Asset Management Insights. Celso de Azevedo

Maintenance and Modification Replacement vs. Disposal Value to • Stakeholders • Corporate • Employees • Public • Etc. The finality and specific nature of the assets must be the driving element of the value-to-extract Taking into account more that strictly the economico-financiary technics in the definition of values Need to the interests of stakeholders/ alignment of value Taking into account of values far beyond purchase price Optimizing profit from this run-in period by also verifying chances and real values to be extracted Having an active consciousness of the fact that everyday we can optimize the extraction of value Realizing that “parts replacement” and “value extraction” are not necessarily compatible The values of an organization are so many drives for end-of-life arbitration Constituents of Asset Capability People • Engagement/ commitment • Behaviors and values • Competency • Etc. Anticipation of the life-cycle Taking into account future needs in terms of competencies linked to the value-to-extract Raise awareness regarding life-cycle timely for commitment Impact of BIM on competencies profile The worst and best moment for understanding competencies required Adequation between competencies and evolution of the needs, between level of commitment and values alignment “Loving care” behavior and emotional attachment “Loving care”/ rise of a need for an aging management structure and roles Finance • Accounting • Budgeting • GAAP tools • Technology Life-cycle analysis vs. design-to-cost/ monetization of the risk factor (including technology) Alignment between asset register and asset costing Life-cycle cost process Alignment between asset costing/as set register Budgetary differentiation between commissionning and operational phase How asset costing feeds the decision-making process How asset costing feeds the decision making process How depreciation rules and provision policies can impact on the timely replacement Management Systems and Processes • Decisions • Technology • Types of Processes • PDCA • Etc. Alignment of corporate objectives Milestone for key elements in the AMS (configuration management) Alignment of corporate strategies Theory of signals: Necessity of an aging manager to assess the asset’s end-of-life status/ineffectiveness of practices such as “modification redesign” Theory of signals: Necessity of an aging manager to assess the asset’s end-of-life status Asset Capabilities The historical decline of life-cycle costing techniques The importance of FEED approaches which take into account risks and costs in project phase Success and failure factors of the insertion of the LCC in specification Demystifying untenable counterarguments The clear and obvious need for LCC in buying processes Reliability, redundancies To comprehend this phase as a hiatus from the guiding trade-offs The importance of operators in the examining of trade-offs The necessary distinction between assets in service life and assets in mature life The necessary and daily usage of trade-offs and other optimization tools Mastering the mature life and the trade-offs specific to the asset’s end-of-life Risk and Decision-Making • Stakeholders • Corporate • Asset • Deterministic vs. Probabilistic vs. Legal • Technology Demystification about the interdependency between different factors (stakeholders/ corporate/regulation) Impact of the error reproduction on new asset portfolios: “avoiding copy-paste projects” Status about the trade-off between corporate desires and technological prices Status about the trade-off between corporate desires and construction prices Avoid allowing the difficulties on the commissioning phase become the drive for the life-cycle Maintain alignment with prior objectives and commitments How to make “luxury piece-replacements operators” evolve into real business engineers (linked with “People”) Curve of total impact/accepting the asset’s end-of-life and the interest of timely replacement Trade-Offs and AM Objectives Desired trade of: • Cost • Risk • Performance Trade-offs CAPEX/OPEX Construction of technological scenarios based on FEED simulations (RAMS studies and costs against stakeholders values) Trade-offs CAPEX/OPEX Definition and selection of scenarios based on the company’s short-term and long-term values Trade-offs CAPEX/OPEX Definition and selection of scenarios based on the company’s short-term and long-term values Reliability, capabilities (measurement of the maintainability, etc.) Confrontation between levels of reliability (inherent vs. operational vs. real) Future contractual specifications in asset management Daily usage of trade-off techniques and the construction of decision-making scenarios Exploitation and maintenance, “same battle” Daily usage of trade-off techniques and the construction of decisionmaking scenarios Huge deficiencies and need for a mastering of the concepts and techniques of arbitration regarding assets in end-of-life phase Metrics and Measurements • AM objectives (levels) • Use of KPIs • Etc. Translation of the values into coherent METRICS ahead of the asset project How to make the values-to-extract self-explicit in the case of functional and material specifications The convergence of operational purchasing measures (tied with specifications) with AMS rules linked with the extraction of value Metrics eminently tied with project monitoring Be aware of the difference between KPI measures in this phase and those which come next Learning to create indicators and metrics specifically tied with the values to extract in each organization Learning to create indicators and metrics specifically tied with the values to extract in each organization Create handy milestones of