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Establishing the relationship between asset management and business performance
Abstract
Recognising the relevance of asset management (AM) benefits in improving organisational performance by asset-intensive organisations is no longer sufficient. It is necessary to deepen and control how this truly happens so that organisations have confidence in AM investments that bring better returns to the business. This paper presents a theoretical model, AMBP Model, which offers enablers supporting the organisations to make better decisions in infrastructure investments, through the construction of a relationship map between AM key-processes, asset performance indicators (API) and business performance indicators (KPI). The relationship between these three elements is a result of the analysis of case studies in different sectors of the economy, publicly available on AM specialized sites or AM conference proceedings. Knowing ‘how AM process relates to Business Performance’, the aim of this paper, is a fundamental and helpful path to understand ‘how AM maturity impacts on business performance’, an issue that remains up to date in both the academic and business environments.
Keywords: Asset management; Asset management maturity; Asset performance indicators; Business performance indicators
... There are clear parallels here between the quality management system (QMS) and the asset management system (AMS), as both systems aim to reduce risk, improve performance and add value to an organisation (Heerden and Jooste 2018;Alsyouf et al. 2021). In recent years, asset management has become a more commonplace ambition for asset-intensive organizations (Lima et al. 2021;Almeida et al. 2022;Maletič et al. 2023). It can help organizations to achieve the desired balance between costs, risks and performance by managing risks and opportunities (ISO 55000). ...
... Asset management has transformed various industries in terms of managing assets economically, improving reliability and, most importantly, ensuring safety (Lima et al. 2021). One could argue that these aspects are also crucial for the healthcare industry, which is the topic of the present paper. ...
... Asset management is becoming an increasingly important field of research (Maletič et al. 2020;Lima et al. 2021;Sandu et al. 2022;Maletič et al. 2023). There is a growing body of scientific evidence on the positive impact of asset management on business performance (Lima et al. 2021), operational performance (Maletič et al. 2020;Alsyouf et al. 2021) and sustainability performance (Maletič et al. 2018;Sandu et al. 2022). ...
Purpose: For decades, attention has been paid to standardized management systems, both in academia and in practice. This study focuses on an asset management system (AMS), specifically the key critical success factors (CSFs) for implementing an AMS in healthcare organizations. Methodology/Approach: The study is based on a Delphi method with 15 participants from various Slovenian healthcare organisations who validated and defined the most important CSFs. Findings: The study shows a strong consensus among the experts with regard to specific CSFs in the areas of management and leadership, employee competencies and methods and tools for process improvement. Research Limitation/Implication: The Delphi study method is based on a selected sample of experts, which could have an impact on the generalizability and replicability of the research. Originality/Value of paper: This study provides a better understanding of CSFs for the implementation of AMS based on the opinion and consensus of experts holding different positions and professions in healthcare. As this topic has received little attention in healthcare research and practice, this study serves as a preliminary study to stimulate future work in this under-researched area.
... It is important to consider the need for such a decision before making a downsizing decision. Lima, McMahon, and Costa (2021) measured asset reduction using a disposal strategy. A study by Kuntze, Wu, Wooldridge, and Whang (2019) used modernization as an indicator of asset reduction. ...
... Ogunbayo, Ohis Aigbavboa, Thwala, and Akinradewo (2022) centered on replacement as a way of reducing assets. In the current study, asset reduction was measured using disposal, modernization, and replacement as described by Lima et al. (2021), Kuntze et al. (2019), and Ogunbayo et al. (2022). ...
... The study finding is similar to results of Morrow Jr, Johnson, and Busenitz (2014) who established asset reduction has a significant effect on firm performance in an environment of increasing and decreasing competition. The findings are similar to those of Lima, McMahon, and Costa (2021), and Kuntze, Wu, Wooldridge, and Whang (2019) study findings which showed a substantial link between asset reduction and growth of enterprise. has adopted the use of modern technology and this has affected its growth (man of 4.05) with little variation (standard deviation of 1.13). ...
Purpose: The primary aim of the study was to establish the effect of asset reduction on growth of small enterprises in Busia County, Kenya. Methodology: Descriptive and explanatory research designs were used in the study. The research targeted 220 management employees of licensed small enterprises operating in Busia County in Kenya. A census was carried out on all management employees in the department because the number was small. Therefore, all 220 management employees of licensed small enterprises operating in Busia County were included in this study. The drop-and-pick method was used by the investigator to manage the surveys. The research collected primary data using a structured questionnaire. The study supervisor reviewed the instrument and suggested any required changes to ensure content validity. Reliability was evaluated using Cronbach alpha, the author evaluated the trustworthiness of the data tools. Descriptive and inferential statistics were generated. Data was captured using tables. Results: Regression of coefficients showed that there is a positive and significant effect of asset reduction and growth of small enterprises. Conclusion: The study recommended that small enterprises should do replacement of long-term assets since this will enhance their growth. Further, Small enterprises should ensure they often modernize their assets since this enhances the small enterprises' internal operation efficiency and growth. However, firms should not concentrate on disposal of assets since it plays no role in firm growth.
... According to the asset management standard ISO 55000, assets are items, things and entities that have value or potential value for the organization (ISO 55000, 2014). In this regard, companies seek to maximize the value of their assets by investing efficiently in asset management to achieve a better return for their company (Lima et al., 2021;Maletič et al., 2018). This can be achieved by focusing on costs, risks, and performance and optimizing them throughout the asset life cycle (Maletič et al., 2020). ...
... In addition, strategy is often seen in the literature as an important driver of digital transformation (Stentoft et al., 2021). Similarly, asset management strategy ensures the alignment of asset management processes with the strategic goals of the organization in order to achieve business objectives (Lima et al., 2021). Since digital transformation should be aligned with the broader business strategy, it is important that the asset management strategy reflects the digital transformation goals of the business. ...
... Although the asset management industry can benefit from advances in digital technology, this task would be rather difficult to implement without a clear strategy and focus on establishing an asset management system and processes. The main task of asset management is to preserve the value of assets in order to achieve business objectives (Lima et al., 2021). However, misalignment of business and asset management objectives prevents the organization from realizing the value of assets at the desired level. ...
... E os KPIs são essenciais para qualquer negócio, porque permitem gerenciar o desempenho e melhorar os processos para alcançar o sucesso das estratégias organizacionais. Sendo que os indicadores adequados variam conforme o ciclo de vida dos negócios, o ambiente competitivo em que estão inseridos, as estratégias e muitos outros fatores (Lima, McMahon & Costa, 2021 ...
... Para esses autores, o processo de avaliação é um impulsionador de mudanças na educação quando baseada em indicadores de gestão, considerando que permite promover uma visão macro mercadológica das finalidades acadêmicas. Lima et al. (2021), fizeram um levantamento dos artigos mais citados sobre indicadores de desempenho e concluiu que a dimensão mais utilizada entre os modelos analisados foi a financeira/lucratividade (100%), seguida da satisfação do consumidor (78%), qualidade de produtos e serviços (78%), flexibilidade (56%), desempenho do funcionário (44%) e produtividade (39%). ...
Objetivo: Objetivou-se criar um sistema de mensuração do processo de reformulação do plano de trabalho e do plano de aplicação dos recursos financeiros dos projetos acadêmicos da UFRN. Metodologia/abordagem: Trata-se de uma pesquisa exploratória e descritiva, com abordagem qualitativa, utilizando-se como procedimento técnico a pesquisa-ação, na qual foram adotadas oficinas, análise documental, observação participante e análise de conteúdo. Originalidade/relevância: A organização pública deve gerir seus processos, promovendo mais eficiência, eficácia e agilidade, para que possa oferecer melhor retorno aos stakeholders, contribuindo para o cumprimento de seus objetivos organizacionais. Principais resultados: Foi realizada uma modelagem do processo de reformulação (as-is), resultando na proposição de cinco indicadores-chave de desempenho. Durante a discussão sobre os indicadores, algumas melhorias, que darão maior eficiência ao processo, foram identificadas e já implementadas. A transformação dos processos ficou evidente, antes mesmo da implementação dos indicadores, permitindo melhor prestação de serviços e maior alinhamento aos objetivos organizacionais. Contribuições teóricas: O estudo demonstra como a criação colaborativa de sistemas de mensuração e indicadores de desempenho pode melhorar processos em instituições públicas. A aplicação do BPMN e a ação participativa reforçam a importância da modelagem para a eficiência e alinhamento organizacional. Contribuições para a gestão: O estudo mostra como a implementação de indicadores melhora a eficiência, reduz o retrabalho e aumenta a produtividade. Ao promover processos mais claros e menos burocráticos, o estudo contribui para maior satisfação dos usuários e comprometimento dos funcionários na gestão pública.
... Desde finales del siglo pasado, cambios como la globalización, los avances tecnológicos y el aumento de la competencia han impulsado a las empresas a actualizar sus procesos de gestión para mejorar la productividad y competitividad. La maximización del uso de los activos y la reducción de costos se han convertido en factores clave en la producción de bienes y servicios, estableciendo nuevos estándares de competitividad y calidad (Lima et al., 2020;Syed y Lawryshyn, 2020;Torres Farinha, 2025). ...
... La norma ISO 55 000 generaliza y mejora los elementos específicos del estándar PAS 55, con beneficios como el alineamiento de la visión, mejores resultados financieros, administración del riesgo, servicios y productos, cumplimiento con la responsabilidad social y corporativa, demostración del cumplimiento regulatorio, mejor reputación y sostenibilidad organizacional (Lima et al., 2020). Metodologías de diagnóstico como PAS 55 Assessment Methodology (PAM) y Self-Assessment Methodology (SAM) (IAM, 2015), definidas en base a la PAS 55 y la ISO 55 000, respectivamente, mejoran y garantizan el ...
Actualmente, las empresas buscan gestionar sus activos de manera sostenible y optimizada para alinearse con los objetivos organizacionales, reconociendo la importancia de la Gestión del Mantenimiento. El objetivo de la investigación es evaluar el nivel de contribución de la Gestión del Mantenimiento a la GA física en el aeropuerto internacional objeto de estudio, según la norma EN 16646:2014. Esta investigación evalúa la contribución de la Gestión del Mantenimiento a la Gestión de Activos Físicos en un aeropuerto internacional, tomando como base la norma EN 16 646:2014. En la investigación se emplea un procedimiento que incluye un diagnóstico de la Gestión del Mantenimiento conforme a dicha norma, para detectar problemas que afectan el desempeño y proponer mejoras. El diagnóstico reveló una valoración de "Bien" en el Indicador de Contribución de la Gestión del Mantenimiento a la Gestión de Activos, identificando dificultades esenciales que tributan a liderar el proceso de perfeccionamiento.
... In this context, asset management not only includes physical management but also integrates assets into the transformation of the work ecosystem. By applying good asset governance, organizations can optimize the use of assets to support their strategic objectives (Lima, E. S., et al., 2021). Therefore, effective asset management becomes key to improving efficiency and competitiveness in an increasingly complex and dynamic environment. ...
... Three flagship programs related to assets are the Residential Area Arrangement, Office Area Arrangement, and Office Identity Standardization. These three programs are relevant to asset use strategies, both for optimization purposes (Kaganova, O., 2006) and for organizational transformation (Lima, E. S., et al., 2021). highlighting that the assets entrusted to us are one aspect that requires serious attention. ...
This article discusses the management of state-owned assets (BMN) in Indonesia, focusing on the strategies of the Ministry of Finance in optimizing asset use, managing office and residential areas, and establishing a corporate identity. The COVID-19 pandemic has prompted the Ministry of Finance to optimize the use of BMN by transforming the workspace from a cubicle model to an open space using the Activity Based Workplace (ABW) concept. This program aims to increase the effectiveness and efficiency of BMN management and create a more collaborative and productive work environment. In addition, the Ministry of Finance is also striving to meet the housing needs of Civil Servants (ASN) by building and renovating official houses and collaborating with various parties to provide decent housing. The enforcement of corporate identity through the standardization of BMN artefacts is expected to foster a sense of ownership of the organization, form a positive perception, nurture employee loyalty, foster spirit, and increase work productivity.
