Rethinking Asset Lifecycle
Management
People
Technology
Processes
Information
Andy Chatha
President
ARC Advisory Group
AChatha@ARCweb.com
Why Rethink Asset Lifecycle Management?
 Bigger, More Complex Projects
 Riskier Business Opportunities
 Limited Capital, Tough Capital Markets
 More Mandatory Investments
 Global Projects, Global Project Teams
 Escalating Labor and Material Costs
 Poor Asset Utilization, High O&M Costs
 Lack of Skilled Workers
 Legacy IT Systems Constrain Improvement
 Easy IT solutions can help
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A New Model for the Major ALM Processes
ALM Processes Have Specific Responsibilities
Project Performance
Management (PPM)
Plan
Design
Procure
Project
Performance
Management
(PPM)
Funded
Projects
Asset Performance
Management (APM)
Build
Handover
Operate
Maintain
Retire &
Recycle
Asset
Performance
Management
(APM)
Modification
Requests
Asset & Project
Portfolio
Management
(APPM)
New
Facility
Requests
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ALM begins with a proper view of the Asset
Productive Assets are More Than Equipment
Primary
Facilities
Equipment
Remote
Physical
Human
Support
IT HW/SW
Mobile
MRO Material
Virtual
Reference Data
Functional
Design
Procedural
Project-Centric
Project Mgmt
Engr/Design
Procurement
Construction
Asset-Centric
Operations
Process Engr
Maintenance
Reliability
Activity Records
Commercial
Status
History
The Three Asset Classes are Equally Important to
Plant Success !
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Collaborative Devices are Emerging
Planner
Service
Engineer
Interactive Chat:
- Respond to status request
- Run diagnostics
- Upload error logs
- etc.
Technical
Support
Shift
Supervisor
Operator
PM2009a1 pipeline mixer
Device Users, Technical Support, and Service Technicians
Can Interact via the Device’s Collaboration Workspace
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© ARC Advisory Group
A New Model for the Major ALM Processes
ALM Processes Have Specific Responsibilities
Project
Performance
Management
(PPM)
Funded
Projects
Handover
Asset
Performance
Management
(APM)
Modification
Requests
Asset & Project
Portfolio
Management
(APPM)
New
Facility
Requests
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An ALM Information Management Strategy
A Blend of ALM Process and Corporate Strategies
Project
Information
Management
(PIM)
ALM
Information
Management
(ALIM)
Asset
Information
Management
(AIM)
Asset & Project
Portfolio Info
Management
(APPIM)
ALIM Improves ALM Performance Through Better Handover
Processes and More Efficient Information Exchanges!
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Performance Management
Balancing Goals and Developing the Right Mix
People
Processes
Technology
Information
Goals
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ARC Level 1 Model for ALM
The Major Processes, Goals and Information Mgmt
PEOPLE
Project
Performance
Management
Handover
Asset
Performance
Management
(Design & Build)
(Operate & Maintain)
BUDGET
ROA
Funded
Projects
Asset &
Project
Portfolio
Management
(Evaluate & Select)
Modification
Requests
New
Facility
Requests
TECHNOLOGY
PROCESSES
BENEFITS
INFORMATION
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A Structured Set of ALM Models
Structure Supports More Realistic Process Models
Level 1
Level 2
Level 3
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A Typical Level 2 Model for APM
APM for a Process Manufacturing Facility
Project
Management
Equipment
& Systems
Suppliers
O&M Service
Providers
AIM
Performance
Fabricators
MRO Material
Suppliers
Operate
Maintain
Performance Performance
Construction
Services
ROA
Shareholders
Regulators
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A Typical Level 2 Model for PPM
PPM for a Process Manufacturing Facility
Asset
Management
Strategic
Suppliers
Project
Management
Services
Construct
Fabricators
Project
Information
Mgmt
Engineering
Services
Engineer
Procure
Constructors
BUDGET
Shareholders
Regulators
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Asset & Project Portfolio Management
APPM Processes and Stakeholders
Allocate
Resources
Manage
Information
Identify
Opportunities
Evaluate
Solutions
BENEFITS
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A Level 3 APM Model People & Processes
APM for a Process Manufacturing Facility
Automatic
Production
Planning
Oper
Staff
Maintenance
Planning
Maint
Staff
Operate
Maintain
Strategy
Parts
Mgmt
APM
Tactical
Operate
Strategy
Materials
Mgmt
Reliability
Engr.
