Plant asset availability correlates to asset strategy and budget

That’s the key finding of a global study among 189 companies representing utilities, manufacturing, mining, the process sector and transportation, sponsored by ERP and EAM (enterprise asset management) software firm Lawson and conducted by IDL. Dubbed ‘Strategic Asset Management Across the Organisation Delivers a Compelling Return’, it suggests that concerns about the environment and corporate social responsibility are increasingly influencing asset management decisions. 97% of survey respondents said they have at least one such initiative in place, such as improving energy management, or procurement and emission reduction. “A strategic, integrated approach to asset management can play a big role in addressing corporate social responsibility and the other asset issues,” says Suzanne Benn, marketing director at Lawson. “As examples, an integrated enterprise asset management solution will support these efforts helping to ensure that a company’s assets operate efficiently within environmental guidelines… A preventive maintenance program can help to lengthen the lifespan of spare parts and assets, save natural resources and reduce waste,” she adds. Beyond this, other findings suggest that some, albeit a minority, of early adopters view maintenance as a profit opportunity instead of a cost centre issue. 39% of respondents say their company strongly believes that maintenance is a worthwhile investment. However, it also appears to show that if companies do not adopt strategic asset management policies, executives in areas such as finance and procurement may not see maintenance as an investment – which in turn impacts budget allocation for maintenance and then production outcomes. The survey shows that more than 70% of respondents spend less than half of their asset maintenance budget on preventive work and only pursue a break-fix – and that those that lost more than 11% of production time annually to unplanned downtime spend most in this direction. “This tactical and reactive approach is not sustainable and companies must formalise policy and strategy for asset management to improve operational performance, as regulations increase and society becomes intolerant of failure or accident statistics,” insists Benn.