... Alongside this, incorporates the management of raw materials, components, and final assembled products, and also the warehousing and processing of these components. Continuous governing of inventory/resources has significant effects on company performance (Fung, 2020;Lima et al., 2021;Lindberg et al., 2015;Scafà et al., 2019) Buyer satisfaction indicates the fulfillment that they derive from doing business with a leather products company. Buyer satisfaction is crucial as it helps companies understand what they need to do to retain buyers for long-term business growth. ...
... With more people spending more time on social media due to COVID-19, brands need to use social media to connect with buyers. The user experience has to be smooth, and the navigation easy in websites so that buyers can find whatever they need within a few clicks (Lima et al., 2021;Pinna et al., 2018) F 15 Digital marketing during COVID-19 ...
The execution of constructive Key Performance Indicators (KPIs) is a critical tool for the Performance Management (PM) of the manufacturing industry to regulate operations. The companies rely on the PM strategies grounded on conventional KPIs assessment to achieve sustainability although the current dynamic manufacturing environment is undergoing complexities. The KPIs used in the past for PM are not mutually dependent, as they have not been adequately measured and updated to address emergency situations like the COVID-19 pandemic, particularly for the Leather Products Industry (LPI). Monitoring of plentiful KPIs is inconceivable and literature is also not available. Realizing these gaps, this study accumulates suggestions from a wide-ranging context of 25 experts’ feedback. Initially, a set of KPI was identified through literature review and experts survey. Later, employing a Pareto analysis, 15 KPIs were identified from 48 KPIs. Then the finalized KPIs investigated utilizing linguistic Z-digits and Decision-Making Trial and Evaluation Laboratory (DEMATEL) to find the “Cause-Effect” relationship. An industrial chronology is conferred to demonstrate the potency and functionality of the suggested method. The upshot signifies the “Target fulfillment within the delivery time during COVID-19” as the most important KPI for the studied case. The outcomes will assist the LPI managers to dictate crucial KPIs suitably and flourish the PM in attaining the goals and objectives.
... In China, nearly 40% of industrial internet platforms focus on applications and solutions for equipment management. Through the interconnection of machines, processes, and people, the efficiency of equipment maintenance is improved, and the networked collaborative evolution of various production factors and business processes closely related to equipment assets is further realized [4][5]. ...
... Since complex equipment usually has high add-value [5], the initial ecosystem for O&M services will gradually form around the value chain of equipment, involving the equipment owners (factories/enterprises), equipment manufacturers, module suppliers, material suppliers, service providers, etc. Besides, based on industrial internet platforms and technologies, many outstanding solution providers for equipment operation and maintenance have emerged, such as Siemens MindSphere, GE Predix, SANY ROOTCLOUD, etc. However, there is a wide variety of heterogeneous equipment, maintenance resources, and O&M businesses in different factories and industries [6][7]. ...
The traditional model of industrial equipment operation and maintenance has changed with the development of industrial internet technologies such as edge computing, cloud-edge collaboration, big data, artificial intelligence, digital twins, etc. Meanwhile, researchers are beginning to focus on the range of influence of equipment asset reliability, which is shifting from local performance to organizational goals. The networked collaborative evolution of equipment assets and value chain management is becoming the core value proposition of industrial internet platforms. From the perspective of system architecture, this paper discusses a novel industrial equipment maintenance support system based on the industrial internet platform, detailing the design of the resource and edge layer, cloud platform layer, big data governance and service layer, modeling and simulation layer, information model and collaboration layer, and organization, business, and service layer. The proposed system architecture and solution are expected to provide possible guidance for group-type enterprises and cross-industry service providers to help them innovate equipment asset management solutions based on the industrial internet platform.
... Indications of the decline of business performance encouraged the authors to conduct deeper research on the factors that determine the MSMEs performance. Previous studies measured MSMEs performance and the success or business growth in term of profitability/finance, number of employee, and the return of capital and investment (Man et al., 2002;Simpson et al., 2012), as well as consumer satisfaction, employees' compensation, quality, depreciation, competitiveness, and the operational costs (Lima et al., 2021;Wright et al., 2005). This research measured the MSMEs performance by their profitability, productivity, and customer satisfaction. ...
... Each variable of this research was measured using a Likert scale ranging from 1-5 (disagree -strongly agree), both ordinal and nominal. The dependent variable was MSME performance (MP) containing the indicators of profitability, productivity, and customer satisfaction (Akintimehin et al., 2019;Anggadwita & Mustafid, 2014;Lima et al., 2021), as many as 10 questions were provided in each instrument. The author also classified the variable into "Good" criteria if the average score of MSME performance =1 and "Poor" if =0. ...
Improving MSME (Micro, Small, and Medium Enterprises) performance is essential for business owners to increase their income and welfare. However, recently, the company’s performance tend to decrease, particularly among MSMEs’ businesses, resulting in a significant reduction in the country or region’s the economy and household income. Based on that reason, this research was conducted to examine the impact of social capital, location, and control variables on the MSMEs performance. Using the incidental sampling technique, the authors collected data from as many as 131 samples located and opened a business in North Tangerang. The distributed instrument has been initially checked for its validity and reliability. Multiple regression was employed to analyze the data. The finding showed that social capital and location significantly determined the improvement of MSME performance. The greater the accumulation of social capital and precision of business location, the greater the company’s performance. These findings contribute to providing important information considering social capital and location as determinant factors for future policies and business plans.
... To achieve this issue, power generating plant owners often engage external maintenance service providers who possess specialized knowledge and expertise in the maintenance of power plant equipment. The evaluation of maintenance service providers is a critical process for power generating plant owners to select the most suitable and competent partners to fulfill their maintenance requirements [3]. This evaluation process involves assessing various aspects of the service providers, including their technical capabilities, experience, track record, and adherence to industry standards and regulations. ...
... Asset management, within the framework of public organizations such as central and regional governments, is basically one component of government financial management (Lima et al., 2021;Tjondro & Permata, 2019). An effective and efficient asset management system is a determining factor in the success of government financial management (Barus & Guchi, 2023;Hughes et al., 2013;Putri & Aswar, 2022). ...
The objectives of this research are: 1) to analyze and evaluate the management of official vehicle fixed assets in Riau Islands Provincial Government; 2) to examine the internal and external factors influencing the management of these assets; and 3) to develop strategies for improving the management of official vehicle fixed assets in Riau Islands Provincial Government. The selected respondents were the user goods managers or assistant goods managers in regional apparatuses responsible for carrying out the administrative functions of regional property management (BMD) at the goods management level. In addition, policymakers in the Inspectorate and the Regional Financial and Asset Management Agency (BPKAD) of Riau Islands Province were the respondents to formulate policy strategies. The gap analysis results were divided into planning, implementation, as well as supervision and control. The highest gap in planning was presented in the Regional Government Budget Proposal (RKMBD), the availability of regional property in the user environment, and the preparation of proposals for the disposal of regional property, with a gap score of 0,11-0,15. Furthermore, the highest gap in implementation is in the range of 0,59-1,63. The issues with the highest gap are shown in the variables of using official vehicles for non-official purposes, ownership of official vehicles that do not comply with regulations, and the administration of borrowing official vehicles. The supervision and control section variables show gaps in user monitoring with a gap score of 0,07. Identifying critical external and internal factors is the initial step in formulating alternative strategies to address the existing issues in the SWOT analysis input process. In the internal factor analysis, policies supporting the management of official vehicles by Riau Islands Provincial Government received the highest score. In contrast, the weakness factor, namely the lack of a sustainable official vehicle monitoring system, received the lowest score. According to the analysis, the external factor (opportunities) received the highest score, followed by the increased accessibility of vehicle monitoring technology and the sanctions imposed by BPKAD on regional apparatuses that fail to reconcile assets. The external factor (threats) received the highest score, followed by the low compliance of regional apparatuses with applicable regulations.
... Additional, easier methods include the direct documentation of the state of the road asset over time. Various methods exist for representing performance, including the percentile of the condition level, impacts on users, safety levels, environmental consequences, and economic considerations pertaining to the road network (Lima, McMahon, & Costa, 2021). ...
Road assets stakeholders especially the public and road users do have a vested interest in road assets maintenance and standards, as poor road conditions can lead to fatalities, vehicle damage, increased fuel costs, and job loss. Latest ranking of Kenya's road quality as assessed by World Economic Forum's road quality indictors survey-in 2019 stood at 4.1 with a decline in trend from 2017 clearly demonstrating the reducing road assets maintenance resulting in high vehicle operating costs and restraining socioeconomic growth. If the current situation on road asset maintenance is not addressed, it will be difficult for Kenya to achieve SDG 11.2 and the Kenya Vision 2030; therefore, a study on the performance of road agencies in Kenya charged with road asset maintenance is crucial. This research intends to bridge the existing gaps by establishing the nexus between road assets maintenance, and regulatory framework on the performance of Kenyan road agencies. The study objective was to examine the moderating effect of regulatory framework on the relationship between road assets maintenance and the performance of road agencies in Kenya. The study was guided by Administrative management theory, The Public Interest Theory of Regulation and the Agency theory. Positivism research philosophy and cross-sectional research design was used. The study target population comprised of the five road agencies in Kenya. The unit of observation comprised of 251 staff from the five road agencies in Kenya. The data was collected using self-administered questionnaires and used SPSS version 26 for diagnostic tests, descriptive, and regression analysis. The correlation analysis results showed that there is moderate positive and significant correlation (=0.594, p<0.05) between Regulatory Framework and performance of road agency. Result of test of higher order unconditional interaction(s) to estimate the contribution of regulatory framework showed that Change in R-Square was 0.0065, p=0.02645. These results implied that the proportion of total variation in the outcome attributable to the interaction is 6.5%, that is interaction between road assets maintenance and regulatory framework would contribute 6.5% significant variation on performance of road agencies in Kenya. The paper proposes that the Kenya Road Board should enhance its regulatory framework for road agencies in Kenya. It is advisable that the Kenya Roads Board (KRB) should contemplate the adoption of a complete and integrated regulatory policy approach in order to augment the efficacy of road sub-sector regulation. The successful attainment and execution of this goal need an inclusive and collaborative strategy that engages relevant players in the field of transportation, including prominent entities like the World Bank, Africa Development Bank, International Monetary Fund (IMF), and International Finance Corporation (IFC).
... Another reason is that good asset management in maturity improves business performance. It is, therefore, imperative for asset-intensive organizations that aim to be competitive and sustainable to manage their assets following asset management best practices [22]. ...
... Another factor that affects firm value is asset management. Asset management is an agent policy to manage assets effectively and efficiently (Lima et al., 2020). Asset management aims to optimally utilize assets to improve firm performance (Bates et al., 2009;Isshaq et al., 2009;Le, 2019). ...
Purpose: This study aims to explain the effect of investment policy, funding policy, and asset management on firm value. The theory used to explain the relationship between variables in the research model is agency theory.Method: Data was collected from 65 samples of mining sector companies listed on the Indonesia Stock Exchange between 2015 and 2019. Using panel data, this study used panel regression analysis to explain the relationship between variables.Findings: The test results indicate that investment policy and funding policy do not affect firm value. Asset management has a significant positive effect. The effect of asset management on firm value also confirms agency theory.Originality/ValueThis study used a research sample of mining sector companies for the 2015-2019 period which faced pressure in the form of falling demand for Indonesian mining commodities in the world market and issues of environmental damage. The financial condition of the mining sector in the research period generally experienced financial difficulties due to these pressures.
... Asset management is a collection of disciplines, methods, procedures, and tools to optimize the overall business impact on costs, performance, and risks that arise (related to availability, efficiency, service life and safety regulations, or compliance with environmental regulations) of the company's physical assets (Lima et al., 2021;Maletič et al., 2023;Petchrompo & Parlikad, 2019). ...
