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  • SIMPLE - Information Systems
    the University of Arizona to re engineer all of its asset management processes in less than three months The software enabled a lot of people to have a real input without fear of treading on toes or harming sacred cows Furthermore it maximized use of staff time and enabled a full and complete record of events and inputs to be appropriately categorized for export to other mediums for presentation and reporting The agency s process re engineering was done in one fifth the time that would be required by traditional approaches Electronic Diary Software Aids Asset Utilization and Management Tip Make a date with an asset Many offices have electronic diary software Transport South Australia and other offices are now using these diaries to keep control of assets such as bookable equipment or rooms The asset is treated as a person and appointments are made It keeps track of the asset and no one has to find the bookings clerk Plan Your Information System with Resourcing in Mind Part One If you are going to design or modify your system in house consider whether the size of your information technology unit now and in the probable future can sustain it One agency had had a very complex and expensive computer system but had not generated any output After seven years of no outputs the CEO was called before a Parliamentary Committee and asked why He replied Well we had a programmer setting up the system but he was made a salary offer we could not match and he left It took us 6 months to find a replacement and another 6 months for him to get familiar enough with the system to actually make some headway He was with us about two years then he got a better salary offer

    Original URL path:,-Case-Studies/Case-Studies/SIMPLE-Case-Studies/Information-Systems (2016-05-01)
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  • SIMPLE - Knowledge of Assets
    Planning Total Asset Management Plan Works Resource Management SAM Practitioner Tools Contents Reports Case Studies Case Studies Life Cycle AM Processes Knowledge of Assets Knowing the Condition of Assets The utility manager was very proud of the fact that he could show how the organization understood the condition of all its assets on a 1 to 10 rating scale He produced fantastic graphs of the condition profiles However until he matched it to the age of the asset and used this to determine the rate of decay or deterioration of the asset he was only telling half the story Once he had the rate of decay he could estimate the residual physical life of the assets and then plan their rehabilitation or replacement Now he had the funding cash flow the organization required and he realized that just having the data was not the key doing something with it is essential Understanding Asset Performance Reduces Renewal Costs An improved understanding of the rate of decay and intervention strategies for country roads enabled better projections and management policy on replacement of roads resulting in savings of 20m annually to a roads agency The agency carried out research into new road replacement

    Original URL path:,-Case-Studies/Case-Studies/SIMPLE-Case-Studies/Knowledge-of-Assets (2016-05-01)
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  • SIMPLE - Maintain
    For the company the end cost of the failure of that single light bulb is incalculable They didn t have the protection given to public utilities however we need to consider ourselves as a commercial business to best manage these valuable community assets and not hide behind the cloak of public good and legal indemnity Slighting Maintenance Can Increase Costs Several years ago a study of maintenance practices in Australian underground coal mining was undertaken to benchmark it against international standards One of the findings was that Australia s coalmines spent about half the amount on maintenance for a particular major equipment item compared with their American counterparts But further investigation revealed that while Australian mines struggled to achieve better than 35 availability the Americans were routinely achieving 90 The net result was that maintenance cost per ton of production in America was about half of that in Australia That meant greater profit and competitiveness In this case reduced costs led to reduced asset performance which led to reduced profits Editors note when benchmarking maintenance it is vital to normalize the data and compare like assets with like assets and like practices with like practices The condition of a certain type of asset its location with respect to the maintenance depot and about 12 other factors need to be normalized to get to the truth Maintenance Costs Reduced by Better Design of Sewer Access Chambers A value management study was conducted by a water organization to determine what was required of their sewer access chambers manholes The confined space of entry requirements in old sewer access chambers made it an expensive exercise when access was necessary The organization wanted access to the sewer in both directions for Closed circuit television inspection Cleaning sewers Tree root cutting equipment Stopping sewer flow

    Original URL path:,-Case-Studies/Case-Studies/SIMPLE-Case-Studies/Maintain (2016-05-01)
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  • SIMPLE - Operate
    a weak link in the sewerage system Sewage pumping stations are more susceptible to failure due to their mechanical or electrical components than the rising mains and gravity sewers that make up the rest of the sewage system During 1994 over a period of a week a pumping station failed three times causing sewage spills of 168 kilolitres 47 kilolitres and 20 kilolitres into the nearby creek These incidents raised a number of asset management issues The contributing factors were The inadequate condition of the pumps Power supply problems Unreliable communication A very short time to spill insufficient lead time to arrange eductors The consequences of failure were that a high grade quality creek was polluted and the organization was faced with the embarrassment of advising nearby residents together with the environmental authorities and the Health Department What did the organization do to manage this risk It assessed the spill points for each sewer pumping station to determine the likely environmental impact of a spill Environmental impact was based on the environmental value of the receiving waterway that is whether it was a pristine stream or a polluted drain and the perceived community sensitivity associated with the receiving waterway that

