Assets need to be carefully monitored and managed to optimise performance and effective production and maximise asset lifecycle to produce consistent quality in line with international demand for products with zero defect. Unlocking the full performance potential of a plant in this way requires the development and deployment of a finely honed asset management strategy in support of the company`s operational strategy.
The successful implementation of an asset management strategy focuses on five areas of best practice:
* Strategy development:
A formal process should be followed to develop a detailed asset management strategy in support of corporate and operational strategies.
* Strategy communication:
The strategy should be communicated in such a way that each employee has a thorough understanding of their role in achieving the strategic objectives.
* Strategy implementation:
Detailed action plans should be developed and executed.
* Strategy measurement:
The progress of the asset management team against its objectives should be continually measured and analysed.
* Strategy review:
Strategy effectiveness indicators should be used as drivers to continuously review and improve the asset management strategy.
Strategy development
An asset strategy developed in support of a company`s organisational strategy will primarily focus on ensuring the organisation has the most appropriate portfolio of assets available to achieve its operational goals. It would answer questions such as:
- Can service delivery be made less asset-dependent?
- Are assets appropriately located for effective service delivery?
- Are assets fully used in service delivery and do they have sufficient capacity to provide the required services?
- Are assets suitable for optimal delivery of the services they support?
- What are the performance levels required from each asset in order for the company to achieve its operational objectives?
A sound asset management strategy provides a framework for focusing all asset management efforts towards achieving the highest possible service levels. The strategy first addresses the question of what the asset management team can do to ensure the assets will perform effectively. It then focuses internally on the team itself to identify ways to optimise efficiency in quality, speed, cost, safety performance and employee morale.
Strategy communication
Effective communication of asset management strategies is imperative. A crucial part of the strategy development process therefore should include the formation of a strategy communication plan, covering what should be communicated to whom and at what stage.
There are three phases of communication during the implementation of an asset management strategy. Each of these phases requires a different communication style and content.
1. Unfreezing
This phase is aimed at getting the organisation ready for change, challenging the status quo and providing a rationale for change.
Communication needs:
- Explaining issues, rationale and needs
- Identifying and explaining initial steps
- Reassuring employees
2. Changing
This phase is aimed at the first stage of the change process, developing momentum and evaluating pilot efforts.
Communication needs:
- Informing employees of progress
- Challenging misconceptions
- Continued reassurance
3. Refreezing
This phase aims to reinforce the change, identify weaknesses and correct deficiencies as well as institutionalise the change within the organisation.
Communication needs:
- Publicise the success of the change
- Spread the word among employees
Strategy implementation
A well-prepared strategic plan is not sufficient to ensure success unless it links virtually every internal and external operation of the organisation with a focus on customer needs. Implementation or deployment of the strategy sees the conversion of the plan into operational projects according to detailed schedules and goals.
Strategy measurement
Performance measures indicate the degree of success of a project so an organised approach to measurement is vital. Measurement monitors continuous improvement and individual, team and business unit performance.
Strategy review
Effective communication of asset management strategies is imperative.
Adriaan Scheeres, CEO and co-founder, Pragma Holdings
Regular formal reviews of the strategy will increase the probability of the team reaching its goals. An organisation should look at the gaps between measurement of current conditions and targets. Key performance indicators include the design of a scorecard, with indicators at the highest levels of the company, quantitative reports based on data and narrative reports on matters such as challenges, opportunities, events and audits. These scorecards need to meet the requirements of performance excellence criteria.
The drive to improve asset effectiveness is imperative for any organisation to survive and grow in the highly competitive climate of today`s global marketplace. Developing an effective strategy to suit a plant`s asset management function makes up only about 20% of the total solution. The remaining 80% lies in the communication, implementation, measurement and reviewing of these strategies.
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