Assets are the component with the greatest value and wealth that is vital for the running of an organization, whether in a government or private company. Researchers will focus this research on the Manpower and Transmigration Service of PALI Regency and how fixed asset management works. whether the implementation of asset management is in accordance with established regulations. So far, management of regional inventory items has been carried out on the basis of the provisions of Minister of Home Affairs Regulation Number 7 of 1997 as the main regulations for regional government inventory regulations. The aim of this research is to understand how fixed asset management at the PALI Regency Manpower and Transmigration Service works. This research uses qualitative research methods with an emphasis on Doli D. Siregar's theory of asset indicators, namely: asset inventory, legal audit, asset assessment, asset optimization, and asset monitoring and control. In selecting informants, researchers used purposive. The techniques used by researchers in collecting data are interviews, observation, and documentation studies. The conclusion from the results of this research shows that fixed asset management at the Manpower and Transmigration Department is not running well. This is because there is still a lack of human resources in the field of asset management, one of whose tasks is to inventory assets, and the large number of assets makes asset managers overwhelmed.
... In every organization, learning occurs at various levels, such as individual, group, and organizational levels. Although individuals and organizational teams or groups are spontaneous representatives from whom organizational learning originates, organizational learning specifically focuses on learning at the systems level (Lima et al., 2021). Learning at the systems level goes beyond the sum of the knowledge and learning of employees and occurs when organizations merge, thus establishing the rational and intelligent force of individuals and embedding learning in their memory, culture, educational systems, and current affairs, making it visible as a competitive principle. ...
Objective: The objective of this research was to model the reduction of barriers to the establishment of learning organizations at Al-Qadisiyah and Kufa Universities in Iraq. Methodology: The current study is an applied research and utilizes a mixed-methods (qualitative-quantitative) approach. The research population consists of 12 experts whose opinions were used to identify the effects in the qualitative part, and the population for modeling included a group of faculty members from Al-Qadisiyah and Kufa Universities. The precise sample size of 91 individuals was obtained using Cochran's formula. The sampling method employed in this research was simple random sampling. The modeling of the effects of reducing barriers to creating learning organizations was initially identified using the Delphi technique, and then modeled and ranked using structural equation modeling and confirmatory factor analysis. Findings: The research results demonstrated that the model of the effects of reducing barriers to creating learning organizations is underpinned by 10 causal conditions, 5 contextual conditions, 4 intervening factors, and 6 strategies, resulting in 6 major outcomes for the universities of Al-Qadisiyah and Kufa, Iraq, which include: development of organizational learning in universities, organizational outcomes, collective experiential learning, social learning, knowledge enhancement, and organizational entrepreneurship. Conclusion: As the results indicate, communications play a crucial role in reducing barriers, being one of the most important causal conditions in this area. As it is evident, communication refers to all the means of connection among employees within Al-Qadisiyah and Kufa universities. Having internal communications will ensure that the cycle of knowledge and learning flows within the organization in an orderly manner. Possessing a wide array of communication tools such as telephones, email, the internet, and clear verbal communications between employees and various organizational departments is a pathway to reducing learning barriers.
... In the literature, audits have successfully been applied to measure different features, components, and tasks related to the asset management field (Roda & Macchi, 2018;Parra Márquez, et al., 2020a;Parra Márquez, et al., 2020b). They have also improved at all organizational levels the understanding of the profit behind the usage of these tools which can achieve a great impact on the business (Lima, McMahon, & Seixas Costa, 2020). On the other hand, it is well-known that the consequence of poor maintenance can end up in process failures, life risks of assets, and so on. ...
Currently, the optimization process in the maintenance management has been treated as a critical issue by the industry. The proposed work focuses on maintenance model diagnosis, the process aims to detect positive practices and highly possible future improvements in the models. In order to carry out the diagnostic, a systematic process is performed over the maintenance model employed through the usage of AMORMS (Asset Management, Operational Reliability & Maintenance Survey). The study case presented in this work was carried out over a pulp mill from Chile, which has an annual production over 1 million tons. Regarding the overall analysis output, several issues were illustrated in order to reach a world level performance. Thus, the employment of such instruments aims to detect key issues in urgent need to be fixed, helping in successfully designing a fitted model to be competitive and reach higher productivity.
... Zhang Y believes that the key to improving the key to the comprehensive ability of the enterprise lies in the matching between the enterprise and the environmental information [12]. Lima E S et al. proposed an AMBP model by constructing the relational mapping between AM key processes, APIs and KPIs to analyze the results of case studies in different sectors to improve organizational performance in asset-intensive organizations [13]. Carnes C M et al. investigated the joint effect of synchronization of resource preparation with the theory of behavior of the firm using innovative strategies in different performance conditions and analyzed its application in firms exploiting resource advantages and market opportunities as well as in low-performing firms Companies that use entrepreneurial leverage strategies have an applied effect and can improve the innovation results of all utilized strategies [14]. ...
In this paper, after analyzing the VAR model, we design the Gram causality test between human resource management and enterprise performance and establish a structural equation combining multiple regression and factor analysis to explore the interrelationship between the two, in addition to evaluating enterprise performance based on mutation theory. In order to study the relationship between human resource management and enterprise performance, assumptions are made about the relationship between the two, a conceptual model of the role path relationship between human resource management and enterprise performance is established, and the proposed assumptions are empirically analyzed based on the existing literature and actual data. The results show that the coefficient of HR practices is 10.048343, which is significant at the 0.0031 level, and the goodness of fit is 0.403881, and HR practices do have a relatively significant impact on business performance, and the marginal impact is 10.048343, which indicates that HR practices significantly amplify business performance. This study confirms that human resource management is positively correlated with firm performance and that firms can optimize their human resource management strategies, which in turn will enhance their performance and provide impetus for their progress and development.
... Business Performance is related to the overall performance of the company as a result of new efforts or better efforts to gain profits and growth (Mustikowati & Tysari, 2014;Rofaida et al., 2019). Business Performance is an important part of reviewing the overall business and determining how the business can achieve its goals better (Lima et al., 2021;Maletič et al., 2023). The definition of Business Performance includes effectiveness such as value delivered to customers, sales level, profit level, and market breadth, representing the company's Business Performance (de la Cruz et al., 2018;EstradaCruz et al., 2019). ...
Micro, Small, and Medium Enterprises (MSMEs) are one of the popular economy sectors that play an important role in advancing Indonesia's economy. The high number of MSMEs in Indonesia certainly increases the competition among MSMEs. Thus, to survive, MSMEs need continuous improvement in their Business Performance. This study aims to analyze the antecedents of competitive advantage and their consequences for business performance moderated by live streaming commerce. The method of writing scientific articles is by using qualitative methods and literature studies or library research. Reviewing theories and reviewing literature books that are in accordance with the theories discussed. The results of this study indicate that Entrepreneurial marketing has a positive and significant effect on business performance. E-commerce adoption has a positive and significant effect on business performance. Entrepreneurial marketing has a positive and significant impact on competitive advantage. E-commerce adoption has a positive and significant effect on competitive advantage. Competitive advantage has a positive and significant effect on business performance. Live streaming commerce moderates the influence of entrepreneurial marketing on business performance. Live streaming commerce moderates the effect of e-commerce adoption on business performance. Competitive advantage mediates the effect of entrepreneurial marketing on business performance. Competitive advantage mediates the effect of e-commerce adoption on business performance.
... The findings of this study are shown in Yuen et al. (2019) sustainable shipping management sustainable shipping management has a positive effect on business performance Singh et al. (2019) top management commitment, organizational practices, peer government pressure, green supply chain management, government support top management commitment, organizational practices, peer government pressure, green supply chain management, and government support have positive effects on business performance Wang & Chen (2020) CEO personality CEO personality impacts business performance Garg et al. (2020) social media analytic practices social media analytic practices have a positive effect on business performance Guo et al. (2020) firms' R&D spending, relationship duration with major clients, relationship duration with major suppliers, relationship with government firms' R&D spending, relationship duration with major clients, relationship duration with major suppliers, and relationship with government have positive effects on business performance Tajeddini et al. (2020) entrepreneurial orientation entrepreneurial orientation has a positive effect on business performance Zimmermann et al. (2020) innovation capabilities innovation capabilities have a positive effect on business performance Lima et al. (2021) asset management asset management impacts business performance Bai et al. (2021) business relationships business relationships have a positive effect on business performance Guisado-González et al. ...
Business performance, in general, consists of two components: financial performance and non-financial performance, and it is critical to control and combine the two types of performance for start-up development. Financial performance refers to firm performance that can be measured in terms of money value and financial operations, whereas non-financial performance refers to firm performance that cannot be measured in terms of money value, such as brand reputation, customer satisfaction, organizational performance, and innovation activities. The purpose of this study was to determine the variables related to business performance. This research is a literature study, which uses 20 articles as study material. The results of this study indicate the variables related to business performance. This study did not find business performance used as a moderating variable, which can be used as research material in the future.
... Under the support of financial information technology platform, the practice of enterprise financial refinement management mode can effectively save transaction costs, but the financial information technology platform is actually a dedicated asset of the enterprise, so there is a risk of loss of asset dedication in the investment and construction, which provides the conditions for the generation of sunk costs [4][5][6]. If the effectiveness of financial refinement management is blindly pursued without regard to the generation of sunk costs, then the output-input ratio of financial refinement management will be significantly reduced in the end [7][8]. Financial refinement management is the core of refinement management, the management of decomposition, through the internal of the enterprise, combined with their own situation for fine budgeting, accurate cost control, and accurate decision-making, thereby improving the management level, to achieve greater economic benefits for the enterprise, to promote the healthy and sustainable development of small and medium-sized enterprises [9][10]. ...
In the background of economic informationization, the integration and development of enterprise refinement management and financial integration have become the mainstream management direction of modern enterprise management. In this paper, the correlation function and judgment matrix are firstly determined by the entropy-weighted elementary topologizable evaluation model, while the initial judgment matrix V is standardized, and the differences in the correlation degree of indicators of different natures should be noted. The entropy power method is applied to calculate the change of relevant evaluation indexes, and the value of information utility in the evaluation system is determined through the change of entropy value. Then the initial data are obtained by means of questionnaires, and data analysis is performed on the first-level indicators in the evaluation system of enterprise financial management capability. The results show that the three indicators of financial risk control capability, financial management informationization level and financial personnel capability, and total budget management level have more room for improvement, but the score of financial risk control capability is only 5.04 points different from the total score, indicating that the specific situation of the enterprise itself for specific analysis. This study improves the level of financial management of enterprises and promotes their development of enterprises.
... In this context, physical asset management assumes great importance, even having been recently considered to be one of the most important sources of competitive advantage for organizations [6]. They seek to improve the value of their assets by investing in asset management in order to obtain better returns for their business [7]. ...
Organizations are increasingly concerned with new strategic guidelines and ways of managing physical assets to improve their competitiveness and sustainability. In this paper, we analyze the determinants of the economic management of physical assets in the specific case of a public passenger transport company located in one of the main cities of Portugal. Based on the case under analysis, it was possible to conclude that the economic management of physical assets is oriented by relevant indicators, including, for example, expenses associated with acquisition, maintenance, and operation. This paper provides a relevant contribution to monitoring and evaluating the life cycle of equipment, enabling more efficient and effective management of these physical assets for transport companies. We are convinced that the valuable results presented in this paper can open up new research avenues in the area of physical asset management.
... Assets are critical for organization to ensure that the products and services give value to their stakeholders (Lima and Costa 2019). The effective management of the asset is required to achieve this objective (Lima et al. 2021). Asset management aims to realize the expected performance from all types of assets, hence helps the organization to get the most out of value from its assets (Janet et al. 2022). ...
... In contrast, business performance is mainly viewed through the lens of revenues and profits made by the business. Effectively, business performance refers to the achievement of optimal efficiency concerning costs and revenues (Lima, McMahon & Costa, 2021). Good performance is characterized by less inputs and more output and vice versa (Pathiranage, 2019). ...
