APM_Asset Performance Management_By_Deepak Sahoo_v1r1

Asset
Performance
Management
Leading the industry
in a new way.
Prepared By :
DEEPAK KUMAR SAHOO
CMRP, SSBB, Lean Expert
PG in Engineering Management, B.Tech in Mechanical
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An effective Asset Performance Management System
can improve EBITDA as much as 15-25%
01

Why Industry need to focus on Asset
Performance Management.03
07
14
21
28
36
Asset Performance Management
the Core.
New era of ISO 55000 Series.
Integrate management initiatives with Asset
Performance Management.
Making Assets work for you. Developing
robust Asset Performance Management System.
Focus on future uncertainty and long term
strategy for better profitability and sustenance.
Prepared by : - Deepak Kumar Sahoo | defydk@hotmail.com | +1 – 310 929 7404 | DD14PA16 Oct – 2015 | Asset Performance Management
CONTENTS 2

03 Why Industry need to
focus on
Asset Performance Management ?

 Performance Criteria Used
to Identify Best-in-Class
BENCHMARKING THE BEST IN CLASS 04
Best-in-
Class
Industry
Average
Laggard
Operational Equipment
Effectiveness (OEE)
Asset Downtime
88% 81% 75%
02% 11% 18%
Return on Asset vs Plan 25% 07% - 10%
Source : Aberdeen Group

GOALS FOR TOP MANAGEMENT (CFO/COO/CEO) 05
Source : Aberdeen Group
Sample Size, n=139
Reduce Operating Expense Revenue Growth
Improve Profitability Customer Satisfaction
Risk management
63%
46%
40%
28%
24%

BENEFIT’S OF APM 06
Improve Financial Performance such as
Profits, Return on net Assets, Efficiency,
Service Factor.
Manage and Optimize Risk level.
Improve Plant productivity, Availability,
Quality.
Enhance reputation, Brand Image.
Improve Organizational sustainability
and demonstrated Social responsibility.
APM
BENEFIT’S

07
ASSET
PERFORMANCE
MANAGEMENT
THE CORE.

 Something you own that has value.
 There can be assets that gain value over time or lose value over time
ABOUT ASSET 08
Human
Virtual
Physical
ASSET TYPE

ASSET LIFE CYCLE 09

RETURN ON ASSET 10
ROA
Return On Asset

11 BRIDGING THE GAP
BETWEEN
CAPEX
&
OPEX

 Asset Performance Management :
APM is a holistic approach used to ensure that the business of caring for
corporation’s maintainable assets is done in the most cost-effective manner to
promote asset longevity, performance and capability.
 It cultivates a partnership between operations and maintenance, whose
common goal is equipment uptime.
 APM optimize the equipment performance and reliability on daily basis.
 It will help to identify the current asset health and able to provide a long
term view to drive capital planning.
 Visibility into complete lifecycle of asset – Understanding the Economic
Value Add
 Aligning asset performance to corporate performance
An effective APM process involves the development and implementation of reliability
programs for operational assets coupled with application of ongoing performance
monitoring and improvement to drive program optimization overtime.
ASSET PERFORMANCE MANAGEMENT 12

BASIC MODULES OF APM 13
Strategy &
Planning
Decision-
Making
Organization
and People
Lifecycle
Delivery
Asset
Information
Risk and
Review
1 2 3 4 5 6

14
New era of
ISO 55000 Series.

 ISO 55000: Asset Management - Overview, Principles and Terminology.
 ISO 55001: Asset Management – Management Systems - Requirements.
 ISO 55002: Asset Management — Management systems - Guidelines for
the application of ISO 55001
 Asset Management Fundamentals :
ISO 55000 SERIES STRUCTURE 15
AssuranceLeadershipAlignmentValue

FUNDAMENTALS : VALUE 16
VALUE
ALIGNMENT
LEADERSHIP
ASSURANCE
 Value: Assets exist to provide value to the organization and its
stakeholders.
Asset management does not focus on the asset itself, but on the value
that the asset can provide to the organization. The value (Which can be
tangible or intangible, financial, or non financial) will be determined by
organization and its stakeholder in accordance with the organizational
objectives.
 Existing Focus
 Lifecycle cost
 Total Cost of Ownership (TCO)
 Future Focus
 Value Creation
Its Like Your Car...
People buy cars
to realize value.

