We see them prominently displayed on the walls of all types of businesses: safety policies, environmental policies, quality/customer-satisfaction policies. Often signed by a top corporate officer, such policies proclaim an organization’s commitment to safety, the environment, and quality/customer satisfaction, and the like.
What we typically don’t see displayed, however, are signed, framed asset-management policies. That should come as no surprise, though, since many physical-asset-dependent operations haven’t actually created this type of policy. Does your organization have one or has it made plans to develop one?
Any business that depends on the performance of physical assets (equipment assets) should have a formal asset-management policy. This certainly isn’t a new concept. The importance of such policies has been noted more than once, i.e., in the First Pillar of SMRP’s Body of Knowledge and ISO 55000, the standard for asset management (as well as the standard’s predecessor, the Publicly Available Specification, PAS 55, published by the British Standards Institute).
If your operation hasn’t yet created an asset-management policy, the following generic example could help you get started. As you move forward, keep these important points in mind:
- Make the policy clear and easy to understand.
- Be sure that it clearly defines expectations for asset management across the asset lifecycle (acquire, operate, maintain, and dispose/reuse), as defined by ISO 55000 and PAS 55.
- Have the policy signed by the CEO.
- Clearly display the policy wherever your organization does business.
EXAMPLE PHYSICAL-ASSET-MANAGEMENT POLICY
XYZ is dedicated to achieving total customer satisfaction by providing high quality products, providing a safe and healthful place of work throughout all of XYZ’s facilities, minimizing impact on the environment and generating profit to create value for its shareholders, employees and other stakeholders.
As an Equipment Asset Dependent organization, XYZ recognizes the importance of the reliability and dependability of its equipment assets and, as such shall employ sensible efforts towards eliminating or minimizing operational equipment failures that compromise our goals and mission.
XYZ shall, in all its locations where work is being carried out, promote the highest standards for Physical Asset Management (PAM).
Our Policy is defined and strongly driven by the following management principles and behaviors. As such, we shall:
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- Require commitment to PAM throughout all ranks and functional groups in the organization because dependable equipment asset performance is necessary to achieve the organization’s profit, Quality and Health, Safety and Environmental (HSE) goals.
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- Design and procure systems and equipment to achieve reliability, operability and maintainability, and minimize the life-cycle cost of ownership.
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- Operate equipment assets correctly, within design limitations and in a consistent fashion to minimize unnecessary stress and strain, which can compromise reliability.
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- Maintain equipment with precision, emphasizing planned and proactive care to manage the known root causes of electromechanical-system degradation and respond effectively and efficiently to known equipment problems.
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- Commit to collecting and systematically analyzing equipment asset performance data to enable informed decision about assuring equipment asset health and reliability.
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- Ensure all personnel are trained in EAM principles and empowered to locally manage their influence and effect and influence on the organization’s global objective of equipment asset reliability, dependability and low life cycle cost of ownership.
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- Plan and perform work in accordance with the Quality and HSE Management System to achieve our commitments for quality, safety, environment, cost and schedule.
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- Drive continual improvement and innovation based upon efficient business processes, well-defined measurements, best practices and customer surveys.
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- Promote teamwork and use common language and processes.
The above Policy provides the framework and sets the basis for establishing and reviewing objectives at all relevant functions of XYZ and its various locations. It shall be reviewed periodically for continuing suitability.
Remember this: If an organization doesn’t have a signed asset-management policy displayed throughout its operations, it hasn’t completed step one in its journey to world-class asset management. Good luck on getting started and then continuing your journey. TRR
ABOUT THE AUTHOR
Drew Troyer has 30 years of experience in the RAM arena. Currently a Principal with T.A. Cook Consultants, he was a Co-founder and former CEO of Noria Corp. A trusted advisor to a global blue chip client base, this industry veteran has authored or co-authored more than 250 books, chapters, course books, articles, and technical papers, and is popular keynote and technical speaker at conferences around the world. Among other things, he also serves on ASTM E60.13, the subcommittee for Sustainable Manufacturing. Drew is a Certified Reliability Engineer (CRE), Certified Maintenance & Reliability Professional (CMRP), holds B.S. and M.B.A. degrees, and is Master’s degree candidate in Environmental Sustainability at Harvard University. Email dtroyer@theramreview.com.
Tags: Asset management, ISO 5500, PAS 55, equipment lifecycle
