To sort out the picture, greater understanding of the Asset Management business model is certainly needed at board level and in regulatory circles. Separation into 'Asset Owner', Asset Manager and Service Provider roles is not enough - a good start, but not enough. Greater risk awareness and the better targeting of capital investment are not enough. A top-down clarity of the conflicting business drivers, their relative and absolute significance or criticality, and optimization or trade-off mechanisms are needed.

The Balanced Scorecard must be appropriately calibrated - with real money values placed on the various conflicting performance attributes (that's why money was invented in the first place - to ascribe appropriate value to dissimilar commodities so that they could be traded). Until there is a calibration mechanism, it is impossible to demonstrate that, for example, sacrificing 20% of the innovation 'score' (such as reduced R&D activity) might be worthwhile to prop up this year's financial results (or vice versa). This goes for all the conflicting business drivers (safety, environment performance, profit, regulatory compliance, social responsibility etc).

Tip from John Woodhouse Asset Management: Concepts and Practices presented at the International Maintenance Conference

Find out more about the PAS55 Conference as part of Reliability 2.0

Upcoming Events

August 9 - August 11 2022

MaximoWorld 2022

View all Events
banner
80% of Reliabilityweb.com newsletter subscribers report finding something used to improve their jobs on a regular basis.
Subscribers get exclusive content. Just released...MRO Best Practices Special Report - a $399 value!
DOWNLOAD NOW
 How To Achieve An Uptime Elements Black Belt

How To Achieve An Uptime Elements Black Belt

Do or do not – there is no try ~ Yoda

Are you one of those people who will not start a project until planning is close to perfect?

The Uptime Elements Black Belt program is designed

...

 Keep the Air Your Machine Breathes Clean and Dry

Keep the Air Your Machine Breathes Clean and Dry

It is important to stop airborne contaminants from entering tanks, drums, or machine reservoirs. The good news is that this is one of the easiest problems to address through high quality

Tip ...

 Optimizing Costs Through RCM-Based O&M

Optimizing Costs Through RCM-Based O&M

Today’s water and wastewater facilities must balance the demands of safety, environment and cost. With shrinking budgets, water and wastewater treatment facilities are asked to do more with

  • ...

How Complex Should Maintenance Procedures Be?

The level of complexity depends on several factors:

  • The complexity of the task. Tasks which have multiple steps that must be performed in specific sequence, or contain unusual operations, must be spelled out precisely.
  • What specific data is needed

...