FUNDAMENTALS : ALIGNMENT 17
VALUE
ALIGNMENT
LEADERSHIP
ASSURANCE
 Alignment: Transform organizational objectives into technical
and financial activities, decisions and tasks
Asset management translates the organizational objectives into
technical and financial decision, plans and activities.
 Objectives into actions
 Integration
 A supporting Asset Management System

FUNDAMENTALS : LEADERSHIP 18
VALUE
ALIGNMENT
LEADERSHIP
ASSURANCE
 Leadership: Leadership and workplace culture are determinants
of value realization.
leadership and commitment from all managerial levels is essential for
successfully establishing, operating and improving asset management
within the organization.
 Workplace culture
 Roles and responsibilities and authority
 Awareness
 Stakeholder involvement

FUNDAMENTALS : ASSURANCE 19
VALUE
ALIGNMENT
LEADERSHIP
ASSURANCE
 Assurance: Asset management enables the assets to fulfil their
required function
The need for assurance arise from the need to effectively govern an
organization. Assurance applies to asset, asset management and the
asset management system.
 Assets fulfill purpose
 Processes
 Connection to organizational objectives
 Continual improvement
 Necessary resources

FROM ORGANIZATION TO PORTFOLIO 20
Managing
the
Organization
Asset
Management
Asset
Management
System
Asset
Portfolio
Coordinated activity of an
organization to realize value
from assets.
Set of interrelated or
interacting elements to
establish APM policy, APM
objectives and processes to
achieve those objectives.
Assets that are within the
scope of the asset management
system.

21
Integrate
Management Initiatives with
Asset Performance Management.

MISSING LINK 22
 Normally 15-25% Cost Avoidance
is achieved when Asset
Performance Management System
is used effectively.
 It has been shown that typically
equipment reliability problems
accounts for about 38 percent of all
unplanned slowdowns or
shutdowns.
 Problems with Data Quality,
Data Entry, Completion.
 No synchronize among
people, Process and
Application.
 End users are not reliability
oriented.
 No Standardizations.
Strategy
& Programs
People &
Processes
DISCONNECTED
Applications & Information

APM : THE MISSING LINK 23
 APM provides asset owners with a
single point of access to a
collaborative transactional
workspace to manager their assets
throughout their productive
lifecycle.
 Asset performance management is
the backbone of reliability culture.
 APM enables organizations
to identify, contain, analyze
and remove production losses
and thus improve production
performance
Strategy
& Programs
People &
Processes
APM
Applications & Information

DEVELOP KAI FROM VISION 24
KMI
KPI
KAI
Top Management | KMI : Key Management Index
Middle Management | KPI : Key Performance Index
Front line Workforce | KAI : Key Activity Index

INTEGRATE MANAGEMENT INITATIVES 25
APM
ISO
Series
Operational
Excellence
Integrate
all Management System
towards company Vision

APM INTEGRATION WITH OTHER INITIATIVES 26
APM
TPM
TQM TPS
SIX SIGMA
Maintenance
Optimization
Program
LEAN
ISO - 9001
Customer
Satisfaction
Index
Data Analytics
Web Penetration
WCM
KAIZEN
RELIABILITY
FI
Inventory
Management
VSM
Condition Monitoring
5S

Better-performing Assets
make better-performing Companies
27

28 Making Assets work for you.
Developing robust
Asset Performance Management
System.

FOCUS ON TEEP & OEE 29
Total Effective Equipment
Performance (TEEP)
The ratio of the good product produced to maximum possible
production over a given calendar time period
Overall Equipment
Effectiveness (OEE)
The ratio of the good product produced to planned
production over a given calendar time period

DESIGNING THE APM SYSTEM 30
Real Time
Visibility
Flexible &
Robust Data
Collection
Operational
Governance
Empowering
the
Workforce
Driving
Accountability
APM System
Design

 Provides robust automated data collection through System Platform objects.
 Leverages System Platform device connectivity to interface to any plant
information source
 Supports multiple methods for manual data collection such as HMI, Web
and Mobile.
 A platform for standardization in support of industry standards.
 Data Collection in support of OEE – Overall Equipment Effectiveness.
APMSD : FLEXIBLE & ROBUST DATA COLLECTION 31
Flexible & Robust
Data Collection
Real Time
Visibility
Operational
Governance
Empowering
the Workforce
Driving
Accountability
Asset
Performance
Management
System Design

