Smart Asset Management involves collaborating and synchronizing across the asset management functions using common asset information management and business process automation. The recent ARC Forum session on Smart Asset Management outlined this strategy and provided three case stories. It strengthens a consolidated approach to data management across the asset management functions. Owner-operators should consider auditing the data sources used by each of the asset management and engineering functions and plan consolidation. Technology providers serving the asset management domain areas should review their software to assess its ability to provide federated data.
Smart Asset Management
Maintenance and operations teams have more timely, powerful, and accurate tools to monitor their processes and manage their assets. The Smart Asset Management strategy aligns with Asset Performance Management (APM) and Industry 4.0. During the recent ARC Forum, the Smart Asset Management session provided a review of the strategy and success stories.
Scope and Benefits of Smart Asset Management
Ralph Rio, ARC Advisory Group, opened the session with his presentation that defined the scope and benefits of Smart Asset Management.
Poor Asset Management Harms Financial Performance
The impact of poor asset management includes:
- Unplanned downtime triggers missed production schedules
- Equipment failures cause capacity reduction with lost revenues
- Shorter asset life as small problems cascade into major failures
- WIP losses due to inability to process materials during downtime
- Safety / Environmental incidents typically start with equipment failures
- Quality / yield / rework from underperforming equipment
Unplanned downtime is especially onerous. Depending on industry, lost revenue can range from $15,000 to $43,000 per hour. Incidents have caused $500 thousand to $20 million in lost revenue. Preventing lost revenues provides the basis for a strong return on investment and financial justification.
Smart Asset Management Business Processes
Asset owner/operators improve asset performance with well-managed and automated business processes across the asset management functions and operations. This digital transformation reduces unplanned downtime while improving maintenance KPIs like mean-time-between-failure (MTBF) and mean-time-to-repair (MTTR). Asset digital twins enable maintenance and operations teams to orchestrate reliability centered maintenance, root cause analysis (RCA), predictive maintenance, inspections, enterprise asset management (EAM), and other asset management methods.
Common Asset Information
Often, each department has its own data and documentation management system – likely a cultural remnant from when each group had its own blueprint filing cabinets. Each unit’s documents have various versions and mark-ups. Some even had different aset hierarchies. This inconsistency causes rework, disruptions in cross-functional workflows, and project management issues. A new generation of open asset digital twins are emerging to solve this problem.
Systems for asset lifecycle information management provide users across a company and among its contractors with access to the current version, a means to share markups, and governance. Common asset lifecycle information enables:
- Less searching and validation: 30 percent of engineering time is spent looking for information
- Easier management of change: Everyone has the same document version
- Faster speed of implementation with faster time to benefit
- Less rework with lower cost
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Keywords: Asset Management, IoT, Machine Learning, APM, ARC Advisory Group.
 “Open Asset Digital Twin Supports the Plant’s Lifecyle,” Ralph Rio, ARC Advisory Group, Insight, July 28, 2022