27 September 2017
Asset management is a distinct discipline that applies to all classes of assets not just plant and equipment
While there has been continued media attention on power generation assets nationally, the principles of effective ‘asset management’ can be applied across a range of industrial and service industries.
Asset management refers to adopting a systematic approach to the governance and realization of value from the things that a group or entity is responsible for, over their whole life cycle. The concept is applicable to both tangible assets (physical objects such as buildings or equipment) and to intangible assets (such as human capital, intellectual property, goodwill or financial assets).
The Asset Management Council represents professional and corporate members nationally who are invested in maximising the productivity value of their assets.
JWPM supported the AM Council in effectively communicating to its stakeholder audience the value of asset management as a professional discipline, and contibution to an organisation’s bottom line.
Advanced organisations are increasingly realising that asset management maturity is critical to future operational, reputational and financial success.
As digital transformation continues to have a profound impact on the way companies monitor, measure and manage performance, operational assets are themselves becoming more networked, intelligent and efficient.
‘Never has there been a greater focus on asset management as a professional discipline.’
It is this increasingly ‘integrated’ approach to asset management that provides a powerful ‘line of sight’ for management of company assets – enabling companies to deliver greater returns, avoid major incidences, and to respond rapidly to a changing marketplace.
Return (Total cost of operation)
What’s driving this focus?
- Greater scrutiny on performance over the plant life-cycle given the current economic climate
- Greater emphasis on due diligence relating to infrastructure financing, public investment, industry regulation and insurance
- Government moves to mandate requirements for public sector agencies to assess respective asset management maturity
- The need to ensure legal protection in the event of safety, environmental or financial issues
- The need to support an assessment framework for regulatory review of pricing submissions (Regulated industries)
- Introduction of ISO55000 series Standard providing an internationally recognised benchmark for assessment of effective asset management
An Asset Management Framework
"Effective asset management provides a means of maximising value, while balancing cost and risk associated with operation."
A disciplined approach to asset management provides assurance that opportunities are being leveraged, and that technical risks are being managed appropriately.
It is an approach that takes the management of a company’s assets out of the domain of engineering and places it within a broader ‘whole of organisation’ planning framework - aligning detailed technical engineering activities with other business functions, with an ultimate focus on achieving organisational objectives.
A formal Asset Management Framework promotes:
- alignment of asset management to organisational objectives relating to plant capital investment, operating costs/efficiency, maintenance costs, capacity, availability and cost control.
- broader decision-making relating to the management of company assets considering not only technical operations; but business risk, safety, environmental, commercial, regulatory and reputational implications, as well as the engagement of people.
- optimal allocation of expenditure, ensuring scarce capital and resources are focused on the areas that deliver the greatest net benefit.
maximum asset productivtiy.
Just how Mature is your Organisation’s AM?
Visit the Asset Management Council website
Reproduced with permission from the Asset Management Council.
The Asset Management Council is the peak representative body for asset management professionals in Australia, contributing to the development of an Asset Management Body of Knowledge (AMBOK), providing professional Certification and Training and delivering AM Maturity Assessment programs.