Developing an optimum maintenance policy by life cycle cost analysis - a case study

This paper focuses on developing maintenance policies for critical assets to improve the production performance based on life cycle cost (LCC) analysis. A general approach is adopted for conducting the LCC analysis. The investigation is based on a case study to demonstrate how an optimum maintenance policy is determined. The relevant LCC structure in the case study is defined for the decision process which involves determination of the optimum life, repair limit and selection of materials, and trade-off between repair and replacement. The LCC analysis is based on statistical data modelling which facilitates decision-making on the optimal replacement of an asset and its remaining life. Based on the optimization and remaining life criterion, the optimal maintenance policy can be made. The results obtained from this case study include selection of the best lining material for use, determination of the optimal time for refractory lining replacement, the hot repair sequence required for maintaining the optimum condition and the repair limit for doing cold repairs before replacement, for one type of electric arc furnaces used in the steel industry

Managing maintenance resources for efficient asset utilization

Asset productivity is concerned with how an asset is efficiently and effectively deployed and utilized. It is related to maintenance resource management. The purpose of this paper is to discuss development of policies for managing integrated maintenance resources. These resources include human resource and supporting material required to perform maintenance activities for a complex maintenance system. Here, human resource management encompasses policy for recruitment, training, and outsourcing. Meanwhile, supporting material management includes policy for parts purchasing and inventory. Good asset productivity can be achieved by attaining a better performance of the asset using the same amount of maintenance resources or by reducing the amount of maintenance resources used for the same asset performance. A maintenance department may manage each kind of resources and have its own policy to achieve better asset productivity. In this way, an integrated policy with all related departments is required. In this research, a model to determine an integrated optimum policy with associated departments is developed. It consists of three sub models representing three different departments in an organisation including Maintenance, Human Resource, and Inventory and Purchasing department. Through the model, some combinations of the policies can be made and tested to find the best combined policy that, in turn, can help to generate better asset productivity

A framework for the engineering asset management system

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\u27s 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

The role of asset management in enterprise strategy success

The paper reports on early work to research the connection between asset management and the successful implementation of enterprise strategies. Several case-study examples are reported that highlight the nature of the connection between the asset management function and the enterprise. This is part of ongoing research to determine the mechanism required by organisations to simultaneously deal with the coordination and integration of life-cycle management of physical assets. Together with managing the operation and the business systems within the organisation to drive toward performance improvement, sustainability and growth required for short and long-term success

The strategic role of engineering asset management in capital intensive organisations

Engineering Asset Management (AM) in capital intensive industries is argued part of an organisation‘s management system with a role in competitive strategy development and implementation. While the AM system has an influential impact on the asset life cycle, little has been done in literature on its formation or link to organisational strategy. This thesis aims at further understanding the strategic role of the AM system. It begins by reviewing literature on the nature of this system and the compatible research methodologies associated with such a discipline. The AM system is socio-technical and interdisciplinary by nature so a retroductive case study methodology was adopted because its use of a hypothesised framework allows the development of the understanding of complex relationships. Next, a review of AM models or frameworks, and links to its organisational strategy was carried out and possible existing AM system activities, mechanisms and relationships were also explored. This thesis proposes a holistic framework for the AM system so that managers in capital intensive organisations can better understand how to manage asset lifecycles and deal with its stages in practice. The framework highlights the role of an AM system during organisational strategy making. The framework adapts and integrates existing frameworks or models used for AM. The approach covers philosophical discussions and comparative studies of others\u27 work and thinking. It covers the main contributors to the development of a framework, explores their different views, and develops a holistic framework that identifies AM system activities, relationships, and mechanisms. This work establishes a systematic process flow for investigating the strategic role of an AM system within an organisation‘s management system. Further use of this process will lead to a stronger body of AM knowledge through better contributions from further research. Asset managers in capital intensive organisations can use the proposed framework to examine the applicability of this holistic approach in service and production organisations, and to guide any improvements. The hypothesised framework has been used to postulate the existence or absence of AM system activities, mechanisms, and relationships, and then the research context and collaboration which focused on the production industry and involved embedded case studies from the steel industry evidence built from an industrial case study was used to establish the existence or absence of an AM system as proposed by the hypothesised framework. Existence of elements of the hypothesised framework has been shown to be related to the successful implementation of an organisation‘s strategy. In contrast, some elements‘ absence or inadequacy results in an inappropriate or insufficient asset performance that does not allow organisational strategy to succeed. The work shows that using the proposed hypothesized framework as a reference can enable organisations to develop organisational structures that facilitate the capture of the intended benefits of their strategy. Finally a holistic view of the AM system in relation to organisational asset-related activities, and strategies is put forward which until now has been missing from the literature

Research methodologies for engineering asset management

This paper serves as a guide for researchers in Asset Management (AM). Its objective is to establish sufficient reasoning to select and complement research methodologies for AM research studies. It explores literature and adds to existing research approaches in AM. This will lead to a stronger body of knowledge through a better contribution from research. AM as a discipline, addresses the management of the life cycle of assets utilized by an organisation. This extends from identification of the need to the disposal and liability thereafter. It includes technical and business activities. From this view, AM is a relatively new discipline. The nature of the AM activities is both interdisciplinary and cross functional. It has been found that most reported research in the area of AM focuses on specific functions and technical activities such as maintenance. Often it is either not apparent that a particular research method has been used, or, not is explicitly identified. Combining case study methods with a retroductive research strategy yields suitable methodologies for improving the research process in AM

A Tool to investigate the status of engineering asset management in organizations

This paper presents a framework which addresses a series of activities defined in Engineering Asset Management (EAM). This framework is proposed to serve as a guideline of organizations when investigating if the status of the EAM system that they have in place is adequate to achieve the intended objectives. It also serves as a guide for researchers in EAM. The framework ensures a holistic approach to EAM in place that it explores the required asset management activities, relationships and mechanisms for achieving the organizational goals. In order to demonstrate the framework, a ‘retroductive’ approach in the context of case study is given this present paper which leads to a better understanding of the framework functions, i.e., the activities and relationships covered. The framework can also be used as a research tool, as well as a practical reference base in determining what activities should be in place within the asset management system for enhancing an organization’s ability to capture the intended benefits

Asset management in the energy pipeline industry in Australia

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

Exploring structure and role of engineering asset management system in production organizations

Little has been done in literature on the structure of Engineering Asset Management System (EAMS) and its relationship to production and organizational strategy. In this paper, the position of an EAMS within an organizational structure and its strategic role within a production organizations strategy has been explored. It is argued that the structure and mechanism of EAMS play a key role in directing the production process and linking to the organizational strategy: the absence or inadequacies of asset-related activities cause insufficient production performance that negatively impacts the strategic achievement. Production Actions are mapped with reference to the activities of the hypothesized framework to stipulate the structure and role of engineering asset management system in a production organization. Production organizations can use the developed framework to check the required adequacy of their activities of the EAMS for success