Your EAM Playbook

Does your organization rely on its physical assets for success? If so, consider an asset management standard operating procedure (SOP).

An asset management SOP is a detailed, written process on how to best manage the organization’s physical assets. Otherwise known as an operating model or management system, an asset management SOP provides the organization with the current best-known method for managing its assets. It provides the organization with a tangible process that everyone can reference.

An asset management SOP:

  • Describes how maintenance work is identified, reviewed, approved, prioritized, planned, scheduled, and completed.
  • Details how Maintenance, Repair, Operations (MRO) materials are stored, managed, and controlled.
  • Defines how goods and services are requested, approved, purchased, and received.

An asset management SOP aims to achieve efficiency, quality output, and standardization, while improving communication and compliance with health, safety, and environmental (HSE) standards.

An asset management SOP will help maximize your bottom line.

No group of functions needs an SOP more than asset management. Asset management by its very nature is highly variable and complex. Asset availability issues, unforeseen costs, HSE considerations, and extensive departmental coordination all add up to justify the implementation of a “command and control” system. An asset management SOP provides just that.

For asset intensive organizations (organizations that rely on their assets for success) an asset management SOP is a must have for every maintenance, MRO materials management, and procurement operation.

The top 10 reasons why you need an asset management SOP

  • Improve EAM system information outputs
    Processes create information. The more structured and disciplined the processes are, the better the data. An asset management SOP brings clarity and discipline to maintenance, MRO materials management, and procurement operations. The result is improved EAM system reporting and analysis.
  • Save time and money
    When the same task is completed in many different ways, it will always take longer to complete. Having a standard operating procedure in place streamlines the process so maintenance and the MRO supply chain can accomplish more in less time.
  • Provide consistency
    Having a standard operating procedure in place ensures that regardless of who is working, asset management business processes are being completed in the correct way. Having SOPs makes it easy to standardize asset management processes across your organization. Maintenance and MRO supply chain employees at each site can use the same operating model to manage assets and MRO materials and to procure goods and services.
  • Improve communication
    Standard operating procedures make maintenance and MRO supply chain jobs easier because everyone knows who does what and when. For example, maintenance working with operations on the development of its maintenance schedule or maintenance working with the storeroom on kitting job material requirements.
  • Establish accountability
    How can you evaluate asset management operations if you don’t have written standards in place? Without standard operating procedures, evaluations become a matter of personal opinion, which is hardly fair.
  • Simplify performance management
    When all employees follow the same processes, it’s an easy matter to measure them against the same standards. Performance can be fairly appraised. SOPs make it easy to establish common metrics and auditing and evaluation programs. Employees who work in compliance with SOPs know exactly what is expected of them and can plan their work schedules to meet their goals with efficiency.

    Efficiency matters now more than ever! Utilize an asset management SOP to improve asset reliability, reduce risk, and lower costs.

  • Create a safer work environment
    When technicians perform the same tasks in completely different ways, it is not only inefficient, but it is actually a liability for the operation. For example, having a standard operating procedure for job plan development ensures that maintenance performs its job functions in a safe and consistent manner.
  • Educate personnel
    A written standard operating procedure not only lets your employee know how they should be doing their job, but it also lets them know why. When you explain to asset management personnel why tasks are performed in a certain way, they will be more likely to complete them in the way they should.
  • Control quality
    Standardized procedures guide asset management personnel and reduce the possibility of missed steps or other errors that can impact the quality of maintenance and MRO supply chain work. Meticulously followed SOPs ensure that asset management is executed in the same way from start to finish. Providing a blueprint for the organization creates consistency and protects the integrity of your EAM information.
  • Protect the organization from knowledge loss
    If the details of your asset management business processes are stored in a key employee’s head and not in a procedures model, the loss of this individual can be disastrous. Documentation of work processes survives employee attrition due to retirement and resignation, and allows your operation to carry on as usual. It’s hard to replace experienced, skilled workers, but comprehensive well-written SOPs ensure that your valuable maintenance processes stay with your business.

How do I develop an asset management SOP?

Now that you are firmly convinced that an asset management SOP is right for your organization (at least I hope you are) you may be wondering how you can actually go about creating one.

The truth is that developing an asset management SOP is a lot of work. It does require a significant amount of time, effort, and expertise. It is well worth the sweat, but many organizations can’t spare the resources to commit to such an effort.

No worries. There are industry standard templates and models available in the marketplace that are ready to assist you and jumpstart your asset management SOP development effort.

Why start from scratch when you can build off of industry proven standards and go from there. Save yourself a ton of time and money while improving and accelerating the improvement effort.

Why re-invent the wheel? Start with what is already developed and proven to work. Then tailor it and enhance it to fit your operation.

One such template is our recently released EAM Operating Model™ – an ISO compliant, completely customizable asset management standard operating procedure. Our Model helps organizations quickly and cost effectively develop their SOP. Download the Table of Contents. See for yourself what an asset management SOP is made of.

Summary

An asset management SOP provides a tangible process that you can point to. When someone in the organizations asks…

  • How is work planned?
  • How is work scheduled?
  • How are materials chosen, kitted, staged, and delivered for work?
  • How are services requisitioned?
  • How are materials received?
  • Etc...

You can say “per our asset management SOP we do it this way…”

An asset management SOP formalizes asset management and provides a disciplined, documented, and systematic approach to improvement.

We help organizations across the globe develop high performance asset management standards. If we can help you develop your asset management SOP please contact us at info@swainsmith.com.

Thanks for reading.