The cost, longevity, and operational efficiency of facility assets affect most or all business units and processes, affecting bottom line productivity and performance of the overall organization. That’s why an Asset Management Plan (AMP) should be part of every organization’s 2012 strategic plan:
- A good Asset Management Plan lowers Total Cost of Ownership (TCO) and ensures maximum return on capital asset investments.
- The Asset Management Plan provides objective data for performance measurement, evaluation, and improvement methodologies.
- An Asset Management Plan aids in short-term and long-term planning, including demand forecasting, asset resource allocation, and asset replacement timeframes.
- It also helps with risk assessment, policy development, and risk management, including financial, environmental, emergency, and regulatory compliance.
The Asset Management Plan is divided into two parts: an Asset Operations Plan and Asset Maintenance Plan. Within both the operations and maintenance parameters, the plan outlines standard work procedures (SWP) and processes to ensure consistent work practices exist for all asset-related activities throughout the organization.
The Asset Operations Plan is the blueprint for how assets will be used and operated throughout their life cycle. In addition to use procedures, operating ranges, and use cycles, it includes labor resources, total operating budget, and infrastructure requirements. The plan includes standardized work procedures (SWPs) for each asset’s operational requirement. This provides invaluable data to determine the operational parameters for:
- Labor costs
- Productivity targets
- Performance standards and Key Performance Indicators (KPIs)
- Startup and shutdown timeframes
- Materials handling costs
- Cleaning and maintenance procedures
The flip side of the Asset Operation Plan is the Asset Maintenance Plan. More than just scheduled and unscheduled maintenance tasks, the Asset Maintenance Plan forms the foundation of the entire facility maintenance system, including:
- Facility infrastructure and physical resources and tools
- The internal maintenance department’s organizational structure
- Maintenance staff and skill sets
- Supporting personnel that affect maintenance procedures and processes
- Maintenance technology resources
- Maintenance knowledge and asset history
- Maintenance budget
An important building block of the Asset Management Plan is a detailed description of each asset. This includes age, original cost, current condition, and repair history. Operating parameters, performance targets, repair schedules, and any pertinent details regarding performance quirks or trouble-shooting guidelines are also critical asset details. Recording and maintaining this data in a CMMS or EAM software system gives you the actionable information you need to effectively manage your assets throughout their life cycle.
For best results, the Asset Management Plan should be integrated into an organization’s overall strategic planning process. Depending on the type of facility—manufacturing, retail, healthcare, airport, etc. the plan can be used to coordinate preventive or predictive maintenance with minimal impact on daily activities or business needs. Capital expenditures and asset replacement planning can be prioritized and budgeted on an implementation schedule instead of having to make expensive emergency expenditures. When unexpected repairs are necessary, or other problems arise, there are planned risk management procedures already in place to mitigate the situation.
Integrating the Asset Management Plan into the larger organization planning process can facilitate greater understanding and buy-in throughout the organization for facility and asset management issues. Details of asset management systems and processes that are tied directly to improved ROI and productivity create a shared sense of ownership for asset life cycle management by all stakeholders.
The Asset Management Plan provides a benchmark for measuring, evaluating, and improving system-wide asset performance to increase overall operational effectiveness and asset ROI. For that reason, every facility should add an Asset Management Plan to their 2012 TO-DO list.
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