What is Asset Management?
Asset management is a strategic and systematic approach to managing the full life cycle of physical assets. It encompasses the planning, acquisition, operation, maintenance, and disposal of assets. The goal of asset management is to optimize the performance of assets, while minimizing risk and cost.
The ISO 55000 standard outlines the fundamentals of Asset Management as:
- Value -Assets exist to provide value to the organization and its stakeholders
- Alignment – Asset Management translates organizational objectives into technical and financial decisions and activities.
- Leadership – Leadership and workplace culture are determinants of the realization of value.
- Assurance- Asset Management gives assurance that assets fulfil their required purpose and are capable across their life cycle.
Benefits of an Asset Management System
- A clearly defined Asset Management System
- allows you to see how assets generate value, contributing to better capital investment decisions
- aligns the maintenance strategy with the company strategy and demonstrates the value of maintenance activities
- involves and empowers all employees in optimizing the value generating potential of your assets
- will aid in eliminating accelerated asset deterioration leading to an increased ROA
- identifies risks to strategic objectives dependent on production assets, including safety and environmental risks, and provides strategies to minimize those risks, reduce regulatory scrutiny, as well as lower insurance rates
What is Total Productive Maintenance (TPM)
Total Productive Maintenance (TPM) is a comprehensive, systemic approach to improving equipment reliability and performance. TPM encompasses a proactive approach to manage and maintain assets, so they provide maximum value throughout their life cycle. It is based on the principle of involving everyone in the organization in the maintenance of equipment and focuses on the following eight pillars:
- Autonomous Maintenance (AM): focuses on empowering operators to perform routine maintenance tasks on their own equipment.
- Maintenance Improvement (aka Planned Maintenance): involves planning and scheduling preventive maintenance tasks to keep equipment in good condition.<
- Training and Skill Development – ensures all employees have the knowledge and skills they need to effectively maintain and operate equipment.
- Focused Improvement – the systematic approach to identifying and eliminating the root causes of equipment losses.
- Quality Maintenance (QM): focuses on preventing defects and improving product quality.
- Early Equipment Management (EEM): involves understanding the design and manufacture of equipment to make it easier to operate, simpler to maintain, and right-sized.
- Environment, Health, and Safety (EHS): This pillar focuses on preventing human error, eliminating accidents, correcting common workplace dangers, while simultaneously reducing resource waste.
- Office TPM: This pillar involves administrative support of TPM production activities and the strengthening of functions within the departments themselves through continuous improvement (CI) activities.
Benefits of Total Productive Maintenance
TPM delivers significant benefits to organizations, such as:
- Reduced equipment failure and unplanned downtime
- Improved workplace safety
- Reduced maintenance costs
- Increased productivity
- Extended Equipment Life Cycle
Asset Management and TPM
Asset management and TPM are complementary approaches to improving the performance of assets. Asset management provides a strategic framework for managing assets, while TPM provides a systematic approach to improving equipment reliability and performance. By combining asset management and TPM, organizations can optimize the performance of their assets and achieve significant benefits.
Here are some specific examples of how asset management and TPM can be combined to improve asset performance:
- Asset management can be used to identify assets that are at risk of failure. TPM can then be used to develop and implement preventive maintenance plans to mitigate this risk.
- Asset management can be used to track the costs of maintenance. TPM can then be used to identify opportunities to reduce these costs.
- Asset management can be used to identify opportunities to improve the reliability of assets. TPM can then be used to implement these improvements