Create value and a sustainable future.
Implementing an Asset Management Framework contributes to creating value and a sustainable future balancing profit with planet and people.
When we ask people from operations, most of them will say that Asset Management exists to increase profit. Increasing profit including a strong balance sheet is a pre-requisite for a business to be a going concern, however, to make it sustainable, the planet and people must be fully considered.
The AM Network believes in sustainability; proactively collaborating with our clients to ensure sustainability goals are weaved into their core values and business strategy.
Asset Management’s contribution to increasing profit and improving the balance sheet can be measured by:
- Increasing revenue by improving throughput and quality at the production bottleneck assuming no other constraints
- Reducing operating and maintenance expenditure (material, labour, and services) by improving major component life and costs, and increasing amount of planned maintenance
- Reducing capital intensity – reducing net assets and inventory value for example, reducing fleet numbers or deferment of capital due to improved AM practices
- Increasing confidence of capital investment due to the increase likelihood of achieving higher returns on investment
Asset Management’s contribution to meeting the needs of the planet and people can be measured by:
- Reducing environmental impact and carbon footprint by extracting optimal life from the current asset base, electrifying equipment where feasible, sourcing electricity from renewable sources, and eliminating waste
- Reducing health and safety risks by increasing the level of planned work where risks are identified and managed prior to commencement of work and by ensuring assets are always safe to operate
- Better engagement, motivation, and commitment from Board room to the shop floor – creating a high-performance culture that embraces change, challenges the status quo, and continually improves
- Increasing confidence of attracting and retaining good people due to a common and pragmatic vision and framework and enabling the development of high-performing teams
The AM Network have learnt that by focusing on the planet and people, not only will the business increase profit but it will also ensure a sustainable future.
We make the connection between creating value (i.e. profit) and a sustainable future (i.e. planet and people) through the implementation of the Asset Management Framework. We measure progression of implementation through the evaluation of maturity and continually improving practices. Our experience has shown a strong correlation between achieving high maturity in asset management practices and sustained high asset performance.
Implementing the Asset Management Framework shapes our future, ensuring we truly care for our people and the planet in order to optimise and sustain profit.
Will you shape the future or will the future shape you?
Want to know more?
If you want to know more about this insight or would like to discuss anything relating to Asset Management including Engineering Governance, Operational Readiness, Maintenance, and Reliability Improvement, don’t hesitate to talk to us!