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This Life Cycle Asset Management article series introduces and discusses life cycle asset management strategies, systems and processes for optimizing operating asset economics, reliability, performance, and return on investment.
Life Cycle Asset Management, Enterprise Asset Management (EAM), Engineering Asset Management, and Physical Asset Management (and their linguistic variations) are considered to be synonymous names. Life Cycle Asset Management is used to title this series, as it has the correct connotation of what is intended when the applicable strategies are adopted by organisations.
‘ISO 55001 Asset Management  – Management systems – Requirements’ is an international standard for certification of life cycle asset management systems and posts about the ISO 55000 asset management suite of documents are included in this series.
The purpose of this Life Cycle Asset Management series is to provide reputed, useful content that brings value and improves asset performance when used in operations and organisations.
NOTE: The series does not include coverage of related commercial or vendor software or database management applications.
There is only one reason companies do maintenance on their physical assets—because it’s cheaper than not doing it. Unless doing maintenance makes a profit by saving money, it is wasting money. In the end, maintenance is about getting the best economics from physical assets.
Keywords: plant maintenance management, equipment reliability, production risk management
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The depreciation rate for equipment varies depending on the operational situation of the asset and the tax laws that apply to your company. The depreciation rate is more an accounting decision than an engineering one. The engineering aspect in the depreciation rate for equipment choice is deciding how long is the operating lifetime for an equipment item.
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I want to know how we calculate the value for the depreciation rate of equipment. Want is done on other industrial sites, we apply an depreciation rate of 8 percent per year?
Overview the Plant Wellness Way EAM Methodology for a simple and successful Enterprise Asset Management System. Learn how to apply the Plant and Equipment Wellness enterprise asset management methodology. Follow the steps to get the best performance from your plant and equipment. Learn what systems and processes produce the optimal plant and equipment reliability results. From creating low stress component environment for lasting equipment health through to establishing the simplest and most effective business system and processes for world class asset management performance, this overview guide to the Plant Wellness Way takes you step by step in creating the outstanding asset performance needed for world class operational excellence. As with human wellness, the Plant Wellness Way requires you to build a healthy life for your machines. Learn to control your plant’s reliability by managing the stresses put on equipment parts and reducing the risk of failure so plant and equipment remains fit and healthy to produce its best performance. The Plant Wellness Way EAM methodology lets you find the ideal health conditions for your equipment and machines and makes you establish business processes and systems to achieve and maintain outstanding reliability performance.
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To get world class operation and profits your Asset Lifecycle Management System must prevent every opportunity for defect-creation in all life cycle phases, for all your operating equipment
Every physical asset has a lifecycle starting at conception through to its eventual disposal and site remediation. In each phase of the lifecycle errors can occur that cause defects within the asset. In operations with hundreds of assets there easily can be tens-of-thousands of defects. Each defect is a risk that eventually contributes to breakdowns, losses, wastes, safety incidents during operation, and shortens the asset’s service lifetime. Eliminating thousands of defects and risks forever is what Plant Wellness Way EAM does for its users.
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In 1987 the ISO9000 quality management series was launched; superseding the earlier BS5750 document. It has progressed from its initial product quality focus to its now customer satisfaction focus. During all its life the question of the usefulness of ISO9001 to business growth and performance has dogged it. The greatest fault of ISO9001 is its lack in setting quality performance. It mistakenly asks companies to select their own quality standards to work to. That is its single greatest problem—the lack of quality benchmarks and is the reason why it is common to hear managers call ISO 9001 a waste of time. But if you address ‘quality’ correctly in your ISO 9001 quality management system you can turn your company into a world-class performer within three years.
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It is a mockery to use business performance indicators to manage a company or department. Using the information that shows up on the management dashboards on your screen can wreck your company. Measuring a process does not put you in control of it. A process is totally self-controlled. You always get what the process gives you. Organizational processes work well or do not because of their design.1 A business process that cannot achieve its aims is the wrong design for its purpose.
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Your views on why enterprise asset management fails intrigued me. I am currently undertaking a master’s study on “Understanding the Difficulties of Developing an Effective Planned Preventive Maintenance Regime at an underground coal mine”.
My masters is based on finding the reasons why in the mining field the other methods of maintenance methodologies such as RCM, TPM, Six Sigma, etc. do not seem to get embraced by the mining maintenance teams, and there is always a weak attempt to implement them on the part of management.
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OPERATIONAL EXCELLENCE IS A RESULT
Operational Excellence requires a business system-of-reliability. Reliability is the chance of success, so a company built as a ‘system-of-reliability’ maximizes its operating profits and production success. The three requirements needed to create a system-of-reliability for Operational Excellence are:
1. A defect eliminating work quality assurance system where your processes are robust and anti-fragile to disruption, and insure right-first-time results. Only if processes are built to go right every time; are anti-fragile to error; and proactively prevent causes of problems, can you reach Operational Excellence.
