asset Strategy management

Asset-intensive industries such as oil & gas, power generation, chemicals, mining & metals, etc. use a significant portion of their operating and maintenance (O&M) budget to ensure that their fixed and rotating equipment/assets are functioning in an optimal fashion. Since this has a direct impact on profitability, organizations look to develop and manage asset strategies by using a risk-based approach across individual assets, a group of assets, or an asset system.

Furthermore, an asset management strategy allows users to prioritize investment allocation based on asset criticality and risk, thereby reducing costs, increasing asset availability and reliability, and moving towards a more proactive approach to maintenance.

To maximize profitability, there is a need for consistent application and implementation of effective asset management strategies that can be improved and adjusted over time based on data. The ability to define, control, and improve holistic asset management strategies by applying risk-based principles, creating dynamic management though the integration of conditional data and analytics to detect emerging threats, and adapting to changing business conditions are key pillars in the asset strategy optimization process. Additionally, the ability to compare active versus proposed scenarios for asset and system strategies (using what-if risk analysis) allows users to find the right balance between risk mitigation and the cost of the action plan and further establish a sustainable, closed-loop continuous improvement cycle.

Five key steps are required in developing an asset management strategy:

1. Assess Criticality of Assets: Identify the most critical assets and quantify its impact on the business.
2. Identify Risks and Mitigating Actions: Using RCM/FEMA methodologies to identify the failure modes at equipment and system levels.
3. Optimize Mitigation Strategies for Risk and Cost: Develop and optimize maintenance strategies (increase/decrease frequencies) based on asset criticality, risk, and cost.
4. Manage and Implement Asset Strategies: Single source of organizational visibility, harmonization with enterprise systems (EAM), and standardization of best practices across the enterprise.
5. Drive Corrective Actions and Continuous Improvement: Data driven evaluation of the effectiveness of the strategy and a mechanism to adjust based on changing conditions such as criticality, age, or usage of the equipment.