Over years, internal auditors’ roles are changing from checking compliance issues to giving a strategic view of the organization processes. Internal auditors play noble role in evaluating the anticipated level of success of a project. This research sought to establish how risk management, business controls, governance and business advisory contribute to business resilience in Geothermal Development Company Limited. The study was anchored on the balanced score card, strategic choice theory, transient advantage theory, the strategic management theory, complexity theory and the normal accident theory. The study focused on 3 GDC operation regions with a target population of 200 staff based in the office and in the field. The research study used primary data collection method employing a semi-structured questionnaire. Post collecting data, descriptive and inferential statistics were employed in the analysis. Correlation and regression analysis was conducted to establish the relationships between the variables. The presentation of results was through tables and figures. The study found that risk management had a positive and significant effect on business resilience of GDC; business advisory had a positive and significant effect on business resilience of GDC; internal controls had a positive and significant effect on business resilience of GDC; and governance had a positive and significant effect on business resilience of GDC. The study concluded that the internal audits positively and significantly influenced business resilience of GDC. From the study, internal audit plays a critical role in enhancing business resilience at GDC through effective risk management, robust governance, and reliable internal business controls. The study recommended organizations to place internal audit functions at strategic hierarchical positions as well as implement its recommendations. To bolster business resilience at GDC, it is recommended the company strengthen risk management practices, enhance governance structures, and improve internal business controls. Investing in internal audit capacity building and expanding business advisory services can further optimize the internal audit function. Additionally, GDC should consider benchmarking and collaborating with peer organizations to identify areas for improvement and share best practices within the power sector. Keywords: Internal Audits, GDC, risk management, business advisory, business controls, governance, business resilience
... In the literature, audits have successfully been applied to measure different features, components, and tasks related to the asset management field (Roda & Macchi, 2018;Parra Márquez, et al., 2020a;Parra Márquez, et al., 2020b). They have also improved at all organizational levels the understanding of the profit behind the usage of these tools which can achieve a great impact on the business (Lima, McMahon, & Seixas Costa, 2020). On the other hand, it is well-known that the consequence of poor maintenance can end up in process failures, life risks of assets, and so on. ...
Currently, the optimization process in the maintenance management has been treated as a critical issue by the industry. The proposed work focuses on maintenance model diagnosis, the process aims to detect positive practices and highly possible future improvements in the models. In order to carry out the diagnostic, a systematic process is performed over the maintenance model employed through the usage of AMORMS (Asset Management, Operational Reliability & Maintenance Survey). The study case presented in this work was carried out over a pulp mill from Chile, which has an annual production over 1 million tons. Regarding the overall analysis output, several issues were illustrated in order to reach a world level performance. Thus, the employment of such instruments aims to detect key issues in urgent need to be fixed, helping in successfully designing a fitted model to be competitive and reach higher productivity.
... The WLC of engineered assets including its role within an organisational and competitive strategy comprises control and planning tasks to maintain a control process and a relationship with the strategy-making method where omitted or deficient elements of the model develop in undesirable effects on cost, productivity, quality and business achievements [1]. AM and business performance models support organisations to take improved decisions in infrastructure investments and bring better returns to the business by developing a relationship graph between AM systems, AM main processes and AM maturity models with Asset Performance Indicators (API) and Business Performance Indicators (KPIs) [2]. A Regulation-Oriented Model for Asset Management (AM-RoM) based on standards ISO 31000:2018 (guidelines to risk management) and ISO 55001:2014 (Asset Management) supports decisions based on compliance against regulatory framework [3]. ...
Smart or intelligent built assets including infrastructure, buildings, real estate, and cities provide enhanced functionality to their different users such as occupiers, passengers, consumers, patients, managers or operators. This enhanced functionality enabled by the Internet of Things (IoT), Artificial Intelligence (AI), Big Data, Mobile Apps, Virtual Reality (VR) and 5G does not only translate into a superior user experience; technology also supports sustainability and energy consumption to meet regulation (ESG, NZC) while optimising asset management and operations for enhanced business economic performance. The main peculiarity is that technology is standardised, ubiquitous and independent from the physical built assets whereas asset users including humans, machines and devices are also common to different assets. This article analyses the atomic differences between built assets and proposes an asset omni-management model based on micro-management of services that will support the macro-functionality of the asset. The proposed key concept is based on the standardisation of different assets based on common and specific functionality and services delivered by the technology stack that is supporting already the transition to Industry 5.0 based on Web 3.0 and Tokenisation.
... In the literature, audits have successfully been applied to measure different features, components, and tasks related to the asset management field (Roda & Macchi, 2018;Parra Márquez, et al., 2020a;Parra Márquez, et al., 2020b). They have also improved at all organizational levels the understanding of the profit behind the usage of these tools which can achieve a great impact on the business (Lima, McMahon, & Seixas Costa, 2020). On the other hand, it is well-known that the consequence of poor maintenance can end up in process failures, life risks of assets, and so on. ...
Currently, the optimization process in the maintenance management has been treated as a critical issue by the industry. The proposed work focuses on maintenance model diagnosis, the process aims to detect positive practices and highly possible future improvements in the models. In order to carry out the diagnostic , a systematic process is performed over the maintenance model employed through the usage of AMORMS (Asset Management, Operational Reliability & Maintenance Survey). The study case presented in this work was carried out over a pulp mill from Chile, which has an annual production over 1 million tons. Regarding the overall analysis output, several issues were illustrated in order to reach a world level performance. Thus, the employment of such instruments aims to detect key issues in urgent need to be fixed, helping in successfully designing a fitted model to be competitive and reach higher productivity.
... In the literature, audits have successfully been applied to measure different features, components, and tasks related to the asset management field (Roda & Macchi, 2018;Parra Márquez, et al., 2020a;Parra Márquez, et al., 2020b). They have also improved at all organizational levels the understanding of the profit behind the usage of these tools which can achieve a great impact on the business (Lima, McMahon, & Seixas Costa, 2020). On the other hand, it is well-known that the consequence of poor maintenance can end up in process failures, life risks of assets, and so on. ...
The identification of improvements, shortcomings, and potential failures applied to maintenance has taken relevant attention from the scientific community in recent years. In order to carry out timely diagnosis, the employment of methods to properly measure the reliability of industrial processes has been a trend. In this work, AMORMS and AMS-ISO 55001 are applied to a seawater desalination plant in order to measure and generate a proper improvement plan. In this context, AMORMS is a model based on 8 phases which aims at asset management. Also, AMS-ISO 55001 which is based on the asset management norm ISO55001. The results achieved include the design and generation of actions to tackle the 20% more deficient categories needed to achieve a competitive industrial performance.
... Asset information management is a critical part of facilities management (FM) that can directly impact the business performance of an organization (Lima et al. 2021). Taking a step back to evaluate the asset management system can help facility owners save time and money by reducing the time that is needed to find the information for a given work order. ...
Asset information management plays a critical role in the successful operation of facilities. However, current documentation and distribution of facility asset information are fragmented. As an example, usually, maintenance staff do not have access to visual asset information. Even in cases where sufficient data are captured, it is often not readily accessible in a useful form for maintenance workers. Therefore, it is crucial to assess the alignment of information collected and received by maintenance crews against their needs to identify gaps and develop a useful information management system. The main goal of this research is to develop a process for structuring, documenting, and distributing data starting from the construction stage and extending into later use in facility management (FM) and maintenance to support maintenance workers’ needs. This research aims to review the current process of data collection, storage, and distribution, as well as identify any gaps based on the needs of maintenance crews. First, a literature review was completed on FM data requirements. Afterward, a content analysis of common information management systems was conducted at a large institutional owner (The Pennsylvania State University). The information needs of maintenance staff were gathered through semi-structured interviews, assessing the alignment of the current asset management system with their needs. Finally, suggestions were made to enhance the current data collection and distribution system based on the existing gaps. Results and a structured approach can benefit both facility owners and maintenance crews by enhancing the information requirements and management process.
Purpose: This study examined organisational process assets management and sustainable growth of manufacturing companies in the South-South Geopolitical Zone of Nigeria. The study focused on the relationship between defect management process, financial management process, organisational policy, and sustainable growth of manufacturing companies. Methodology: The study adopted a descriptive survey with a sample size of 395 SME owners. A questionnaire was used as the instrument. The Pearson Product Moment Correlation (PPMC) was used to test the hypotheses. Findings: The findings revealed that there is a positive significant relationship between defect management processes and sustainable growth of manufacturing companies (r=0.132, p=0.000); there is a positive significant relationship between financial management processes and sustainable growth of manufacturing firms (r=0.110, p=0.000); and there is a positive significant relationship between organisational policy and sustainable growth of manufacturing firms (r=0.110, p=0.000). Unique Contribution to Theory, Practice, and Policy: It was recommended, among others, that manufacturing firms should incorporate defect management processes, financial management processes, and organisational policy into their strategic management processes.
This article explores the influence of the new regulations on the supply of commercial credit to enterprises and its mechanism based on the information of China's non-financial public corporations from 2015-2022, using the generalized difference model (GDD). The findings show that the new regulations on credit regulation have a remarkable effect on the supply of commercial credit by suppressing the financialization of firms, and the effectiveness is more prominent among firms with a greater degree of initial period of financialization. Mechanism tests indicate that reducing business risks and easing financing constraints are two important transmission paths of the new regulations on commercial credit supply. Further analysis shows that the policy effect is mainly reflected in the short-term credit and accounts receivable and notes receivable tools within one year, and significantly improves the performance of the main business of enterprises. The results verify the theoretical logic of financial regulatory policies to serve the real economy by optimizing resource allocation and reducing systemic risks, and provide new empirical evidence for understanding the interaction between financial supervision and micro-enterprise behavior. This paper has important implications for the regulatory authorities to optimize the policy framework and enterprises to adjust the capital allocation strategy, and the future research can be further extended to the long-term supply chain impact of regulatory synergies and commercial credit.
This study investigates the integration of customization and personalization approaches in aviation maintenance through Aviation Technical Support as a Service (ATSaaS) platform. Through a comprehensive survey of 86 small and medium-sized airlines, combined with mathematical modeling of fault detection systems, the study develops and validates a hybrid framework that integrates traditional maintenance approaches with AI-driven solutions. The comparative analysis demonstrates that the hybrid model significantly outperforms both pure customization and pure personalization approaches, achieving a 95% fault detection rate compared to 75% for customization-only and 88% for personalization-only models. The hybrid approach also showed superior performance in predictive maintenance effectiveness (96%), operational downtime reduction (92%), and cost optimization (90%). The research presents three architectural frameworks for ATSaaS implementation—customization-based, personalization-based, and hybrid—providing a structured approach for different airline categories. Large airlines, with their extensive technical expertise and complex operational requirements, benefit from enhancing their customized maintenance programs with personalization tools, improving overall maintenance efficiency by 23%. Simultaneously, smaller operators, often constrained by limited resources, can use ATSaaS platforms to access sophisticated maintenance capabilities without extensive in-house expertise, reducing operational costs by 35% compared to traditional approaches. The study concludes that the successful integration of customization and personalization through ATSaaS platforms represents a promising direction for optimizing aviation maintenance operations, supporting the industry’s movement toward data-driven, adaptive maintenance solutions.
นวัตกรรมกระบวนการบริการขององค์กรเป็นกระบวนการการสร้างสรรค์ใหม่ ๆ เพื่อความเป็นเลิศด้านการบริการ ในการส่งมอบสิ่งที่ดีที่สุดแก่ลูกค้าและนำพาองค์กรให้บรรลุผลตามเป้าหมายได้ ดังนั้นองค์กรควรตระหนักและมุ่งเน้นการพัฒนานวัตกรรมกระบวนการบริการขององค์กร บทความนี้นำเสนอแนวคิดปัจจัยเชิงสาเหตุและผลลัพธ์ของนวัตกรรมกระบวนการบริการ รวมทั้งปัจจัยแทรกที่มีอิทธิพลต่อความสัมพันธ์ โดยศึกษาและทบทวนวรรณกรรมจากแหล่งต่าง ๆ อาทิ ตำรา บทความวิจัย บทความวิชาการ เพื่อนำเสนอปัจจัยเชิงสาเหตุของนวัตกรรมกระบวนการบริการ ได้แก่ การจัดการองค์ความรู้ กรอบความคิดสร้างสรรค์ขององค์กร ความยืดหยุ่นในการปฏิบัติงานและภาวะผู้นำการเปลี่ยนแปลงสมัยใหม่ และผลลัพธ์ของนวัตกรรมกระบวนการบริการ เพื่อเป็นแนวทางในการศึกษาเชิงประจักษ์ในอนาคตและนำผลที่ได้จากการศึกษาไปประยุกต์ใช้ต่อไป
Medical organizations need to manage the reliability of assets used in healthcare, especially high-tech organizations where technical unavailability can impact the treatment process. The management of assets is not usually included in the architecture of medical information systems (MISs), and the EAM (Enterprise Asset Management) or IAM (Intelligent Asset Management) component is not considered important or included in high priority tasks. Although there is at least one solution, SAP® i.s.h.med® hospital information system, that contains a component to support the management of assets, this solution is not specifically adapted to the needs of a medical organization. In most medical organizations, the clinical process is primary, assets are serviced outside of the treatment process, and the process of managing assets is not described in the reliability management. Thus, the task of managing the reliability of assets is not clear and needs to be elaborated for the case of a medical organization. This article concentrates on asset reliability management strategies and discusses variant of EAM systems implementation in a medical organization.