 Drive better equipment utilization through operator awareness
 Provide visibility to key performance metrics in real-time
 Drive consistent “action” to normal activities (e.g. line setup/change over),
as well as abnormalities.
 Get instant notifications of alarms and out of range data points.
 Take action, share data and notify colleagues with a click.
 Multi-platform support.
 Advanced Reporting & Analytics, Single & Multi-Plant.
 Easier Dashboard and multi-format report generation.
APMSD : REAL TIME VISIBILITY 32
Flexible & Robust
Data Collection
Real Time
Visibility
Operational
Governance
Empowering
the Workforce
Driving
Accountability

 Define and institutionalize operational practices to sustain improvements
 Coordinate disparate people and applications into effective processes
 Measure the effectiveness of your practices
 Easily adapt and change practices to drive further gains.
APMD : OPERATIONAL GOVERNANCE 33
Flexible & Robust
Data Collection
Real Time
Visibility
Operational
Governance
Empowering
the Workforce
Driving
Accountability
Ensure that Improvements are Sustained…

 Enables people to own and participate in the change management process.
 Coordinates and facilitates communication amongst the team members.
 Aligns the cross-functional team with business objectives and priorities.
 Facilitates and guides the change management process.
APMD : EMPOWERING THE WORKFORCE 34
Flexible & Robust
Data Collection
Real Time
Visibility
Operational
Governance
Empowering
the Workforce
Driving
Accountability
Ownership Drives Adoption…

 Define “action plans” that align with your organizational objectives – close
the loop!
 Define how each role in the organization participates in those plans
 Measure the effectiveness of the teams and how well they react and respond
 Appropriately escalate processes to ensure that they are addressed in a timely
manner
APMD : DRIVING ACCOUNTABILITY 35
Flexible & Robust
Data Collection
Real Time
Visibility
Operational
Governance
Empowering
the Workforce
Driving
Accountability
Establish Processes to Drive Accountability…

36
Focus on
future uncertainty
& long term business strategy
for better Profitability & sustenance.

APM : SUSTENANCE 37
DATA
QUALITY
ADAPTABILITY
LEADERSHIP

SUSTAINED RESULTS 38
CONTENT
CHANGE

Asset Performance
Management is
Cyclical
but each time
through the cycle
there is
improvement.
39

Books and Standards
 Asset Management: Whole Life Management by Chris Lloyd
 Asset Management Excellence by John D. Campbell, Andrew K.S. Jardine, Joel McGlynn
 Benchmarking Best Practices for Maintenance, Reliability and Asset Management by Terry Wireman
 Physical Asset Management Handbook by John S. Mitchell
 Maintenance Best Practices by Ramesh Gulati
 Physical Asset Management by Nicholas Anthony John Hastings
 The Asset Management Landscape
 Sustainable Asset Management by Roopchan Lutchman
 Operational Excellence by John S. Mitchell
 The (New) Asset Management Handbook – The Guide to ISO 55000
 Leader's Guide to ISO 55001: Asset Management System Requirements by Darrin J Wikoff
 The Asset Management Landscape
White Papers & Presentations
 Asset Performance Management by Mehul Shah, Matthew Little field
 Asset Performance Management:Bridging the Gap Between CapEx and OpEx by Sandra DiMatteo
 Strategic Asset Management Planning Presented by Howard Bulmer
 Top Strategies for Asset Performance Management by Mehul Shah
REFERENCE 40

CONTACTS END
If you have any queries regarding this
presentation then contact me.
DEEPAK KUMAR SAHOO
Mobile : +966 – 568 390 270
+1 – 310 929 7404
Email : defydk@hotmail.com
dksahoo2@gmail.com
 Post graduate in Engineering Management (RCM, TPM,
CBM) and Bachelor of Technology in Mechanical
Engineering having over 8 years of experience in the field of
Reliability Improvement, Operational Excellence, and Asset
Management domain.
 Certified Maintenance & Reliability Professional - CMRP in
2015, Six Sigma Black Belt Certified, TPM facilitator and Lean
Expert.
 Worked in diversified industries such as Petrochemicals,
Steel, Ferro-Alloys, FMCG, Facilities Management sectors in
Asia Pacific, Middle-East, Eastern Europe and North Africa
regions.
 Imparted Training on various aspect of OE, Reliability
Engineering such as Root Cause Analysis, Lean
Manufacturing, Value Stream Mapping, Total Productive
Maintenance, Kaizen, Small group Activities, Reliability
Analytics, 4.5G maintenance Strategy, Loss, Operator based
Reliability, SMED, Six Sigma, ISO – 55000, Asset
Performance Management and various continuous
improvement Tools.
 Published white papers and presented seminars in various
international forum.
 Educational committee member in GSMP, Bahrain.
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