sustainable operations through better asset lifecycle management
TRANSCRIPT
Sustainable Operations Through Better Asset Lifecycle Management
Sustainable Operations Through Better Asset Lifecycle ManagementAsset Lifecycle ManagementAsset Lifecycle Management
Sid SnitkinVice-President & GM
Enterprise Advisory ServicesARC Advisory Group
Agenda Agenda
What is Sustainability?
What Makes a Sustainable Mfg Operation?
How Does This Relate to Asset Lifecycle Management (ALM)?
How Can You Use this to Develop a Strategy for Sustainable Operations?Sustainable Operations?
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What is Sustainability?Many Perspectives, Many ChallengesWhat is Sustainability?Many Perspectives, Many Challenges
Focus on the Environment – Planet’s Survival
• Use of Natural Resources – Renewable Rational Use etc• Use of Natural Resources Renewable, Rational Use, etc.
• Product Footprint - Recyclable, Decomposable, etc
• Process Footprint – CO2, Water, Other effluentsp , ,
Focus on the Business - Corporate Survival
• Satisfying Customer – Features, Cost, Delivery, Service, etc.y g , , y, ,
• Satisfying Shareholders – Profit, RONA, etc.
• Satisfying Regulators – Product Safety, OSHA, etc.
Focus on Everything – “Green to Gold”
• Aligning Corporate and Human Survival Goals
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What Does Sustainability Mean to Mfgrs? Operations That Meet all Sustainability GoalsWhat Does Sustainability Mean to Mfgrs? Operations That Meet all Sustainability Goals
A Sustainable Manufacturing Operation Has:• The Right Set of Assets for the Job• The Right Set of Assets for the Job
• Fast, bumpless response to changing requirements• Minimum use of energy, labor and materials
Th Ri ht P ti t O ti i U f All A t• The Right Practices to Optimize Use of All Assets• Strategically - to satisfy the most important demand• Tactically - in the most efficient manner• Balanced to maximize returns x lifetime
• The Right Programs to Ensure High Availability• Assets that are reliable and ready when neededy• Assets that maintain peak performance over the long run
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Sustainability = Excellent ALM PerformanceALM Provides a Good Basis for Sustainability EffortsSustainability = Excellent ALM PerformanceALM Provides a Good Basis for Sustainability Efforts
The Right Capability
High Availability
Optimal Utilization
Optimum PerformanceX X =
Design MaintainOperate Win!
DOM E ll i h f
Capability AvailabilityUtilization Performance
ARC’s DOM Model for Asset Performance
DOM Excellence is the outcome of a proper Asset Lifecycle Management (ALM) Strategy …
» Establishing a Good ALM Strategy will satisfy many» Establishing a Good ALM Strategy will satisfy many of your Sustainability Goals
» Investments in ALM can be justified on the basis of S t i bl O timore Sustainable Operations
» Making the Right Investments requires a solid understanding of ALM!
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ALM begins with a proper view of the AssetProductive Assets are More Than EquipmentALM begins with a proper view of the AssetProductive Assets are More Than Equipment
PrimaryF iliti
Project-CentricP j t M t
HumanPhysical
FacilitiesEquipment
Remote
Project MgmtEngr/DesignProcurementConstruction
SupportIT HW/SW
MobileMRO Material
Asset-CentricOperations
Process EngrMaintenance
Virtual
R f D t
MRO Material MaintenanceReliability
A ti it R dReference DataFunctional
DesignProcedural
Activity RecordsCommercial
StatusHistory
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The Three Asset Classes are Equally Important to Plant Success !
Add a proper definition of an Asset LifecycleStages in the Life of a Real Physical AssetAdd a proper definition of an Asset LifecycleStages in the Life of a Real Physical Asset
Time
Ass
etRamp
UpOperRdy
FuncAsset
ts f
or
the ARdy
PeakPerf
AssmAsset
Asset
eld
Pro
ject
ModsSpec
of
Bro
wn
fieMods
P j
Spec
fe C
ycl
es
o
Liab
CashDes
ProjPlan
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LifCash
IdeaBasis
And, the processes that must be managedALM is the Management of Several Key ProcessesAnd, the processes that must be managedALM is the Management of Several Key Processes
Time
Ass
etRamp
UpOperRdy
FuncAsset
ts f
or
the ARdy
PeakPerf
AssmAsset
Asset
Operate & Optimize
eld
Pro
ject
ModsSpec
p
of
Bro
wn
fieMods
P j
Spec
Design &Build
Maintain &Improve
fe C
ycl
es
o
Liab
CashDes
ProjPlanBuild Improve
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LifCash
IdeaBasis
And, the Many Parties Involved in ALMALM Requires Extensive CollaborationAnd, the Many Parties Involved in ALMALM Requires Extensive Collaboration
Engr & Project Mgmt Services
(EPC/AEC)
Owner/Operator
(EPC/AEC)
Fabricators & Constructors
O&M Service Providers Operate
& Optimize
MROMaterial
IT ServicesProviders
Design &
Build
Maintain &
Improve
Virtual
SuppliersProviders
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Shareholders Regulators
Results in Some Level of Asset PerformanceALM Performance = Project & Plant PerformanceResults in Some Level of Asset PerformanceALM Performance = Project & Plant Performancejj
• Financial • Cost, Cash Flow
• Functional• Work Quality• Design Compliance
• Design Accuracy• Release Mgmt• C/N Mgmt• Equip Selection
• Const Planning• Material Mgmt• Site Mgmt• Labor Efficiency
Timely, Right X
DesignOptimalBuild
• Design Compliance• Personal EH&S
• Schedule
Equip Selection• Material Specs
y• EH&S
Timely, Right Projecte y, gInformation
MaximumOptimal
X
MaintainOperate
Execution
ALMPerformance
e y, gInformation
The Right
jPerformance
A tMaximum Availability
Optimal Utilization XX
• Product Range• Throughput
• Product Mix• Prod Planning
• Maint Strategy Mgmt• Maint Planning
• Financial • Profit, Ratios (ROA)
The Right Capability
AssetPerformance
oug pu• Quality• Product Unit Cost• EH&S Capability
od a g• Prime %• Material Cost• Labor Cost• EH&S
a a g• Maint Efficiency• MRO Material Mgmt• Labor Cost• EH&S
o , a o ( O )• Functional
• Process EH&S• Personal EH&S
• Product/Service• Cost, Quality, Delivery
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Optimal Performance Occurs When all DOM Processes Are “Jointly” Optimized Across All Lifecycle Stages!
