If you’ve been following this series of articles on the Laws of Enterprise Asset Management (EAM), you’ve noticed that each law has a specific purpose, and how necessary it is to follow each one to succeed at asset optimization and improve performance. In this post, we conclude the discussion on EAM laws by providing a recap of laws one through seven and an overview of the final laws, eight and nine. Read below to learn how the last laws reflect on reliability, a core discipline, and know that the journey does not end here, but rather begins with a new mindset and a new strategy for enterprise asset management.
What We’ve Learned – A Short Recap
In our first article, “An Introduction to Asset Management”, we provided an overview of SEAM Group’s white paper, the 9 Laws of Enterprise of Asset Management and highlighted the first law: Protect People. The second article covered laws two through four that set the foundation for asset management: Know the true goal; Obsess over the basics; and Embrace the technology. The third article discussed the path to optimization with the fifth law: Focus on returns, not costs; the sixth law: Optimize the critical path; and the seventh law: Foresee the catastrophe.
Reflecting on Reliability – A Core Discipline in the Performance Triad
The final laws (numbers 8 and 9) of enterprise asset management reflect on reliability, one of the three core disciplines needed to achieve the highest level of operational performance.
Law #8 – Ensure reliability or redundancy (or both).
Consider the following scenario: The Cessna 172, the most common airplane produced, has just one engine. If the engine goes out and the pilot cannot restart it, the only option he or she has is to find a safe place to make an emergency landing. Meanwhile, the Cessna 310 has two engines. If an engine goes out, the plane can continue to fly, although not as well, yet still having more options than the Cessna 172.
While unscheduled downtime in a manufacturing facility is usually not as dangerous as landing a plane, the metaphor can be used to demonstrate the eighth law of enterprise asset management. To keep running, assets on the critical path of an industrial operation must have reliability or redundancy – or both. And to decide whether reliability or redundancy or both should be applied to assets lifecycles, managers must calculate their failure probabilities (discussed in law #7) ahead of time.
Law #9 – Calculate coldly.
Emotions and intuition all too often get in the way of rationale when it’s time to replace mature assets. We’ve seen it numerous times: managers become attached to machinery that has been part of a facility for so long, even though maintenance costs might be through the roof, it could be hampering production, or even causing a safety hazard.
The opposite situation also occurs, although less frequently, where operators get too eager to trade up a piece of machinery for the latest model, regardless of if the existing component is producing exceptionally.
Sound EAM requires cold, rational calculations about whether and when to retire an asset. Emotions should be removed from the equation, and instead performance numbers should lead decision-making regarding assets.
Improve Performance with Effective Enterprise Asset Management
Many leaders often have a false perception that both safety and operational performance can be improved with technical expertise when they must first understand and demonstrate the core principles behind EAM. When organizational leaders use and apply the nine laws of EAM across an organization, they become more strategic in decision-making and can unlock the potential for asset optimization, which can significantly improve uptime and protect employees from harm.
If you missed our previous articles on the 9 Laws of Enterprise Asset Management, download the full white paper to learn why each law is critical for asset optimization and performance improvement. Build a foundation in EAM and start seeing results across your entire enterprise.