Shared failure data for strategic asset management

This chapter focuses on identifying and analysing the elements of Strategic Management for infrastructure and engineering assets and asks: what are the considerations and implications for adopting and implementing an integrated strategic asset management framework? We contend that corporate governance, policy, objectives and strategy as well as interagency collaboration should be considered as elements in a ‘staged approach’ to understanding how assets are managed within organisations. This will allow for a more comprehensive framework for engineering asset management that considers social and contextual elements. Asset governance details the policies and processes needed to acquire, utilise, maintain and account for an organisation’s assets. It stems from corporate governance principles and defines the management context in which engineering asset management is implemented. This will be examined to determine the appropriate relationship between organisational strategic management and strategic asset management to further the theoretical engagement with the maturity of strategy, policy and governance for infrastructure and engineered assets. The chapter draws on a document analysis of corporate reports and policy recommendations in terms of infrastructure and engineered assets. The chapter concludes that incorporating an integrated asset management framework can promote a more robust conceptualisation of public assets and how they combine to provide a comprehensive system of service outcomes.

Major shifts in the competitive environment encouraged a recent growth in the number of academic articles devoted to strategic aspects of asset management. Organizations start to recognize that a strategic approach to asset management becomes a source of sustainable competitive advantages and long-term survival in the turbulent environment. However, existing studies are largely case-specific in interpreting strategy and draw on various theoretical grounds and approaches. This leads to little theoretical and methodological consistency in understanding current findings and how to design future studies. The key goal of this paper is to systematically review the existing research through the analysis of over 700 articles devoted to asset management with a focus on strategic aspects. Our key contributions are positioning strategic asset management within the vast field of asset management research, describing the nature of strategic asset management research, and confirming that asset management strategies align with different levels of organizational strategy. We visualize the existing research field, and indicate gaps and underdeveloped areas of research. We also shortly outline future research directions based on our findings, thus encouraging a more coherent development of research on strategic asset management.

Asset ownership is a significant cost to Fremantle Ports and developing a best practice strategic asset management (SAM) framework that provides a simple, logical and innovative approach for optimising the whole of life cycle cost of asset delivery in meeting the agreed levels of service and risk exposure has been a corporate priority over the past years. With the development and implementation of the SAM framework well underway, Fremantle Ports now focuses on the integration of asset management practices across the business, from operational through to tactical and strategic planning. A pilot project has been proposed to assess and improve asset management practices across one of Fremantle Ports' most critical asset classes, the wharves and jetties. This paper reviews the findings and challenges of this project and the various tools that were developed, including a life cycle cost model. This model is based on asset condition and related deterioration curves that allow for the estimation of remaining life. In addition, the model enables the selection of most cost effective rehabilitation strategies while considering risk profile and available funding, assisting Fremantle Ports in optimising the decision making process by providing an actual and an optimised life cycle cost plan.

Australian local governments are responsible for providing basic infrastructure services to their communities. These services include roads, drainage, recreation facilities and public buildings and in some states water supply and sewerage. Social services are mainly the responsibility of the state governments together with education, police, fire and public housing. The services may be different to those in the UK but the problems are the same: the community is demanding more and better quality services at a lower cost. In 1993, Australian Accounting Standard 27 (AAS27) was applied to local governments. The standard, issued by the Australian Accounting Research Foundation, specifies the nature and form of local governments' general purpose financial reports. The major impact for engineers was that local governments were required to report on the current value and rate of consumption of their infrastructure assets. The value of investment by Australian local governments in infrastructure is approximately $135 billion. These infrastructure assets provide services essential for the community; the assets are being consumed at a rate of $2·6 billion per year ($300 000 per hour). AAS27 gave engineers the tools to report annually on asset condition and consumption to councillors, management and the community. Local government is a highly capital-intensive industry requiring management effort to ensure that the community receives maximum value for its investment in infrastructure and that services can be provided at the lowest life-cycle cost. This paper describes a systems approach to strategic asset management. Examples are given using data from Devonport City Council, Tasmania, and Cairns City Council. The systems include reporting the value and condition of infrastructure assets in annual reports, strategic asset management, capital project analysis and life-cycle costing.

