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Why is Asset Management one of the key business improvement initiatives in South Africa today? Adriaan Scheeres CEO Pragma

Why is Asset Management one of the key business ... · Asset management Asset management system Asset portfolio Coordinated activity of an organisation to realise value from assets

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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:

Current Infrastructure in Africa

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

Infrastructure Plans for South Africa

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

In place in use

Whole Life Management

30 – 40 years

Needs identification

Feasibility and

approval

Specification and

design Acquisition

Installation and

commissioning

Operation and

maintenance Decommissioning

The BIG asset management

picture

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