Book

Physical Asset Management

Authors:

Abstract

Physical asset management is the management of fixed or non-current assets such as equipment and plant. Physical Asset Management presents a systematic approach to the management of these assets from concept to disposal. Historically, asset management has not been seen as a specific professional activity, but now perceptions are changing. Many organizations are introducing senior positions in asset management, and universities are introducing courses in asset management at graduate and advanced undergraduate level. The broad reach of this book means that it will be applicable to professionals and future professionals across a wide variety of industries, ranging from manufacturing and distribution, to local government. The general principles of physical asset management are discussed in a manner which makes them accessible to a wide audience, and covers all stages of the asset management process, including: initial business appraisal; identification of fixed asset needs; financial evaluation; logistic support analysis; life cycle costing; maintenance strategy; outsourcing; cost-benefit analysis; disposal; and renewal. Physical Asset Management addresses the needs of existing and potential asset managers, and provides an introduction to asset management for professionals in related disciplines, such as finance. The book provides both an introduction and a convenient reference work, covering all the main areas of physical asset management.

Chapters (24)

To introduce to the main concepts of Asset Management.
To describe the aim, structure and activities of asset management. To indicate the competencies needed by people who work in asset management.
The aim of this chapter is to describe the asset development process from concept to project approval. This chapter shows how asset management works with other parts of the organization in order to create sound development plans. The focus is on procedures for larger scale developments, such as major acquisitions. The chapter starts at the concept level, goes through the preliminary approval stage, to feasibility planning and on to final project approval.
The aim of this chapter is to outline the principles and steps involved in developing a business case. Asset managers are frequently involved in developing business cases, which may range from the level of major capital projects to process improvements or systems changes. Business cases are also required for developments such as outsourcing, This chapter is concerned with the overall structure and outline content of business cases, and the details of financial analysis methods are given in later chapters.
To present the steps involved in implementing an asset acquisition or development plan from project approval to introduction into service.
The aim of this chapter is to outline the organization and functions involved in providing for the strategic management of in-service assets over their life time.
The aim of this chapter is to describe how to plan for the provision of assets which are required to meet an on-going need. This is a very common situation, in which demand for a type of asset continues into the future, but older items require replacement and variations occur, due to changes in demand levels and to technical developments.
To introduce the concepts of capital and operating budgets. To describe the process for developing a capital budget. To introduce the concept of capital rationing. To consider capital budget prioritization based on returns, risks and criticality of assets.
The aim of this chapter is to introduce the concepts of discounted cash flow in the context of asset management decisions. Asset managers need to have a working knowledge of business finance, so they can provide input to business decision processes.
The aim of this chapter is to describe how tax and depreciation are taken into account in asset management decisions. Asset managers work with accounting and financial specialists and need familiarity with the terminology and principles involved in dealing with issues of depreciation and taxation.
The aim of this chapter is to describe the methods used in evaluating the financial merits of investments and to illustrate these by examples from the asset management area. These investments may be of a wide range of types, including asset acquisitions, modifications, upgrades, overhauls or other improvements to existing plant or facilities. This chapter is concerned with situations where we can quantify direct financial benefits associated with an investment. Situations involving non-financial and cost-benefit analysis are considered in a later chapter.
The aim of this chapter is to discuss situations where the benefits of activities are not measurable in terms of direct financial returns. We then indicate how asset management decisions may be approached in these cases.
This chapter introduces the concept of risk, gives references to standards and major documents which deal with risk, and defines terms relating to risk. The procedures in the management of risk are then outlined and the legislative approach to risk is discussed and illustrated by an example. Various types of risk are described, and hazard analysis and the assessment of consequences are discussed. Factors in mitigating risk and contingency planning are presented and an example of the use of layer of protection analysis is given. The chapter concludes with an example of risk analysis and management in a water supply system.
The aim of this chapter is to describe the factors involved in supporting physical assets from the point of introduction into service, over their life time through to disposal. These factors also influence the initial choice of equipment.
The aim of this chapter is describe the technique of life cycle costing and to illustrate it with an example. We also consider the concept of economic life which provides a theoretical basis for deciding how long a life cycle should be considered.
The aim of this chapter is to present the various reasons for considering replacement of equipment, and to show how replacement decisions can be analysed. Replacement analysis based on increasing maintenance cost with age is presented, covering both steadily and unevenly increasing costs. The use of spendlimits as replacement control mechanism is presented and also the role of risk analysis in replacement decisions.
The aim of this chapter is to outline the main things to be considered by management in regard to outsourcing of maintenance work and other asset management tasks. Both positive and negative aspects of outsourcing are indicated, with the aim of helping managers to get the best value from their outsourcing options.
The aim of this chapter is to draw attention to the need for asset managers to be familiar with their assets in a technical, business and operational context. The role of the asset manager involves being well informed across the application of the assets, although this does not mean that the asset manager will be the ultimate expert on any one functional aspect. The asset manager will also have an integrated view of the assets as a whole and will understand the relationships, interdependence and degree of criticality among the deployed assets.
The aim of this chapter is to outline the functions of an asset management information system and to consider issues relating to the use, resourcing and operation of the system.
To describe the features and organizational structures used in asset management and maintenance from good housekeeping through first line and second line maintenance. To show how maintenance budgets can be created and managed.
To introduce key elements of reliability, availability and maintainability from an asset management perspective.
The aim of this chapter is to describe the various aspects of inventory management required for asset management. This starts from the initial purchase of spare parts and consumables, and continues to through life support. Inventory control methods are presented for routine demands and for fast and slow moving spares and for insurance spares.
The aim of this chapter is to introduce and to give examples of indicators of asset performance.
The aim of this chapter is to describe PAS-55, the asset management specification published by the British Standards Institute.
... Fixed assets or non-current assets such as buildings, machinery, plants and land, etc. provide value to the organisations for more than one year while noncurrent assets such as inventory, cash, finished goods and materials provide value for less than one year.Publicly Available Specification (PAS) 55 (2008) on asset management published by the British Standards Institute (BSI), described five types of assets which can be found in an organisation. The standard main five categories are financial assets, physical assets, human assets, information assets and intangible assets (Hastings, 2010). ...
... According to Hastings (2010), physical assets are referred to items such as machinery, vehicles, plants, buildings, etc. which are used to carryout business functions. A physical asset is defined as any physical core and acquired elements of significant value to the organisation, which provides required services for that organisation (Ouertani et al., 2008). ...
... When disposing an asset, there should be a replacement . opportunities exist and what has the market got to offer in terms of assets that might usefully acquire, etc. (Hastings, 2010). ...
Article
Full-text available
In modern world, almost all the organisations use physical assets such as buildings, vehicles, equipment and machinery, etc. to carry out their business operations. These assets consume a considerable amount of money during their life cycle and therefore, physical asset management has become an important aspect which affects the profitability of any organisation. All assets deteriorate over time and failures of assets will raise the need for maintenance. Proper maintenance can extend the life time of a physical asset. However, at the end of useful life time, organisations have to replace them with suitable new ones. Replacement of an asset requires enormous investments and therefore mostly, they try to extend life time of assets through repair and maintenance. However, in some situations organizations decide to replace assets even when they are in a good condition. As per previous researchers, many assets in the industry are older than the life they were originally designed for and in many cases, failure to replace them have led to high energy consumption, high maintenance costs and increased risk of accidents and calamities. On the other hand, organizations have experienced negative impacts due to unnecessary replacement of physical assets. Hence, making a decision between these two contradictory options presents a big challenge for asset owners. Decision making in physical asset repair/replacement involves selecting a logical choice and determining the option, which is the best for the particular situation. Knowing how to decide which option is best for organization’s operations and when assets should be replaced will help to control downtime and unexpected costs. Though asset maintenance has received an increasing attention, there is a lack of a comprehensive research in the area of asset replacement. Therefore, the aim of this paper is to review the literature on physical asset repair/replacement decision making practices. A comprehensive literature review identified the reasons for replacement of assets and the factors that trigger physical asset repair/replacement decision making process. The literature findings will be used to evaluate the current practice of physical asset repair/replacement decision making in Sri Lanka, in the next phase of study.