This study aims to examine the role of individual creativity of employees in the relationship between the learning organization and business performance. Quantitative patterned research methods were used in the study. A survey method was used to collect first-hand data. The research sample consists of a group of 301 employees operating in various sectors and working in different positions in the province of Istanbul, Turkey. The questionnaire consists of appropriate scales to measure learning organization characteristics, individual creativity and business performance. Data analysis was carried out using statistical methods and regression analysis via SPSS 2.0 statistical program. Findings show that learning organization characteristics positively affect the individual creativity role of employees. In addition, it has been revealed that the individual creativity level of the employees has a positive relationship with the business performance. The mediating effect of the individual creativity variable in the relationship between the learning organization and the job performance has also been found. These findings highlight that the learning organization is an effective strategy in increasing business performance and that the individual creativity of employees is a critical factor in this process.
Conventional asset management is easily trapped in local optimization. This study integrates the maintenance strategic planning in the asset management scheme to minimize the annualized Total Cost of Ownership (TCO). Critical steps are considered in the proposed model including failure rate modeling, reliability modeling for preventive maintenance, and TCO modeling. Monte Carlo simulation and response surface methodology are used as an integrated solution approach for the proposed model. The case study in a cement manufacturing plant shows that the model delivers the desired optimization result. Sensitivity analysis is carried out in terms of equipment contribution, clinker price, and escalation rate. The developed model contributes to the optimum combination of preventive maintenance strategy and useful life which provides the minimum annualized TCO.
The current study contributes to the literature in efficiency analysis in two ways: 1) we build on the existing studies in Dynamic Network Data Envelopment Analysis (DNDEA) by proposing a sequential structure incorporating dual-role characteristics of the production factors; 2) we initiate the efforts to complement the proposal of our innovative sequential DNDEA through a behavioural-causal analysis. The proposal of this statistical analysis is very important considering it does not only validate the proposal of the efficiency analysis but also our practice can be generalized to the future studies dealing with designing innovative production process. Finally, we apply these two different analyses to the banking industry. Using a sample of 43 Chinese commercial banks including five different ownership types (state-owned, joint-stock, city, rural, and foreign banks) between 2010-2018, we find that the inefficiency level is around 0.14, although slight volatility has been observed. We find that the highest efficiency is dominated by state-owned banks, and although foreign banks are less efficient than joint-stock banks, they are more efficient than city banks. Finally, we find that rural banks have the highest inefficiency.
In this chapter, the authors present the theoretical basis and ways of practical realization of the implementation of sustainable energy management processes. Primarily, possibilities for the development of sustainable strategies and types of strategic implementation are presented. A special attention is drawn in this chapter to defining possible approaches to the implementation, which are selected by a company and for the most part depend on the activity type and corporate and organizational structure. A special segment of the chapter relates to the development of a team necessary for successful realization of the selected strategy of the sustainable energy development, which presents a huge change in every company. The fundamental implementation approaches, which a company can choose, are defined depending on the management style in the company. In this way, possibilities that are practically applicable in all companies are proposed. All phases of the process of sustainable energy management implementation are thoroughly covered.
Asset management has been gaining momentum in both academic and industry, but is it so distinct from other existing management philosophies? This research effort discusses the relation between asset and quality management, particularly for organizations managing (public) infrastructures, to highlight the similarities and differences between both and their role towards sustainable infrastructure development. The compatibility matrix developed demonstrates that, in conceptual terms, asset and quality management are highly similar in the scope of these organizations. As such, organizations implementing formal and certified asset management systems should assess the existing processes to avoid overlaps and make the best use of the experience accumulated. It also proposed the balance between performance and risk as the metric to measure the quality (or value, adopting the asset management concept) of management decisions. The growing recognition that infrastructures exist in highly complex uncertain contexts requires changing management decisions from choosing the options with the highest expected outcome to the options with the best balance between expected outcome and potential variability of the outcome. Finally, considering sustainability as the ultimate goal, the relation between quality and asset management is linked to the need for integrated infrastructure management by analysing sustainable mobility versus sustainable transport infrastructures.
The digital age poses new challenges to the field of asset management. The main purpose of the study is to identify the barriers to digital transformation in asset management. A study was conducted with 15 experts (including university researchers and industry experts) to explore, validate, and classify barriers affecting digital transformation in asset management. As a result, 20 barriers were obtained as a result of the study. Barriers to digital transformation in asset management identified included, misunderstanding the strategic importance of asset management, no clear vision/strategy, existing mindset/thinking and culture, inadequate asset management system, lack of understanding of digital trends, lack of employee knowledge and skills, and misalignment of business and asset management objectives. Outcomes of this study can be helpful for organizations on their way to digital transformation of the asset management.
We propose techniques of classification of a potentially heterogeneous data set into groups in a way that is consistent with the intended purpose of the clustering, which is Data Envelopment Analysis (DEA). Using standard clustering techniques and then applying DEA is shown to be sub-optimal in many instances of empirical relevance. Our methods are based on a novel interpretation and implementation of convex nonparametric least squares (CNLS) which allows not only classification into different clusters but also finding the number of clusters from the data. Moreover, we provide techniques for model validation in CNLS regarding the allocation into groups using efficiency criteria. We provide a prior designed to minimize variation within groups and maximize variation across groups. The new techniques are examined using Monte Carlo experiments and they are applied to a data set of large U.S. banks. Additionally, we propose new techniques for meta-envelopment or meta-frontier formulations in efficiency analysis.
Asset Management (AM) processes play a significant role in organisations’ profitability. Clearly documented and managed AM processes improve the delivery potential of assets and minimise the costs and risks involved. Business Process Management (BPM) is a discipline that uses various methods, tools, and techniques to discover, model, analyse, measure, improve, optimise, and automate business processes. Despite the prevalence and proven effectiveness of BPM in a wide variety of domains, there has been little research investigating its potential for describing AM processes. This paper presents a case study that explores the application of BPM to power transmission assets. BPM principles were applied for decision modelling and to capture the lifecycle of power transmission assets. The case study demonstrates how BPM application to AM processes can result in greater clarity of processes, increased collaboration, a better understanding of data, external rules, and regulations, and serve as an internal point of audit.
This study examines the mediating effects of physical/engineering asset management on the relationship between continuous quality improvement and business performance. Using empirical data based on survey data from six European countries (i.e. Greece, Poland, Slovakia, Slovenia, Sweden and Turkey), this study used mediation analysis to address the research problem. A macro for SPSS was used to estimate the size of an indirect effect of continuous quality improvement on business performance by a proposed mediator. The results of this study show that physical asset management mediates the effect of continuous quality improvement on business performance. This study provides valuable insights into mechanisms that have the potential to improve business performance. The results contribute to a better understanding of how companies could achieve higher performance outcomes through the introduction of continuous quality improvement and through physical asset management practices.
This article is aimed at exploring the relationship between physical asset management (PAM) practices and sustainability performance. A framework of interrelated constructs was developed based on the existing literature and consequently tested through empirical study. Survey data were collected from organizations operating in six European countries (i.e., Greece, Poland, Slovakia, Slovenia, Sweden, and Turkey) and analyzed using Partial Least Squares Path Modeling (PLS-PM). The results offer support for the proposed hypotheses, showing that PAM practices positively influence the sustainability performance outcomes, namely economic, environmental, and employee-related social performance. Overall, this study demonstrates that a PAM framework can be conceptualized by four sub-constructs, namely physical asset risk management, physical asset performance assessment, physical asset lifecycle management, and physical asset policy and strategy. Finally, this study brings to light some theoretical and managerial implications as well as directions for future research. The findings of the study underscore PAM areas in which managers should focus on in order to optimize costs, performance, and risk exposures concerning the physical assets, and therefore enhance sustainability performance.
This paper summarizes and clarifies the different perceptions of value and benefits associated with assets and their life cycle management. It seeks common ground of terminology and practical measurement or demonstration of impact for the varied audience of financial, technical, regulatory, customers and other stakeholders. It also illustrates some of the reported benefits (added value) being achieved by (better) asset management, such as those being generated through the introduction of PAS 55 or ISO 55000 standards.
In the process of globalization of world economic processes, the role of individual national economies increases, comparative advantages of the development of a country are formed, and their competitiveness is ensured. That is why it is worth emphasizing the importance of increasing the competitiveness of each individual country, based on its internal capacity. In a broad aspect, the competitiveness of the national economy is perceived as the ability of the country to ensure the balance of its external proportions and to avoid those constraints imposed by the foreign economic sphere, to self-organizing the improvement of their world economic ties. The competitiveness of the economy at the macro level is associated with the duration of the cycle of reproduction of the main productive assets and, accordingly, the jobs, productive forces of society and determined by the overall economic efficiency of investment. The criteria of competitiveness of the national economy are the growth of social productivity of labor, increase of social and economic efficiency of production and standard of living of the population. The competitiveness of the national economy determines sustainable socio-economic development of the country, as well as sustainable development predetermines the competitiveness of not only the country, but also all its levels. Scientific results are obtained using special methods of research of economic objects and phenomena, that is, based on the correlation and regressive, comparative analysis (establishing the relationship between the indicator factor), as well as economic modeling. Findings. Generalizing analysis and the importance of the macroeconomic aspect of competitiveness were used in the research paper, which will allow to better respond to the economic situation, in accordance with the trends of the “green” transformation of the economy; which in turn will solve important problems of the development and implementation of its economic development strategy based on the principles of sustainable development and, accordingly, with the trends of the “green” transformation of the economy. The practical significance of this research paper is that the resulting conclusion and generalizations will help the state, regional government, local self-government, as well as enterprises, solve important problems of developing and implementing their economic development strategies based on the principles of sustainable development and, accordingly, along with the trends of the “green” transformation of the economy. Value. In terms of a crisis of competitiveness, the advantages are primarily obtained not through improving the quality of products, but through reducing costs. Thus, one of the goals of the Ukrainian economy at the present stage is to become competitive and maximize the usage of its macroeconomic aspect.
Past models and tools that support in the decision making process based on Asset Management Principles (AMP) are lacking in terms of the effective outcomes and transparency of the process in the highway maintenance. There is also little research on how to align the decision areas when applying AMP and how to improve the inclusive effectiveness. Hence, the paper focuses on examining the challenges and prospects of applying AMP in a highway maintenance agency or department. An exploratory research method was used through an extensive review of literature and an industry survey. The findings from the literature and case study review were used to design a questionnaire and conduct the survey. The survey results revealed that the AMP are only being implemented ineffectively in maintaining highways, and a strong commitment is required to improve the asset management capability for effective use of the asset data. It is highly recommended that the Highway Agency should issue a guideline for implementing asset management policy and also encourage associate departments to achieve asset management maturity level 3 so that ISO55000 certification can be achieved. The study concludes that there is still substantial work needed within the asset management process, particularly in highway maintenance before its effectiveness can be realised and measured. Crown
The concept of ‘smart’ is increasingly used in the commercial environment, and relates to a perception of technological intelligence. The concept of ‘Internet of Things’ (IoT) has also become a reality that makes a different approach to managing physical assets necessary. With this technological intelligence come vast quantities of asset data and the analysis thereof, which has proven to add value to asset management. To capitalise on and expand this value creation, smart asset management (SAM) came into being by incorporating proven methodologies and applying these in real-time management structures. This article offers a review of the existing literature, and aims to create industry awareness about the business potential of incorporating SAM into automated asset environments for strategic management decision-making.
