The scope of maintenance departments has grown significantly, from task execution to supporting roles like operational reliability. This dual responsibility places an enormous burden on maintenance, unlike other support functions such as Finance or HR. It’s time to elevate Asset Management as a C-level strategic role, aligning its function with core business objectives.
Restructuring Asset Management for Sustainable Performance
Combine Engineering and Asset Management: Establish an integrated Asset Management organization at the C-level, reporting directly to the CEO, alongside Operation, Finance and HR. Integrating Engineering under this function ensures reliability and operational goals are aligned with corporate strategy, creating a streamlined approach to asset lifecycle management.
Separate Referees from Players: Maintenance execution, as part of Operation, is influenced by a short-term focus that may impact asset reliability and reduce asset lifespan. Therefore, Operation should not have the authority to modify maintenance plans unilaterally; any changes must go through the Management of Change (MOC) process. The Asset Management department is the custodian of these plans, with a mandate to ensure their strategic alignment and compliance through regular audits. By distinguishing the roles, organizations can uphold long-term reliability while allowing Operations to concentrate on effective task execution.
Develop Rigorous Reliability Policies through Cross-Organizational Collaboration: Reliability plan development is a cross-organizational effort requiring the Asset Management department to empower and coordinate representatives from Operation, Maintenance, and Engineering. This collaborative approach ensures that policies reflect comprehensive input and functional alignment. Asset Management will also facilitate these analyses as part of its corporate responsibilities, using formal, competency-based processes to establish reliability and maintenance standards that everyone understands and upholds.
Avoid Shortcuts: Streamlined processes that cut costs in reliability policy development often result in flawed programs that hurt equipment performance. Effective asset management demands thorough, complete processes. Shortcuts compromise reliability and damage long-term organizational credibility. I invite you to explore my LinkedIn (also on my Blog) article series on 'Streamlined RCM' (Reliability Centered Maintenance), where I discuss these risks in depth and share insights into maintaining compliance with industry standards.
Ensure Players Understand the Rules: Maintenance and Operation supervisors and technicians need a strong grasp of reliability plans principles and the risks associated with non-compliance. In highly automated settings, this understanding should include technical qualifications and formal training. Knowing the 'why' behind each strategy empowers teams to execute them correctly.
Enforce Compliance with Maintenance Schedules, Operating Procedures, and Best Practices: Compliance in maintenance should be as important as adherence to financial or HR policies. Alongside maintenance schedules, strict compliance with operating procedures and best practices must be enforced. Poor compliance should carry real consequences, underscoring that disciplined maintenance and operational practices are crucial. This focus on compliance builds a culture of accountability and prioritizes both asset and process management.
Invest in Safe Reliability Strategy Minimums:Maintaining a baseline for safe, effective reliability strategies extends beyond maintenance to operations and is often overlooked. Yet, without this baseline, risks multiply, threatening operational stability and legal compliance. Allocating adequate resources to determine and implement safe reliability strategies ensures a solid foundation across both maintenance and operations.
Centralize CMMS and Specialized Software ManagementThe Asset Management department should control all CMMS, APM, inspection, monitoring and cognitive software. This includes developing a Management of Change (MOC) process specifically to oversee reliability plan strategies and all associated tasks. Empowering technicians to use these systems effectively supports planning, execution, and consistent feedback across the maintenance function.
Looking Ahead: Core Processes for C-Level Asset Management
To fulfill its mandate, a C-level Asset Management organization will oversee seven core processes:
Functional Specification: Define each asset’s role in supporting the industrial value chain.
Design Specification: Set standards for performance, safety, and operational context, while specifying configuration, availability, and reliability.
Acquisition & Deployment: Manage engineering, procurement, construction, installation, commissioning, and asset handover to operation.
Operational Reliability: Implement and sustain RCM and RBI (Risk Based Inspection) strategies to ensure ongoing performance, with redesign proposals where necessary.
Disposal: Oversee asset retirement when it’s no longer viable or necessary.
Legal Compliance: Maintain full compliance with laws and regulations.
Reliability Scorekeeping: Develop and track KPIs to monitor and improve asset performance.
In upcoming posts, I’ll delve into these seven elements, exploring how they form the foundation of a proactive, strategically aligned Asset Management function.
#AssetManagement #COO #CAMO #Maintenance #Reliability #RiskManagement #HighRiskIndustries #OperationalExcellence #CorporateStrategy #Leadership #RCM2 #RCMSAE #Leadership
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