Title: The Onset of the CAO Chief Asset Officer a Major trends in the field of asset management.
1The Onset of the CAO Chief Asset
OfficeraMajor trends in the field of asset
management.
Vetasi - Gleneagles
Thursday, 5th November 2008
- Noel Grinsted
- Founder Member Institute of Asset Management UK
- Noel.Grinsted_at_noelgrinsted.com
2Noel Grinsted Director MCP Consulting Training
- Mechanical Engineer
- Trained in
- Management Science
- Operations research
- 37 Years in Asset Management
- Founder Member of Institute of Asset Management
- Experience in many Sectors Countries and Cultures
- Visiting Postgrad Tutor at Manchester University
- Two sons
- Thomas 13 Years
- Edward 11 years
3Noel Grinsted is a Director of MCP Consulting
Training
Europe Austria Germany ,Benelux Portugal
UK Birmingham
Ireland Dublin
USA Houston
Australasia China, Thailand Singapore
,Australia Indonesia
Middle East /Africa Dubai /S Africa / India
MCP has performed more than 4,000 Asset
Management Programmes
4Agenda
- Asset Management Whats it all about/Why is it
becoming more Important across many sectors ? - Issues and Trends driving interest in Asset
Management philosophy, methods, tools and
techniques - Getting it Right or Wrong ? Benefits and
Penalties - What are the Common Elements for Success in Asset
Management ? - PAS 55 British Standard Specification for
Optimized Asset Management - Future directions for Asset Management as a Value
Added Factor
5Asset Management Whats it all about ?
- Responsible, Sustainable, Cost-Effective, Life
Cycle Care for Built Environment Physical Assets - Public and Private Buildings/Facilities
- Educational and Health Facilities
- Parks, Public Private Recreation Facilities
- Communications Networks Post, Telecom, TV
- Energy Supply and Distribution Elec, Gas
- Water Utilities Supply, Waste, Storm
- Transportation networks Road, Rail, Sea, Air
- Waterways, Drainage, Flood Protection
- Solid Waste Handling/Recycling Facilities
- Extraction, Process and Manufacturing
Infrastructure
6Why is Asset Management Important ?What Happens
When we Get it Wrong ?
7(No Transcript)
8More Seriously.
- Marshalls seize GlaxoSmithKline drug batch
63447 PM Friday, March 04, 2005 United
States marshals today seized batches of two drugs
Paxil and Avandamet made by pharmaceuticals giant
GlaxoSmithKline because the UK companys
manufacturing standards violated US national
rules.US Food and Drug Administration
(FDA).was concerned that flaws in the
manufacturing process meant they were of poor
quality.
9What Factors are Raising the Profile of Asset
Management ?
- Asset Risks appearing on Boardroom Agenda
- Regulation/Legislation/Compliance
- Cost, Price Compression, Return on Investment
- Increasing value and complexity of Assets
- Lean raises the bar for Asset performance
- Customer expectations of Quality Service
- Connection of Assets with Climate Change
10Asset ManagementMotivation for Getting it Right
- Companies who recognise Asset Management as a
Value Added Factor can achieve - 30 to 50 Cost Reductions
- Doubling of Equipment Capability and OEE
- Delivery of High Reliability Environment for
improved operating efficiency, quality and safety - Assured and sustainable Environmental, Regulatory
and Legal and Carbon Compliance Managing OE3 - Improved Image and relationships with Customers,
Insurers, Regulators and other Stakeholders - Improved Profitability and
- Return on Capital Investment
11Asset Management Getting it RightWhat Do we
need to Do ?
- Understand where you are now relative to World
Class - Manage the Whole Asset Lifecycle Not Just
Maintenance and Continuously Challenge and
Improve Practices - Think in terms of Total Life Cycle Cost and Value
Delivery - Challenge and reduce time-based maintenance and
replace with Condition, Value and Risk Based
Thinking - Build the Asset Management knowledge base
Understand and target the tools and Engage the
whole organisation - Place AM accountability shop floor to top floor
Create Motivational Performance Management
(KPMs not KPIs) - Adopt a truly Holistic Joined-up Approach for
Success - Implement EAM Solution as a central element of
Overall Asset Management Vision and Strategy (PAS
55 Guidelines)
12- Where are we now ? Benchmarking
You are Here
Start
13Organisational Benchmarking and ProfilingWhere
are we now ?
- If were going to improve..
- How do we know where we are now.. ?