Asset performance measurement and management has become an acceptable practice for the industry today under the global dynamic business scenario. Asset performance measurement and management can help the owners and operators to achieve sustainable asset productivity with a maximized return on investment. Today industry needs to improve the reliability and performance of the assets, which have affects the organizational effectiveness with efficiency and profitability. Proactive asset performance management maintains assets at minimum costs at reduced inventory, outsourcing with reduced downtime and reliability improvement. Asset performance measurement and management considers the asset life cycle and whole life value from the owner and operators perspective to achieve the operational readiness of the assets. In this paper, the author has looked into the unplanned down time, risk management, data management, besides the aging operators and work environment for the asset performance measurement and management. A strategic road map for asset performance management is essential as an industrial process for achieving world-class asset performance, which will include a combination of predictive maintenance with eMaintenance solutions to bridge the gap between failure and success.
In recent decades, by introducing lean manufacturing the vulnerability to system disturbances has increased and so, the demand for dependable production equipment. The need for having high production equipment availability causes companies to need a more effective and efficient maintenance strategy in order to stay competitive. Despite the increasing demand on reliable production equipment, few manufacturing companies work with strategic maintenance development and a large part of the manufacturing industry lack clear maintenance strategies. It is therefore difficult to develop the maintenance work in accordance with the strategic goals of the manufacturing companies. The main objective of this paper is to define a process for formulating maintenance strategy in order to facilitate further development in a strategic way. The problem has been studied by literature review and through case study at one major manufacturing site in Sweden to investigate the company's view on strategic maintenance development. Hence, a formulated maintenance strategy has been provided and presented. The company's overall goals considered and translated to the strategic objective of maintenance. Moreover, balanced score card is used as a tool to make a framework of the maintenance strategy. As a result of this study, the company could easily formulate a maintenance strategy by using a simple process based on the tools that they have already used. In addition to this, the result indicated how maintenance strategy can contribute to the company's business goals.
Throughout the ages, there have been men who wished to be women and women who wished to be men. There are many fascinating examples of such persons in history and in literature if one is sufficiently interested to search for them (Bullough, 1975, 1976; Green, 1974; Karlen, 1971; Steiner, 1981; Weinrich, 1976). Individuals with cross-gender wishes and cross-gender behavior have existed in every major culture in the world, knowing no boundaries of race, creed, or color. Thus, historical study reveals that transsexualism and related disorders of gender identity are not conditions peculiar to modern times.
Risk based management (RBM) is seen as a guiding principle for lifetime asset management for T&D infrastructures at utilities supported by PAS55 and ISO 55000. Increasingly utilities recognize lifetime management as a strategic issue, however, utilities still lack straightforward strategies or frameworks to know what information is required in guiding the selection of an appropriate lifetime management regime, which can include sustainable maintenance concepts, condition monitoring or predictive health indexing. In this contribution a solid foundation for data management and case studies related to risk based-based decision-making are presented. This paper is supported by investigations of CIGRE working group B3.06 and B3.34 on substation management and practical experiences from the electric power industry in the Netherlands. INTRODUCTION The practical implementation of a risk-based lifetime asset management in utilities has to be supported by a sound information and data foundation. In other words, risk-based integrated decision processes require data in mixed strategies [1]. This means matching technical, economic and social data from a holistic point of view. Utilities require a data management model that is capable of linking them to the risk management decision-making model. WG B3.06 (TF05) investigates in filling the gap between data management, through information strategies, and the link with risk based decision-making. This work has been published in CIGRE TB 576 [2]. A model, referred to as an hourglass model, is proposed. This model should assist T&D utilities to be aware of a potential data and information gap and make a link between risk management (decision-making requirements) and data management (data and information requirements). This model comprises of two essential parts, which are:-Risk management: this helps in utilizing and addressing the requirements on asset data.-Data management: this supports the decision making process through constructing a system to acquire, warehouse and transmit data.
This study developed a path model to examine the impact of perceived organizational support and leader-member exchange on organizational culture within asset management organizations in Australia. Additionally, a path from organizational culture to employee engagement was also examined. Survey responses from 90 technical and engineering employees within asset management organizations were analyzed using partial least squares modeling. The results provide support that perceived organizational support and leader-member exchange were positively and significantly related to organizational culture and that organizational culture was positively and significantly related to employee engagement. As a result, the findings from this study provide asset managers with insights to assist the movement from reactive to proactive organizational cultures and to enhance the engagement of asset management engineering and technical employees with optimizing the performance and competitiveness of their organizations. (C) 2014 American Society of Civil Engineers.
A review of asset management systems within the context of energy pipelines has been conducted. It covers available methodologies, current asset management systems, opportunities for improvement and research challenges. A particular point of interest is the degree to which consideration of remaining life and the influence of maintenance activities are used to drive the asset management strategy. Asset management within the energy pipeline industry is mostly concerned with integrity assurance. Irrespective of this overriding goal, cost of delivery is also of concern. At any point of the service life the remaining life of the pipeline at an acceptable level of integrity is of central interest. When dealing with remaining service life, specific attention must be given to deterioration evaluation of pipelines due to corrosion and other defects. At different life stages there are many factors that affect the remaining service life of pipelines which make its estimation problematic in some situations. Pipeline life prediction is integral with determining optimal inspection intervals and selecting repair or protection actions. Research challenges in asset management of energy pipelines include: incorporating all practically available data into an integrated decision support system; developing asset management support decision models to enhance trade off among the alternative options; establishing a systematic way for maintenance program development; and, incorporating life-cycle cost and risk assessment techniques informed by predicted performance into the overall asset management system of organisations.
The effective delivery of industrial services requires systematic approaches for planning and organizing delivery processes and network partners. In order to be able to assess the performance of the service organization, significant key performance indicators are needed. The performance of the service organization is defined by its ability to effectively assign resources such as service technicians, tools and spare parts to service tasks and its ability to implement and deliver the service processes as planned. Thus, important key performance indicators for assessing the delivery and delivery planning of product-related industrial services are presented in this paper. The relevant performance indicators are classified based on their importance for measuring planning performance and delivery performance.
Performance measurement of asset management systems remains a poorly understood area both in terms of industrial practice as well as academic research. Continuous improvement of asset management systems require a robust performance measurement system that will allow organisations to understand the performance of various elements within the asset management system – thereby ensuring that (i) organisational KPIs and targets are achieved; and (ii) corrective actions in terms of "fine tuning" those elements of the asset management system that are not performing well. This paper will answer the following questions regarding the measurement of the performance of asset management system and how this can be linked back to business performance: (1) What is the state of play of performance measurement for asset management systems? (2) How to develop performance measures for organisations' asset management systems?
The concept of performance management is used by most of the organizations to ensure that either they are going on the right path or not. For managing the performance the organizations are required to know about the performance indicators. This paper explores the key performance indicators (KPIs) and impact of these KPIs on the overall organizational performance in manufacturing sector in Pakistan. The data for present study collected from the top level management of the 84 best manufacturing organizations in Pakistan by using a structured questionnaire and the impact of KPIs on the overall performance of the manufacturing organizations were evaluated. The results show that the manufacturing organizations put more focus on the customer satisfaction and Delivery reliability in terms of performance measurement. And measuring the performance in terms of cost, financial, quality, time, flexibility, delivery reliability, safety, customer satisfaction, employees’ satisfaction and social performance indicators have positive significant impact on the overall organization’s performance. This paper puts together all important performance indicators used by organizations in a single list and check their impact on the overall performance indicator index of the Organizations. As Pakistan is among the developing countries, this study will serve as a valuable guideline for several manufacturing organizations operating in other developing countries of the world.
Purpose
– The role of engineering asset management (AM) system as a controlling element within organizations is not well defined or understood. The purpose of this paper is to include the role of AM in the organizational strategy making, an issue that has not received sufficient attention. The focus of the paper is on how such role is maintained by the AM system activities, relationships and mechanisms over the asset-related activities of an organization.
Design/methodology/approach
– As an approach, a reference framework is required that allows research of this area. By combining a number of possible views of an organizational management system a comprehensive view can be established. A review of literature was used to establish a framework identifying the AM system as an integrated part of the organization's management system.
Findings
– A framework is established that focuses on planning and controlling asset-related activities by involving a set of activities, relationships between these activities and feedback mechanisms. A system functional model is proposed integrating the established framework as part of the control of the enterprise system.
Research limitations/implications
– The framework and system functional model are established on a theoretical basis and practical experience requiring applicability to be proven by further research.
Practical implications
– Asset managers in capital intensive organizations can utilize the framework and the system functional model in order to study their AM system, its relationships and to consider how it may be improved.
Originality/value
– Exploring a holistic and relatively new concept.
Comprehensive asset management should be embedded in organizations through the temporal, organisational and spatial dimensions. We examine how an integrated approach to asset management might consider the whole range of interrelations and interactions of these dimensions. Asset management should take into account the operational and the strategic management of the asset (time dimension) as well as organisational, technology and information and human factors management (organisational dimension). Furthermore, the inclusion of management topics arising from interaction between assets, stakeholders and clients, ecological environments, industry, and government is critical (spatial dimension). We argue that a strategic standpoint for asset management establishes a framework that includes governance, policy, tactical and operational aspects that are brought into a comprehensive integrated approach. Prior frameworks have identified the various elements that need to be considered. However, they have not addressed their operationalisation and neglected governance and broader contextual factors in building an asset management model. We present an integrated asset management approach to developing a capability maturity model which addresses all three outlined dimensions. To do so it is necessary to define asset management process areas, capability and maturity levels, and capability and maturity indicators for each process area.
The paper proposes a framework for analysing the performances of product–service systems (PSSs) development processes using a balanced scorecard (BSC) as an instrument to guide the implementation and the evaluation of new methods and tools. Emerging from a case study in the aerospace industry, the paper discusses the main challenges in PSS development and proposes a performance measurement framework for PSS development based on multi–criteria indicators. Finally, the benefits of a framework for PSS development performance measurement are discussed.
Most councils develop asset management capability within their technical ranks, usually within Engineering Services. This isolates asset management as a technical function rather than a broader concept that embraces the development of relationships between those who deliver services, those who maintain and develop infrastructure to support the delivery of those services and those who plan for future service provision. Few councils position asset management as a corporate function. In 2003 Brimbank City Council accepted the challenge of adopting a corporate approach to asset management.
Brimbank City Council services over 175,000 residents and is the second largest metropolitan council in Melbourne, Australia. It is a council confronted by numerous legacy issues associated with the quality and type of its asset base and its flexibility in supporting future service needs. Despite these problems and issues it has some of the leading best practice service delivery programs and state-of-the-art facilities.
Asset management has been seen as a catalyst for change across all areas of council activity. Four years into a five year program, Brimbank City Council has:
implemented an improved population and service forecasting process, an improved service delivery assessment regime and an integrated Customer and Asset Management Information System;
developed asset management plans covering roads, open space, facilities and drainage; and
undertaken numerous data and condition surveys and improvement projects.
Reliance on the outcomes of the asset management processes impacts on everyone from the CEO to those who deliver the services and those who maintain assets, with the real benefits being improved and sustainable levels of service to the community.
The purpose of this paper is to provide, in the form of a case study, the asset management journey Brimbank City Council has undertaken to date, its achievements, its handling of emergent issues, the significance of organisational learning to allow continuous improvement, and the value of a corporate approach championed by the CEO.
A key dimension for effective leadership involves reinforcing and motivating others to encourage superior performance. Financial and non-financial rewards can be utilized for this purpose. This paper explores the background on the nature and importance of employee recognition as an effective leadership tool and reports the results of a survey examining the value of recognition to all levels of employees in a large, nonprofit institution. These employees indicated they value highly personalized recognition for a job well done as a critical dimension of their reward system. These findings provide further evidence that employee recognition should be given more attention by leaders as they attempt to meet the retention and productivity challenges facing today's organizations.
Purpose
The importance of physical assets has been increasingly recognized in recent decades. The significant returns on small improvements in overall equipment effectiveness (OEE) justify investment in the management of physical assets, but the wide variation of OEE across firms raises a question: “Why do these differences persist despite a high return on investments to maximize OEE?”. To address this question the dynamic processes that control the evolution of OEE through time need to be better understood. This paper aims to answer this question.
