• Abstract and Figures
• Public Full-text

SAP Thought Leadership Paper Enterprise Asset Management Enable Good Asset Management with Integrated Enterprise Information Software Using Technology to Support PAS 55 Specifications ENABLE GOOD Asset MANagemeNT WITH INtegRateD ENTERPRISE INFORmatION SOFTWARE Table of Contents 5 The Mission-Critical Role of Asset Management PAS 55: The Guideline for Good Asset Management Practices The Scope and Key Principles of PAS 55 Implications of PAS 55 for Asset Management Software 10 SAP Software: Supporting an Integrated Approach to Meeting PAS 55 Guidelines Enterprise Asset Management Software Complementary, Integrated SAP Solutions Corporations spend billions to design, buy, operate, and decommission production equipment and other physical assets. Managing assets and optimally using and running these investments can be mission critical. As a result, the assets are under the constant and watchful eyes of top management, shareholders, and regulators. But how can you be confident that your asset management practices are maximizing return on assets? IT’S ALL ABOUT RETURN ON Assets, COMPETITIVENess, AND BUSINess SUstaINABILITY The Mission-Critical Role of Asset Management Uncertain markets are forcing companies PAS 55: THE GUIDELINE FOR GOOD PAS 55 can help your company gain to maximize return on assets. Meanwhile, Asset MANagemeNT PRactIces competitive advantage by helping ensure globalized competition is challenging that you are effectively managing your businesses to drive competitiveness by PAS 55 as an asset management frame- assets. In fact, many companies are achieving operational and maintenance work describes and defines essential key seeking to get PAS 55 certified through excellence. But most of all, increased attributes and good practices for the specialized consulting organizations with awareness of sustainability issues is management of physical assets. It was deep asset management practice exper- requiring companies to manage environ- developed by the Institute of Asset Man- tise. This certification is becoming a ment, health, and safety performance and agement in the United Kingdom, in col- benchmark of publicly recognized good asset-related risks with more precision laboration with the British Standards asset management practices. And com- than ever before. Institution and along with the assistance pliance is even required in certain indus- As a result, traditional asset manage- and valuable input of many other organi- try sectors and countries (such as the ment activities, such as creating asset zations and individuals. United Kingdom) in order to do business. registries and orchestrating maintenance PAS 55 reflects a growing understand- At the same time, meeting the guide- operations, are evolving into a compre- ing of the importance of asset manage- lines can result in new cost savings and hensive, standards-driven management ment as a driver of profitability. It also service improvements, as well as facili- approach that impacts all facets of an reveals an understanding of operational tate compliance with industry and other organization. Guidelines such as Publicly risks and safety issues when asset man- regulatory standards; in fact, PAS 55 Available Specification (PAS) 55 are agement is not handled in a holistic man- coexists with other related management helping companies put structured, good- ner. The guidelines were first published in standards, such as ISO 9001 and ISO practice-based discipline around their 2004 and then updated in September 14000. All of these requirements are asset management capabilities so they 2008. They consist of two parts: inextricably linked because effective can optimize asset uptime, reliability, and • Part 1: Specification for the optimized asset management demands an inte- overall performance. This discipline is management of physical assets grated, cross-enterprise approach. being embedded into organizational strat- • Part 2: Guidelines for the application Addressing only parts of PAS 55 in isola- egies, corporate governance, and day-to- of PAS 55-1 tion – even if these parts are handled day activities, helping companies not only optimally – means that companies miss get more value from their assets but also out on the primary benefits of meeting increase the sustainability of their PAS 55 guidelines. To further elevate the enterprise. importance of good asset management practices, PAS 55 guidelines are now considered the basis for the upcoming ISO 55000 series of standards for asset management. PAS 55 reflects a growing understanding of the importance of asset management as a driver of profitability. SAP Thought Leadership Paper – Enable Good Asset Management with Integrated Enterprise Information Software 5 According to Peter Kohler, chair of the tion optimally and sustainably manages technical development team of the Asset its assets and asset systems and their Management Council: “Asset manage- associated performance, risks, and ment is an emerging discipline, and expenditures over their lifecycles for the while the foundation elements have been purpose of achieving its organizational around for some time, modern business strategic plan.” As illustrated in Figure 1, needs now demand an integrated busi- this means properly managing the three ness-focused approach to how assets levels of assets. These start at individual are managed. The intent of the ISO equipment and eventually include com- 55000 series of standards is to deliver plex portfolios of asset systems (such as a good practice asset management power grids) in an integrated way across: framework so that all societies can gain • Asset lifecycle activities – Create or the full benefit from their investment in acquire the asset, use and maintain it, the management of their assets.” and then renew or dispose of it. • Asset systems – Focus on sustained THE SCOPE AND KEY PRINCIples performance, cost, and risk optimiza- OF PAS 55 tion of asset systems (that is, groups of assets that make up a system, such PAS 55 looks at asset management as a transmission network). from an interdisciplinary and cross- • The asset portfolio – Manage many departmental point of view. In the docu- systems as a portfolio of assets. The ments, asset management is defined as focus is on capital investment optimi- “systematic and coordinated activities zation and sustainability planning. and practices through which an organiza- Figure 1: Integrating Asset Management into the Organization Corporate and organization management PAS 55 asset Manage asset portfolio management system Manage asset systems Manage assets Create Utilize Maintain Renew or acquire or dispose Asset lifecycle Permission to reproduce extracts from British Standards is granted by BSI. No other use of this material is permitted. At the highest level, PAS 55 guidelines activities and practices being used to encourage companies to embrace the manage physical assets. following principles to manage their Logically, this kind of cross-departmental asset systems: integration requires IT enablers. While • Take an integrated approach that PAS 55 isn’t a certification of software embeds asset management into other applications, it does identify the need to enterprise processes include cross-departmental and inte- • Centralize and systematize asset grated approaches to information man- management agement, decision making, performance monitoring, risk management, and com- Take an Integrated Approach munications. Specifically: PAS 55 guidelines are based on the idea • PAS 55 principles encourage compa- that companies must take an integrated nies to evaluate, improve, and poten- approach to asset management, as this tially restructure their current business integration enables ever-higher levels processes so they can realize the ben- of asset optimization. While PAS 55 efits experienced by today’s PAS 55– focuses on physical assets, the recom- certified organizations. mendations must be embedded within • PAS 55 highlights the need for process the overall business context of running a integration for everything from day-to- corporation. As shown in Figure 2, other day maintenance activities for single asset categories, such as financial assets, equipment all the way up to managing human assets, information assets, and complex asset networks from an inte- intangible assets are essential parts of an grated point of view. enterprise and need to integrate with the Figure 2: PAS 55 Scope and Enterprise Business Context Human assets Total business Financial assets Physical Information assets assets Scope of PAS 55 Intangibles assets Based on information from BSI. Permission to reproduce extracts from British Standards is granted by BSI. No other use of this material is permitted. SAP Thought Leadership Paper – Enable Good Asset Management with Integrated Enterprise Information Software 7 Whatever approach you take to enable “changes in standards, procedures, tech- this cross-departmental integration, PAS nical skills, business processes, IT sys- 55 guidelines specify that the approach tems, and organizational structures”2 for encompass systematic and coordinated asset management. In 2007 CLP Power activities and practices for sustainably became the first Asian electric utility managing assets and asset systems. company to receive the PAS 55 compli- Equally important, the approach must ance certificate, per an audit by The share the key principles and attributes Woodhouse Partnership Ltd.3 summarized in Figure 3. The value of this IT-enabled integration Centralize and Systematize is illustrated

Load more

  16

Copy Link