... The asset is brought at the center of the management process toward value creation and maintenance is one of several activities to be done along the life cycle of the asset. 1,2 In the industry, AM finds its roots in terms of application in most capital-intensive sectors such as the oil and gas, energy and network utilities sectors due to the inherent criticality of the impact of the assets on the business. Nevertheless, current challenges and opportunities in the industrial world such as globalization, aging of assets and emerging of new technologies are more and more bringing the attention of production companies toward AM, both in the manufacturing and process production sectors. ...
... In other words, asset managers need to have a practical working knowledge of the major assets so to be able to make sound business decisions. 2 Thus, it is advocated that it is necessary for AM implementation to have an asset common database where all the data about each asset and its components are stored together. 32,33 The asset database would provide basic reference to information regarding assets' properties, usable for strategic, tactical and operational decisions. ...
Article
The aim of this article is to investigate how to embed asset management in production companies. A framework is defined based on literature analysis and focus groups findings, in which the fundamentals to guide the integration of asset management are systematized. Two dimensions are identified—the asset life cycle and the hierarchical level of the asset-control activities—and four founding principles—life cycle, system, risk and asset-centric orientation—as levers to integrate asset management within an industrial organization. An empirical investigation is then developed through multiple case study involving eight production companies in Italy, with the purpose to map the elements of the framework against the real mechanisms in the industrial practices. This allows testing the relevance of the framework itself and demonstrating its potential as a support for companies to implement gap analysis on asset management practices. Empirical evidence on current practices of asset management in production companies is contextually unveiled.
... Manajemen aset adalah rangkaian kegiatan mengelola kekayaan dimulai dari perencanaan kebutuhan aset hingga penghapusan aset agar dapat mencapai tujuan organisasi secara efektif dan efisien [4]. Pengelolaan aset perlu dilaksanakan sesuai dengan siklus aset yang diawali dengan proses perencanaan hingga penghapusan atau pembaharuan. ...
... Aset adalah segala sesuatu yang memiliki nilai ekonomi, dapat dimiliki oleh individu, kelompok/perusahaan, atau oleh pemerintah dan dapat dinilai secara finansial (Sugiama, 2013). Aset fisik adalah item fisik yang memiliki umur ekonomis lebih dari satu tahun seperti, tanah, bangunan, pabrik, dan mesin [4]. ...
Article
Evaluasi Kualitas Aset Destinasi Wisata Dayeuh Manggung Kabupaten Garut
... On the other hand, waiting to replace a bit until it is worn negatively affects the production rate. Although operator experience clearly plays an important role in drilling operations, a more objective approach to support bit replacement decisions is to monitor and analyze life datasets and use cost minimization methods [110]. ...
... Replacement decision depends on changes in the performance, reliability, or risk when the equipment or the tool ages. Operating and maintenance records chronicle changes in operating performance, failure rate, and maintenance cost [110] to support replacement decisions. Life data analysis helps to forecast bit life by fitting a statistical representative distribution using failure records. ...
Thesis
In recent years, the profit margin for mining companies has been declining due to low commodity prices and high operating costs associated with resource degradation and system aging, forcing mining companies to reduce operating costs in order to maintain operations. Cost savings presented by new technologies and computational resources that allow companies to modernize mining equipment are offset by increasing equipment complexity, which can lead to higher operating costs. The drilling operation is one component that can be the focus of cost reduction efforts because it affects all phases of mineral production—from exploration to extraction and mineral processing. Therefore, an efficient drilling operation can help to achieve the desired economic production cycle, but it must be optimized to balance operating performance (measured by the rate of penetration or ROP) with longer drill bit life. The ROP depends on various controllable (i.e., rotation speed, weight on the bit, and bailing air pressure) and uncontrollable (i.e., physical and mechanical properties of the rock formation, bit type, bit material, operator expertise, and drilling machine condition) parameters. The ROP and controllable parameters are directly related: when the controllable parameters increase, ROP also increases and operating costs decrease consequently. However, high controllable parameters shorten bit life and enhance bit consumption through wear. Thus, there is a trade-off between bit consumption and operating cost. The relationship between ROP and the bit life must be optimized to minimize the total cost of the operation for mine management. Identifying an optimum set of operational parameters helps to ensure the minimum cost per drill bit, which represents a considerable portion of the total operating cost of the machine. Hence, it is crucial to estimate the optimum bit replacement time while considering ROP. Another important factor that directly affects drilling performance and the cost is the condition of the drilling equipment, which is getting larger due to economies of scale. Unexpected failures severely affect the production schedule; thus, equipment reliability is required for satisfactory performance. Statistical tools and simulation techniques are the best methods to determine bit replacement time, whereas reliability and maintenance analysis are the best tools to ensure operational performance. These tools help to forecast future failure of repairable and non-repairable system components, prevent unexpected stoppages, and improve the quality of the maintenance. This thesis focuses on 1) optimizing drilling operation parameters using design of experiment tolls, cost minimization with evolutionary algorithms, machine performance assessment, and risk quantification using reliability analysis and stochastic modeling techniques (Markov Chain Monte Carlo and Mean Reverting); 2) determining optimum replacement time of drill bits based on historical data using discrete event simulation and minimizing replacement costs by using an evolutionary algorithm and Monte-Carlo Simulation.
... On the other hand, waiting to replace a bit until it is completely worn negatively affects the production rate. Although operator experience clearly plays an important role in drilling operations, a more objective approach to support bit replacement decisions is to monitor and analyze life datasets and use cost minimization methods (Hastings 2010). ...
... Replacement decision depend on changes in the performance, reliability, or risk when the equipment or the tool ages. Operating and maintenance records chronicle changes in operating performance, failure rate, and maintenance cost (Hastings 2010) to support replacement decisions. Life data analysis helps to forecast bit life by fitting a statistical representative distribution using failure records. ...
Article
Full-text available
To gain a competitive edge within the international and competitive setting of coal markets, coal producers must find new ways of reducing costs. Increasing bench drilling efficiency and performance in open-cast coal mines has the potential to generate savings. Specifically, monitoring, analyzing, and optimizing the drilling operation can reduce drilling costs. For example, determining the optimal drill bit replacement time will help to achieve the desirable penetration rate. This paper presents a life data analysis of drill bits to fit a statistical distribution using failure records. These results are then used to formulate a cost minimization problem to estimate the drill bit replacement time using the evolutionary algorithm. The effect of cost on the uncertainty associated with replacement time is assessed through Monte-Carlo simulation. The relationship between the total expected replacement cost and replacement time is also presented. A case study shows that the proposed approach can be used to assist with designing a drill bit replacement schedule and minimize costs in open-cast coal mines.
... Meanwhile, the impact examined in this study is to the physical asset management performance or also called the performance of fixed asset management; relates to how well management manages assets related to technical, financial, and management practices that are based on the principles of efficiency and effectiveness in efforts to achieve desired goals through fixed assets (Hastings, 2010). Obtaining optimal utilization and return on fixed asset investment is the main goal of all public and private organizations. ...
