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Why is Asset Management one of the key business improvement initiatives in South Africa today?
Adriaan Scheeres CEO Pragma
… “getting the basics right” could double the earnings of the group; four-fifths of its 63 mines are not run well enough, he estimates. He says most people in the group recognise the need for a shake-up. “The bad news is that they don’t want all the changes … in some cases it may be uncomfortable.”
Mark Cutifani CEO Anglo American
Business Day, Feb-2014
“South African engineers have to rethink their identity and be more conscious of their actions to help put the country on a sustainable path”
- Trevor Manual
Minister in the Presidency responsible for the National Planning Commission
South Africa was, to some extent, currently “resting on its laurels” as its great infrastructure endowment, which included its airports, heavy-haul railway lines and the “Dolos” harbour wall design, was established more than 50 years ago
Engineering News, Apr-2014
South African Scorecard 2011
D-
Water
E-
Sanitation
D
Solid Waste Management
E
Roads
B+
Airports
C
Ports
C-
Rail
D
Electricity
D
Healthcare
D+
Public Schools
SAICE, 2011
•Unfit for Purpose E
•At Risk D
•Satisfactory for Now C
•Fit for Future B
•World-Class A
Legend:
The South African Way Forward
Need to spend 10% of GDP to achieve 2030 target
Current spend 8%
R 867 Billion to be spent over coming 3 years
R 11 Trillion to be spent by 2030
African Growth
Africa Review, Apr-13
Current Infrastructure Projects
The Economist, Dec-2010
Urbanisation 2010 vs 2025
.....is the beginning of a journey towards sustainable AM
.....describes the asset management activities that delivers sustainable AM
.....is the beginning of a journey and the baseline for ISO 55000
Asset management framework
Why Asset Management?
Inputs • Capital • Materials • Equipment • Facilities • Labour • Suppliers • Knowledge • Time
• Customers • Regulation
• Suppliers • Economy
• Competitors • Technology
Asset Management
Business Performance
Asset Management Elements
Managing the organisation
Asset management
Asset management
system
Asset portfolio
Coordinated activity of an organisation to realise value from assets
Set of interrelated or interacting elements to establish AM policy, AM objective and processes to achieve those objectives
Assets that are within the scope of the asset management system
Sou
rce:
ISO
55
00
0:2
01
4
Leadership, culture, organisational priorities
Benefits of Asset Management – ISO 55001
Managed risks Sustainability and
assurance Strategic focus
Continual improvement
Top management engagement with AM
Better decision-making
Cross-functional cooperation
Strategic alignment
Stakeholder engagement
Enhanced reputation through compliance
Whole Life Management
30 – 40 years
Needs identification
Feasibility and
approval
Specification and
design Acquisition
Installation and
commissioning
Operation and
maintenance Decommissioning
Assets that perform at their optimum
We will ensure that your assets deliver quality products and services efficiently
Value of asset management
Reliable assets
We will ensure the reliability and availability of your assets and prevent unplanned stops
Optimal maintenance/operational cost
We will eliminate wasteful costs and ensure optimal utilisation of resources
Delayed capital expenditure
We will ensure that your assets are maintained well to delay their replacement
Compliance and peace of mind
We will ensure that asset risks are managed in compliance with regulations
Value of asset management
Available information for effective decision-making
We will provide timeous and accurate information for effective decisions
Asset management expertise and experience
You will have access to an experienced engineer using Pragma’s methodology
Continuity and sustainability
We will ensure that your processes are not interrupted by staff turnover