    Original URL path:,-Case-Studies/Case-Studies/SIMPLE-Case-Studies/Operate (2016-05-01)
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  • SIMPLE - Organizational Issues
    from some head office computer To achieve required performance field workers have to be able to assess the situation that they find in the light of corporate requirements If they don t understand corporate requirements they can t do their job Matthew Giesmann is addressing this issue by conducting workshops relating corporate KPI s to the work that his field maintenance crew are doing and is finding high levels of enthusiasm on the part of the crew What he is effectively doing is connecting the entire agency from top to bottom through the corporate KPI s The Danger of Silo Thinking An Industry Example The company kept detailed performance statistics And the statistics showed that the V belt in their washing machine product was the cause of a high percentage of machine failures and call outs The Trouble shooter went out with the service vans to see the problem at first hand He noted that the technician was fitting a different brand of belt to that used in the factory It turned out that the Service Department found the factory belt extremely unreliable and preferred the brand they used which they called the fit and forget belt as they d used it for 5 years with only one known case of a problem A few quick sums showed that the fit and forget belt cost 10 cents more than the one the factory used But in terms of warranty costs the cheaper belt was costing an average of 1 10 for every washer produced Switching to the new V belt would thus result in a net saving 1 00 per washer small enough but with the company s production levels this amounted to an overall saving i e direct increase in profit of over 200 000 each year Saving 200 000 per year should have been a push over Right Wrong Let the Trouble Shooter walk you along the path he trod Silo 1 Engineering Full of confidence I went to see the washer division s chief engineer and showed him the figures he d been aware of the problem but he d not seen it quantified I thought he could specify this fit and forget belt But he pointed out that his performance would look bad if he was responsible for increasing Factory Variable Cost FVC the cost ratio by which he was evaluated I did get him to add it to the drawings as an acceptable alternative a necessary step if I was to proceed further Silo 2 Purchasing The purchasing manager was a really get up and go type of fellow He could appreciate the advantages of the new belt but was also reluctant to take action He said he could introduce an FVC saving immediately but if the cost of any item went up then he would be grilled unmercifully at the next monthly meeting Hence he was loath to do it His primary yardstick was the FVC reduction target Any saving down the line as

    Original URL path:,-Case-Studies/Case-Studies/SIMPLE-Case-Studies/Organizational-Issues (2016-05-01)
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  • SIMPLE - People Issues
    mentoring and training of field staff More Imagination Succeeds Where Money Demand Failed How many times do we grumble when our first solution generally a more money solution is rejected Take heart there is quite often a better solution around the corner It just requires a little thought and an integrated approach as demonstrated here in an example from the Seppelt Champagne fields in Australia There are two methods of removing stalks and bits of grape skin from wine The old fashioned method with which management was comfortable was to use settling tanks The newer centrifuge method however was quicker and had been in use for a number of years but always with the idea that if necessary it could revert to the older settling tank method What no one had noticed was over the years the size of the vintage had steadily grown it was now too large for the old settling tank method to manage with the tanks available which made the winery in effect completely dependent for its production on the efficient running of the centrifuge Therein lay the problem for the centrifuge had a habit of throwing its bearings about every other vintage The last time it happened it took about 2 weeks to get these specialized and expensive bearings from Europe If this happened again the unit would be unable to handle the amount of grape and there would be a shortage of bubbly by the following Christmas Solution The proposal to Head Office that a spare set of these bearings be purchased was rejected as being too expensive The unit was allowed to order them if the bearings did fail but then they would have to wait the two weeks and lose production To avoid the lost production the unit came up with an idea If they could not hold a spare set of bearings maybe somebody else could The unit rang its local agent to ask how many of these centrifuges there were in the country and how common was this bearing fault Not many not often was the reply Nevertheless the unit suggested that the agent might hold a set or two of these bearings here in Australia and they agreed Furthermore the storage site would be in the nearest capital city The unit then devised a break glass turn key approach whereby for a premium the agent would immediately courier the bearings to a halfway point Not long into the vintage the centrifuge threw its bearings at 4 pm on a Friday afternoon Realizing that a courier would be impossible the local agent personally brought them to the agreed spot Bearings and paperwork were swapped and the unit s man headed back whilst the maintenance crew were stripping the unit The centrifuge was back on line in 6 hours and stayed on line for the whole vintage And the agent never did charge the agreed premium Roles Responsibilities The agency had long decided that condition data was needed to better evaluate

    Original URL path:,-Case-Studies/Case-Studies/SIMPLE-Case-Studies/People-Issues (2016-05-01)
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  • SIMPLE - Renew
    Analysis Information Systems Knowledge of Assets Maintain Operate Organizational Issues People Issues Renew Review Continuous Improvement Strategic Planning Total Asset Management Plan Works Resource Management SAM Practitioner Tools Contents Reports Case Studies Case Studies Life Cycle AM Processes Renew Does the Asset need Renewing or Should it be Disposed of The school boiler had broken down It had been out of operation for a full year and yet despite the

    Original URL path:,-Case-Studies/Case-Studies/SIMPLE-Case-Studies/Renew (2016-05-01)
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  • SIMPLE - Review & Continuous Improvement
    Systems Knowledge of Assets Maintain Operate Organizational Issues People Issues Renew Review Continuous Improvement Strategic Planning Total Asset Management Plan Works Resource Management SAM Practitioner Tools Contents Reports Case Studies Case Studies Life Cycle AM Processes Review Continuous Improvement Post Implementation Review BHP Steel s post implementation review practices have been recognized by the leading world authority Beckaert Stanwick of Belgium as world s best practice Their system is that

    Original URL path:,-Case-Studies/Case-Studies/SIMPLE-Case-Studies/Review---Continuous-Improvement (2016-05-01)
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