Assets, and the value realized from them, are the basis for any organization 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.
‘’ Asset life cycle cost is a true variable and can only be controlled when all of the external and internal forcing functions are minimized. It starts with best-practice design that eliminates inherent reliability issues, followed by the vendor’s adherence to best practices, and universal adherence to business practices that enable best life cycle cost in all of the organization’s functional groups ‘’ – Keith Mobley, Reliability Consultant
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?by Keith Mobley, Life Cycle Engineering When questioned about their operations, too many executives believe that maintenance is the primary, if not sole, driver behind […]
Strategies to Manage Asset PerformanceFailure is not an option with technology that helps create a world that doesn’t break down. Creating a world that doesn’t break down offers the process […]