Equipment
Changes
Strategic
Proc/Mfg
Engr.
PPM
Plant & Project
Engineering Support
Maintain
Safety & CM
Systems
Action
Coordination
Feedback
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A Level 3 APM Model for Technology
Strategic
APM for a Process Manufacturing Facility
Process Models
& Simulation
Proc/Mfg
Plant Plant
Design,
Engr3D
Models,
Laser
(M/E/Auto,
EH&S)
Scanning
Engr.
RCM, Reliability
Analysis
&
Reliability
Engr.
Simulation,
RBI
Production
Planning
EH&S,
Sustainability,
HR
ERP,
Materials
Oper
CPM/MES,
Mgmt
Mobile Devices Staff
Maintenance
Planning
Maintain
Strategy
EAM/CMMS,
Inspection,
Maint
Parts
Mobile
Staff
Mgmt
Devices, RFID
Automation
Systems, LIMS,
Historians, Alarm
Systems, Safety
Systems,
SafetySMT
& CM
Automatic
Tactical
Operate
Strategy
Systems
Action
Coordination
Feedback
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A Level 3 APM Model for AIM
Strategic
APM for a Process Manufacturing Facility
Process Models
& Simulation
Proc/Mfg
Plant
Design,
Plant
Engr
3D
Models,
(M/E/Auto, EH&S)
Project Mgmt
Engr.
RCM, Reliability
Analysis
&
Reliability
Engr.
Simulation,
RBI
Production
Planning
ERP,
Materials
CPM/MES
Mgmt
EH&S,
Sustainability
Oper
Staff
EAM/CMMS,
Maint
Inspection Parts
Staff
Systems
Action
Maintain
Strategy
Maintenance
Planning
Automation
Systems, LIMS,
Historians, Alarm
Systems, Safety
Systems,
SafetySMT
& CM
Automatic
Tactical
Operate
Strategy
Coordination
Mgmt
AIM
Feedback
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A Level 3 APM Model for Information
APM for a Process Manufacturing Facility
Functional
Design
Procedures
Commercial
Status
History
• Process
Specs
• Process
Models
• Process Calcs
• Flow Diags
• Equip Calcs
• Equip Specs
• Func Designs
• Process
Design
• P&ID
• Equip Layout,
Design,
BOMs
• System
Detail Design
• MRO BOMs
• Project Mgmt
• Install/Test
• Descriptions
of Operation
• Operating
• Insp & Maint
• Certification
Reqs
• Lockout &
Safety Reqs
• Financial Analysis
• CAPEX
• Depreciation
• OPEX
• Purchasing
Records
• Warranty &
Repair Records
• O&M Service
Agreements
• Project & Site
• Procurement
• Operational
Status
• MRO
Inventory
• Training
• Source &
Build History
• Operating
History
• Maint History
• Inspection
Records
• Incident
Reports
• People
Certifications
Reference Data
Activity Records
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A Structured Set of ALM Models
Framework Enables Cross-Industry Benchmarking
Manufacturing
Energy
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A Typical Level 2 Model for APM
APM for Utility – Electrical T&D
Project
Management
Equipment
& Systems
Suppliers
Demand
Mgmt
Fabricators
O&M Service
Providers
AIM
MRO Material
Suppliers
Outage
Mgmt
Construction
Services
Cust
Mgmt
ROA
Shareholders
Regulators
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Key Takeaways
 ARC has a long history of research around ALM
 We have developed various models to help clients
understand issues, develop strategies and select solutions
 Our new ALM Model extends that research into more areas
and more industries.
 The structured nature of our new model:
• will enable ARC to provide you with more, valuable ALM
research
• enable you to develop ALM strategies with more appropriate
support for people, processes, technology and information
needs analysis, and
• enable you to benchmark your ALM performance with peers
and other industries and identify the Best Practices for your
program
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Thank You.
For more information, contact the author at
srsnitkin@arcweb.com or visit our web pages at
www.arcweb.com
ARC and Asset Lifecycle Management
 Our Market Studies and End User reports cover all of the
Key technologies, IT solutions and Best Practices in ALM
• PET, PSC, Laser Scanning
• PAM, Field Devices, Mobile Devices, SCADA, etc.
• EAM, FSM, MRO Materials Mgmt
• EIM, AIM, GIS
 We have developed an ALM community, a website
dedicated to ALM and publish a monthly ALM newsletter
that is distributed to over 2500 ALM experts
 We have also provided consulting services on ALM issues
to many leading manufacturers
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