... The results of this study as well as providing solutions to concerns about the weakness of supervision and control of the management of the company's fixed assets. (Hastings, 2010) stated in his research that in supporting successful asset management, in terms of realizing good asset management performance, the asset management information system plays a role in providing detailed information related to a list of key assets in an organization. The information includes important specifications of assets, location, estimated life of remaining assets, replacement costs, asset history, recent remodeling, date of repairs, knowing asset problems, and knowing plans related to assets. ...
Article
Full-text available
The study is testing the determinants of physical asset management performance with the approaching Model DeLone and Mclean in the application of Systems Information Management Asset (SIMA). Some of the factors determinants is the system of quality, top management support, user experience, perceived usefulness, and user satisfaction. Tests using the PLS-SEM ( Partial Least Squire - Structural Equation Modeling ) model with the number of samples is 46. Results of the study indicate that the construct of system quality affects positively and significantly to user satisfaction, while top management support and user experience impact positively and significantly to the perceived usefulness, and perceived usefulness and user satisfaction impact positively and significantly to the physical asset management performance. Whereas constructs that do not have a positive and significant influence are system quality on perceived usefulness, top management support, user experience, and perceived usefulness on user satisfaction. According to the results of the analysis of statistics can be concluded that the impact of the implementation of SIMA on the physical asset management performance in BNI has amounted to 69.4%.
... The management of assets is dependent on knowledge about the organization's assets, in terms of both current equipment, business role of the assets and future prospects. In other words, asset managers need to have a practical working knowledge of the major assets so to be able to make sound business decisions (Hastings 2009). Thus, it is advocated that it is necessary for AM implementation to have an asset common database where all the data about each asset and its components are stored together (Al-Najjar & Basim 1996;Kans & Ingwald 2008). ...
Article
The aim of this paper is to investigate Asset Management (AM) implementation as a business process within production systems to contribute to operational excellence. The main fundamentals to be considered to properly implement AM within production companies according to the existing literature and standards are identified and they are: two dimensions - i.e., the asset life cycle (Beginning of Life, Middle of Life, End of Life phases) and the hierarchical level of the asset-control activities (strategic level, tactical level, operational level) - and four funding principles - i.e., life cycle orientation, system orientation, risk orientation and asset-centric orientation. An empirical investigation is then developed through multiple case-study involving eight production companies in Italy, in order to assess the level of orientation towards those funding principles within production companies as it is nowadays, in order to identify existing gaps and areas for improvements.
... Assets can be built through internal or external investments, partnerships, camps, and institutes, and they can then be multiplied through flexible sharing or repurposing to maximize resource utilization and reach customers. Assets are not just physical but also include knowledge, skills, and emotions (Hastings, 2010). Social enterprises score high on asset multiplication when they are able to bring down costs by reusing built assets for alternative business purposes, and they score low when they incur high costs from built assets and are unable to use assets for alternative business purposes. ...
Article
Full-text available
Research Summary This study focuses on the dilemmas that social entrepreneurs encounter and the practices used to manage dilemmas over time. Using a multi‐method approach involving event structure analysis and an inductive multiple case study, we find that four key organizational practices—asset multiplication, leveraging human capital, building social embeddedness, and affordable quality—embody the jugaad elements of frugality and inclusivity. Adding to the social entrepreneurship literature, this study demonstrates that the jugaad approach is conceptually distinct from bricolage and relevant to the study of social enterprises’ resource mobilization processes. Managerial Summary How do social enterprises encounter and manage dilemmas over time in emerging markets? The present study responds to this question, finding that social entrepreneurs mobilize resources and overcome dilemmas using the practices of jugaad , the “Indian method” of problem‐solving. These jugaad practices can be used to build and allocate resources and create trade‐offs among the jugaad elements of frugality and inclusivity. Based on our results, we recommend that social entrepreneurs pay close attention to how to proceduralize human assets, which would allow these entrepreneurs to build training systems that are highly task‐focused and replicated across functions. We also encourage social entrepreneurs to work in rural markets and seek wider resource pools within these markets by building social embeddedness in rural communities.
... As a system, it supports successful asset management that integrates processes, activities and data with other organisational functions like quality management, accounting, safety management, assurance, risk management and human resources (SA 2014). An Enterprise Asset Management (EAM) system, sometimes referred to as enterprise content management, provides management for all unstructured information throughout the organisation to help manage content across multiple business functions with common functionalities such as document management, work flow, business processes and records management (Hastings 2009). A computerised maintance management system (CMMS) can be considered one of several asset management tools that contribute to an EAM system. ...
Conference Paper
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Naval vessels and their associated support systems are designed, built, operated and sustained as separate and independent systems that all contribute to Australia's maritime capability. Shipboard and shore-based information systems collect and collate equipment and systems' performance data that are essential to effective Fleet Life Cycle Management across the Capability Life Cycle. Complex warship and submarines, the associated support systems and the multitude of information systems all present significant challenges to data collection, collation, analysis and timely information dissemination. Defence's sustainment policy applies asset management principles and methods by aligning life cycle sustainment of ships and submarines to international asset management standards. ISO 55001 identifies minimum requirements for an asset management system, but Defence has neither a standardised asset management system for naval vessels nor any form of integrated asset management capability. Defence needs a digital asset management solution that links disparate and separate systems across the fleet into a consolidated repository of digital information accessible throughout the Naval Enterprise. System of Systems (SoS) engineering links multiple independent systems, both new and legacy, in a large, complex and collaborative setting to deliver a more comprehensive, adaptive, agile, connected and autonomous solution that is greater than the combined constituent systems. A SoS approach provides the optimal method for developing a holistic and comprehensive digital asset management environment (DAME) that employs a modular and integrated architecture for linking information from a multitude of systems into an ISO 55001 compliant asset management system. DAME's architecture identifies the constituent systems, linkages and interfaces, integration efforts and decision support elements necessary to produce tangible outcomes for effective knowledge management. The SoS approach delivers an architecture that provides the foundation for future DAME software development that can be incorporated into a larger integrated strategic asset management framework to support technical compliance, business operations and maritime capability.
... First, the economic life of the challenger as if installed today is calculated as explained in the literature on engineering economics (Park 2011, Sullivan et al. 2012, Hastings 2015, Newnan et al. 2016, which results in N Ã ¼ N ¼ 100 years with an EAC Ã C t ¼ 0 ð Þ of e448,910. Currently, the economic life is bounded by the challenger's functional life N: ...
Article
Full-text available
Ageing public infrastructure assets necessitate economic replacement analysis. A common replacement problem concerns an existing asset challenged by a replacement option. Classic techniques obtained from the domain of engineering economics are the mainstream approach to replacement optimization in practice. However, the validity of these classic techniques is built on the assumption that life cycle cash flows of a replacement option are repetitive. Differential inflation undermines this assumption and therefore more advanced replacement optimization techniques are required under these circumstances. These techniques are found in the domain of operations research and require linear or dynamic programming (LP/DP). Since LP/DP techniques are complex and time-consuming, the current study develops an alternative model for replacement optimizations under differential inflation. This approach builds on the classic capitalized equivalent replacement technique. The alternative model is validated by comparison with a DP model showing to be equally accurate for a case with characteristics that apply to many infrastructure assets.
... Tesislerde bulunan sistemlerin performans verileri ve düzeltilen/güncellenen bakım kararları arasında potansiyel bir bağ bulunmaktadır (Wijesinghe ve Mallawarachchi, 2019). BPG, genel başarıyı ölçmek için kullanılırlar ve beklentileri karşılama oranlarını gösterirler (Hastings, 2015). Bakım müdahalelerinin tesirleri yalnızca bakım departmanı üzerindeki etkileriyle gözlemlenemez. ...