Analyzing failure data with unknown scale: Applying the Pearson-Fisher theorem

Purpose – The purpose of this paper is to develop a systematic strategic approach to handle corrective maintenance onto the failures/breakdowns of construction equipment. For the maintenance crew/team, a breakdown code management is proposed, which will provide focused and unambiguous approach to manage any kind of breakdowns in construction equipments. Design/methodology/approach – The past breakdown records of a construction organization in the UAE are considered for analysis. From the failure data, through cause effect analysis (CEA) tools, the components and the breakdown codes namely breakdown main codes (BMC) and breakdown sub-codes (BSC) are formulated. With Pareto analysis, the critical codes are identified and validated through failure modes and effects analyses (FMEA) tools for the critical effect on the affected components. From this identified BSC's further closer failure identification codes namely breakdown symptom codes (BSyC) and breakdown reason codes (BRC) are identified through fault tree analysis (FTA) tools. The approach to modified breakdown maintenance management (MB2M) with breakdown maintenance protocol (BMP) is envisaged. Findings – The study was conducted on four different types of heavy lifting/earth moving/material handling system of equipment and further focused with two earth moving equipment namely dumpers and wheel loaders. Failure analysis is performed and the failure ratio and the component contribution to the failures are identified. Based on the information, the preliminary codes namely BMC and BSC are identified through CEA tools and the BMC and BSC are identified to find the most contributing codes to the maximum number of failures through Pareto analysis. Further the critical sub-codes are further verified through FMEA tools on the severity levels of the sub components due to these codes. The FTA methods are used to identify the closer reasoning and relations of these codes and the further codes namely BSyC and BRC are identified which are the exact cause of the failures. The management of breakdowns is further proposed through MB2M which includes BMP which provides all resources for the breakdowns. Research limitations/implications – The failure data collected are only pertaining to the Middle East region and applicable to similar regions for similar plant mix in construction companies. The sample equipment is only part representative of the construction equipment. A more robust model can be suggested in the future covering all aspects and for other regions as well. Practical implications – The proposed methodology and model approach is highly adaptable to similar industries operating in the Middle East countries. Originality/value – Many authors have studied the preventive maintenance models and procedures and proposals have been proposed. On the breakdown maintenance management of construction equipment, very few studies have been proposed mostly on the cost analysis. This model attempts to provide a code management solution to manage the unpredictable failures in construction equipment through failure data analysis on a construction organization.

Large industries such as mining, jute and sugarcane and steel plants need to use rail networks for transportation of material over wide geographically distant areas. Maintenance strategy of rail network is developed by understanding reliability of rails used in the rail track system. Reliability analysis of rails can be carried out by understanding the failure mechanism of rail through modelling and analysis of failure data. These failure data are time or usage dependent for certain conditions. In a probabilistic sense, rail failure is a function of its usage in terms of Million Gross Tonnes (MGT) for certain conditions. This paper is to analyse real life rail industry data, deal with the limitations of available data and develop predictive models for maintenance and replacement decisions. Parameters of the model are estimated using real world data with an application of non-homogeneous Poisson process.

The research described in this paper assembles a set of tools on the basis of experiences and best practices in a diverse set of states for linking strategic goals to resource allocation and implementation decisions using aspects of asset management. A survey of practices in each of the state DOTs explored documents and synthesized both strategic planning processes and asset management. With input from an expert advisory panel, five states were the subjects of detailed analysis: Florida, Maryland, Michigan, Montana, and Pennsylvania. Each of the states was visited by a project team that spent 2 days on-site. Information on the strategic planning and asset management process was obtained through personal interviews with DOT officials and the acquisition of materials describing these processes. Based on detailed documentation of the practices in each of these states, a synthesis of best practices of the linkage between asset management and strategic planning was developed. The resulting model process does not represent any particular state, but incorporates elements from all five states. This synthesis can provide useful guidance to states interested in augmenting their existing processes.

The appropriate maintenance strategy for a specific system requires a detailed analysis of the system’s reliability. Reliability analysis relies greatly on the historical failure and repair data. Lack of data, poor quality data, data censoring, and combining data from different systems working in different operating conditions are some of the challenges for maintenance analysts. Hence, based on the nature of historical failure and repair data (independence of data, constant failure rates, identically distributed variables, etc.), an appropriate statistical model should be selected to predict the reliability of the system. Thereafter, based on the defined reliability characteristics of the system, an appropriate maintenance strategy needs to be established. In this study, a systematic methodology is developed, based on the available guidelines for maintenance strategy selection, founded on the reliability analysis of historical failure data. The application of the methodology is shown by a case study from the crushing and mixing bed hall unit at a cement factory.