Developing an ALM StrategyPerformance Depends Upon Several FactorsDeveloping an ALM StrategyPerformance Depends Upon Several Factors
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ALM Requires Strategies for Design, Operate & Maintain!
ALM Performance is Challenging ALM Needs Interoperability Across ALM ProcessesALM Performance is Challenging ALM Needs Interoperability Across ALM Processes
Consistent
Shared GoalsStrategyOperate
Compatible Tools
Consistent ProcessesPeople | Processes
TechnologyOptimumPerformance
Complementary Data Models
Information
Design Maintain Design Operate Maintain
Maximizing Performance requires Teamwork … AIM helps Teamwork “Work” !
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AIM helps Teamwork Work !
Developing an ALM Strategy ALM is a Collection of Interdependent StrategiesDeveloping an ALM Strategy ALM is a Collection of Interdependent Strategies
Asset Lifecycle ManagementA Collection of Interdependent Business Strategies
Capital Projects Management (Design & Build)
Capital Assets Management(Maintenance & Reliability)
Human
Virtual
Physical Human
Virtual
Physical
Asset Information Management Time
etRamp
Functional• Process
Specs • Process
Models• Process Calcs• Flow Diags• Equip Calcs
Design• Process
Design • P&ID• Equip Layout,
Design, BOMs
• System
Procedures• Project Mgmt• Install/Test • Descriptions
of Operation• Operating • Insp & Maint• Certification
Commercial• Financial Analysis• CAPEX• Depreciation• OPEX• Purchasing
Records• Warranty &
Status• Project & Site • Procurement• Operational
Status• MRO
Inventory• Training
History• Source &
Build History• Operating
History• Maint History• Inspection
Records Bro
wn
fie
ld P
roje
cts
for
the
Ass
eUpOperRdy
PeakPerf
ModsSpec
AssmAsset
FuncAsset
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Equip Calcs• Equip Specs• Func Designs
yDetail Design
• MRO BOMs
• Certification Reqs
• Lockout & Safety Reqs
• Warranty & Repair Records
• O&M Service Agreements
Training• Incident
Reports• People
Certifications
Reference Data Activity Records
Lif
e C
ycl
es
of
Liab
Cash
Idea
DesBasis
ProjPlan
Where Can ALM Help with SustainabilityMany Opportunities, Many VictoriesWhere Can ALM Help with SustainabilityMany Opportunities, Many Victories
Focus on the Environment – Planet’s Survival
• Use of Natural Resources – Renewable Rational Use etc• Use of Natural Resources Renewable, Rational Use, etc.
• Product Footprint - Recyclable, Decomposable, etc
• Process Footprint – CO2, Water, Other effluentsp , ,
Focus on the Business - Corporate Survival
• Satisfying Customer – Features, Cost, Delivery, Service, etc.y g , , y, ,
• Satisfying Shareholders – Profit, RONA, etc.
• Satisfying Regulators – Product Safety, OSHA, etc.
Focus on Everything – “Green to Gold”
• Aligning Corporate and Human Survival Goals?
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?
Conclusions & RecommendationsConclusions & Recommendations
Asset Lifecycle Management (ALM) programs address many of the issues that are now being identified as Sustainability Goals
» Consider ALM as the foundation for your own Sustainability ProgramProgram
Effective ALM strategies are based upon a proper understanding of assets, asset lifecycles, p p g , y ,ALM processes and ALM Stakeholders
» ARC’s ALM research addresses these issues and may be helpful in your efforts to achieve various Sustainability goalshelpful in your efforts to achieve various Sustainability goals
» Learn more about ALM through ARC’s ALM newsletter, research reports, workshops and events.
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For a free copy of a full ARC report on this topic please contact the author at srsnitkin@arcweb com
Thank YouThank You
contact the author at [email protected]
For more information about Asset Lifecycle Management please visit our web site at www.arcweb.com and look
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punder “Domains/Asset Lifecycle Management”