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5 tips for Asset Managers to optimise costs and increase production

8 January 2020 by Add Energy

The role of an Asset Manager is diverse and challenging, as the ultimate goal is to ensure the most value is derived from an asset, in a safe and cost effective way. 

A major challenge we’ve identified when speaking with Asset Managers across the globe is how to optimise costs while maximising production. And an area that is often viewed as complex and difficult to change when considering this is maintenance. 

We have asked experts from across different parts of our business to provide a top tip for Asset Managers, that demonstrate how maintenance optimisation can help reduce costs and increase production.

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1. Understand your business case for maintenance 

“Understanding your business case for maintenance is different for assets based on production levels, age and complexity. Best practice is to have a maintenance reference plan.

“Maintenance should be built in layers based on criticality, which can then be used as market conditions change.

“It is an equilibrium and doing too little maintenance or too much maintenance swings this, causing increased failures and cost.”

2. Understand what maintenance activities are production critical

“The fastest way to spend money and risk unplanned production loss is to ignore key maintenance activities.

“Often, maintenance is cancelled due to refusal to shut down production for a short period of time to carry the maintenance out, and a “we will do it later” approach is adopted.

“Downtime to carry out maintenance costs a huge amount less to the business than downtime due to broken equipment, which often can’t be fixed quickly. This is absolutely avoidable when equipment is maintained.

“The business should understand which equipment is production critical and ensure focus and importance is always given to its maintenance. It is key that this is understood not just by leadership, but by the teams who carry out the maintenance itself.”

3. Understand the cost of maintenance over the entire life of your asset

“Knowing the overall costs over the life of an asset will allow budgets to be managed and funds to be set aside to accommodate the increase in OPEX, dependant on equipment deterioration over time.

“While over time the asset will depreciate in value, the cost of maintenance will increase in order to sustain the construction and materials chosen at the front-end engineering design (FEED). And OPEX costs can significantly increase if poor materials and construction have been adopted, thus making asset life extension potential very difficult to embrace if production is still viable. 

“During the feasibility study, FEED, procurement of materials and construction, a lot of effort is absorbed in studying the pay-back cycle and production capability. More effort needs to be applied in understanding how to economically deconstruct and dispose of those assets’ materials - and importantly, where those costs are accounted for within the business.” 


4. Identify avoidable maintenance overspend 

“Looking at data around your maintenance costs, and specifically which equipment type is costing the most to maintain, will provide you with actionable insights that you can use to optimise your overall costs. 

“If you compare these costs to your equipment reliability (by looking through your failure history), you will be able to identify if you are doing too much maintenance in certain areas. This will enable you to reduce this unnecessary cost burden, for equipment that is draining maintenance resources for little benefit.”

5. Understand the full potential of your CMMS, and avoid customisations 

“Engage with and understand the potential of your chosen enterprise asset management software / computerised maintenance management system (CMMS), and take advantage of the existing industry standard solutions that are on offer.

“The integrated functionality of the incorporated maintenance, purchasing, inventory and financial applications has been designed to work for you, based on gathered industry knowledge, experience and customer feedback.

“Before making changes or customisations to your software, stop and consider whether your process should be changed instead. I have seen many customisations of Maximo, for example, where the justification was flawed - and in actual fact, the procedure that they had on paper was the real issue. 

“Resist customisation of applications that are designed for your business, and review whether adapting your internal processes is more likely to be the cost effective solution.”

Unlock the potential of your asset

You can get actionable insights and a detailed roadmap designed to optimise your expenditure, unlock efficiencies and maximise production, with our Performance Benchmarking and Improvement service. 

From our experience of analysing over 1,000 assets worldwide, our team of consultants and bespoke software can:

  • Apply data science
  • Benchmark your current performance against industry best practice
  • Fully investigate problem areas
  • Deliver you a highly detailed action plan for improving the performance of your asset

Interested or want to learn more? Register your interest below, or visit our Performance Benchmarking and Improvement web page by clicking here. 

REGISTER YOUR INTEREST IN MAINTENANCE OPTIMIZATION

By registering your interest, you can:
  • Speak to one of our experts to learn more about our solutions
  • Receive ongoing insights and advice around maintenance optimization initiatives
  • Learn more about our data driven maintenance optimization software
  • Request a quotation

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