The Asset Strategy is the top level strategic plan in the Total Asset Management (TAM) process. The Asset Strategy helps to demonstrate the relationship between the performance of their physical asset portfolio and the services they deliver. It also enables to determine whether the proposed services and resultant physical asset requirements are sustainable within realistically anticipated funding levels.
Managing assets strategically involves every function in the plant working towards the same goals. Operations and maintenance are rewarded for creating and utilizing the capacity of their units. Purchasing has its main goal as operating reliability, with cost as an important but secondary goal. Engineering is based on total lifecycle value created, including product characteristics, maintainability, operability, and total cost per output unit.
Strategic Asset Management represents a comprehensive, top-down approach to managing plant equipment and people for maximum profitability and reduce maintenance cost. It’s single most important feature is in its fact-based management of the potential profitability of a plant, based on market conditions and variables within the control of management. The scope of Strategic Asset Management (SAM) begins with sales forecasting, through production planning, includes all facets of manufacturing, and ends with delivery of product to a customer.
As per Bradley, we start with a view of the original purpose of the plant.
Why did we build or purchase this plant, anyway?
To provide employment?
Yes, but only as a byproduct.
To satisfy customers?
Yes, but as a means to an end.
We built this plant because we believed we could generate a greater return on capital than investing in a government bond. By taking the risks associated with manufacturing, we could apply our knowledge, our systems, our proprietary process, and our people for solid profitable returns.
The key requirements of successful plant-wide reliability improvement are these:
• An analysis of the potential production available in the plant based on best demonstrated performance and operating characteristics of best performing plants
• Quantified current operating rates of each units, and goals for improving these rates
• A business case with a three-five year horizon which identifies expectations for costs and production based on improvement efforts.
• A multi-year plan that identifies the types of changes in practices and measurements needed to achieve the goals
• A keen understanding that every function works interdependently to management equipment health
• Accountability for delivering these results, transcending annual budget cycles
SAM is based on several core principles. These should be well understood before proceeding.
1. The plant exists only for one reason-to produce as much product as possible, to specification and delivery schedules, at the lowest sustainable price
2. To improve will require fundamental changes in discipline and culture, beginning with the management team. Relationships and personal prejudices will be realigned
3. Everyone is the plant is on the same team and must work toward the same goals
• A shared vision of how the plant will work in the future
• A multi-year plan for mastering new skills in asset management
• A business case that continuously creates bottom-line value
To achieve a shared vision, we begin by creating a Strategic Plan for Asset Management.