Obbie Lephauphau Snr Mechanical Engineer Asset Management department Sasol Mining, South Africa

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1 Obbie Lephauphau Snr Mechanical Engineer Asset Management department Sasol Mining, South Africa

2 Asset life-cycle management: ways of achieving full life and reducing total cost of ownership

3 Definitions (1/3) Asset management 1 A strategic, integrated set of comprehensive processes (financial, management, engineering, operating and maintenance) to gain lifetime effectiveness, utilization and return from physical assets. Acquisition phase Utilization phase Asset life cycle phases 2 Source: 1. Mitchell J.S & Carlson J, 2001, Equipment asset management 2. Blanchard B.S, 2004, System engineering management

4 Definitions (2/3) Asset design capability User Requirements Design capability User Requirements Design capability Maintenance will not improve the performance of asset beyond its design capability Utilization phase

5 Definitions (3/3) Total cost of ownership 1 is the sum of all cost expended in the purchase and the support of the asset from its conception through its operations to the end of its useful life and disposal. Acquisition cost (research, design, test, construction, production) Costs due to asset operations Costs due to maintenance and life cycle support (personnel, spares, test equipment, facilities, data, computer resources Costs due to asset effectiveness and/or performance losses Costs due to divest or dispose the asset Source: 1. woodward, Blanchard B.S, 2004, System engineering management

6 Reliability, maintainability and maintenance Reliability is the probability that an asset will satisfactorily perform a specified function for a specified period of time under given operating condition 1 Maintainability is an inherent characteristic of Asset design that pertains to the ease, accuracy, safety and economy in the performance of maintenance actions 2 Maintenance constitutes those actions taken to restore an item to (or retain an item in) a specified operating condition 2 Inherent Reliability and maintainability are design parameters, whereas maintenance is the result of a design Source: 1. Smith A.M & Hinchcliffe G.R, 2004, RCM gateway to world class maintenance 2. Blanchard B.S, 2004, System engineering management

7 100% Significant TCO reduction opportunity exist during acquisition phase Life-cycle costreduction opportunity Committed cost (cumulative) 95% of costs are committed during design and development phase Actual program expenditure Acquisition phase Utilization phase Source: Blanchard B.S, 2004, System engineering management

8 Analysis required during acquisition phase Operating condition analysis Operating environment Operators/maintainers skill Reliability Analysis to reduce TCO Inherent Reliability robustness of design and component quality Maintainability Analysis Easiness, accuracy, safety and economy in the performance of maintenance actions System Safety and Hazard Analysis Identify, eliminate or reduce safety related risks throughout asset life cycle Human Factor Engineering Analysis Prevent human-induced errors and mitigate risks to human due to interface errors Logistics Analysis Reduce field support cost resulting from poor quality, reliability and maintainability Source: Gulati R, 2009, Maintenance and Reliability Best Practices

9 Assets can be managed at different level with different priorities and concerns Typical priorities and concern Organizational strategic Goals Capital investment optimization and sustainability planning Corporate/ Organizational Management Manage Asset portfolio Sustained performance, cost & risk optimization Manage Asset systems Optimize life cycle activities Create/ Acquire Utilize Manage Assets Maintain Renew/ Dispose Source: IAM, 2008, Asset prioritization

10 Reliability culture can reduce TCO Production Reliability Process control Equipment utilization Equipment Reliability Maintenance strategy for assets Maintenance effectiveness Extending MTTF or MTBF Characteristics of a Reliability Culture The Organization Is a Learning Organization There Is a Single Best Way of Doing Things The Maintenance Focus Is on Proactive Work and Failure avoidance The Production Focus Is on Improving Asset Utilization Process Reliability Work Management processes Production Processes Business processes People Reliability Leadership Training & Development Communication Performance Management Source: Davis J.W, 2008, Creating a reliability culture in your company

11 Core life cycle phases that all assets progress through Infant mortality phase Constant performance phase End of life Phase Premature failure eliminated Effective QA/QC Design that is robust enough to handle true process variable or loading arrangement Quality is critical to selection of equipment/material Repair or overhaul practices that result in robust equipment Life cycle extension; defer refurbishments/renewals Continuous improvement plan Minimize MTTR Machine health management Life limiting sub-assemblies or components Asset Refurbishment Asset replacements Asset life cycle time Determine the phase in which the critical assets are in Draw life cycle performance curves of critical assets Is the performance as expected, if not why not In which phase should your resources be focused Source: van Oene, 2009, Asset management principals

12 Is the rate of deterioration or failure predictable and consistent? Is the item/asset renewable to as good as new cost effectively? Scheduled Renewal Select cost effective maintenance Scheduled Replacemen t Is there a reliable indication/early warning of failure? Is the interval between detection and failure (P-F interval) sufficient to act on? Is there a suitable condition monitoring technique that is cost effective to implement and operate? strategies Condition Monitoring Is there a routine maintenance that will ensure that item/asset reach a full life Is routine maintenance cost effective? Routine Services Run to Failure Is the loss of production or cost of run to failure within acceptable limit? Redesign

13 Effective management controls that can reduce TCO Material & Labour Resource Control Operating & Maintenance Strategies Design & construction Change Control Evaluation of Solution Resource estimating & Task assessment Problem/Opptt Investigation Work programme scheduling Work Control Inspection & CBM Loop Cost Control Problem/Opptt Identification Preventive, detective & corrective work Data collection Source: Woodhouse J, 2004, Asset management decision-making

14 Thank you

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