Benefits of Asset Performance Excellence
Asset Performance Excellence is all about looking at the bigger picture! An Asset Performance Management system can have a very meticulous and intricate process that lets you define and manage your losses, assess your organization’s problems, and create the right plan for a solution.
Asset Performance Excellence elevates reliability to an organizational imperative that applies equally to all functions, practices and procedures. It demands the unified partnership relationship between functions that are essential to operating a production/manufacturing operation effectively and efficiently to maximize profitability.
To shed more light on this topic, we enlisted someone with 30+ years of industry experience to talk about Asset Performance Excellence. Keith Johnson, Senior Ops Analyst for Implementation Engineers breaks down the information you need for organizational success.
Keith says there are many benefits to having a good Asset Performance Excellence system. Achieving an operation that is successful helps your organization drive results by:
- Becoming a procedure based and learning organization by improving and sustaining key business and work processes and systems.
- Maximizing the life and reliability of your physical assets.
- Developing a well-trained and engaged workforce.
- Reducing stress in the workplace and creating a higher job satisfaction.
These things in place help people to become more productive and assets to become more reliable.
The typical results we see for developing a business case when clients want to implement Asset Performance Excellence can be quite substantial, such as:
- Increased OEE/Throughput (Getting more product out the door)
- Reduced labor, material and inventory costs
- Reduced maintenance costs
- Reduced production losses
- Improved safety and regulatory compliance
- Capital project avoidance
Looking at achieving your results means understanding where those losses are coming from. Some common factors that we see hinder reliability are in the areas of Maintenance, Operations, Engineering, Stores, Procurement, and Management. Losses can come from across the whole enterprise.
For example, DuPont did a study that examined thousands of root causes for asset losses.
The Plant Performance Group also did a study (1980-2004) examining asset losses.
As these studies show, focusing on the maintenance issues alone would only make a marginal improvement whereas looking at an integrated holistic improvement across the enterprise would create more substantial results for your organization.
Losses are not solely coming from maintenance only. When there are reliability problems, it’s easy for people to focus blame on and say “well, it’s a maintenance issue.” The problem/losses are typically across the board.
Once you understand that concept and realize that you must look at all of the areas in order to define the losses, you will get the type of results and benefits your organization is looking for.
For more insight from Keith on Asset Performance Excellence, check out his four-part webinar series available for download here: