July 5, 2020, 2:50 pm

Articles

Meeting Asset Management Stakeholders Needs and Expectations

Tuesday, 16 June 2020 09:37

How do you make sure that you meet your Asset Management Stakeholder Needs and Expectations?

ISO 55001:2014, the global standard for Asset Management, places great emphasis on making sure that an organisation’s Asset Management System meets the needs and expectations of its stakeholders.  In this article, we will discuss why this is important and recommend a tool that can help you to make sure that you understand what those needs and expectations are and identify the actions that are needed to be put in place to meet those needs and expectations.

Why are Stakeholders important?

ISO 55001 defines a stakeholder as a “Person or organisation that can affect, be affected by, or perceive itself to be affected by a decision or activity” with a note stating that “A stakeholder can also be referred to as an interested party”. Other management system standards including ISO 9001 (Quality), ISO 14001 (Environment) and ISO 45001 (Safety) refer to an ‘interested party’ rather than ‘stakeholder’, but the two terms are interchangeable. A common requirement across all of these management system standards is to understand the needs and expectations of stakeholders/interested parties (Clause 4.2). 

Understanding stakeholder needs and expectations is important for two reasons.

First, at a strategic level, the needs and expectations of key external stakeholders are vital inputs into your organisation’s strategic planning process.  Their needs shape the objectives (the “results to be achieved”) that the organisation sets for itself and the strategies and plans that it adopts for achieving those objectives.  Indeed the organisation’s very reason for existence revolves around the need to meet stakeholder’s needs and expectations.  Consequently, your Asset Management System needs to support meeting these needs and expectations.

Secondly, the needs and expectations of stakeholders also shape Asset Management decisions in a more tactical sense.  The very definition of stakeholder tells us why we need to understand their needs and expectations, i.e. we can affect them, or they can affect us, by decisions made and activities performed. Consequently, if we don’t understand and properly manage the needs and expectations of stakeholders at all levels, then we run the risk of not delivering the required value proposition to the organisation.  If some of the needs and expectations of stakeholders relate to compliance with mandatory regulatory or statutory requirements, a lack of understanding or management can potentially result in the risk of having your moral or legal license to operate removed.  Increasingly we are seeing the rise in importance for organisations to have in place robust Environmental, Social and Governance (ESG) practices that meet the community’s moral and ethical expectations and not just meet legal obligations.  The recent incident involving Rio Tinto Iron Ore at the Juukan Gorge caves is just one example of the power of stakeholders to influence an organisation’s reputation and affect the future operations of an entire industry.

 

How do I become an Asset Management Assessor?

Friday, 08 November 2019 09:37

To become a certified ISO 55001 auditor you need to meet the competences outlined in ISO 17021-5:2013 – Part 5: Competence requirements for auditing and certification of asset management systems. The Global Forum on Maintenance and Asset Management (GFMAM) also provides some guidance in their Auditor Assessor Specification.

 

Planning and Scheduling – Getting the basics right

Monday, 04 November 2019 15:56

As a trainer I’m sometimes surprised by the answers to two simple questions from skilled personnel from planning and scheduling departments attending Planning and Scheduling training.

The first being, “What is Planning?”.
And the second, “What is Scheduling?”.

In most cases people get the gist of the concept correct, but there are always a few who muddle or confuse the two concepts.

One reason could be that the difference in the two concepts has never been explained or because people do not see it as two separate concepts. Another reason for this could be where one person is responsible for both these functions without having a clear understanding of the boundaries of each. “It’s the planner’s job, right?”

Do not get me wrong, the planning and scheduling function could be performed by the same person, but only if they understand the differences in the processes and when they should be wearing which hat – planning or scheduling.

 

 

The New ISO TS 55010-2019 – What’s it about?

Tuesday, 08 October 2019 12:20

QuestionMark500Finance is an integral part of Asset Management. Asset management is defined as “coordinated activity of an organization to realise value from assets”.  Value can be financial (revenues and costs) and non-financial (benefits and risks) and achieving the balance between these requires coordination and alignment across financial and non-functions in the organisation. One of the key outputs of the asset management planning process is an estimate of the cashflows that are needed to deliver value from assets and to support achievement of overall business objectives.  These cashflows could be operating expenses (OpEx) or capital expenditure (CapEx) as well as revenues that flow from this expenditure.  In many organisations, this coordination and alignment across financial and non-functions is often inadequate. Consequently, ISO/TS 55010 has been produced to provide guidance on achieving alignment across the financial and non-functions of an organisation.

 

We Optimised our Preventive Maintenance without realising it

Monday, 09 September 2019 12:18

 It is sometimes interesting to reflect on our own exposure to maintenance when it is overlaid with current thinking and methodologies for best practice maintenance.

In the 1990’s, off highway dump trucks were serviced every 250 hours. This would involve bringing the truck into the workshop for about a shift. We would change the engine oil and carry out other OEM recommended tasks. On top of this we would have carried out a host of other inspections and checks. These would cover everything from hose inspections and electrical checks to our own bespoke checks that had been implemented over a period of time.

Fast forward to the current day and we service our trucks at 500 hour intervals. This has been facilitated by the extension of the oil change interval from 250 hours to 500 hours. So now, instead of the trucks coming into the workshop every 250 hours for a service and the associated inspection, they come in every 500 hours.

So, what has happened to all the inspections and maintenance tasks that were being carried out every 250 hours in the 1990’s? How have we saved a shift of downtime every 250 operating hours? Did we not need to be doing all those checks every 250 hours? In a crude sense, what most of us did was implement the results of a PMO study without realising it.

 

Have you outgrown your perfect repairables management system?

Tuesday, 03 September 2019 09:46

The system was perfect. Everyone knew what to do when a component failed. Everyone knew how to determine where to send the part for repair. Everyone knew the system was available seven days a week. Everyone knew how to find out when the next repairable item was available. Everyone knew how to find out what was replaced during the last repair. The system was perfect... Then Bill left.

In the above example, the system, was, of course, a person. The person held all this information in their head. If your business is small enough, or a one-man show, you probably have a very efficient repairs management process using the best computer ever, the human brain. But for larger businesses, a system must be used to apply a business strategy. Total business costs must be balanced against business risk. Inventory levels must be optimised.

An effective repairables management system provides information and guides the user to a course of action.

 

Asset Performance Management (APM) – Key implementation issues and how to avoid them

Monday, 06 May 2019 09:39

This is the second article of series of four articles that we will publish on Asset Performance Management Systems.

In our first article we noted increasing levels of interest in Asset Performance Management systems across capital intensive industries.  We discussed the typical capabilities supported by APM systems including Asset Health and Condition Monitoring, Maintenance Strategy Development, Asset Integrity Management, Defect Elimination, Modelling (Reliability and Lifecycle Cost) and finally Reliability Analytics.

We also looked at where APM systems fit within the overall ecosystem of Asset Management information systems and the types of data shared within that ecosystem.

Finally, we looked at what most businesses hope to achieve by implementing an APM systems.

As noted in the first article, at Assetivity we have supported various clients in developing and refining their APM business requirements, testing the market for suitable solutions, and then proceed to implementation.  We are also actively using client APM systems to develop and optimise equipment maintenance strategies for greenfield and brownfield assets.

In this article, we want to share with you the challenges that we have observed our clients struggle with as they have implemented their APM solutions, and share with you our thoughts on some things you might do to avoid falling for these same traps.

 

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