Design/methodology/approach
Building on insights from system dynamics and strategy literature, the paper maps the reinforcing feedback loops governing the maintenance function and its interactions with various elements in a firm. Building on strategy literature it hypothesizes that these loops can explain wide variations in observed persistent variations in OEE among otherwise similar firms. The paper draws on previous literature, extensive case studies and consulting projects to provide such mapping using the qualitative mapping tools from system dynamics.
Findings
The research outlines several reinforcing loops; once active, any of them could lead a firm towards a problematic mode of operation where reactive maintenance, poor morale, and a culture of fire‐fighting dominate. Actions taken to fix problems in the short‐run often activate vicious cycles, erode the capability of the organization over the long run, and lead to a lower OEE.
Social implications
Knowing the factors affecting the asset management function of a plant increases the plant's safety and limits its environmental hazards.
Originality/value
Some of the common dynamics of organizations' asset management practices are illustrated and modeled. The strategic importance of OEE and its effect on companies' market capitalization is demonstrated.
Purpose
The purpose of this paper is to develop a conceptual framework that can be used to identify capabilities needed in the management of infrastructure assets.
Design/methodology/approach
This paper utilises a qualitative approach to analyse secondary data in order to develop a conceptual framework that identifies capabilities for strategic infrastructure asset management.
Findings
In an external business environment that is undergoing rapid change, it is more appropriate to focus on factors internal to the organisation such as resources and capabilities as a basis to develop competitive advantage. However, there is currently very little understanding of the internal capabilities that are appropriate for infrastructure asset management. Therefore, a conceptual framework is needful to guide infrastructure organisations in the identification of capabilities.
Research limitations/implications
This is a conceptual paper and future empirical research should be conducted to validate the propositions made in the paper.
Practical implications
The paper clearly argues the need for infrastructure organisations to adopt a systematic approach to identifying the capabilities needed in the management of strategic infrastructure assets. The discussion on the impact of essential capabilities is useful in providing the impetus for managers who operate in a deregulated infrastructure business landscape to review their existing strategies.
Originality/value
The paper provides a new perspective on how asset managers can create value for their organisations by investing in the relevant capabilities.
Purpose
The purpose of this study is to develop a multi‐criteria hierarchical maintenance performance measurement framework, which is balanced, holistic and integrated to various levels of the organization.
Design/methodology/approach
Consolidation of published research and current practices are combined to study, identify and develop this proposed framework.
Findings
A framework for maintenance performance measurement is proposed for developing and implementing a relevant, timely, reliable, cost and time‐effective and user‐friendly system for stakeholders at various levels. The indicators at the subsystem/component level, plant level and corporate level are linked with the MPIs for the organizational objectives and strategy.
Practical implications
Management of maintenance performance is critical for long term economic viability of business and industry. Development of an integrated, balanced and holistic MPM system needs to consider various issues to measure the contribution of maintenance towards total business goals. In this paper, a multi‐criteria hierarchical MPM framework has been developed. This framework can be used by the operating managers for their maintenance decisions at various levels of an organization.
Originality/value
The paper presents a proposed MPM framework, which is integrated, and focuses on both internal and external effectiveness.
Purpose
– Asset management is often one of the last options to maximise cost savings in a competitive global economy due to its intrinsic complexity, especially in many developing countries. Asset management in the process industry must consider the commissioning, operational and end‐of‐life phases of physical assets when commencing a design and implementation project. However, current asset management models show inefficiencies in terms of addressing life cycle costs comprehensively, as well as other aspects of sustainable development. An asset life cycle management (ALCM) model is subsequently proposed for assets in the process industry, which integrates the concepts of generic project management frameworks and systems engineering with operational reliability in order to address these inefficiencies.
Design/methodology/approach
– Experiences within a large petrochemical company in South Africa are used as a case study to demonstrate and discuss the different components of the proposed ALCM model.
Findings
– Operational reliability and systems engineering are the means to achieve optimum value from physical assets over a facility's lifetime. Thereby, activities are identified that should be completed during each stage of the project life cycle. The application of performance measurements for the operation and support stages is proposed to influence decision making in the process industry.
Originality/value
– Specific issues pertaining to the ALCM model are highlighted to ensure optimal practicality and incorporation of the model with other management practices in the process industry.
The management of the integrity of engineering assets such as production plants, facilities and equipment can be a challenging task due to their interrelationships with financial, information, human and intangible assets. In order to ensure effective utilisation and to improve the management of such assets, one has to make balanced and effective decisions based on performance assessments. The main challenge for asset integrity management (AIM) is related to various aspects of its human dimension as apparent on organisational settings and associated cognitive dispensations. In this article, AIM is cascaded down to design, operational and technical integrity management. Furthermore, the performance of physical assets (PA) is discussed in terms of financial, societal and environmental dimensions that deliver sustainability value to the assets' owner. The management of such a sustainable value is vital in managing the overall asset integrity in order to minimise rising stakeholder pressure and achieve balanced performance. The paper provides a review of AIM and a foundation for engineers and managers to analyse the general problem of managing PA' integrity to increase the sustainable value of an asset intensive business in a more holistic way.
Maintenance is often viewed as a necessary expenditure in the business world. It is however, a critical investment needed for physical assets. The return on maintenance investment is not easily quantifiable in monetary value, thus often not valued as a return on investment in the business context. However, if invested and performed properly, maintenance can effectively reduce operational risks and potential losses (costs) due to unwanted breakdown failures. It is a more significant function when operating complex assets such as aircrafts and chemical plants. This paper aims to provide a view of maintenance investment optimisation from the engineering asset management prospective and proposes a framework for optimising maintenance investment decisions aligning with enterprise business objectives.
Assessing performance is a necessity for any industry today even in its simplest form. Performance assessment of maintenance process is a complex issue as it involves various inputs, outputs and stakeholders. Therefore, it is essential to consider all the relevant issues and factors for the maintenance performance assessment (MPA). The stakeholders¿ needs are required to be considered from different organizational hierarchical levels. In this paper, the author has tried to discuss the MPA framework from multi-criteria and hierarchical level, which needs to be holistic and balanced for the industrial application.
Business process compliance management is an important part of corporate governance as it helps meet objectives while avoiding consequences and penalties. Although there is much research in this area, we believe goal-oriented compliance management using Key Performance Indicators (KPIs) to measure the compliance level of organizations is an area that can be further developed. To investigate this hypothesis, we undertook a systematic literature review, querying four major search engines and performing manual searches in related workshops and citations. From a research body consisting of 198 articles and their references, we have systematically selected 32 papers. We grouped these papers into five categories and highlighted their main contributions. The results show that all selected papers were written in the last five years, and that few effectively represent compliance results using dashboards or similar tools. Although all individual pieces are available, no existing solution yet combines goals with KPIs for measuring the overall compliance level of an organization.
Purpose
This paper aims to propose a framework for intangible asset management in business and industrial organizations. The proposed framework is applied to a case example company in the Stock Exchange of Thailand.
Design/methodology/approach
The proposed framework refines the strategy map concept in the balanced scorecard approach for use in intangible asset management. There are two phases, the top‐down phase involving a four‐step intangible asset identification process and the bottom‐up phase establishing the cause‐effect relationships between the intangible assets of the various functional departments in the organization and its financial performance.
Findings
Intangible assets belong to different functional departments. They must be carefully monitored and properly nurtured by the organization. Intangible assets depend not only on the type of functional departments but also the type of industries. To be competitive in today's knowledge economy, it is vital for business and industry to identify and locate the intangible assets in their functional departments and then establish how they contribute to the financial performance of the organization.
Originality/value
Understanding of the framework will lead to tangible benefits and competitive advantage once the intangible assets are brought under control, properly managed, and suitably funded.
A Maturity Model is a widely used technique that is proved to be valuable to assess business processes or certain aspects of organizations, as it represents a path towards an increasingly organized and systematic way of doing business. A maturity assessment can be used to measure the current maturity level of a certain aspect of an organization in a meaningful way, enabling stakeholders to clearly identify strengths and improvement points, and accordingly prioritize what to do in order to reach higher maturity levels. This paper collects and analyzes the current practice on maturity models from the data and information management domains, by analyzing a collection of maturity models from literature. It also clarifies available options for practitioners and opportunities for further research.
The scene is set in the first chapter regarding the scope of this book. The content of this book is intended for a double audience, on the one hand for those interested in the organisational and management aspects of maintenance and on the other hand for those interested in practical developed methods for applying maintenance concepts such as reliability-centred maintenance (RCM) within the risk management regime of the organisation, statistical tools for predicting failure behaviour and the upcoming role of condition monitoring, hence a more concept- and technology-oriented aspects of maintenance. In this book, both areas are described together with case studies from industry perspective.
Building information modeling (BIM) is emerging as a potential solution for facility owners to address the
challenges of poor information fidelity, interoperability, and usability in project delivery to support the lifecycle
of their assets' information. Despite the many benefits offered by BIM, its use for facility operations remains
significantly limited. The reality is that implementing BIM in large owner organisations is a complex challenge.
In particular, a significant barrier to BIM adoption for owners is the challenge of identifying and formalizing the
information requirements needed to support model-based project delivery and asset management. This paper
presents the results of a longitudinal research project that investigated two large owner organisations in Canada to better understand the process of developing and formulating BIM requirements to support the lifecycle of their assets. Specifically, the objectives were to formalize an iterative approach to the identification and characterization of owner requirements and to develop a conceptual framework that would relate digital and physical products to owner requirements and organisational constructs, to underpin the formalization process. As part of this research an array of requirements documentation were analysed, interviews were performed with numerous facility management personnel, and BIMs from four projects were analysed. A methodology is introduced to support a rigorous and detailed analysis of BIM requirements. The investigation of the owner requirements helped to develop an understanding of the required information content, and its alignment with BIM. Finally the relationships between organisational constructs, owner requirements, and BIM were mapped. As the construction industry shifts towards model-based project delivery, this research will inform owners about how to think about handover of digital facility models, and what to require in models based on their specific needs.
An Oil and Gas Company's Arc Flash Electrical Safe Operations Program is a corporate initiative to prevent electrical arc flash injuries. The program implements the company general instruction - Electrical Arc Flash Hazard Mitigation, which provides minimum safe work requirements for protection of personnel in the workplace against electrical arc flash hazards in accordance with NFPA 70E. The program tracks five (5) Key Performance Indicators (KPIs) to protect employees from arc flash hazards in all company facilities, which are: 1. Technology Deployment 2. Training and Certification 3. Operation and Maintenance Delineation 4. Operations and Maintenance Unified Procedures 5. Arc Flash Analysis To verify compliance, the company initiated field-based assessments conducted by a specialized team of Power Systems Compliance and Electrical Engineers. The assessments are designed to validate each facility's compliance as well as to identify any opportunities for improvement in the application of arc flash mitigation. The assessors utilized a standardized checklist to determine the level to which established KPIs have been implemented. The checklists are weighted and scored to validate compliance in a consistent manner. This paper demonstrates a structured approach to measure Arc Flash KPI compliance and highlights some findings and practical examples that can be applied at many oil and gas facilities.
Effective management of civil infrastructure assets requires intricate considerations with regard to safety, serviceability, reputation and cost. Additionally, infrastructure assets have different requirements from various stakeholders and have a longer service life. However, traditional asset management decisions focused predominantly on cost, and there is an inherent need to understand the value of an infrastructure asset to various stakeholders and to utilise this value to drive asset management decisions. In this paper, a systematic approach to making value-based asset management decisions is proposed. The proposed process provides an efficient method for mapping the stakeholder’s requirements to the value provided by the asset. This map can then be used to assess the value and make effective decisions. The developed approach is demonstrated through a case study involving transportation tunnels. The essential consideration of value is expected to allow organisations to evaluate the balance between cost, risk and performance, thereby allowing better-informed decisions.