2. Business-wide process innovation focused on optimizing for the highest productivity, least cost, and right quality output. Then you install the next generation of solutions for ever better productivity.
3. Holistic, lifecycle physical asset management for stable, reliable operation with outstanding availability, highest utilization and most sustainable throughput.
You do three phases to reach Operational Excellence the Plant Wellness Way: Design your system-of-reliability – Teach your system-of-reliability – Build your system-of-reliability. First, design a business that can be the best. Second, teach your leaders how to do the right things, rightly. Third, apply and do the right behaviours for success.
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Every physical asset has a lifecycle starting at conception through to its eventual disposal and site remediation. In each phase of the lifecycle errors can occur that cause defects within the asset. In operations with hundreds of assets there easily can be tens-of-thousands of defects. Each defect is a risk that eventually contributes to breakdowns, losses, wastes, safety incidents during operation, and shortens the asset’s service lifetime. Eliminating thousands of defects and risks forever is what Plant Wellness Way EAM does for its users
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An endless Dilemma confronts every business. It is how to ensure that the activities we undertake will always produce the intended results.
Explosions, workplace deaths, harmful accidents, physical injuries, damaged goods, scrapped jobs, repeat work, manufacturing errors, operating mistakes, bad repairs, misunderstanding, wrong decisions, supplier miscommunication and poor delivery performance are all examples of the many unwanted troubles and problems caused by the Dilemma. Its impacts and effects have been written about for more than 6,000 years of recorded human history.
The Dilemma’s prevalence throughout the world indicates that human beings are a major contributor. A second major factor is business design: how your processes are configured and operate determines your degree of success in addressing the Dilemma. A third big cause is our training and education processes which have transferred the Dilemma all through businesses and across cultures for over 60 centuries. To stop the Dilemma affecting your company you can use what we have learnt about the universe, people and business processes during the last 100 years.
[Read more…]Value Driven Maintenance is a financial modelling method to pick maintenance process improvements. Used alone VDM gives you a “starry-eyed” view of maintenance savings. Once you combine VDM with Plant Wellness Way system-of-reliability analysis you get practical solutions.
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MAKE USE OF A PROBABILITY DISTRIBUTION CURVE OF MAINTENANCE KPIS TO SHOW WHETHER YOUR MAINTENANCE PERFORMANCE IMPROVEMENT EFFORTS ARE WORKING. A KPI PROBABILITY DISTRIBUTION CURVE GIVES NEW INSIGHTS INTO YOUR MAINTENANCE PERFORMANCE.
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Using a distribution curve of maintenance KPIs as a new maintenance performance measure was what we recommended to this Maintenance Manager.
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This white paper will teach you how to solve your plant and equipment reliability problems and improve your current plant and equipment reliability up to magnificent performance.
Since the mid-1980’s we have known exactly how to guarantee incredible equipment reliability. Failure-free machinery and equipment is totally achievable (in fact it is remarkably straightforward to do). We have all the answer—we know all the science; we know all the engineering; all the necessary information is readily available. The research has long been completed. The correct solutions for magnificent reliability are practical and quite doable. The problem that remains, is that though we know exactly what needs to be done to get magnificently reliable machines, we cannot get companies to do it right. The limitation to achieving magnificent reliability is not technical. The limitation now seems to be organisational, cultural, and human factors related.
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Physics-of-Failure warns us to keep the sum of all static and cyclic loads on a part’s microstructure below its fatigue stress limit.
The image below shows two example metal fatigue limit failure curves. These curves were determined based on controlled laboratory experiments. These experiments use a machine with a fixed load to test the selected piece’s microstructure stress levels. Curve A shows that at a high stress level, close to the Ultimate Tensile Strength of steel, the test piece failed after 10,000 cycles. As the fatigue stress level is reduced, the test piece lasts longer. When the imposed stress is limited to around 50% of the UTS, the cycles to failure had no measurable limit. On the other hand, Curve B shows that at all levels of fatigue stress the component would eventually fail. However, the same outcome can be seen, that as stress reduces the service lifetime before failure increases.
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Plant and equipment failures are business process failures. Plant stoppages and breakdowns result from failure-causing practices built into business processes and from leaving the right reliability practices out of them. Processes may superficially look okay because they have documentation, charts and records, but if you suffer a steady stream of failures, problems, and rework, then your processes contain unforeseen ‘traps’ into which your people and equipment regularly fall. Failure was not intended when your processes were chosen and designed, but failure is what happens when they are used.
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