Developing Asset Life Cycle Management capabilities through the implementation of Asset Life Cycle Plans – an Action Research project

Asset Life Cycle Management is a strategic approach to managing physical assets over their complete life cycle. However, the literature and the recent ISO 55,000 standard do not offer guidance as to how to develop such an approach. This paper investigates the main capabilities for Asset Life Cycle Management by means of a four year Action Research project implementing Asset Life Cycle Plans. Five main capabilities emerged: 1. strategic information use; 2. alignment of operations and strategy; 3. alignment of different disciplines; 4. a dual time perspective and 5. exerting influence over the assets throughout the entirety of the organization

Mitigating change in the goals and context of capital assets: design of the lifetime impact identification analysis

Physical assets are essential in manufacturing, and typically have lifetimes of several decades. Over such a period, many changes in goals and context may occur. Such changes should be dealt with to prevent a premature end to the asset’s useful life. However, current maintenance methodologies focus mainly on the short term and on operation in a stable context. Based on a case study of Asset Management practices and the literature, we developed the Lifetime Impact Identification Analysis (LIIA) method. The method uses Technical, Economic, Compliance and Commercial perspectives to identify long-term challenges and opportunities for the asset

Setting priorities for the proactive management of longterm challenges and opportunities in Asset Life Cycle Management

Asset Life Cycle Management concerns the effective management of physical assets over their complete lifetimes, typically lasting decades. Therefore, a large number and a wide variety of challenges and opportunities may need to be dealt with proactively, using limited resources. Therefore, we developed a tool to prioritize these lifetime impacts. The test of the tool showed that by assessing the lifetime impacts on their likelihood, impact and required management effort, a list of the highest priority lifetime impacts can be generated as an input for further discussion, which allows the efficient use of limited resources in Asset Life Cycle Management

A multidisciplinary, expert-based approach for the identification of lifetime impacts in asset life cycle management

Everyday our lives are dependent on countless physical structures. These assets represent an enormous value for their owners and for society at large. To grasp the full potential of these assets, a deep and thorough understanding of an asset's complete lifetime is needed. Problems with data collection and data quality however limit currently available methods for Asset Life Cycle Management in their potential to deliver such a deep understanding. Therefore, this paper proposes to focus on the identification of lifetime impacts: trends or events that may have a positive or negative influence on the remaining lifetime of the asset. Timely identification of these impacts allows the asset owner to prepare appropriate measures. Based on a literature review and a case study, the paper argues that a multidisciplinary approach employing both quantitative and qualitative information is needed. The Lifetime Impact Identification Analysis (LIAA) method is presented, incorporating technical, economic, compliancy and commercial perspectives on the asset. The method exploits expert-sessions to gather and structure available knowledge into a Lifetime Impact Report. Preliminary test results show that the proposed method is promising to both theory and practic

Embedding the Circular Economy in Investment Decision-making for Capital Assets – A Business Case Framework

Industry shows an increasing interest in the circular economy. However, circularity for physical capital assets is still ill-defined and existing models are complex and information dependent hindering implementation. This paper addresses these gaps by operationalizing circular economy principles and developing a suitable business case framework embedding circularity. Following the Design Science Methodology, a framework was developed based on circularity and investment decision-making literature and requirements from a Dutch electricity grid operator. An initial evaluation showed that the framework supports selecting the preferred circular investment scenario and can be generalized to other industries