The middle of the Handbook, Chapters V through XVI, describe the elements necessary to implement and sustain a successful Asset Optimization program. Woven within these chapters are two chapters describing actual implementation. Chapters VI and XI describe the practical aspects of implementing asset management within a power generating company and a ten year retrospective by an industry leader. Chapter XIX describes a third implementation to complete the user series.
Physical Asset Management Handbook John S. Mitchell Pdf
The successful execution of a physical asset management strategy is an important value driver for organisations that are highly dependent on the service delivery of physical assets. Research demonstrates that strategic targets are often not met, and that the means to detect the constraints that can undermine strategy execution efforts are deficient. The purpose of this article is to investigate social network analysis (SNA) as a method to map primary constraints in physical asset management strategy execution (PAMSE). As an interim result, the study found that dysfunctional information flow and poor decisionmaking are the primary constraints that can hinder the PAMSE. An SNA application methodology was developed and applied at two research sites in the South African mining industry. This study found that SNA can be used to map constraints experienced in PAMSE; but it also points towards important prerequisites that have to be established for SNA to be successful.
Physical assets include plant infrastructure, machinery, vehicles, and other items that are of distinct value to an organisation. For many organisations, physical assets are the primary way to generate revenue. Heavy industries in particular rely on a built infrastructure as the principal means for operation and service delivery. Today's increased tempo, intensity, and volatility of operations demand the scrupulous compliance of physical assets to the defined service targets. Consequently, the effective management of physical assets becomes an important driver for profitability and business success. The purpose of physical asset management (PAM) boils down to supporting the organisational strategic plan by ensuring service delivery and the most effective use of physical assets. Woodhouse [26] points out that physical assets have been managed for many years, but that the scope of their management has undergone a significant shift. Amadi-Echendu et al. [1] recognise that around the year 2000 a growing interest in generalising PAM, and thus moving away from the focus on the traditional areas of asset maintenance, became apparent. According to Woodhouse [27], organisations realised that by working through functional silos, major opportunities were missed. Since coming to this realisation, the argument for an interdisciplinary approach to PAM - to ensure that an appropriate mix of skills is brought to resolve the vexed issue of PAM - has been made. Effective PAM cuts across organisational functions. Despite cross-functionality and alignment to an organisation's strategic plan, the role of employees surfaces as a vital element in successful PAM. Tsang [24], in particular, points to human dimensions as a key issue for the successful management of physical assets. Woodhouse [27] suggests that PAM is achieved through tools and techniques as well as through restructuring and performance measures; but that it is ultimately the employees who achieve the defined targets. In the words of the PAM veteran, John S. Mitchell [18]:
The PAS 55 standard proposes an asset management system (AMS) that provides the 'line of sight' between organisational strategic direction and everyday management of physical assets. The AMS means to align the 'top down' organisational aspirations with the 'bottom up' realities and opportunities of the asset portfolio. PAS 55 states that such a framework is vital to master the complexity and diversity of assets in relation to the organisational objectives. As with the generic strategic management process, the AMS comprises a physical asset management strategy planning, implementation, and review phase (compare Robbins & Coulter [21] and BSi [2]). At the heart of the AMS lies a physical asset management strategy (PAMS) that is derived from the organisational strategic plan and policies. The PAMS is an approach to the management of physical assets that is directed towards achieving organisational target(s). This approach involves innumerable employees, processes, and physical assets that, when connected, evolve into action that leads to tangible outcomes and the attainment of strategic targets. For our purposes we defined physical asset management strategy execution (PAMSE) as the process of translating the physical asset management strategy aspirations into workable actions, and of managing strategic initiatives through the allocation of resources and the coordination of responsibilities and accountabilities, while continuously reviewing, adapting, and communicating this process.
The crux of the matter is that a brilliant strategy is meaningless if its intentions cannot be delivered. The field of PAM appears to be dominated by strategic planning and technical management, focusing on system optimisation and defect elimination. However, the link between strategic ambitions and asset life cycle measures is largely missing. Following Higgins [12], the cross-functional character of PAM further complicates the dissemination and integration of execution actions. It appears that PAM falls short of addressing the properties of strategy execution, thus ignoring a salient reason for the failure to succeed. 2ff7e9595c
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