Gebiedsgericht Voorraadbeleid van Woningcorporaties; Een analyse van planningsbenaderingen in Vogelaarwijken

In reality, failure data are often collected under diffract operational conditions (covariates), leading to heterogeneity among the data. Heterogeneity can be classified as observed and unobserved heterogeneity. Un-observed heterogeneity is the effect of unknown, unrecorded, or missing covariates. In most reliability studies, the effect of unobserved covariates is neglected. This may lead to inaccurate reliability modeling, and consequently, wrong operation and maintenance decisions. There is a lack of a systematic approach to model the unobserved covariate in reliability analysis. This paper aims to present a framework for reliability analysis in the presence of unobserved and observed covariates. Here, the unobserved covariates will be analyzed using frailty models. A case study will illustrate the application of the framework.

Track 3 of WERF's Strategic Asset Management Project was developed to “provide guidance on implementing SAM… and develop analytic tools for SAM implementation” - the Decision Support Tools and Implementation Guidance goal. In Track 3, the Decision Support Tools and Implementation Guidance goal was organized around two major elements: Task Order 2 provided for the following deliverables: The materials presented in the following sections were developed as a result of executing Task Order 2 to achieve the Project goal. Each chapter details a separate deliverable. Relevant developed materials have been or are in the process of being added to SIMPLE, WERF's web-based asset management knowledge base. Asset management can be defined as a way of management thinking and a set of best practices built around a structured framework that assist asset managers in making the most cost effective investment decisions in existing and new assets to sustain long term performance of the assets in an environment of limited resources where these decisions represent an integration of operations, maintenance, and capital intervention strategies. At the heart of the framework is the concept of business risk - a metric that measures the interaction of the probability of failure, the consequence of failure, and risk mitigation strategies. This research: This title belongs to WERF Research Report Series . ISBN: 9781843393320 (Print) ISBN: 9781780403410 (eBook)

Decisions on strategic asset management often consider long lifetimes. The long-term perspective, varying types of assets, and other industry trends, such as sustainability requirements, have implications for strategic asset management frameworks. The stakeholders related to the assets are demanding actions that increase sustainability, and forward-looking organisations are adopting sustainability principles in their business. This study gives guidelines for the development of more holistic strategic asset management frameworks. Using a systematic literature review, 37 frameworks are identified and analysed based on their application area, decision level, uncertainty management practices, and asset management indicators. As a result, a conceptual sustainable strategic asset management framework is created.

Local government asset management has come of age in both Australia and New Zealand, and professional associations such as New Zealand Asset Management Support (Nams) and Institute of Public Works Engineering Australia (Australasia) develop and deliver a variety of training programs and manuals to ensure asset management practitioners have access to what they need to know. Why then do some organisations fail to gain traction in their asset management (AM) efforts and officers complain they get no support from above? This paper posits that the missing AM ingredient in many organisations is leadership. It builds on previous work by the author on the key success factors in developing a strategic asset management framework and includes the results of a feedback survey undertaken during an Asset Management Study Tour of New Zealand in 2010. Rather than approach asset management as a technical issue, this paper will examine it from a number of ‘leadership’ perspectives, including change management, cultural change, process management and quality management. AM requires strong leadership to improve and maintain its position in local government integrated planning, and this paper will establish a case for improved leadership in AM.

Effective asset inventory is crucial for asset management, allowing organizations to optimize asset use, prevent loss, and ensure readiness. PT. Chandra Asri faces challenges in IT asset management, including incomplete and inconsistent data, hindering operational efficiency. This qualitative study examines the current state of IT asset management at PT. Chandra Asri and highlights the potential benefits and challenges of implementing advanced technologies like RFID, barcodes, and cloud-based systems. Case studies from various sectors demonstrate significant improvements in operational efficiency, cost reduction, and customer satisfaction with these technologies. This research offers valuable insights for practitioners, policymakers, and academics in developing better asset inventory strategies.