What is asset management? Christer Idhammar gives his insight from 60 years of experience in Maintenance and Reliability Management.
Watch his two videos about Asset Management on this page. For more insights on key reliability and maintenance management processes, techniques and tips visit our YouTube Channel.
Part 1 - What is Asset Management? Definition and Example
In this video Christer gives a clear definition of the differences between Asset Management and Maintenance Management.
In the Maintenance and Reliability arena, it would be better to use the term Physical Asset Management, as the term Asset Management can mean a brand, a license, a right of way, a group of companies. – IAM 2015 Anatomy of Asset Management
In the simplest of terms – you have 2 budgets CapEx and OpEx, if you can combine these 2 budgets you have Asset Management. Christer uses the example of Life Cycle Costs to illustrate.
Asset management – the Project Phase
The project phase is when you are designing, specifying and determining details when buying equipment for your plant. By the end of this phase you have spent about 80% of the cost and locked in 70 – 80% of the future LCC – so you had better have made good decisions regarding maintainability and reliability centered design. One thing we have seen missed is the Bill of Materials for the equipment. The earlier you get the BoMs in a project the less it will cost you in the long-run.
When you can combine your CapEx budge with the OpEx budget you have really mastered the concept of asset management. When you operate and maintain equipment and record the history you are able to feed that information back for the next project’s design phase so that you don’t make mistakes the next time you buy new equipment.
Part 2:What is Asset Management
In part 2 of this series, Christer goes into detail about the CapEX portion of Asset Management and the Chain that must not be broken in order to maintain your assets.
The video contains examples of calculations and specific techniques that can help you manage your maintenance more effectively with the right outcomes of improving production and equipment reliability.
