Contenu connexe Similaire à ARC's Sid Snitkin ALM Presentation @ ARC Industry Forum 2009 (20) Plus de ARC Advisory Group (20) ARC's Sid Snitkin ALM Presentation @ ARC Industry Forum 20091. Sustainable Operations Through Better
Asset Lifecycle Management
Sustainable Operations Through Better
Asset Lifecycle ManagementAsset Lifecycle ManagementAsset Lifecycle Management
Sid Snitkin
Vice-President & GM
Enterprise Advisory Services
ARC Advisory Group
srsnitkin@arcweb.com
2. AgendaAgenda
What is Sustainability?
What Makes a Sustainable Mfg Operation?
How Does This Relate to Asset Lifecycle
Management (ALM)?
How Can You Use this to Develop a Strategy for
Sustainable Operations?Sustainable Operations?
2© ARC Advisory Group
3. What is Sustainability?
Many Perspectives, Many Challenges
What is Sustainability?
Many Perspectives, Many Challenges
Focus on the Environment – Planet’s Survival
• Use of Natural Resources – Renewable Rational Use etc• Use of Natural Resources Renewable, Rational Use, etc.
• Product Footprint - Recyclable, Decomposable, etc
• Process Footprint – CO2, Water, Other effluentsp , ,
Focus on the Business - Corporate Survival
• Satisfying Customer – Features, Cost, Delivery, Service, etc.y g , , y, ,
• Satisfying Shareholders – Profit, RONA, etc.
• Satisfying Regulators – Product Safety, OSHA, etc.
Focus on Everything – “Green to Gold”
• Aligning Corporate and Human Survival Goals
3© ARC Advisory Group
4. What Does Sustainability Mean to Mfgrs?
Operations That Meet all Sustainability Goals
What Does Sustainability Mean to Mfgrs?
Operations That Meet all Sustainability Goals
A Sustainable Manufacturing Operation Has:
• The Right Set of Assets for the Job• The Right Set of Assets for the Job
• Fast, bumpless response to changing requirements
• Minimum use of energy, labor and materials
Th Ri ht P ti t O ti i U f All A t• The Right Practices to Optimize Use of All Assets
• Strategically - to satisfy the most important demand
• Tactically - in the most efficient manner
• Balanced to maximize returns x lifetime
• The Right Programs to Ensure High Availability
• Assets that are reliable and ready when neededy
• Assets that maintain peak performance over the long run
4© ARC Advisory Group
5. Sustainability = Excellent ALM Performance
ALM Provides a Good Basis for Sustainability Efforts
Sustainability = Excellent ALM Performance
ALM Provides a Good Basis for Sustainability Efforts
The Right
Capability
High
Availability
Optimal
Utilization
Optimum
PerformanceX X =
Design MaintainOperate Win!
DOM E ll i h f
Capability AvailabilityUtilization Performance
ARC’s DOM Model for Asset Performance
DOM Excellence is the outcome of a proper
Asset Lifecycle Management (ALM) Strategy …
» Establishing a Good ALM Strategy will satisfy many» Establishing a Good ALM Strategy will satisfy many
of your Sustainability Goals
» Investments in ALM can be justified on the basis of
S t i bl O timore Sustainable Operations
» Making the Right Investments requires a solid
understanding of ALM!
5© ARC Advisory Group
6. ALM begins with a proper view of the Asset
Productive Assets are More Than Equipment
ALM begins with a proper view of the Asset
Productive Assets are More Than Equipment
Primary
F iliti
Project-Centric
P j t M t
HumanPhysical
Facilities
Equipment
Remote
Project Mgmt
Engr/Design
Procurement
Construction
Support
IT HW/SW
Mobile
MRO Material
Asset-Centric
Operations
Process Engr
Maintenance
Virtual
R f D t
MRO Material Maintenance
Reliability
A ti it R dReference Data
Functional
Design
Procedural
Activity Records
Commercial
Status
History
6© ARC Advisory Group
The Three Asset Classes are Equally Important to
Plant Success !
7. Add a proper definition of an Asset Lifecycle
Stages in the Life of a Real Physical Asset
Add a proper definition of an Asset Lifecycle
Stages in the Life of a Real Physical Asset
Time
Asset
Ramp
Up
Oper
Rdy
Func
Asset
tsfortheA
Rdy
Peak
Perf
Assm
Asset
Asset
eldProject
ModsSpec
ofBrownfie
Mods
P j
Spec
feCycleso
Liab
Cash
Des
Proj
Plan
7© ARC Advisory Group
Lif
Cash
Idea
Basis
8. And, the processes that must be managed
ALM is the Management of Several Key Processes
And, the processes that must be managed
ALM is the Management of Several Key Processes
Time
Asset
Ramp
Up
Oper
Rdy
Func
Asset
tsfortheA
Rdy
Peak
Perf
Assm
Asset
Asset
Operate &
Optimize
eldProject
ModsSpec
p
ofBrownfie
Mods
P j
Spec
Design &
Build
Maintain &
Improve
feCycleso
Liab
Cash
Des
Proj
Plan
Build Improve
8© ARC Advisory Group
Lif
Cash
Idea
Basis
9. And, the Many Parties Involved in ALM
ALM Requires Extensive Collaboration
And, the Many Parties Involved in ALM
ALM Requires Extensive Collaboration
Engr & Project
Mgmt Services
(EPC/AEC)
Owner/Operator
(EPC/AEC)
Fabricators &
Constructors
O&M Service
ProvidersOperate
&
Optimize
MRO
Material
IT Services
Providers
Design
&
Build
Maintain
&
Improve
Virtual
Suppliers
Providers
9© ARC Advisory Group
Shareholders Regulators
10. Results in Some Level of Asset Performance
ALM Performance = Project & Plant Performance
Results in Some Level of Asset Performance
ALM Performance = Project & Plant Performancejj
• Financial
• Cost, Cash Flow
• Functional
• Work Quality
• Design Compliance
• Design Accuracy
• Release Mgmt
• C/N Mgmt
• Equip Selection
• Const Planning
• Material Mgmt
• Site Mgmt
• Labor Efficiency
Timely, Right
X
Design
Optimal
Build
• Design Compliance
• Personal EH&S
• Schedule
Equip Selection
• Material Specs
y
• EH&S
Timely, Right Projecte y, g
Information
MaximumOptimal
X
MaintainOperate
Execution
ALM
Performance
e y, g
Information
The Right
j
Performance
A tMaximum
Availability
Optimal
Utilization XX
• Product Range
• Throughput
• Product Mix
• Prod Planning
• Maint Strategy Mgmt
• Maint Planning
• Financial
• Profit, Ratios (ROA)
The Right
Capability
Asset
Performance
oug pu
• Quality
• Product Unit Cost
• EH&S Capability
od a g
• Prime %
• Material Cost
• Labor Cost
• EH&S
a a g
• Maint Efficiency
• MRO Material Mgmt
• Labor Cost
• EH&S
o , a o ( O )
• Functional
• Process EH&S
• Personal EH&S
• Product/Service
• Cost, Quality, Delivery
10© ARC Advisory Group
Optimal Performance Occurs When all DOM Processes Are
“Jointly” Optimized Across All Lifecycle Stages!
