Deming was famous for asking people, "By What Method?" an objective would be accomplished. Any useful concept has embedded in it the answer to that question. Asset Management, to be a valuable concept, must demonstrate a method that leads to success. The method should be inclusive of all the necessary elements, yet be simple to understand.
We present a broader view of Asset Management here, built upon three core operating functions: Lead, Execute and Enable. The Execute function is always performed in the plant environment. Manufacturing success is relative to the competition however. Whoever can make the best products at the lowest cost will win. Lead and Enable are the great determinants of that relative success.
In addition, Physical Asset Management has an identity crisis. Most practitioners use the term synonymously with the maintenance function. Asset Management's opportunity, however, goes beyond maintenance to be a guiding principal for all of manufacturing. This paper explores the four integrated facets of the Execute function in the plant.
Production
Asset Healthcare
Logistics
Our model, then, represents the Future of Asset Management, suggesting "The Method", necessary elements for successful manufacturing
Deming was famous for asking people, "By What Method?" an objective would be accomplished. Any useful concept has embedded in it the answer to that question. Asset Management, to be a valuable concept, must demonstrate a method that leads to success. The method should be inclusive of all the necessary elements, yet be simple to understand.
We present a broader view of Asset Management here, built upon three core operating functions: Lead, Execute and Enable. The Execute function is always performed in the plant environment. Manufacturing success is relative to the competition however. Whoever can make the best products at the lowest cost will win. Lead and Enable are the great determinants of that relative success.
In addition, Physical Asset Management has an identity crisis. Most practitioners use the term synonymously with the maintenance function. Asset Management's opportunity, however, goes beyond maintenance to be a guiding principal for all of manufacturing. This paper explores the four integrated facets of the Execute function in the plant: Our model, then, represents the Future of Asset Management, suggesting "The Method", necessary elements for successful manufacturing.
Capacity acquisition and disposition
Production
Asset Healthcare
Logistics
Any useful model to guide action will have several characteristics.
Simplicity. All of the greatest ideas are simple in concept. If not kept simple, they are not yet fully understood or remembered, and fail as guiding principles.
Intuitive. Readers should be able to understand the underlying principles without guidance.
Utility. The model should work consistently in application.
Completeness. All necessary elements of success should be contained.
Our experience with the Strategic Asset Management model (Figure 1) indicates these criteria are met. However, you as the reader will make your own judgments.
Our description of Strategic Asset Management (SAM) begins with the key elements of success, namely Lead, Execute and Enable.
