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Asset Management and Benchmarking Metrics

1. This document discusses the importance of asset management and metrics for continuous processes to manage risks and maintain operations. 2. It recommends measuring key performance indicators as an objective way to monitor effectiveness and identify opportunities for improvement. Financial metrics should track results while operational metrics assess output, quality, and costs. 3. Benchmarking is presented as a systematic process to compare performance metrics against best practices in order to prioritize resources and drive improvements through corrective actions that link operational and financial objectives.

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Prabath De Silva
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71 views17 pages

Asset Management and Benchmarking Metrics

1. This document discusses the importance of asset management and metrics for continuous processes to manage risks and maintain operations. 2. It recommends measuring key performance indicators as an objective way to monitor effectiveness and identify opportunities for improvement. Financial metrics should track results while operational metrics assess output, quality, and costs. 3. Benchmarking is presented as a systematic process to compare performance metrics against best practices in order to prioritize resources and drive improvements through corrective actions that link operational and financial objectives.

Uploaded by

Prabath De Silva
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Why invest on

Machines Materials Men Methods (Process)

Problems
Risk Continuous Process Maintenance HENCE IT IS IMPORTANT TO MANAGE THE ASSETS

How to manage assets


Measure to manage Not measuring not managing just drifting To achieve measure What we achieve is what we measure People dont always measure to get better but manipulate to look better
3

What is metrics
Essential within the physical assets management process Metrics are an objective means of measuring performances and effectiveness Its measure performances Its measure effectiveness Its a performance indicator
4

Why metrics
To identify competitive opportunities To priorities our resources To measure progress and effectiveness of action taken Help to understand the contributors to availability Help to understand the factors influencing the profitability
5

What should know


How business operate Financial metrics measure results How to track improvements How overall operational performances affect in terms of Output Quality Cost
6

Metrics & Business objectives


Select correct metrics Bench marking Corrective actions to improvements Gives Improvements to equipment effectiveness Improvements to work effectiveness Finally Operating objectives Business objectives
7

Metrics gives
Assets productivity improvements in terms of financial performances Establish healthy link with financial and operational executives Justify the investment on equipment improvement process Finally secure the resources needed
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Hierarchy of metrics
Strategic
Assets RONA/ROCE

Operating
Industry performances RAV Operating effectiveness OEE

Effectiveness
Work process efficiency Reliability management Program effectiveness MTBF MTTR Planed/total work Faults detected prior to failure
9

Benchmarking
Benchmarking is a systematic process for measuring best practice and comparing the results to corporate performances in order to identify opportunities for improvements and superior performances.

10

Benchmarking process
Select a comprehensive set of parameters for comparison Select reliable internal and external sites for comparison based on performances Compare own parameters with best of best measures Identify areas of greatest opportunity
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Detailed benchmarking & improvement process


1. Identify performance indicators 2. Form benchmarking team 3. Set benchmarks 4. Measure current performances 5. Compare against bench marks 6. Analyze variance Are there any performance gap ?
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If there is a performance gap


1. 2. 3. 4. Identify improvements Implement trial improvements Monitor results Compare against benchmarks

Improvements are not giving desired results

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When improvements are not giving desired results


1. 2. 3. 4. Enhance trial improvements Implement trial improvements Monitor results Compare against benchmarks

If improvements are giving desired results

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When improvements are giving desired results


1. Implement full improvements Are you satisfied with this achievement ? yes : abandon the process no : Recalibrate benchmarks and then repeat the Process. Improvements through benchmarking is a continuous process

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Features of benchmarking methodology


1. 2. 3. 4. 5. 6. Be plant, process/equipment specific Consider the reliability of existing data Be easily understood Be realistic and attainable Be repeatable Demonstrate cause and effect for the resulting strategy 7. Be useful for follow-on monitoring
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