Article
Full-text available
Çalışmada, sanayideki dijital dönüşüm süreçleri ile Türkiye’de bakım yönetim ve kestirimci bakım bilişim sistemleri kullanımlarının firmaya özgü durumlar karşısındaki olası farklılıklarının incelenmesi amaçlanmıştır. Ampirik yöntemin benimsendiği çalışmada, 641 bakım sektör profesyoneline uygulanan anket ile elde edilen veriler sistem ve bütüncül yaklaşımlar ışığında parametrik olmayan Kruskall Wallis ve Mann Whitney fark testlerine tabi tutulmuştur. Bakım yönetim bilişim sistemleri, bakım performans göstergeleri ve kestirimci bakım bilişim sistemleri test değişkenlerinin firmaya özgü durumların kullanım şeklinin literatür ile paralel olan ve olmayan farklılıklar gösterdiği ve Türkiyede düşük verimlilik düzeyi olduğu yönünde bulgulara ulaşılmıştır. Makalede, çoğunlukla alt-sistem düzeyinde özel çalışmalara odaklanan literatürdeki boşluğa işaret edilerek bakım bilişim teknolojisi yatırımları, organizasyonel seviyede yapılan değerlendirmeler ile firmaya özgü durumlar ele alınmış, bilgisayarlı bakım yönetim ve kestirimci bakım bilişim sistemlerinin gösterdiği farklılığın yanı sıra bakım performans göstergelerinin bu iki değişkenle ilintisi bütüncül bir yaklaşım ile ortaya konulmuştur.
... Indeed, AM embraces different kinds of actors that together aim at realising value by managing assets through coordination and in alignment with the organisational strategy [6]; accordingly, "effective control and governance of assets … is essential to realize value … to achieve the desired balance of cost, risk and performance" [6]. In order to achieve such a balanced cost, risk and performance, the focus on value in asset-related decisions is remarked by the most recent discussion on value-based AM [7][8][9]. ...
Chapter
Full-text available
Asset Management (AM) is promising for value creation from assets in the long term. A major concern to this end relates with the capabilities to achieve effective AM decision-making at every organisational level, i.e. operational, tactical, and strategical. Therefore, the goal of this research, grounded on a systematic literature review, is to identify which are the main sources of uncertainty that may influence the achievement of AM system related objectives and, as such, should be taken into consideration in a risk-informed decision-making process. Taking the manufacturing sector as a reference, the risk sources addressed by the extant literature are identified and mapped against a reference classification scheme. As a result, the research offers a comprehensive framework where risk sources, affecting the AM decision-making process, are systematically mapped. Information management is found to be the main risk source when making asset-related decisions.
... Manajemen aset adalah serangkaian kegiatan yang terdiri dari indentifikasi aset apa yang dibutuhkan, memperoleh aset, menyediakan logistic dan sistem pendukung pemeliharaan dari aset dan penghapusan atau pembaharuan aset sehingga lebih efektif danefisien (Nicholas Hastings A. J, 2010). ...
Article
Full-text available
Banyak instansi khususnya sekolah masih menganggap manajemen aset secara fisik hanyalah sekedar instrumen pengelolaan daftar aset. Realita di lapangan menunjukan banyak kasus yang sebenarnya dimulai dari salah kelola dan salah urus masalah aset; sehingga berdampak kerugian yang tidak sedikit. Manajemen aset adalah serangkaian kegiatan yang terdiri dari indentifikasi aset apa yang dibutuhkan; memperoleh aset; menyediakan logistic dan sistem pendukung pemeliharaan dari asset dan penghapusan atau pembaharuan asset sehingga lebih efektif dan efisien. Untuk mempercepat dan memudahkan bagi pengguna di sekolah dalam memanajemen aset sekolah diperlukan fitur tambahan yaitu RFID (Radio-Frequency Identification) adalah sistem identifikasi tanpa kabel yang memungkinkan pengambilan data tanpa harus bersentuhan. Prototipe adalah pengembangan yang cepat dan pengujian terhadap model kerja prototipe dari aplikasi baru melalui proses interaksi dan berulang-ulang yang biasa digunakan ahli sistem informasi dan ahli bisnis. Prototipe disebut juga desain aplikasi cepat (rapid application design atau RAD) karena menyederhanakan dan mempercepat desain sistem. Dengan adanya sistem manajemen aset yang baru; modern; sistematis; valid dan real time dapat memudah pekerjaan mengelola aset sekolah dengan baik dan benar; dan dapat meminimalisir kerugian yang terjadi akibat kesalahan dalam pengelolaan Aset di sekolah.
... As one of the asset management sub-divisions, physical asset management focuses on managing asset life cycles. All the documentation, records, work processes, and anything that is performed to increase the lifespan of equipment are included in the physical asset management [3]. One of the crucial steps in improving the life cycle of equipment in the industry is equipment maintenance. ...
... In such context, the asset management discipline stands as a key pillar to capacitate the transition from a product-based offer to PSS whilst properly addressing the assets' technical challenges. As a matter of fact, most of the PSS offers found in the literature for capital assets include a considerable amount of maintenance related services (Gaiardelli, et al., 2014), and maintenance management has been considered a fundamental process of asset management indeed (Hastings, 2010;Crespo, et al., 2009). Therefore, if OEMs are willing to offer maintenance services for their installed base, one way to do so is by using their technological competences (Gremyr, et al., 2010;Exner, et al., 2017). ...
Conference Paper
This paper aims at smoothing the servitization process for capital asset OEMs. To such purpose, the paper provides a map that links a wide range of services with the maintenance technologies which capacitate the manufacturers to deliver the service in a cost-effective way. The process of shifting towards a business model of servitizied maintenance is supported by considering the characteristics of operations management to take into account in this new scenario. The consideration of the operational aspects is proposed by means of Technology Roadmap tool with a new extra layer considering structural and infrastructural operational characteristics.
... al [9] points out that asset management is also essential, especially for companies where their assets are the basis of their success. According to Hastings [10], asset management also involves the use of information technology-based systems to offer efficient visibility and control for the identification of equipment, locations, and monitoring of activities throughout the organization. Inventory management, sourcing and purchasing, cost estimation, maintenance routines, financial reports, and work processes are some of the main applications of information systems for asset management. ...
... Asset management (AM) has become widespread among contemporary enterprises and organisations as an effective approach making it possible to deliver value from assets and to ensure the sustainability of the business and its operations (The Institute of Asset Management, 2015a; Komljenovic et al., 2016;Hastings, 2010). This concept becomes particularly relevant considering the globalisation and increased competition that characterise markets worldwide. ...
... Moreover, it is difficult to handle physical assets without involving a specified person who has experience and competence in managing assets as there are lot of stages and activities related to PAM. As per the Hastings (2010) and Cesca and Novaes, (2012), mostly, PAM responsibilities and activities are not confined to a specific department. Hence, in some organisations, the decisions related to PAM are taken by the professionals such as general managers who have no sufficient knowledge about PAM, and this will negatively affect the performance of those organisations (Rajini & Thatshayini, 2017). ...
Conference Paper
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Accelerated physical asset operations in organisations are necessitated in order to sustain within the competitive business environment. These asset operations involve a number of risks. The management of risks associated with physical assets as well as their operations is an essential element of Physical Asset Management (PAM). Although there is a growing interest in PAM around world, a lack of consideration of risks associated with PAM is evident. However, it is believed that a proper understanding of these risks is essential for effective Physical Asset Risk Management (PARM). Accordingly, the aim of this paper was to review the existing literature to investigate the risks associated with PAM. A comprehensive literature survey referring data sources, and a subsequent desk study were carried out in order to achieve the above aim. The study identified thirty-five risks, which could be categorised under six (06) groups as 'physical failure risks', 'operational risks', 'risks associated with natural environmental events', 'risks associated with the factors outside the organisations’ control', 'stakeholders related risks' and the 'risks associated with different lifecycle phases of assets'. Giving a prior concern for the identified risks and reviewing the exposure level of each risk towards PAM will support the organisations to evaluate the risk levels and make decisions on risks mitigation. This will provide the organisations with a smooth operation of physical assets and numerous benefits associated with it. Keywords:Physical Assets; Physical Asset Management (PAM); Physical Asset Risk Management (PARM); Risks Associated with PAM.