11. Developing an ALM Strategy
Performance Depends Upon Several Factors
Developing an ALM Strategy
Performance Depends Upon Several Factors
11© ARC Advisory Group
ALM Requires Strategies for Design, Operate & Maintain!
12. ALM Performance is Challenging
ALM Needs Interoperability Across ALM Processes
ALM Performance is Challenging
ALM Needs Interoperability Across ALM Processes
Consistent
Shared GoalsStrategyOperate
Compatible Tools
Consistent
ProcessesPeople | Processes
TechnologyOptimum
Performance
Complementary
Data Models
Information
Design Maintain Design Operate Maintain
Maximizing Performance requires Teamwork …
AIM helps Teamwork “Work” !
12© ARC Advisory Group
AIM helps Teamwork Work !
13. Developing an ALM Strategy
ALM is a Collection of Interdependent Strategies
Developing an ALM Strategy
ALM is a Collection of Interdependent Strategies
Asset Lifecycle Management
A Collection of Interdependent Business Strategies
Capital Projects Management
(Design & Build)
Capital Assets Management
(Maintenance& Reliability)
Human
Virtual
Physical Human
Virtual
Physical
AssetInformationManagement
Time
et
Ramp
Functional
• Process
Specs
• Process
Models
• Process Calcs
• Flow Diags
• Equip Calcs
Design
• Process
Design
• P&ID
• Equip Layout,
Design,
BOMs
• System
Procedures
• Project Mgmt
• Install/Test
• Descriptions
of Operation
• Operating
• Insp & Maint
• Certification
Commercial
• Financial Analysis
• CAPEX
• Depreciation
• OPEX
• Purchasing
Records
• Warranty &
Status
• Project & Site
• Procurement
• Operational
Status
• MRO
Inventory
• Training
History
• Source &
Build History
• Operating
History
• Maint History
• Inspection
Records
BrownfieldProjectsfortheAsse
Up
Oper
Rdy
Peak
Perf
ModsSpec
Assm
Asset
Func
Asset
13© ARC Advisory Group
Equip Calcs
• Equip Specs
• Func Designs
y
Detail Design
• MRO BOMs
• Certification
Reqs
• Lockout &
Safety Reqs
• Warranty &
Repair Records
• O&M Service
Agreements
Training
• Incident
Reports
• People
Certifications
Reference Data Activity Records
LifeCyclesof
Liab
Cash
Idea
Des
Basis
Proj
Plan
14. Where Can ALM Help with Sustainability
Many Opportunities, Many Victories
Where Can ALM Help with Sustainability
Many Opportunities, Many Victories
Focus on the Environment – Planet’s Survival
• Use of Natural Resources – Renewable Rational Use etc• Use of Natural Resources Renewable, Rational Use, etc.
• Product Footprint - Recyclable, Decomposable, etc
• Process Footprint – CO2, Water, Other effluentsp , ,
Focus on the Business - Corporate Survival
• Satisfying Customer – Features, Cost, Delivery, Service, etc.y g , , y, ,
• Satisfying Shareholders – Profit, RONA, etc.
• Satisfying Regulators – Product Safety, OSHA, etc.
Focus on Everything – “Green to Gold”
• Aligning Corporate and Human Survival Goals
?
14© ARC Advisory Group
?
15. Conclusions & RecommendationsConclusions & Recommendations
Asset Lifecycle Management (ALM) programs
address many of the issues that are now being
identified as Sustainability Goals
» Consider ALM as the foundation for your own Sustainability
ProgramProgram
Effective ALM strategies are based upon a
proper understanding of assets, asset lifecycles,p p g , y ,
ALM processes and ALM Stakeholders
» ARC’s ALM research addresses these issues and may be
helpful in your efforts to achieve various Sustainability goalshelpful in your efforts to achieve various Sustainability goals
» Learn more about ALM through ARC’s ALM newsletter,
research reports, workshops and events.
15© ARC Advisory Group
16. For a free copy of a full ARC report on this topic please
contact the author at srsnitkin@arcweb com
Thank YouThank You
contact the author at srsnitkin@arcweb.com
For more information about Asset Lifecycle Management
please visit our web site at www.arcweb.com and look
16© ARC Advisory Group
p
under “Domains/Asset Lifecycle Management”