation has everything with asset management. A risk-based operation must be aligned with the strategy, keeping a strong partnership with key service providers. Furthermore, a suitable service-level agreement for service delivery must be in place and well managed.

Maintain

Not less important, maintenance must be risk-based and also aligned with the strategy. High-class maintenance would be measured against departmental performance measures. Asset and components criticality is well understood and used to prioritise maintenance activities.

Performance Management

How to know where to go if it is not known where we are? Performance Management is a key element when assessing the current level of the organisation. To reach a high-class level, a wide range of different auditing approaches must be used, taking into account asset risks.

Value Focus

A theme focused on continuous improvement, such a subject has the goal to be based on value contribution and risk. Priorities must be set according to business contribution and service delivery performance.

Information Management

With a high level of maturity, a skilled organisation aligned with the standards of information management will make available the asset performance information available for all the staff, including service performance, asset reliability, availability, maintainability, risks & costs.