... Typically, they can be generalized as various combinations of a) different product costs, b) different useful lives, c) differences in one or more performance measures, d) differences in maintenance costs or other costs of use and their periodicity. To derive the present-value total cost of use per functional unit, the pertinent functions are solved as an equivalent periodical annuity using continuous compounding (Hastings, 2010). ...
Article
This paper addresses the highly current topic of using quantitative economic methods to support rational investment decision-making in the domain of technological innovation. Such investments are characterized by a high degree of exogenous and endogenous uncertainty combined with complex feedbacks, making conventional capital budgeting techniques inadequate. It introduces a comprehensive valuation model developed for the Shyman (Sustainable Hydrothermal Manufacturing of Nanomaterials) project, which researched and implemented new technologies in nanomaterial production and application. This represents a highly innovative and complex industry in all life cycle stages, making it a perfect candidate for research. The model combines various analytical methods, including a recursive form of life cycle costing (LCC), as well as statistical simulation (Monte Carlo) and real options, and addresses valuation from the perspective of a new end-product, as well as that of the production facility investor. A high Net Advantage to Innovating (NAI) has been identified in the industry. This result is strongly biased in favour of end-product innovators. Nevertheless, the hydrothermal synthesis-based nanomaterial production process benefits from its high degree of flexibility, i.e. option to switch, with a significant value premium arising due to outsize dynamics and uncertainty in the nanoindustry. Experience gained through this research can be extended to other cases of value-based analysis related to innovation. © 2017, Kauno Technologijos Universitetas. All rights reserved.
... Asset management (AM) is important for this industry as the success of an enterprise often depends on its ability to use and manage its assets efficiently (Koronios, Lin and Gao, 2005) and effectively (Schraven, Hartmann, & Dewulf, 2011). AM is a discipline for optimizing and applying strategies related to work planning decisions in order to effectively and efficiently meet the desired objective (Mohseni, 2003;Mathew, Ma and Hargreaves, 2008;Hastings, 2010). ...
Conference Paper
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Organizations tasked with managing large scale, public civil infrastructure are increasingly looking at data to drive their asset management decision-making processes. The Internet of Things (IoT) enables the creation of data that can be used to gain further insights into the current and predicted state of the infrastructure and may help automate the asset management process. Yet, it remains unclear to what extent data from IoT impacts decision-making in public asset management organizations. The objective of this paper is to explore implementation factors for adoption of new data sources for decision-making in asset management organizations. Based on a systematic literature review and case studies in the asset management domain, this paper derives the current use and expectations of new data sources for decision-making in asset management. The paper concludes that although recent technological developments have enabled the deployment of IoT for asset management, the current level of adoption remains low. The inherent complexity of adopting a data-driven approach to asset management requires an effective data governance strategy to ensure data quality, manage expectations, build trust and integrate IoT data in decision-making processes.
... So the availability of equipment is an essential driver. Within the defence sector, availability is influenced by several factors which include logistics, equipment, personnel, information and facilities [22]. The authors of this paper are studying these issues by focusing on selected subsystemsthat are referred to, within the UK MoD and in this paper, as Equipment Type (ET). ...
Article
Characterising maintenance costs has always been challenging due to a lack of accurate prior cost data and the uncertainties around equipment usage and reliability. Since preventive maintenance does not completely prevent corrective repairs in demanding environments, any unscheduled maintenance can have a large impact on the overall maintenance costs. This introduces the requirement to set up support contracts with minimum baseline solutions that warrant the target demand within certain costs and risks. This article investigates a process that has been developed to estimate performance based support contract costs attributed to corrective maintenance. These can play a dominant role in the through-life support of high values assets. The case context for the paper is the UK Ministry of Defence. The developed approach allows benchmarking support contract solutions, enabling efficient planning decisions. Emphasis is placed on learning from feedback, testing and validating current methodologies for estimating corrective maintenance costs and availability at the Equipment Type level. These are interacting sub-equipment's that have unique availability requirements and hence have a much larger impact on the capital maintenance expenditure. The presented case studies demonstrate the applicability of the approach towards adequate savings and improved availability estimates
... Las actividades relacionadas con la gestión de activos no son simplemente competencia de un área específica sino que permea diversos niveles y procesos dentro de la organización; así mismo es distinto de operaciones y usualmente no involucra el diseño o construcción de los activos como tal. (Hastings, 2010) El reto consistió entonces en integrar de forma específica el proceso de mantenimiento dentro del sistema de gestión de activos de la empresa. El panorama deseado era, que una vez alcanzada dicha integración, el mantenimiento recibiera la importancia merecida y se desarrollara como una función más de la organización: generando "productos" para satisfacer a los clientes internos, arrojando información y datos útiles y contribuyendo al cumplimiento de los objetivos de la organización. ...
Technical Report
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Resumen: La Transportadora de Gas Internacional TGI S.A ESP como parte del Grupo de Energía de Bogotá tiene como visión estratégica el establecerse como una empresa cuyas prácticas de mantenimiento sean de clase mundial y que a su vez agreguen valor a sus accionistas. Esta decisión supone una mejora en sus procesos de mantenimiento, su optimización mediante técnicas reconocidas de confiabilidad y su estandarización utilizada a nivel global por la industria del transporte de petróleo y gas. A partir del año 2010 se crea el área denominada Gestión de Activos encargada de agrupar y direccionar un proceso eficiente de mantenimiento en las áreas de compresoras, gasoductos, integridad del derecho de vía, bodegas y compras; tomando como referencia los lineamientos contenidos dentro del plan estratégico corporativo. De igual forma en ese mismo año mediante un proceso de consultoría especializada, se adoptan los lineamientos de un modelo específico de mantenimiento denominado Modelo de Gerencia del Mantenimiento mejor conocido por sus siglas como “MGM” . Todo lo anterior supone una profundización y adaptación de los procedimientos del modelo de gerencia del mantenimiento dentro de los requerimientos de un marco de referencia internacional de gestión de activos que permita competir y ser medidos de igual a igual con empresas similares del sector energético. El marco de referencia seleccionado es la propuesta de estándar de gestión de activos “PAS 55” la cual se encuentra en proceso de revisión y cuyo número de registro asignado por la Organización Internacional de Estandarización es la “ISO 55000”. El siguiente trabajo presenta la integración práctica entre el modelo de gerencia del mantenimiento (MGM) y la propuesta de estándar de gestión de activos (PAS 55), específicamente, se identifican cuáles de los requerimientos de la PAS 55 pueden ser cubiertos por la implantación del MGM propuesto. Versión original 2012/Actualizada 2021
... Additionally, Plant Engineering in (2011) reported that improved cost strategies are one of the profound ways' top performers drive performance in the modern global business environment. Hence, WLC provides one of the analytical means of evaluating and comparing initial investment and future costs implications on several alternatives over the predicted life of the asset before making business decisions (Nicholas 2010; John, Andrew, and Joel 2011; Mohammed and Horner, 2020). Figure 1.0 shows a capital project development process requiring WLC before decision making. ...
