Asset Performance Management (APM) is an approach to managing assets that prioritizes business objectives in addition to traditional asset reliability and availability goals. APM has become a primary enabler of digital transformation for asset management among industrial companies. Modern APM combines traditional asset management practices with new digital technologies for transformation advances in reliability, maintenance execution, and business performance.
- Business goals: Through digital transformation in asset and risk management, and improvements in asset availability and uptime, users achieve higher revenue and profitability while improving customer satisfaction with on-time delivery and quality.
- Asset ecosystem: The ecosystem for assets extends beyond the plant floor and facilities to include a wide range of applications across asset-intensive industries that leverage sophisticated OT, IT and engineering systems and related production, maintenance, and engineering personnel. It also encompasses third party partners and other providers of parts and services.
- Digital tools: Apply modern technologies across a range of tools like smart devices, augmented reality, and mobility to improve business processes and create new methods for asset management.
- Data & analysis: Enable greater depth of collaboration across the asset ecosystem by using digital twin, digital thread, and other modern information assimilation and management approaches.
- Practices and apps: Traditional practices and applications become more effective when enhanced with data, digital tools, and support for business goals.
APM Business Benefits
APM involves people, processes, and technologies to improve the uptime with higher revenue and longevity of physical assets to conserve cash while reducing operating costs and business risk. APM helps assure assets have the needed capability for optimal operating performance to meet today’s dynamic business and production goals with high customer satisfaction for on-time delivery and product quality. This APM approach becomes a means to systematically improve key metrics like uptime, mean time to repair (MTTR), asset longevity, on-time shipments, quality/yield, and safety. Success with these metrics leads to improvements in executive metrics like revenue, margin, customer satisfaction, work-in-process (WIP) inventory, and return on assets (ROA).
APM Drives Successful Asset Management
APM improves the reliability and availability of physical assets by synchronizing the asset lifecycle management functions including reliability, maintenance, inspections, and information management. APM acts to optimize the performance of physical assets in their operating ecosystem, typically employing a digital thread throughout the asset lifecycle, supporting digital twins for assets and asset groups, supporting connected workers, and the network of parts and service providers.