Living Asset Management Maturity

By Living Asset Management Think Tank

While "Managing Assets" is not "Asset Management", "Management" does not equal "Leadership". Developing asset management leaders within an organization who aim to create followers for its set of principles and establish behaviours that promote the four Fundamentals of Asset Management, is a significant focus of this book. With the addition of "Adaptability", the authors establish a fifth Fundamental, describing maturity in asset management as the ability to change, in the light of changes in the ecosystem that surround any business.

• Language: English
• Publisher: Tablo Publishing
• Release date: May 21, 2021
• ISBN: 9781649697554

Book preview

About the Authors

John Hardwick, CFAM, GAICD

With extensive Executive Management and Board experience and a background over the past 30 years in asset management within the electricity and transport industries. A passionate leader of organisational improvement in asset and operational risk management, and has implemented world class asset management strategies implementing effective asset management strategies and systems to manage risk and provide value for customers and communities. John is co-author of Living Asset Management.

John has a desire to make a difference and explore new ways of solving wicked problems.

John is the past Chair of multiple not for profit organisations the World Partners in Asset Management, Global Forum on Maintenance and Asset Management and the Asset Management Council.

Martin Kerr, CFAM, CPPD

Martin commenced his career as a Fitter Machinist before moving into robotics, automation and maintenance. It was during this time (early 1990’s) when Martin had his first Asset Management assignment to change the way maintenance was approached at a manufacturing company. (Although at the time he didn’t realise it was ‘Asset Management’)

Years later Martin formed a software company where he wrote a FMEA/ FMECA application to support RCM and MRA. Martin spent the next decade delivering major change projects (ERP/EAM/OCM) around the world including India, United Kingdom, Europe, South America and Malaysia.

Through Martin’s involvement in the Asset Management Council and AMBoK Team he was selected to represent council members on the TC251 (ISO55000) technical committee. Martin is also the Technical Manager for the WPiAM CAMA exam. In 2015 Martin formed Structured Change where he continues his passion for change leadership in asset management.

Michael Killeen B.E. (Mech) (Hons), M.E. (Elec) (Hons), CFAM, Grad Cert Strategic Maintenance Management, RCMII Practitioner

Michael’s formal engineering and asset management qualifications are supported by over 30 years of experience in asset management, procurement, supply chain and ICT gained in a range of leading blue chip companies and top tier consulting organisations.

In addition to his experience in leading large interdisciplinary teams, Michael has been responsible for asset bases of over $25 billion and has successfully lead the delivery of multiple high-profile enterprise-wide projects in industries ranging from manufacturing and mining to commercial aviation and rail. This extensive industry experience includes roles as the Project Director on the biggest commercial aircraft repair ever undertaken and major enterprise asset management system implementations. Michael has also been involved in the development of a range of asset management models and assessment tools through his involvement in the Asset Management Council of Australia.

Peter Kohler, B.E. (Mech), CFAM

Peter has a keen appreciation for the strategic function provided by the discipline of asset management. This is supported by a strong understanding of the supporting financial and technical standards and toolsets used to deliver asset management.

Peter is a mechanical engineer who spent 26 years in the Royal Australian Navy. During that time, he championed the discipline of asset management. In conjunction with three other people, Peter campaigned for the establishment of the Asset Management Council, which was achieved in 2005. He became the AM Council’s first AMBoK Commissioner and with the AMBoK Team, established the foundational models used by the AM Council.

Peter was involved with ISO TC251 Asset Management (the ISO committee that developed ISO 55000 Asset Management suite of standards) and is a current member of IEC TC 56 Dependability (the committee that develops many of the standards that support the application of asset management).

He founded an asset management consultancy in 1996 (Capability Partners) that continues to this day. In 2014, the co- founded The Asset Management College, with the aim of providing asset management learning and education.

João R B Lafraia, MSc, MBA, CFAM

JOÃO RICARDO B. LAFRAIA is MSc by the Cranfield Institute of Technology, in England. MBA by the Pontificia Catholic University/State of Paraná. He taught in the graduation and post-graduation about Quality Assurance, Reliability and Organization in the Federal University of Paraná and FGV Rio. He is author and co-author of the books of Reliability Handbook, Maintainability and Availability and Strategic Management and Reliability, Creating the Habit of the Excellence. Author of several articles and lectures about Excellence in Management of Reliability and Health, Environment and Security.

