All entries for July 2016
July 10, 2016
Should one continue improving maintenance strategy or renew the asset? Which of these two choices is the most cost effective? We don’t want to spend money on improving maintenance strategy when efficiency and safety could be improved by renewing the asset – but then on the other hand, is it not more cost effective to improve the maintenance strategy to improve the reliability and availability of the present asset?
The choice between these two alternatives needs to be addressed jointly by Maintenance, Operations, Safety, Quality and Finance, to ensure a common vision, strategy and cost effective investment. The only way to take a sensible decision with regard to continuing with the existing asset or changing for a new one, and then choosing which new one, is to turn each of these aspects and considerations into $ values. And this where the concept of life cycle costing and whole like costing come in play. ‘Whole Life Costing’ and ‘Life Cycle Costing’ enable assets to be compared in order to choose the most cost effective long term investment. However, they do not address the ‘Optimal total life cycle costing’ and this is the areas and skills that maintenance managers should equip themselves with.
The Maintenance Manager normally has a number of projects that he wishes to motivate with the organization on an annual basis. They are modifications to plant and process, design changes, abnormal maintenance, major maintenance work etc. However, some of these projects may be paid for within the constraints of the maintenance budget, while others need to be motivated for additional expenditure. The latter projects need to join projects motivated by other departments such as Operations, Safety and Quality etc. Therefore, maintenance managers shall learn to compare and prioritize all projects to give the best payback or profitability to the organization.
O’Hanlon states emphatically that, “Asset management is not about managing assets. It is about delivering valueto an organization through the effective utilizationof its assets.” Clearly, it’s a business imperative for companies to manage their assets effectively, including intellectual property, human and physical assets. While maintenance is an essential element in asset management, however, most seem to be focusing their interpretation of PAS55 and ISO55000 on managing physical assets and maintenance, in particular.
The Institute of Asset Management (IAM) has published Asset Management – An Anatomy. It’s a really good document and it states: “The tools and technologies may be helpful, but the engagement of the workforce, the clarity of leadership, and the collaboration between different departments and functions are the real differentiators of a leading asset management organization.” I couldn’t agree more. It also states, “The enduring objectives of the GFMAM (Global Forum on Maintenance and Asset Management) are: To bring together, promote and strengthen the maintenance and asset management community worldwide.”
No doubt that the formal issue of ISO55000 would be profitable for maintenance management agencies, and it should be. But companies shall keep in mind that maitenance management alone will never be able to achieve effective asset managment fulfilling business objectives.
Resource allocation (also called resource management) is the process of assigning team members and assets (like hardware) to balance the competing needs and priorities of a team. Management then determines the most effective course of action to maximize the effective use of limited resources and gain the best return on investment. Where resource allocation can break down is with communication. The practice of allocating resources was a foreign concept in the company at that time. Educating people (especially management) was a critical part of getting it accepted as a part of the project planning process.
One way to start communicating this need is to write a formal resource allocation plan with some decisions based on:
- prioritizing tasks and projects
- making business decisions aroud why resources arent allocated to other tasks
To manage resources effectively, the work/life balance of employeesneeds to take into account. A competitive market, the economy, and all kinds of other hidden factors may also complicate resource allocation, therefore allocation resources across functions and projects might be a good way to go.
Resource allocation might always remain a challenge despite advancements in project management practices and platform technologies. However, if leader and the team track the working hours, keep scheduling concerns transparent amongst the team, and ensure communication of resource allocation to management and others, then you’ll position yourselves ahead of the game—and ahead of other teams.
Health and safety are of paramount importance to any business entities and projects at any work place. Companies must assure the employees at all level that it operates in such a manner so as to achieve the following:
A safe and healthy place to work which has adequate welfare facilities, safe access and egress to and from it and adequate arrangements for dealing with an emergency.
Equipment which is safe to use and work which is safe to undertake.
Arrangements which ensure that products, etc are safe to use, handle, store and transport.
Removing or reducing risks and controlling any hazards that have been identified following risk assessment, to a safe level.
Providing staff with the information, instruction, training and supervision needed to ensure they do the job safely.
Ensuring that staff are consulted with and informed on issues relating to health and safety.
Technical advice provided by staff or where necessary, external consultants, competent to do so.
Maintaining a low rate of injuries and ill health and reducing unnecessary losses and liabilities shall lie in the heart of any running business. People are of great importance to organizations, without the most basic physical health of its employees, no output will be delivered letting alone improved performance.
The objective of environmental management is to improve human life quality. It involves the mobilization of resources and the use of government to administer the use of both natural and economic goods and services. It is based on the principles of ecology. It uses systems analysis and conflict resolution to distribute the costs and benefits of development activities throughout the affected populations and seeks to protect the activities of development from natural hazards.
In the complex and interdependent world that we have been given, environmental management is required because the activities of development in one sector affect in both positive and negative ways the quality of life in others. Indeed, if one asks of any "environmental impact" the questions "who caused it?" and "who felt it?,"
Conflicts between natural hazards and development activities will always exist if we continue not to pay attention to the environment. So-called "natural disasters" occur because we have not paid sufficient attention to natural hazardous phenomena. Indeed, the term "natural disaster" is misleading. it places the blame on nature when, in fact, the blame belongs to those who decided that projects to be implemented under the condition of harming the nature. Therefore, environmental concern shall be the core consideration of any business or projects instead of being the tedious documentary compliance and treated as an expense.
Many organisations recognise that improving their environmental performance is not just a matter of compliance. Increasingly, stakeholders and customers expect organisations to demonstrate their commitment to managing and minimising their environmental impacts.
ISO 14001 is an internationally accepted standard that outlines how to put an effective environmental management system in place in your organization. It is designed to help businesses remain commercially successful without overlooking environmental responsibilities and impacts. It can also help organization to grow sustainably while reducing the environmental impact of this growth.
And why is envrionmental management so important? One of the main reasons that environmental management is important is to promote health and safety within the workplace.Even workplaces that are not considered dangerous have other risks associated with them, and with effective management, those risks can be lowered significantly.