In Sect. 3.2.1, the objectives of electricity distribution organisations for maintenance improvement on strategic level are described. A concept of a model for cyclic continuous maintenance improvement is provided in Sect. 3.2.2. In Sect. 3.2.3, the organisational elements that play a key role are described. In order to set the reference point at start and to be able to accurately determine the improvements, a maintenance management maturity model (M4) is developed and described with results in Sect. 3.3. Usually, decisions are taken from top to the bottom of an organisation, while, conversely, the performance reporting occurs from bottom to top. For this purpose, in Sect. 3.4, a methodology for maintenance key performance indicators is elaborated on. In Sect. 3.5, an outlook to the Chap. 4 is given.
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.
Asset service organisations often recognise asset management as a core competence to deliver benefits to their business; however, it is less clear about how organisations know whether their asset management processes are adequate. This paper contends that asset management maturity models, which combine best practices with identified competencies, may provide a useful approach to test the capacity of organisations to manage assets. Existing capability maturity models are subject to wide variations in their implementation and sophistication. Drawing on five dimensions of effective asset management - spatial, temporal, organisational, statistical and evaluation - as identified by Amadi-Echendu et al. (2010), this paper undertakes a comprehensive comparative analysis of six existing maturity models to identify the gaps in key process areas. Results suggest incorporating these dimensions into an integrated approach to assess the maturity of asset-intensive organisations would provide a comprehensive approach towards assessing capabilities of asset service organisations.
Asset management is one of the key components in a transforming electric power industry. Electric power
industry is undergoing significant changes due to technical, socio-economical and environmental
developments. Also, due to restructuring and deregulation, the focus has been on transmission and
distribution assets that include transmission lines, power transformers, protection devices, substation
equipment and support structures. This study aims to provide a detailed exposure to asset management
classification, various interesting maintenance methods and theories developed. The work encompasses the
issue of data management in recent years. Due to the use of various smart metering devices, large amounts of information is being collected. The advent of data mining techniques has changed the asset management
scenario and it has been covered in this survey paper. In the end, it also discusses various risk assessment
techniques in asset management developed and used for academic research and industries. It is accompanied with survey results from pan-European TSOs on various aspects in asset management.
With the growth of demand for energy, natural gas was predicted to be a major energy commodity in immediate future. In the current setting, it would also act as a transitional energy source (due to its low emission) towards greener energy goals within EU countries. However, production and transportation of gas to various markets have also been met with different challenges, for instance due to economical as well as technical reasons. Norway is one of the leading natural gas exporters in the world, serving a large portion of Europe’s energy demand through its subsea gas pipeline infrastructure. In light of not only global uncertainty, but also with respect to the potential market position, a major question is that what types of challenges are present in a specific critical downstream asset such as a subsea natural gas pipeline when striving to uphold the position as leading gas supplier to Europe. This is also a question of future opportunities in the ongoing energy debate despite the current economic conditions. This paper, based on a case study on a section of the large Norwegian gas transportation infrastructure, examines a wide range of multiple challenges, all of which could possibly challenge and pose a risk for the reliability and efficiency of gas supply from the Norwegian shelf. It elaborates on the current and future threats/challenges on the capitalization and management of the gas export pipelines from a longer-term perspective when striving for optimal asset availability in regards to future energy demand. The paper also elaborates on a specific scenario that would help the asset owners and other stakeholders to draw up a suitable strategy for long term value creation using a Strategy map.
A systematic approach to realising the extent of problems associated with assets and providing mechanisms for improvement is offered by asset management. Continuous improvement process is an approach to improving organisational performance with small incremental steps, over time. The concept of continuous improvement has been adopted in advanced nations. In the Nigerian oil industry, there are limited information on application and utilisation of continuous improvement process as a tool in engineering asset management. The study examined the extent of the use of continuous improvement process in engineering assets management in the oil and gas industry in Nigeria. It covered 60 oil and gas companies in Nigeria where data were collected through questionnaire and analysed through descriptive and inferential statistics. Continuous improvement process was recently embraced and majority of its initiatives had come from within the people in engineering and maintenance department though other sections within organisation also embraced the approach. The concept has also been used in some stages of facility lifecycle like operation and maintenance, productions or construction of engineering assets.
Purpose
– The purpose of this paper is to provide a literature review of the performance measurement (PM) in maintenance. The authors aim to discuss the background and development of the PM for maintenance, besides defining the concept of performance measures for maintenance and the frameworks developed.
Design/methodology/approach
– A detailed and extensive literature search and study was undertaken by the authors on the concept and definition of PM, performance indicators (PIs), maintenance performance indicators and various performance frameworks. The history and theory of PM over different phases of business and technological developments have been critically examined and analysed in this review paper.
Findings
– This paper reviews and presents the different PIs and PM frameworks like; balanced scorecard (BSC), performance prism, performance pyramid and performance matrix, etc., and identifies their characteristics and shortcomings. After considering related issues and challenges, frameworks and approaches for the maintenance performance measurement (MPM) are also presented, where the emerging techniques like; emaintenance have also been discussed amongst others. More and more industries are applying the balanced and integrated MPM frameworks for their competitive survivability and sustainability.
Practical implications
– The concept, issues and approaches considered for the MPM frameworks can be adapted by the practicing managers, while trying to define and develop an MPM framework for the operation and maintenance activities. The considerations of the advantages and limitations of different frameworks can provide insights to the managers for implementation.
Originality/value
– Some literature reviews on MPM and MPM frameworks are available today. This paper makes an attempt to provide a detailed and relevant literature review, besides adding value in this new and emerging area.
The current concept of an asset management (AM) system focuses on the lifecycle of engineered assets and little has been done in the literature on its link to organizational strategy. In this paper, the AM system′s position within an organizational structure and its role in competitive strategy has been explored. Two case studies involving AM have been analyzed using a proposed framework which is comprised of a set of planning and control activities maintaining a control mechanism and a relationship with the strategy-making process. It is argued that the AM system structure and the mechanism play a key role in the organizational strategy. The existence of the AM system is hypothesized by this framework which stipulates the asset performance required for strategic success. The use of this framework allows for conclusions to be drawn on the requirements for building an effective connection between AM activities and strategy development. This connection is achieved through planning and control mechanisms acting on the asset-related activities. On one hand, the effect of inadequate or missing elements of the framework has been shown to result in negative impacts on cost, productivity, quality, business outcomes and ultimately strategy achievement. On the other hand, the existence of elements of this framework has been shown to have positive impacts on strategy achievement.
Immovable assets include engineered infrastructure such as buildings, manufacturing plant, roads and railways. These assets are built on land. In most jurisdictions, proposals to acquire and/or establish immovable assets on landed property must comply with several legislative provisions. In many instances, the acquisition and/or establishment of an immovable asset becomes embroiled in legal disputes between contending stakeholders asserting rights to ownership/custodianship of land. Such disputes add to the costs of capital development projects, mergers and acquisitions, and influence decisions as to where an asset intensive business venture can be located. Legislation not only provides the means to resolve ownership/custodianship rights but also, it stipulates legal imperatives for control and utilization of engineering assets on landed property. It is in this regard that this paper presents some of the legal aspects of engineering asset management.
Immovable assets include engineered infrastructure such as buildings, manufacturing plant, roads and railways. These assets are built on land. In most jurisdictions, proposals to acquire and/or establish immovable assets on landed property must comply with several legislative provisions. In many instances, the acquisition and/or establishment of an immovable asset becomes embroiled in legal disputes between contending stakeholders asserting rights to ownership/custodianship of land. Such disputes add to the costs of capital development projects, mergers and acquisitions, and influence decisions as to where an asset intensive business venture can be located. Legislation not only provides the means to resolve ownership/custodianship rights but also, it stipulates legal imperatives for control and utilization of engineering assets on landed property. It is in this regard that this paper presents some of the legal aspects of engineering asset management.
In times of restructuring governmental policies and resources, the need for strategic asset management is growing. Maturity models offer organisations a structure to assist them in improving their asset management performance. We present the results of a repeated maturity measurement based on the infrastructure management maturity matrix (IM³) in Rijkswaterstaat, a Dutch public infrastructure organisation. The IM³ distinguishes five maturity levels from ad hoc to optimised, and seven asset management dimensions: information management, internal coordination, external coordination, market approach, risk management, processes and roles, and culture and leadership. The results show significant progress on all dimensions, and continued learning and widespread awareness of asset management in the organisation. In the discussion, we reflect on the findings and possible future developments for the organisation. We also discuss the potential impact of infrastructure maturity models for the professionalisation of other asset intensive organisations.
Strategic asset management (SAM) can be simply described by two key words, which are Asset Evaluation and Asset Enhancement.
Asset value herein does not imply installation cost but rather refers to a market price of the asset when sold in a competitive
market. Asset evaluation is a part of business administration field and there are many verified methodologies and practical
examples. Therefore this paper would rather be focused on asset enhancement. Applied to physical assets, to increase current
asset value and to decrease total cost of ownership (TCO), asset management should be concentrated upon graded approaches,
proactive maintenance, and long-term strategies, three key topics of this paper.
Purpose
This paper aims to understand the evolutionary paths of performance measurement (PM) from the 1980s to the present.
Design/methodology/approach
The paper is a narrative review. The sources of literature reviewed are from diverse academic disciplines (e.g. operations management, strategic management, management accounting and organisational behaviour). Three main types of literature were selected, namely scientific literature, professional journals, and books. The authors' approach is illustrative and selective. It is based on the belief that societal and organisational contexts provide the clues for the appropriateness in design and use of a managerial innovation. It describes the transition in performance measurement, incorporating a number of PM innovations as illustrative exemplars.
Findings
Management needs, arriving from the evolving business ecology and focused on creating and sustaining competitive advantage, drive the destiny of PM systems during their evolutionary progression. Performance measurement has evolved from various perspectives. The evolution took place in four major paths, from operations to strategic, measurement to management, static to dynamic and economic‐profit to stakeholder focus.
Practical implications
The evolutions embody trends in development and use of PM systems over the long periods that point the way for future PM to develop and evolve.
Originality/value
The contemporary evolution of PM exhibited in the connection with its evolving contexts that is not explicitly acknowledged in the literature gives the raison d'être to this review.
Efficiency and effectiveness are central terms in assessing business performance, yet the challenge for companies is to balance efficiency with effectiveness in business networks. Companies often fail to achieve differentiation and innovation in their surrounding networks, through dealing with efficiency and neglecting effectiveness. This article describes the term efficiency as a necessary condition or hurdle reflected in the company's operating margins, and ‘effectiveness’ as the company's ability to generate a sustainable growth of earnings in its surrounding network. The study builds on notions of efficiency and effectiveness using empirical research in manufacturer-retailer networks conducted between 2002 and 2005. The study draws conclusions to the importance of linking efficiency and effectiveness and more widely on companies' performance in business networks.
This paper calculates indices of central bank autonomy (CBA) for 163 central banks as of end-2003, and comparable indices for a subgroup of 68 central banks as of the end of the 1980s. The results confirm strong improvements in both economic and political CBA over the past couple of decades, although more progress is needed to boost political autonomy of the central banks in emerging market and developing countries. Our analysis confirms that greater CBA has on average helped to maintain low inflation levels. The paper identifies four broad principles of CBA that have been shared by the majority of countries. Significant differences exist in the area of banking supervision where many central banks have retained a key role. Finally, we discuss the sequencing of reforms to separate the conduct of monetary and fiscal policies. IMF Staff Papers (2009) 56, 263–296. doi:10.1057/imfsp.2008.25; published online 23 September 2008
Most executives believe that relentless execution--efficient, timely, consistent production and delivery of goods or services--is the surefire path to customer satisfaction and positive financial results. But this is a myth in the knowledge economy, argues Edmondson, a Harvard Business School professor. She points to General Motors, which for years has remained wedded to a well-developed competency in centralized controls and efficient execution but has steadily lost ground, posting a record 22.5 billion profit in 2007. Organizations that foster execution-as-learning provide employees with psychological safety. No one is penalized for asking for help or making a mistake. These companies also employ four distinct approaches to day-to-day work: They use the best available knowledge (which is understood to be a moving target) to inform the design of specific process guidelines. They encourage employee collaboration by making information available when and where it's needed. They routinely capture data on processes to discover how work really happens. Finally, they study these data in an effort to find ways to improve execution. Taken together, these practices form the basis of a learning infrastructure that makes continual learning part of business as usual.