Research
The prime goal of maintenance tasks is to protect items functions. These tasks come at high costs. Evaluating and comparing different maintenance tasks is strategic in making smart decisions to select the best competitive solutions that will bring the needed economic benefits to the plant. To achieve these objectives, a WLC model is vital as it predicts how the economic life of an asset can impact maintenance performance and future cash flows. Given this, FSØ facility is an oil and gas producing plant that treats effluents to meet her environmental limits. In achieving these limits, the effluent is skimmed, and the recovered oil is fed back into the processing chain. In a recent development at the facility, the plant tripped because of gas release during the skimming operation. The outcome of the CTA revealed three mutually exclusive maintenance tasks to be selected to avoid future recurrence. However, the criteria for the alternative to be selected requires that it must be economical and has the best competitive solutions. Meeting this objective requires both financial and non-financial approach to enhance decision making. Hence, a WLC was considered, and evaluation was performed on the three competing options using different WLC models to compare which options meet the criteria. The results revealed that option A, B, and C has an NPV of $(98,366.66), $(128,353.88), and $(103,397.99), respectively. Similarly, the IRR for each of the options were 37.44%, 28.60%, and 24.26%, respectively. Also, option A has a profitability index of-1.2, while B and C have a PI of-2.9 and-22.4, respectively. The EAC for each Option A, B, and C were $(11,554.11), $(15,076.40), and $(12,145.09), respectively. Alternatively, a CEA performed for the options considered revealed that A, B, and C has an incremental BCR of 0.002104, 0.001363, and 0.001944, respectively. However, the future is unknown; hence the Sensitivity and Risk analysis conducted revealed that option C is more sensitive to variations in the cost and the probability of success is 91.05% compared to A and B whose certainty was 83.24% and 86.00%, respectively. Therefore, these results indicate that option A has greater potentials to significantly improve value in the long term if proactively implemented, hence should be prioritised.
... A vast number of papers and research publications in the areas of Asset Management often highlights specific and individual areas such as Maintenance and Risk [7], Procurement [8], Deterioration Mechanics and Sciences surrounding diagnosis [9]. In particular publications point more heavily towards singular fields of engineering disciplines and quite often based on maintenance strategies and implementations of maintenance based asset integrity management [10]. ...
Article
The asset management of electrical power systems both in industry and academia currently offers up a wide spectrum of engineering practices and guidance to detect, diagnose and to combat asset deterioration. In doing so research largely aims to better enable enhanced decision or prediction making in single engineering applications such as partial discharge or dielectric condition measurements. This paper reviews the current state of the art as related to electrical asset management and sets out how todays engineering and maintenance heavy approaches are insufficient to meet the nature of the complex adaptive (Generation, Transmission & Distribution) systems. Furthermore this paper explains the need for a truly holistic governance framework capable of managing such complexities for power companies by using complex adaptive system science whilst grounded in the engineering, business and socio-technical attributes that applied engineering makes possible. In addition this paper outlines how utilising retroductive case study with hypothesis framework represents the best approach in creating such a fully holistic asset management capability for power companies.
... Manajemen aset merupakan serangkaian kegiatan yang terkait dengan mengidentifikasi aset yang diperlukan, mengidentifikasi pendanaan, memperoleh aset, menyediakan sistem pendukung dan pemeliharaan untuk aset, menghapus atau mendaur ulang aset sehingga dapat memenuhi tujuan yang diinginkan secara efektif dan efisien (Hastings, 2010). Efektif berarti pengelolaan aset dapat mencapai hasil yang sesuai dengan tujuan. ...
... Organisations without suitable assets to perform the work will negatively affect their planned goals and strategic objectives. According to Hastings (2010), the purpose of the asset management function is to provide resources and expertise to support the acquisition, in-service support and disposal of the physical assets required by the organisation. Recently, asset management systems have been implemented within the public sector to assist with the development and implementation of the asset management in local government. ...
Article
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Organisations today are concerned about factors that affect their performance, including the role of strategic planning within the organisation as this enables the organisation to effectively and efficiently manage its resources. The purpose of this study was to determine the factors affecting the performance of the department of human settlements in South Africa (herein the department). The quantitative research method was used, and the study was piloted using six selected respondents from the targeted population of 89 and these respondents were excluded from the study. A questionnaire was designed to collect primary data, and 72 questionnaires were distributed to the randomly selected respondents and 45 responses were obtained representing a 65% response rate. The study established that environmental factors, working environment, or-ganisational culture, organisational assets, human resources management, or-ganisational structure and leadership are the factors that affect performance in the department. It was also established that strategic planning acts as a platform to align departmental strategic documents with government planning documents such as NDP and PDP, facilitate the setting of specific, measurable, achievable, realistic and time frame (SMART) objectives and targets, communicate departmental vision, values, goals and objectives effectively and clearly and provide feedback platform for planning outcomes and performance measurement. Based on the analysis undertaken, it was recommended that the department must strategically invest to improve the resources required to aid the employees to effectively execute their duties and that the department should ensure sufficient human resources to achieve the set strategic targets.
... Asset management decisions, including investment, operation and maintenance, are affected by several indo-and exogenous factors (Hastings, 2010;Komonen et al., 2012;Liyanage, 2012): ...
Article
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Big Data and Internet of Things will increase the amount of data on asset management exceedingly. Data sharing with an increased number of partners in the area of asset management is important when developing business opportunities and new ecosystems. An asset management ecosystem is a complex set of relationships between parties taking part in asset management actions. In this paper, the current barriers and benefits of data sharing are identified based on the results of an interview study. The main benefits are transparency, access to data and reuse of data. New services can be created by taking advantage of data sharing. The main barriers to sharing data are an unclear view of the data sharing process and difficulties to recognize the benefits of data sharing. For overcoming the barriers in data sharing, this paper applies the ecosystem perspective on asset management information. The approach is explained by using the Swedish railway industry as an example.
Article
Purpose The purpose of this paper is to investigate the significance of Facilities Management competency levels from three different stages namely strategic, tactical and operational levels in order to propose a set of FM competencies for an enhanced FM industry in Malaysia. Design/methodology/approach The overall focus for this paper is to discuss on the area for each level of competencies for Asset and Facilities Management. This is done through a questionnaire survey focusing on the competency areas posed by FM companies in Malaysia and a comparison review of all FM level as outlined by the international professional bodies namely IFMA, BIFM and RICS. This paper also looks at formulating a holistic framework for an effective Asset and Facilities Management for the benefit of FM industry in general and Malaysian FM industry specifically. Findings The findings indicate that among the significant factors for the respective Strategic, Tactical and Operational practice of FM are- Strategic: Managing Change, Benchmarking and Strategic Facilities Planning; Tactical: Risk Management, Emergency Preparedness, FM Technology, Service Level Agreement and Supply Management and Operational: Space Planning and Management. This study also proposes a set of holistic FM competency areas which can be implemented by the FM industry in Malaysia. Originality/value This research sets a baseline for a set of FM competencies, an area of FM which has not been regulated in the FM practice in Malaysia.
Chapter
This chapter introduces some general knowledge relative to the broad area of maintenance. Unlike other easy to automate processes (e.g., product systems), maintenance work usually involves one-off, backdrop-sensitive activities. Some general classification of maintenance are discussed in Sect. 2.1. The reactive and proactive types of maintenance strategy are briefed in Sects. 2.2 and 2.3, respectively. Then, a holistic smart maintenance strategy (followed throughout this book) is explained in Sect. 2.4. Section 2.5 summarises this chapter.