Lafraia has acted as General-Manager in 5 Refineries around Brazil. He also headed the Operational Excellence Department for all refineries at Petrobras Headquarters in Rio de Janeiro. Executive Director for the FCCSA Chemical Company. He served as board member for 4 chemical companies. At present moment, he has the position of General-Manager in the Exploration and Production Santos Basin Business Unit and Chairman of the Deliberative Council of ABRAMAN.

Sally Nugent, B.E. (Matls), GAICD

In a career spanning over four decades, Sally Nugent has wide experience in initiating and building teams and organisations to deliver outcomes to key stakeholders.

Her key skills in achieving these outcomes include team building, financial management, stakeholder management, strategic planning and risk management. She has a passion to ‘make a difference’ and to support organisations to prosper and to deliver value. Her core values include accountability, tolerance, teamwork and integrity. She is a qualified Materials Engineer with extensive experience in corrosion and extrusion research with Comalco. She helped establish the Corrosion Prevention Centre during the 1990s, the Asset Management Council Ltd during 2000s, and the global Certification program Certified Asset Management Practitioner.

Acknowledgement

The authors would like to acknowledge Sharon Lierse for her guidance and editing, Kristen Watts, Alison Court (CPA, CFAM) for her reviews and recommendations and Benjamin Hayden, David Stalker and Clinton Windsor for their contributions to the case studies and our families for their support and encouragement.

Foreword: Dr.-Ing. Achim Krüger

Having thought about and applied the discipline of asset management for a number of decades, I was very happy to get to know the authors of this book while I was a board member of the Asset Management Council (Australia), representing SAP and its Asset Management line of business.

The publishing of ISO 55000 in 2014 represented a fundamental change in thinking about asset management, including its application to not only physical (tangible) assets but also intangible assets. The concepts laid out by the ISO standard did not, however, elaborate on how people, their attitudes and hence leadership as well as a supporting workplace culture can and do influence the asset management system and specifically, how the maturity of an asset management system can be rated and improved, to provide even further value to stakeholders.

While Managing Assets is not Asset Management, Management does not equal Leadership. Developing asset management leaders within an organization who aim to create followers for its set of principles and establish behaviours that promote the four Fundamentals of Asset Management, is a significant focus of this book. With the addition of Adaptability, the authors establish a fifth Fundamental, describing maturity in asset management as the ability to change, in the light of changes in the ecosystem that surround any business.

This book is a logical and consequential advancement to the first book published by the authors of Living Asset Management, enhancing the human perspective of asset management to include the journey of a living organization as a metaphor. It elaborates on concepts for assessing the maturity of asset management including quite a few practical examples and case studies.

From my point of view, the authors provide the missing link between a technical understanding of asset management and leadership theory, to now include the behavioural sciences.

I would recommend this book to anyone who is trying to identify how to further enhance the value that asset management provides.

Dr.-Ing. Achim Krüger

President EMEA

Rizing Enterprise Asset Management

Frankfurt, Germany, 2020

Foreword: Deryk Anderson

I was delighted to be given the opportunity to edit Living Asset Management Maturity. In doing so I was able to study closely the ideas and concepts that it presented. Like its predecessor, Living Asset Management, this book tackles the subject of Asset Management with a focus on subject matter that is insufficiently covered in mainstream literature.

In this publication six authors have come together with different perspectives of, and backgrounds in, Asset Management to create a cohesive treatise on maturity in asset management. Unified by a single notion that organizations would eventually outgrow a prescriptive approach to Asset Management, the authors have defined a framework for understanding and growing asset management capability.

The notion of asset management ‘Adaptability’ presented in this book creates a compelling fifth Asset Management Fundamental. A practical approach is evident throughout the book with constant attention to the business value of Asset Management and a pragmatic approach to understanding and improving asset management practices. Relevant content and case studies presented throughout the book demonstrate the applicability of the ideas and concepts to organizations. As with Living Asset Management, this book emphasises the role that leadership and organisational culture play in the success of improvement initiatives.

