ISO 55000 Standard for Asset Management
Assets, and value realized from them, are the basis for any organisation delivering what it aims to do. Whether public or private sector, and whether the assets are physical, financial, human or ‘intangible’, it is good asset management that maximizes value-for-money and satisfaction of stakeholders’ expectations. It involves the coordinated and optimized planning, asset selection, acquisition/development, utilization, care (maintenance) and ultimate disposal or renewal of the appropriate assets and asset systems. Insights into the integration and optimization of asset management have developed since the 1990s (from the North Sea oil and gas industry and the Australian public sector), to identify a range of essential business processes, alignment activities, and system integration features that yield very significant performance benefits.
4 Key Benefits of Life Cycle Cost Analysis
Life-Cycle Cost Analysis (LCA) helps fleet managers measure the long-term economic sustainability of their organization’s assets. When you calculate the total cost of ownership over the life of an asset, you not only improve your organization’s bottom line, but you also find the answer to the age-old question: should I hold onto or sell this asset? This minimizes the cost of investment and maximizes the profitability an asset will return.
What Drives Asset Life Cycle Costs?
When questioned about their operations, too many executives believe that maintenance is the primary, if not sole, driver behind chronic reliability problems, high capital replacement costs and the excessively high life cycle costs of their physical plant.
Strategies to Manage Asset Performance
Creating a world that doesn’t break down offers the process industries a $20 billion opportunity. Reducing unplanned downtime and increasing asset utilization represent the biggest opportunities for financial improvement in production operations. Albert Einstein could have been alluding to smart manufacturing when he said, “If I had an hour to solve a problem and my life depended on it, I would use the first 55 minutes determining the proper question to ask, for once I know the proper question, I could solve the problem in less than five minutes.”