Book
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In this research ownership management is defined as a component of entrepreneurial activity, which aimed to generating additional revenues from the use of facilities, owned by the company, and the effective combination of resources in the system of rights and obligations of stakeholders. During research has been developed the theoretical position about the forms of agricultural firm as models of capital structure and business. Is noted the interdependent influence of the ownership structure and capital, productivity and efficiency of agricultural enterprises. Authors have proposed indicators of accumulation and use of fixed assets, that permit to determine the effectiveness of correlation of own and involved objects of ownership based on official enterprise reporting. Had been developed tools for analysis of the factor incomes. They allows to determine the feasibility of increasing (decreasing) of their outsourcing, taking into account the rate of pay for them and achieved levels of performance and efficiency of their use. Had been proved the necessity of systematic monitoring of cost and efficiency of production resources (presented by objects of ownership), for management decisions on the formation and structure adjustment of the property complex of agricultural enterprises. For this purpose, was designed the content and structure of information system of ownership management, the subjects of its formation and use, and the operating processes of ownership management in agricultural enterprises. Key words: ownership managament, objects of ownership, productive resources, forms of firms, performance indicators, property complex, market environment.
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The emerging Internet of Things (IoT) technologies could rationalize data processes from acquisition to decision making if future research is focused on the exact needs of industry. This article contributes to this field by examining and categorizing the applications available through IoT technologies in the management of industrial asset groups. Previous literature and a number of industrial professionals and academic experts are used to identify the feasibility of IoT technologies in asset management. This article describes a preliminary study, which highlights the research potential of specific IoT technologies, for further research related to smart factories of the future. Based on the results of literature review and empirical panels IoT technologies have significant potential to be applied widely in the management of different asset groups. For example, RFID (Radio Frequency Identification) technologies are recognized to be potential in the management of inventories, sensor technologies in the management of machinery, equipment and buildings, and the naming technologies are potential in the management of spare parts.
Article
The authors propose a maintenance management system for reinforced concrete subway tunnels to perform efficient maintenance management in view of preventive maintenance and repair of distressed concrete. The proposed system consists of three subsystems and has been put into trial use on an actual subway line. Based on the deterioration prediction using numerical models coupled with on-site measurement information, priorities, and timings are assigned to repair work based on the thresholds uniquely determined by the company, and maintenance management plans are created within imposed budget constraints. Through a couple of case studies on corrosion of reinforcing bars used for the actual structure, the proposed system is shown to be capable of predicting deterioration propagation almost approximately. Further, it is also demonstrated to be helpful to calculate maintenance management cost and to make an appropriate maintenance management plan under various repair strategies.
Chapter
The importance of energy related topics has been increased during last years, and it will be in future for sure. In particular energy cost is estimated to increase; further on one of the hot topics today is also the global climate change, which is due to increased CO2 and other greenhouse gases emissions. To reduce these impacts decrease of usage of fossil fuels can be a proper lever, and can be obtained both by improving energy efficiency and by using renewable energy resources. On the other hand, focusing specifically in the Telecom sector by introduction of Android, iPhone, iPad, Kindle and social network such as Facebook, demand for cellular data traffic has grown significantly. Indeed, Base Transceiver Stations (BTS) consume a maximum portion of the total energy used in a cellular system (around 60 %). Eventually, it is known that Information and Communication Technology (ICT) already represents about 2–2.5 % of total carbon emissions and this is expected to increase every year. The most convenient ways to reduce energy consumption of BTS is usage of renewable energy sources (wind and sun).This is recognized by existing theory and practice. Available literature covers the performances of Hybrid Base Station (HBTS), site indicators, on one side, and, on the other side, the necessity of the Telecom Company to reduce energy consumption and GHG emission on sustainable way. These are the two extremes of this knowledge domain: more precisely, on one side, there is a literature related to the vendors of HBTS and, on the other side, there is literature dedicated to Telecom Companies as technology users. But there is no bond and, in fact, insufficient knowledge technology management. Indeed what we see as a missing link here is the availability of a clear information and design of the practical “guideline” for implementation of HBTS in a Telecom company. The literature of Physical Asset Management (PAM) offers good references for an empirical research to unveil such missing link. In particular, based on the holistic lifecycle approach, that is a relevant concept of PAM. We planned to develop an on field research with Telecom companies, to understand how the technology is managed in practice. On-going case study provided some insights to us during writing this paper. Hence, the research will aim at assessing every single step of HBTS implementation in a Telecom Company. This approach will cover all the Asset Life Cycle stages, ranging from Concept and Project Approval to Decommissioning and Disposal, so to let emerge existing practices in a broad range of activities. This paper will focus on the whole architecture established for the empirical research, focusing initially on the literature survey used as background, which may help then showing the structure of the questionnaire used for the research and its first results after an initial validation with Telecom experts.
Article
The paper examines the theoretical and practical aspects of managing the territorial communities’ assets. Legal foundations of exercising their powers by local authorities are determined. The approaches of various researchers are outlined, and the positions of leading organizations in terms of defining the nature of the assets management concept are presented. The paper argues that the main function of assets management consists in securing the flow of information and knowledge for the organizations to support the decision-making regarding the asset’s life cycle from planning to elimination. The objective and peculiarities of the assets management process are determined. The differences between assets management by governments and private organizations are outlined, and the fact that the most obvious difference between these two systems consists in the objective of assets management is proven. The author argues that despite the difference, the two systems are similar in the strive to achieve the organizations’ goals as efficiently as possible. The paper emphasizes that joint efforts of the state representatives (local governments), private sector (business), and non-governmental sector (non-commercial organizations, civil society) are necessary for efficient management of territorial communities’ assets. It proves that assets management is a key strategic responsibility of municipal managers because the assets’ condition and their location will determine the nature of services granted by a territorial community and opportunities for their development and relaunching. The author mentions that the complex process of assets management can be caused by many reasons but substantial ranging within various assets categories as well as their variety by the longevity should be emphasized the most. The six most essential factors of efficient management of territorial communities’ assets are outlined. The Canadian practice in the management of territorial communities’ is analyzed on the example of Fredericton in New Brunswick. The perspective positive effects from adopting the Law of Ukraine “On Public and Municipal Assets Rent” № 157-IX as of 3 October 2019 are examined.
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Purpose Managers are increasingly looking to adopt the Internet of Things (IoT) to include the vast amount of big data generated in their decision-making processes. The use of IoT might yield many benefits for organizations engaged in civil infrastructure management, but these benefits might be difficult to realize as organizations are not equipped to handle and interpret this data. The purpose of this paper is to understand how IoT adoption affects decision-making processes. Design/methodology/approach In this paper the changes in the business processes for managing civil infrastructure assets brought about by IoT adoption are analyzed by investigating two case studies within the water management domain. Propositions for effective IoT adoption in decision-making processes are derived. Findings The results show that decision processes in civil infrastructure asset management have been transformed to deal with the real-time nature of the data. The authors found the need to make organizational and business process changes, development of new capabilities, data provenance and governance and the need for standardization. IoT can have a transformative effect on business processes. Research limitations/implications Because of the chosen research approach, the research results may lack generalizability. Therefore, researchers are encouraged to test the propositions further. Practical implications The paper shows that data provenance is necessary to be able to understand the value and the quality of the data often generated by various organizations. Managers need to adapt new capabilities to be able to interpret the data. Originality/value This paper fulfills an identified need to understand how IoT adoption affects decision-making processes in asset management in order to be able to achieve expected benefits and mitigate risk.
Article
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This research represents a case study on the challenges faced by Royal Malaysia Navy (RMN) in managing their aging assets. After observations has been made, it can be presumed that the RMN assets were used beyond their economical life. The study will reveal the dilemma faced by the RMN by which the Product Life Cycle strategies employed by the marketers has left a big implication in the maintaining and managing their aging assets. The stages involved in Product Life Cycle were elaborated to allow research to be done in this matter. This paper is based on literature review and RMN's experiences in managing their aging assets. At the end of this study, the author has successfully identified the strategies in managing aging assets even though PLC has made the spares and component that required maintenance to be the asset that are no longer in the market. This paper also discloses that by applying these initiatives, RMN are now able to utilize their assets perdurably without compromising the asset's performance. These initiatives can be applied as the guidelines for military and other sectors especially in the industries of logistics and transports in the future.
