Companies Must Focus On Global Asset Sustainability Now
It's no longer good enough to look at each individual asset and determine its
efficiency without being able to determine its associated energy performance. There is now an innovative approach to asset management, determined as "global asset sustainability." This all-encompassing approach is able to provide a much clearer definition of efficiency and thus improve financial metrics throughout the company.
Driving a new approach toward global asset sustainability is the ever-growing price of energy and its associated security issues. Energy prices are on a relentless rise and availability is far from assured. Companies realize that this position is significantly affecting their profit margins and unless action is taken, will threaten their very business viability. Along with energy worries is a dual concern -- the environmental impact of consuming energy and producing greenhouse gas emissions.
All elements of the operation must be leveraged if inefficiencies are going to be revealed. We used to look at asset management from a perspective of conventional efficiency by itself. We would simply look at whether an asset was performing and producing according to the specification of its design and manufacture. The fact that the asset may be consuming more energy than it ought to was often invisible, yet this was a real cost and causing a reallocation of budgets from elsewhere in the company.
Global asset sustainability takes a clear look at energy consumption, alongside the traditional metrics of availability, condition and performance. It's not surprising, as the Department of Energy can tell us that the typical commercial or industrial company in the country now allocates over 80% of a non-labor operating and maintenance budget toward energy, alongside maintenance.
A new look at managing assets incorporates a four pronged approach. Global asset sustainability was not all-encompassing in this regard, before. As an example, we would determine asset availability as being acceptable if the equipment returned maximum uptime and generated revenues acceptably. We would also look at performance by considering the equipment specification and determining whether we were getting a good return on investment.
Ultimate performance often makes the difference between operating on razor thin margins and making a profit and as such, asset performance is a base metric, with quality control determining market position.
Traditionally, organizations did not counter in the most important factor in global asset sustainability -- energy consumption. When a baseline position is established for each asset, running under prime conditions, each asset can subsequently be evaluated on an ongoing and almost instantaneous basis to reveal ultimate efficiency. Even a slight variation in efficiency can account for a huge operating loss across the distributed enterprise.
Equipment effectiveness readings have to be modified to incorporate energy into the mix. This new look at global asset sustainability understands that it is "all about" energy and companies must be able to monitor and micromanage this resource.
by: Daniel Stouffer.
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