Asset Operations Management | Measure and Improve

We’ve outlined what Asset Operations Management means for maintenance, reliability, and operations teams, but now it’s time to go deeper. For the next couple weeks, we’ll outline the eight pillars of Asset Operations. These are the core ideas behind the larger concept, and they’ll provide a better understanding of what Asset Operations truly encompasses. 

So far we’ve covered:

• Pillar 1: Maintenance, Reliability, and Operations Must Operate Together and Be Aligned on Achieving a Common Goal

• Pillar 2: Data Must Flow Into a Single Repository

• Pillar 3: Measure Teams Based on Why They Do Something Rather Than What They Do. 

• Pillar 4: Relentlessly Collect the Right Data, Display the Best Insights, and Provide Actionable Feedback Through a Centralized Command Center

• Pillar 5: Asset Operations Is an Abundant Life Cycle, Not Just a Point in Time.

Today we're covering Pillar 6: Everything Measured Can Be Improved.

Setting the Stage

In an ideal manufacturing world, we would have a comprehensive understanding of our operations, maintenance, and reliability foundation. We would measure the critical facets in each area and have a time-bound set of improvements we’re working on. Once those are completed, we would advance to the next level, measuring and improving once again in a continuous cycle over time. Unfortunately, this utopian world is often far from the truth in many companies today, which means multiple growth and revenue opportunities are left on the table.

We’ve all heard the old saying, “You can only improve what you measure,” yet it’s one that is rarely acted upon. However, it’s so important in asset operations management (AOM) that it’s elevated to one of the eight pillars of success. Measuring and improving play a critical role in the lifespan and performance of assets, which directly affects an organization’s bottom line.

Missing Measurements

The primary challenges with implementing this AOM pillar are the lack of measuring the right things and the lack of transparent, comprehensive data in most manufacturing organizations.

First, while departments tend to measure the things they do, it can be more difficult to measure those things that add value. For example, the maintenance team may have good metrics around how many work orders are completed on a given day or how quickly they’re completed, but no measurement against how their work has improved reliability or affected downtime.

Second, many organizations may rely on mostly manual, paper-based systems that prevent quick and easy access of data. Others may rely on the individual knowledge and memory of team members in regards to when assets were last repaired or maintained and what quirky problems may exist. Although this data technically exists, it exists in a way that other employees working with the assets can’t access. In the grand scheme of things, those measurements are, for all intents and purposes, missing.

Capturing Measurements

The first step in “finding” these missing measurements is shifting the culture and adopting a system to comprehensively capture the right data on an ongoing basis. 

The change management aspect of this process can be the most difficult, especially if individual performance bonuses or raises are tied to activity-based metrics. Not only does the message that all employees need to pull together to focus on assets as a whole need to be communicated from top management, but workflow and process changes may need to be made to reflect that focus. 

Systemic changes must include a mobile solution that can capture data in the field. One of the biggest roadblocks for obtaining complete and accurate information is the fact that most technicians are in the field servicing equipment all day–not sitting behind a computer. If extra steps and time are required to input asset data into a main system, it’s likely not to get done or not be done very well. Instead, if data can be both accessed and entered at the point of work, it can be more easily and completely captured.

The final step is to fully integrate that data into the company’s back-end systems so that it becomes part of a single data repository. Measurement metrics can then be identified and employed, and improvement follows.

Pillar in Action

Once the right things are measured on an ongoing basis, real-time data then becomes available to maintenance, operations, and reliability staff.

For example, if an organization has successfully instilled an asset-focused culture, employees will be constantly on the lookout for potential problems that can cause major downtime or negatively affect company performance. If this behavior can be reinforced by proper recognition, employees start seeing that the benefits to the company mean individual rewards as well.

Let’s say a junior technician is performing routine maintenance on an asset and notices alignment of a particular part seems to be off. It dutifully gets noted immediately on the work order. That note then triggers the attention of the maintenance manager who may re-prioritize the tasks of a senior technician who heads over to the asset later that day. The adjustment is made before malfunction occurs, eliminating the downtime that would have happened later that week had it not been addressed, resulting in significant revenue saved.

Measurement Needed Throughout Asset Life Cycle

Although it’s easiest to start measuring asset performance during the utilization phase of the life cycle, it’s important this process is used in other phases as well. By better defining the need for the asset in the first place, companies can ensure they are acquiring the right asset as well as investing in correct installation, which will result in better performance throughout the life cycle.

For example, the longer the expected life cycle of an asset, the more important it is that the right equipment is selected from the beginning. It’s important to clearly define what the asset needs to do, what capacity it is expected to have, and what quality measures it must obtain. Cutting costs on the front end in an attempt to save money in the short-run may lead to significant long-term problems during the utilization phase.

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