How to Implement Asset Performance Management

Implementing Asset Performance Management (APM) is a strategic effort that optimizes the lifecycle of assets to increase reliability, reduce cost, and maximize value. The process typically involves integrating data, systems, and people to improve decision-making and asset performance. To implement APM, Operational Sustainability^® recommends the following step-by-step approach:

1. Define Business Objectives, Priorities, and Business Case

• Identify Goals: Understand the overall business objectives (e.g., minimizing downtime, improving asset reliability, optimizing maintenance costs) and develop a business case to support your objectives.
• Align APM with Strategic Goals: Ensure that APM initiatives align with the company’s strategic vision, which may include improving operational efficiency, reducing unplanned outages, or extending asset lifespan.

2. Assess Current Asset Management Maturity

• Evaluate Existing Processes: Review your current asset management practices, including maintenance strategies (e.g., reactive, preventive, predictive).
• Identify Gaps: In your APM IT portfolio, identify areas for improvement, such as a lack of data, poor maintenance practices, a lack of interoperable software, or outdated asset management technologies.
• Build a comprehensive set of interoperable APM business processes that can be digitized.

3. Identify Key Assets and Hierarchy

• Prioritize Critical Assets: Identify the assets that have the most significant impact on your operations, safety, and costs (e.g., high-value assets, mission-critical equipment) through a criticality assessment.
• Get Good Failure Data: Leverage asset classification and failure coding structures along with utilizing a structured framework like ISO 14224.
• Asset Inventory: Create a comprehensive inventory of assets, including their specifications, maintenance history, failure modes, and performance data, and build an asset registry.

4. Choose the Right Technology / Software

• Assess your existing IT system portfolio: determine how interoperable your software is.
• Select APM Software: Based on your business needs, choose software that supports condition monitoring, predictive maintenance, data analytics, and other capabilities while leveraging Asset Strategy and Asset Health at the core.
• Integration with Existing Systems: Ensure that the APM system integrates well with other enterprise systems (e.g., Enterprise Resource Planning [ERP], Computerized Maintenance Management Systems [CMMS], Internet of Things [IoT] platforms, etc.).

5. Data Collection and Analysis

• Gather Data from Assets: Collect real-time data from sensors, equipment logs, or inspection reports to monitor asset performance. Implement predictive maintenance solutions where possible.
• Data Quality: Ensure the data is accurate, reliable, and comprehensive to make informed decisions.
• Analyze Data: Utilize analytics to monitor asset health, predict failures and identify trends or patterns, and to guide maintenance schedules and strategies.

6. Develop Maintenance Strategies

• Choose Maintenance Approach: Define whether you will use a reactive, preventive, or predictive maintenance approach for each asset.
• Implement Predictive Maintenance: For critical assets, consider implementing condition-based or predictive maintenance strategies to forecast failures before they happen. As failures occur, use Pareto Analysis to target bad actors and use Asset Health failures to appraise the Asset Strategy.
• Develop KPIs: Set key performance indicators (KPIs) to track the effectiveness of your APM program, such as Mean Time Between Failures (MTBF), Mean Time to Repair (MTTR), or overall equipment effectiveness (OEE).

7. Implement and Train People

• Change Management: Ensure that the entire organization is on board with the APM initiative. Communicate the importance of APM and involve stakeholders across departments (e.g., operations, maintenance, IT). Use software to enhance governance by digitizing the underlying work processes.
• Training: Provide employees with the necessary training to use APM software and follow new processes effectively.

8. Monitor, Review, and Improve

• Monitor Performance: Continuously monitor your assets' performance, track KPIs, and use data to adjust your maintenance strategies.
• Continuous Improvement: Conduct regular reviews of the APM strategy and update processes, technology, or KPIs as needed to further optimize asset performance.

9. Scale and Expand

• Scale to Other Assets: Once initial success is achieved, expand the APM implementation to additional assets or sites.
• Refine and Evolve: Continuously refine your approach based on lessons learned and technological advances, such as new predictive analytics tools or AI.

By following these steps, you’ll be able to build a solid foundation for an effective Asset Performance Management program that optimizes asset performance and creates long-term value for your organization.

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