I must admit that not all the ideas and metaphors presented in the book were easy for me to consume. I found myself rereading concepts and ideas to consolidate my thinking as well as appreciating the difference in the views expressed in the book and my own views on Asset management. In challenging me as a reader, the authors have made learning a much more valuable experience than had I just read the familiar and mundane.

This book is a must read for people who are curious about the next stages of Asset Management growth, and those who just want to enrich their knowledge of Asset Management subjects.

Deryk Anderson 

Brisbane, Australia, 2020

Abbreviations and acronyms

ABRAMAN. Brazilian Asset Management & Maintenance Association

AM………. Asset Management

AMM……. Asset Management Maturity

AMP........... Asset Management Plan

AMS........... Asset Management System

AMP........... Asset Management Plan

AMC.......... Asset Management Council (Australia)

APP............ Acme Processing Plant

CAPEX....... Capital Expenditure

CBMGA...... Brazilian Maintenance and Asset Management Congress

CEO...…...... Chief Executive Officer

CT………… Complexity Theory

GERAM Generalised Enterprise Reference Architecture & Methodology

GFMAM...... Global Forum on Maintenance and Asset Management

GPS............ Gladstone Power Station

HR............. Human Resources

HSE............ Health, Safety and Environment

IAM............ Institute of Asset Management, UK

ICT............. Information and Communications Technology

ISO……….. International Standards Organisation

KPI............. Key Performance Indicators

KRAs.......... Key Result Areas

MaPSaF....... Manchester Patient Safety Framework

MeGA......... ABRAMAN and NQF Award Best in Asset Management (MeGA) Award

MRP........... Maintenance Requirement Planning

MW............ Mega Watt

NQF........... National Quality Foundation

NRGGOS.... NRG Gladstone Operating Services

OE............. Operational Excellence

O&M.......... Operations and Maintenance

OEM........... Original Equipment Manual

OPEX......... Operating Expenditure

PAS55......... UK Publicly Available Specification 55

RACI.......... Responsible, Accountable, Consulted, Informed

RCM........... Reliability Centered Maintenance

RCMII........ Reliability Centered Maintenance II

SAMP......... Strategic Asset Management Plan

SCMA......... Safety Culture Maturity Assessment

UK............. United Kingdom

USA........... United States of America

Definitions

Adaptability - the quality of being able to change assets, systems, services and behaviours in order to deal successfully with differing environments and/or contexts.

Asset - An asset is something that has potential or actual value to an organization. (ISO 55000, 2014)

Asset Management - coordinated activity of an organization to realize value from assets. Realization of value will normally involve a balancing of costs, risks, opportunities and performance benefits. (ISO 55000, 2014)

Asset Management Council Asset Management Maturity Assessment Model - asset management maturity assessment tool that will allow organisation to assess their maturity level and help them on their journey to excellence.

Asset Management Maturity - the ability of an organisation to demonstrably foresee and respond to its environment through the management of its assets, while continuing to meet the changing needs of its stakeholders and the external environment.

Asset Management Objectives - an Asset Management result to be achieved. Asset Management Objectives are set by the organization, consistent with the organizational objectives and asset management policy (ISO 55000, 2014) to achieve specific measurable results.

Asset Management Plan - documented information that specifies the activities, resources and timescales required for an individual asset, or a grouping of assets, to achieve the organization’s asset management objectives (ISO 55000, 2014)

Asset Management System - A management system for Asset Management

Business Management System - A way in which an organization manages the interrelated parts to achieve its objectives. These objectives can relate to a number of different topics, including product or service quality, operational efficiency, environmental performance, health and safety in the workplace and many more. (ISO, 2021)

Closed System - a System that does not allow transfer of matter in or out and isn’t subject to any net force external to the System; typically a Closed System is bound and there is a defined relationship between the inputs and outputs.

Dependant - the second state of Maturity in Asset Management

Fundamentals/Principles - the basic ideas of Asset Management that explains or controls how Asset Management works. In Asset Management there are five Fundamentals: Value, Alignment, Assurance, Adaptability and Leadership

GFMAM Landscape - 39 subjects broken into 6 subject groups, which are intended to describe the complete scope of Asset Management

Independent - the third state of Maturity