Article
Purpose The purpose of this paper is to explore certain resources, capabilities and competencies needed to improve the performance of physical asset management (PAM). Design/methodology/approach The analytic hierarchy process (AHP) is used to select and prioritize the most appropriate factors for improving performance. A multi-criteria approach is used to analyze and compare the importance of 6 main criteria and 18 subcriteria identified from a survey of relevant literature. Findings The study revealed that not all factors are viewed as having equal importance in improving PAM performance, as three of the main factors attained greater importance among the six factors. Research limitations/implications This study explored the factors required for managing assets only within the third stage of asset lifecycle, that is, the utilization stage. It is recommended that future studies be conducted in such a way as to determine the importance of similar factors in the other stages of the asset lifecycle, or to identify new factors and add new criteria. Practical implications Knowledge of the differential impacts of the factors on the performance of PAM can impact asset managers and decision makers in their allocation of resources and focus their work on the highest-ranked rather than the lowest-ranked factors. Also, AHP used provides an effective mean for asset managers to identify priorities among decision criteria in their organization. Originality/value To date, no study has explored the impact of six combined factors on the performance of PAM. Previous studies have found that these factors each had equal importance. However, their relative ranking in practice and when they appear together have remained unrecognized.
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The electric power industry today is regarded as the engine of growth and development of other sectors. The technology-based nature of the electric power industry has caused its physical asset to be of particular importance. This study aims to develop a model for increasing the productivity and energy production of small-scale power plants using multi-criteria decision making in fuzzy environments. Productivity of manpower, capital, energy and quality, as the criteria affecting the purpose of the research, and ten activities of the uptime physical asset management model as a solution to meet the goal of the research have been considered. Based on the obtained results, it can be said that teamwork-based methods are the most important strategy for improving the productivity of small-scale power plants. The importance of teamwork is to the extent that other areas of physical asset management fail to function properly without relying on teamwork-based methods. The results of the study indicate that the proposed model is suitable for real-world problems and increases the productivity and uptime at small-scale power plants.
Chapter
The emerging Internet of Things (IoT) technologies could rationalize data processes from acquisition to decision making if future research is focused on the exact needs of industry. This article contributes to this field by examining and categorizing the applications available through IoT technologies in the management of industrial asset groups. Previous literature and a number of industrial professionals and academic experts are used to identify the feasibility of IoT technologies in asset management. This article describes a preliminary study, which highlights the research potential of specific IoT technologies, for further research related to smart factories of the future. Based on the results of literature review and empirical panels IoT technologies have significant potential to be applied widely in the management of different asset groups. For example, RFID (Radio Frequency Identification) technologies are recognized to be potential in the management of inventories, sensor technologies in the management of machinery, equipment and buildings, and the naming technologies are potential in the management of spare parts.
Chapter
Asset management (AM) is the core business function of grid-based asset management organizations (GAMO). GAMO are looking for compliance with a new international AM standard (ISO 55 000). Currently, a limited perspective – consisting of New Public Management (NPM) and project management (PM) – provides meaning for the new AM standard. However, the limited perspective is not sufficient in aligning AM / GAMO with energy transition and environmental management successfully. The article is aiming at enabling the ISO AM standard to become a co-creational force in energy transition and environmental management. Based on professional engagement and substantial literature review the article employs ‚reflective practice' and causal loop diagrams to identify and elaborate issues of concern that need to be addressed by an enriched perspective on ISO AM: 1) organizational ‚line of sight' (complement key performance indicators with evidence-based causal relationships), 2) control of work (complement formal institutions with AM professionalism), 3) management accounting (advance decision support for the management of the capex/opex relationship), 4) transition modeling (advance agent-based models of AM), and 5) the sustainable management of the resource soil (assess the ecosystem services/disservices that arise from underground urban space use by GAMO during transition times).
Chapter
It is well understood that the success in managing assets depends on well-established engineering principles, techniques and processes. Nevertheless, socio-organisational factors also play important roles in asset management systems and asset management activities. Their influence expands well beyond the engineering aspects. This chapter focuses on the discussions on the potential to take into account the social complexity and Systems Intelligence in asset management systems development. It suggests that the momentum to bring engineering and governance together to create the conditions for achieving a successful asset management system is Systems Intelligence, as our ability to behave intelligently in the context of complex systems involving interactions, dynamics and feedbacks is insufficient. This chapter presents eight dimensions of Systems Intelligence within the context of the asset management system, discusses the asset management system as a socio-technical system and as a ‘system of systems’ and applies basic principles from systems theory as a way to improve our Systems Intelligence to be better prepared to deal with social complexity. It shows how Systems Intelligence can be applied to increasing the chances of success in managing assets. On the basis of these discussions, the future research directions are identified.
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Recent years have brought the rise of importance of quality of developed software. Web applications should be functional, user friendly as also efficient. There are many tools available on the market for testing the performance of web applications. To help you choose the right tool, the article compares three of them: Apache JMeter, LoadNinja and Gatling. They were analyzed in terms of a user-friendly interface, parameterization of the requests and creation of own testing scripts. The research was carried out using a specially prepared application. The summary indicates the most important advantages and disadvantages of the selected tools.
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Asset management is one of the important aspects of the governance of an organization. The efficiency of asset management shows the effectiveness of the organization in following the asset management circular issued by the government. Therefore, issues related to weaknesses in asset management procedures need to be addressed to demonstrate the efficiency of the organization involved. The study conducted is descriptive to assess the efficiency of asset management at Kuala Terengganu Polytechnic. The sample for this study consists of 80 staff in the department and unit. The instrument for this study is a set of questionnaire form questions. Data analysis was done using Statistical Package for Social Sciences (SPSS) version 23.0 software. The findings show that all asset management practices are in accordance with asset management procedures (overall mean = 3.87). Asset management competencies are high where the asset coordinator has done a good job (overall mean = 3.89). The results of the study found the hypothesis, H1 accepted that there is a significant relationship between asset management practices and asset management competencies (r = 0.534). It can be concluded that continuous asset management practices can enhance asset management competencies.
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Water supply and sewer networks are critical infrastructures that provide a basic service to society. However, these systems constantly age and degrade over time. In addition, since network infrastructures are so extensive in length, they require a significant investment in maintenance tasks. Hence, within the context of infrastructure asset management (IAM), accurately defining the most efficient investment planning possible is essential to ensure their long-term sustainability. This paper presents an original five-step comprehensive framework to successfully implement an infrastructure asset management strategy and plan long-term investments. Moreover, this methodology integrates innovative and relevant operational and convenience factors that, while provide the problem both with realism and practicality, have not been addressed so far. To illustrate the usefulness and applicability of this methodology, the case study of a large water company in Spain is presented.
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Reliability-Centered Maintenance provides valuable insights into current preventive maintenance practices and issues, while explaining how a transition from the current "preserve equipment" to "preserve function" mindset is the key ingredient in a maintenance optimization strategy. This book defines the four principal features of RCM and describes the nine essential steps to achieving a successful RCM program. There is an easy to follow example illustrating the Classical RCM systems analysis process using the water treatment system for a swimming pool. As well as the use of software in the system analysis process, making a specific recommendation on a software product to use. Additionally, this new edition possesses an appendix devoted to discussing an economic model that has been used successfully to decide the most cost effective use of maintenance. Top Level managers, engineers, and especially technicians who rely on PM programs in their plant operations can't afford to miss this inclusive guide to Reliability-Centered Maintenance.
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