The desire for high quality asset management information is very apparent. Organizations spend millions of dollars on asset information systems (ERP/EAM/CMMS) in order to get it.
Asset-intensive organizations realize that rich and actionable information is key to getting their assets to deliver services and produce products in a safe, reliable and environmentally compliant manner.
What type of Asset Management Information should organizations look at?
Good question. The first step is to break down the types of information you need to accomplish your asset management objectives. Some of the most common objectives focus on reducing risk, improving asset reliability and minimizing costs. Let’s start there.
Risk – Assets create health, safety, environmental and financial risks for the organization. Working to minimize these risks is one of the responsibilities of the asset management operation. Identifying the assets that are critical to the operation (assigning criticality codes) and then monitoring their maintenance activity is a good first step. See below some of the information your EAM/CMMS system should be generating to reduce asset related risks.
Having a robust PM (Preventive Maintenance) / PDM (Predictive Maintenance) program reduces asset related risks. Keeping an eye on its development keeps the program out in front and visible to the organization.
Increasing amounts of emergency maintenance on your critical assets increases risks. Keeping an eye on it can help drive corrective actions before a bigger corrective action is needed.
Asset Reliability – To reduce unplanned equipment downtime, on a sustainable basis, you need access to accurate and insightful asset management information. Information that can drive informed and educated business decisions. See below some of the information your EAM/CMMS system should be generating to help you improve asset reliability.
Reducing unplanned equipment downtime should be a goal of every asset intensive organization. Identifying the “bad actors (underperforming equipment)” is a good place to start. Knowing where to spend your time and money will make the best use of limited resources.
Understanding the types of problems you are having with some of your “bad actors” is good next step. This allows for detailed problem solving and a reduction in the big hitters.
Maintenance & Repair Costs – Assets create costs. Operational and maintenance costs are the big ones. These costs must be minimized through effective and efficient asset management operations. Having visibility into where the organization is spending its money is the first step in better managing their money. See below some of the information your EAM/CMMS system should be generating to help you better minimize maintenance and repair costs.
Understanding where you are spending your money helps determine where you need to spend your time. Knowing what to go after first is a key first step in better managing the organization’s capital.
Materials are normally ½ of maintenance and repair costs. Understanding the types of materials you purchase can help drive purchasing agreements and unit costs reductions. Like the old saying goes, “the dough is in MRO.”
Summary – Reducing unplanned equipment downtime, minimizing costs, lowering HSE and financial risks, all at the same time, is asset management nirvana. This enlightened existence is attainable but you need rich and actionable information to get there.
Understanding the types of information you need is a key first step. Then you can work back to the codes and process that must happen in order to get there.
Once you have the data you can then make informed and educated business decision that create value on a long-term and sustainable basis.
We help organizations develop great asset management information. If we can help you contact us at info@swainsmith.com
What will you achieve with Synergy™
Enterprise asset management gives organizations a strategic way to increase uptime, improve performance, and reduce costs. Is your organization ready to take the next step with its assets?
Call 828-215-9471 or email us to get started today.