In the previous blog (Part 3 of this series) the design phase of an asset’s life cycle was discussed. In this blog, we will finish the topic by considering the next two phases of the asset’s life. These are the:
- The Project Phase
- The Operations and Maintenance Phase
In the project phase, the design is converted to a commissioned asset. Based on the diagram in part 3 of this blog, this will involve the supplier selection and the project execution. The company may purchase the new asset from a designated supplier or they may purchase all of the components to internally build the asset. The purchasing of the asset is where the life cycle costs begin to escalate.
This is also the point where additional maintenance costs are decided. If the asset is installed so that any maintenance tasks can be easily performed, the Mean Time To Repair (MTTR) will be minimized. However, if the asset is installed in a manner that makes it difficult to perform even routine service on the equipment, the time to perform the maintenance activities will be unnecessarily inflated, which increases the life cycle costs.
For example, if an asset is installed too close to a wall or another asset, the clearances to access the serviceable components will be insufficient. This may require additional disassembly of the asset or nearby structures to perform even routine maintenance. This increase in required downtime to perform the task in addition to the increased maintenance labor that will be required can artificially inflate the design reliability and maintainability calculations. This illustrates the need for careful consideration of the asset installation policies and procedures during the project execution phase of the asset’s life cycle.
This brings us to the commissioning phase of the life cycle. During this phase there is the acceptance test of the asset and the handover of all related documentation. The acceptance testing insures the asset will perform as designed. So the design specifications should be reviewed and the asset should be able to demonstrate that it can perform, meeting those specifications. In addition, suggested spare parts recommendations should also be reviewed and orders placed for sufficient stocking levels to allow the asset to be repaired in a timely manner, meeting the design MTTR.
An additional area to be reviewed is the suggested preventive maintenance tasks that are to be performed on the asset. The time estimates (and frequencies) to perform the PM tasks will help determine the new staffing levels for the maintenance departments to insure the asset can be properly maintained, as specified in the design documentation.
Finally, the asset enters its operational and maintenance phase. This is where up to 90% of the asset’s life cycle cost is incurred. If the organization has carefully followed and documented the design and project phases of the asset’s life cycle, the life cycle costs can be properly controlled. However, if the equipment is operated outside the design parameters or was installed incorrectly, the life cycle costs will be greatly increased, never allowing the asset to achieve the projected return on investment developed during the original business needs analysis (phase 1 of the asset’s life cycle). This ultimately leads the organization to a non-competitive position when compared with another company that could properly manage the same assets.
So after several blogs on the topic “Maintenance is not Asset Management – Or is it?”, it can be seen that maintenance is not asset management. However, competitive asset management could not exist without a maintenance organization that understands its role and performs to a “best in class” standard. If a maintenance organization was not equipped to properly manage the 90% of an asset’s life that it controls, the projected design asset life cycle costs would be quickly exceeded.
Without a maintenance organization that delivers “best in class” service by being efficient and effective, no organization can properly manage their assets. This level of service is achieved by doing the basics. This includes:
Preventive maintenance
MRO stores and purchasing management
Work Order planning and scheduling
Utilization of a CMMS/ or EAM system
Predictive or condition monitoring techniques
Operation’s involvement in routine maintenance activities
When one examines all the services a maintenance department is required to provide, it is easy to see that we should re-word our question into a statement. “Asset management cannot exist without maintenance and reliability management.”