- Complex Question
- Some areas strong
- Some areas weak
- Elements of Asset Management Best Practice
- Profile Organisation
Improve
Visualise
Analyse
14Progress To World Class Through Benchmarking
Assessments
First
Second
Third
Benchmark Score
World Class
European Manufacturing Sites
15Manage the Whole Asset Lifecycle Continuously
challenge and Improve Practices
Stakeholder Needs
16 Organise around true Life Cycle Asset Management
processesEquipment Life Cycle Commitment And
Expenditure Trends
Projects Maintenance need to Work Together
100
Funds Committed
95
85
75
66
Of LCC
LCC Cost Reduction Opportunity
50
Funds Expended
25
0
System Design
Conceptual Design
Operations, Maintenance, Disposal
Engineering, Construction, Commissioning
Sustaining Cost
Acquisition Cost
Start Of Life
End Of Life
Life Cycle Span
17Challenge and reduce time-based work and replace
with Condition, Value and Risk Based Thinking
Comparative Direct Maintenance Costs
Traditional Reactive Maintenance
120
100
Conventional Time-Based Preventive Maintenance
80
60
40
20
0
Level 1
Level 3
Level 2
- EAM-Enabled Condition, Value Risk Based Approach
- Most companies are Here
- Large value locked up
18The Asset management Knowledge Base
First batch
- Buz-Phrases you will meet explained
- Reliability Centered (or Centred) Maintenance
- RCM, RCM II, RCM Turbo, RCM Blitz, PMO, REM (
FMECA Based Reduced Cost improved effectiveness
) - Total Productive Maintenance/Management/Manufactur
ing - TPM (Operator involvement, Chronic Acute
Problems, Early Equt Mgt, OAC ) - Total Quality Management
- TQM (zero defects, teams, cell production) ISO
9000 PAS 55 for Asset Management - Criticality/Vunerability
- CA/CS/VS/VA ( Qualitative Risk Assessment and
Prioritisation )
Operators on Tools
Risk matrix
19The Asset management Knowledge Base
Second batch
- Buz-Phrases you will meet explained
- Condition Monitoring
- CM/PCM/PdM/CBM ( Data collect by Tech and Hu
Senses for AM Decisions) - Risk Based Maintenance
- RBM RBI (inspection) RBS (spares, stores,
supplychain) ( Trend in Reg Inds ) - Supply Chain Management
- SCM/IM/WHM/JIT/JTL
- Root-cause Analysis Troubleshoooting
- RCA ( Problem solving - tools
- shared with TQM, Lean, Six Sigma etc )
20The Asset management Knowledge Base
- Buz-Phrases you will meet explained
- Lifecyle Costing
- PLM (product), ALM (Asset), LCC (Life), WLC
(Whole), TLC (Through), TCO (Total Cost of
Ownership) - Value Driven Maintenance
- VDM Asset Management Decisions Based on NPV
(Net Pres Value) Assessment - Asset Management Decisions Support AMDS
- Cost-Risk based Decisions for Spares,
Maintenance, Inspection, Replacement etc
Third batch
There are more emerging all the time Challenge to
Keep up to Date !
21Build the Asset Management knowledge base
Understand and target the tools and Engage the
whole organisation
RCM/FMECA/CBM
Which Sector are our Problems in ?
EAM
D4R/EEM
Transient
Acute
MTBF
Terminal
Chronic
MTTR
TPM/OAC/RCFA
22Place AM specific accountability shop floor to
top floor Create Motivational Performance
Management (KPMs not KPIs)
Case Study Chemicals Company
Improving Mean to H Plant Performance Level
Saves Company 255 Million
23Adopt a truly Holistic Approach for Success Close
The Gaps
24Effective Training
Message Training is Key But get the timing right
Implement EAM Solution as a central element of
Overall Asset Management Vision and Strategy (PAS
55 Guidelines) Users who had recently implemented
EAM were asked What would you concentrate more
on next time ?
Choosing the right Solution
Message Dont believe the IT system is the
solution
Big Message Concentrating only on the IT System
is not enough Users need to focus on Soft
Issues Training BPR Change Mgt
What would you concentrate more on next time ?
Effective Change Management
Effective BPR Business Process Re-Engineering
Message Focus on aligning the organisation with
the new processes and empowering and engaging the
people
Message Get processes right first before
implementation
25- PAS 55 British Standards Institution
Specification for the optimized management of
physical infrastructure assets
- Part 1 (PAS 55-1) The Specification (21
requirements) - Part 2 (PAS 55-2) Guidelines for application
of PAS 55-1
26PAS 55 Maturity Levels
27(No Transcript)
28UK Central Government and PAS 55
UK Govt Asset Mgt Strategy Based on PAS 55
28
29Asset Management Getting it RightWhat Do we
need to Do ?
- Understand where you are now relative to World
Class - Manage the Whole Asset Lifecycle Not Just
Maintenance and Continuously Challenge and
Improve Practices - Think in terms of Total Life Cycle Cost and Value
Delivery - Challenge and reduce time-based maintenance and
replace with Condition, Value and Risk Based
Thinking - Build the Asset Management knowledge base
Understand and target the tools and Engage the
whole organisation - Place AM accountability shop floor to top floor
Create Motivational Performance Management
(KPMs not KPIs) - Adopt a truly Holistic Joined-up Approach for
Success - Implement EAM Solution as a central element of
Overall Asset Management Vision and Strategy (PAS
55 Guidelines)
30Asset ManagementMotivation for Getting it Right
- Companies who recognise Asset Management as a
Value Added Factor can achieve - 30 to 50 Cost Reductions
- Doubling of Equipment Capability and OEE
- Delivery of High Reliability Environment for
improved operating efficiency, quality and safety - Assured and sustainable Environmental, Regulatory
and Legal and Carbon Compliance Managing OE3 - Improved Image and relationships with Customers,
Insurers, Regulators and other Stakeholders - Improved Profitability and
- Return on Capital Investment
31Future directions for Asset Management
- SCADA/CBM/RFID/EAM evolution leads to increased
participation of Assets in their own health care - Mobile working greatly extended bringing data
quality, productivity alignment/integration of
in-house Resources and the Extended Enterprise - Asset Management becomes Recognised Profession
with Chief Asset Officer (CAO) role on the main
board - Companies connect and integrate Organisational,
Financial and Asset Management Strategies - Companies truly take control of the Asset Life
Cycle and use Asset Management to buy the right
things
32The Onset of the CAO Chief Asset
OfficeraMajor trends in the field of asset
management.
Vetasi - Gleneagles
Thank you
Thursday, 5th November 2008
- Noel Grinsted
- Founder Member Institute of Asset Management UK
- Noel.Grinsted_at_noelgrinsted.com