A performance management model for physical asset management

Jooste, J. L. (Johannes Lodewikus) (2003-12)

Thesis (MScEng)--University of Stellenbosch, 2003.

Thesis

ENGLISH ABSTRACT: Two fundamental aspects in modem business success are performance management and physical asset management. The current problem in the asset management environment is the lack of structured performance management, which is required to effectively control and enhance the dynamics of the asset and its life cycle. The result is ineffective assets with high life cycle costs, which will consequently influence the bottom line and return on investment, negatively. An Asset _eerformance Management Model (APM2 , pronounced A-P-M square) was developed. A sound theoretical foundation together with the experience of a leading asset management consultant resulted in the realization of a model that (i) gives a balanced view of asset performance, (ii) link asset performance to strategic business objectives, (iii) facilitates decision-making and problem solving, and (iv) enhances asset control and continuous improvement. The APM2 was developed by rese~ching and integrating five building blocks, which encompass the model requirements. The APM2 consists of two distinct components, namely: • the APM Reference Structure (APMRS), and • a range of APM Dockets. The APMRS is a basic structure that integrates the various building blocks into a framework for providing guidance and control, giving perspective on the entire model and explaining the high-level content of the model. It consists of five levels, each with a distinct focus: • Levell: Enterprise • Level2: Factory • Level3: Process Unit • Level4: Aggregate • Level5: Component The APM Dockets are a subset of the APMRS, where each level has a docket. These dockets are executable, unit-specific procedures, guiding and leading stakeholders towards improved asset performance. Also each of the five levels consists of six similar and inter-related elements. These elements are the foundation for each docket: lement 1: Stakeholders Element 2: Objectives Element 3: Measures Element 4: External Monitor & Targets Element 5: Responsibilities & Decision-Making Element 6: Control & Continuous Improvement Element 7 represents the link to the next level in the APM Reference Structure. • • • • • • Conclusively the APM2,s simplicity and understandability is realized through the APM Reference Structure, while the range of APM Dockets contribute to the practicality objective. The model has a strong theoretical foundation, but at the same time is generic, to be used in a wide range of industries. A leading asset management consultant plans to integrate the APM2 into their asset management program based on the thesis documentation. This application will test and validate the APM2 in practice. It is further recommended that an asset management program, with the associated APM2 , be used in conjunction with the Theory of Constraints and Total Productive Maintenance, because of obvious relationships. Further research is also suggested in relation with some of the experimental asset life cycle phases as well as certain financial considerations.

AFRIKAANSE OPSOMMING: Twee fundamentele aspekte in hedendaagse besigheidsukses is prestasiebestuur and fisiese batebestuur. Die huidige probleem binne die batebestuursomgewing is die gebrek aan gestruktureerde prestasiebestuur, wat 'n vereiste is vir effektiewe beheer en verbeterings rondom die bate en sy lewensiklus. Die resultaat is oneffektiewe bates met hoë lewensikluskoste wat gevolglik wins en beleggingsopbrengs negatief beïnvloed. 'n Prestasiebestuur Model vir Bates (APM2, uitgespreek as A-P-M square) is ontwikkel. 'n Deeglike teoretiese fondasie tesame metdie ondervinding van vooraanstaande raadgewende batebestuurders, het die realisering van 'n model tot gevolg gehad, wat (i) bateprestasie gebalanseerd voorstel, (ii) bateprestasie met strategiese doelstellings verbind, (iii) besluitneming and probleemoplossing fasiliteer, en (iv) batekontrole en voortdurende verbetering bevorder. Die APM2 is ontwikkel deur middel van die identifisering en integrasie van vyf boustene wat die vereistes vir die modelomvat. Die APM2 bestaan onderskeidelik uit twee komponente, naamlik: • die APM Verwysingstruktuur (APMRS), en • 'n reeks APM Vouers. Die APMRS is 'n basiese struktuur wat die verskillende boustene binne 'n raamwerk integreer en sodoende leiding en beheer fasiliteer, die model as geheel in perspektief stel en die modelinhoud op hoë vlak verduidelik. Dit bestaan uit vyf vlakke, elk met 'n spesifieke fokus: • Vlak 1: Onderneming • Vlak2: Fabriek • Vlak 3: Proseseenheid • Vlak 4: Aggregaat • Vlak 5: Komponent Die APM Vouers is 'n subdeel van die APMRS, waar elke vlak 'n vouer het. Hierdie vouers is uitvoerbare, eenheid-spesifieke prosedures wat deelhebbers lei na beter bateprestasie. Ook bestaan elkeen van die vyf vlakke uit ses soortgelyke en inter-afhanklike elemente. Hierdie elemente is die fondasie vir elk van die vouers: • Element 1: Deelhebbers • Element 2: Doelwitte • Element 3: Metings • Element 4: Eksterne Monitering & Mikpunte • Element 5: Verantwoordelikhede & Besluitneming • Element 6: Kontrole & Voortdurende Verbetering • Element 7 stel die verbinding met die volgende vlak in die APM Verwysingstruktuur voor. Gevolglik word die eenvoud en verstaanbaarheid van die APM2 gerealiseer deur die APM Verwysingstruktuur, terwyl die reeks APM Vouers bydra tot die praktiese doelwit. Die model het 'n sterk teoretiese grondslag, maar terselfdertyd is dit generies, sodat dit in 'n wye spektrum van industrieë gebruik kan word. Gebaseer op die tesis dokumentasie beplan vooraanstaande raadgewende batebestuurders om die APM2 te integreer met hul batsbestuursprogram. Hierdie toepassing sal sodoende die APM2 in die praktyk toets en bekragtig. Dit word verder aanbeveel dat 'n batebestuursprogram, met die geassosieerde APM2, tesame met die Theory of Constraints en Total Productive Maintenance gebruik word, as gevolg van voor die hand liggende verwantskappe. Verdere navorsing word ook voorgestel in verband met die eksperimentele fases binne die batelewensiklus, asook rakende sekere finansiële oorwegings.

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