Understanding the Relationship: Asset Management to Asset Performance Management
There are various schools of thoughts on what asset performance management (APM) is and how it relates to asset management (AM).
ISO55000 defines asset management as systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems and their associated performance, risks, and expenditures over their life cycles for the purpose of achieving its organizational strategic plan.
The goal is to achieve a defined fit for purpose asset management framework (AMF) as a baseline for monitoring a return on investment (ROI) based on a strategic asset management plan (SAMP) that includes the organizational and asset management objectives, such as the organization’s operations and maintenance objectives.
To ensure the AMF is properly designed, an asset performance management (APM) implementation process and road map need to be in place to establish the asset management objectives and plan necessary to deliver results in accordance with the organization’s asset management policy and strategic plan.
A common misconception of asset performance management is that it only entails physical asset condition monitoring and assessment, like monitoring vibration, pressure, and temperature by using sophisticated technologies like advance pattern recognition (APR) tools to proactively predict the equipment failure.
Although the above process establishes the fact of a predictive process and can be viewed as proactive maintenance, APM also entails the capabilities of data capture, integration, visualization, and analytics tied together for the explicit purpose of improving the reliability, availability, and operability of physical assets. APM helps maximize equipment return on asset (ROA) and return on investment (ROI) and reduces risk factors, which includes asset strategies such as condition monitoring, predictive forecasting, and reliability-centered maintenance (RCM).
APM practically ensures operational and maintenance goals and objectives are clearly implemented, communicated, embedded, and sustained across the organization in accordance with the AMF.
Answering these big questions is no small feat. Any objectives that involve AM and APM require comprehensive, unique, and easily integrated solutions. Many organizations are just beginning to take a fresh look at asset management from WHAT-to-do, to HOW- to-do perspective. GP Strategies can help you get started on your journey of HOW- to-do with our APM OptimizeTM, which was designed to address these needs and more across industries like oil and gas; energy; automotive; pharmaceutical; metals; food, beverage, and consumer goods; manufacturing; and more.