3 Ways to Maximize Return on Assets with Risk-Based Maintenance

Here are three steps companies can take to implement a risk-based maintenance strategy to maximize their economic return on assets.

Posted: June 6, 2018

Asset Performance

3 Ways to Maximize Return on Assets with Risk-Based Maintenance

Organizations in asset-intensive industries are constantly challenged to deliver maximum return on assets (ROA) while working with minimal budgets, data integrity challenges and lack of insight into the factors driving asset performance. Who are some of the best collaborators to implement the most cost-effective asset management strategy? How can organizations handle current and future challenges?  What do technology trends like Industry 4.0, IIoT, digital twin, predictive maintenance, cloud and mobility mean for the industry and how can companies derive value from them? These are the big questions companies need to think through to optimize their asset management and deliver maximum economic return. Companies can maximize their economic return on assets by leveraging a risk-based maintenance strategy. Here are three steps organizations can take to implement the transformational changes needed. By following these guidelines, companies can increase asset performance, reduce unscheduled downtime, lower costs and improve safety.

1. Bring in the experts

Implementing risk-based maintenance or any other advanced asset management strategy is a complex undertaking. An Asset Performance Management (APM) strategy needs to be considered in regards to its impact on the assets, the plant and the business as a whole. Experts can provide operational focus by delivering an in-depth analysis which takes into account the business context to benchmark current performance and identify areas for improvement. APM assessments are a relatively fast and easy way to evaluate your current landscape and develop your APM strategy. They also provide insight into expected financial benefits, enabling organizations to build the business case for future investments. Effective APM assessment services will be able to evaluate an asset management strategy across HSE (health, safety and environment), cost control, resource allocation and asset utilization. They will also translate their insights into a pragmatic action plan.

Bring in the experts

2. Leverage your existing investments

Defining the best way to get the most out of your assets is a key factor in achieving business objectives. Risk-based maintenance solutions allow companies to optimize asset management by focusing on the most critical assets. Advanced criticality analysis ensures the most important assets receive priority and more rigorous analysis for optimal maintenance. When asset failures occur, root cause analysis enables users to quickly diagnose the cause. As a result, operators can take immediate action to eliminate reoccurring incidents. Inventory Management quantifies the effect of spare parts to optimize stocking quantities and locations. Be sure to look for a solution that takes a templated approach for quick deployment and fast time to value. Readily available and extensive reliability data can speed up deployment time by up to 90%.

Leverage your existing investments

3. Strategize long-term

In today’s market, it’s not enough to address the problems you have now, or the problems you know you will have in the future. You need to be able to anticipate problems you don’t know you will have. A future-focused, risk-based APM strategy allows users to perform detailed analysis and simulations. This enables operators to visualize the effects of deploying different asset management strategies. In-depth risk analysis provides detailed insight into the real factors driving asset reliability and performance, facilitating long-term planning. Extensive simulation capabilities allow users to see the impact of differing asset management approaches enabling the right strategy by asset.

Maximize Return on Assets

AVEVA has the broadest and most complete hardware-agnostic Enterprise APM platform in the marketplace today, allowing our customers to improve asset performance, increase asset reliability and reduce costs.  Through partnership with MaxGrip, a global software and consulting company and the front runner in APM, our collaboration brings a risk-based approach to asset performance. This will enable our customers to further maximize economic return on assets across the entire asset lifecycle. Our new APM Assessment service offers a comprehensive framework to strategize and define your APM journey. Through this approach we can identify return on investment from both a short and long term perspective.

Maximize Return on Assets

For more information on our partnership with MaxGrip and the benefits we’re bringing to our customers, read our press release and join our webinar “Optimize your Asset Performance Strategy for Maximum Return.”

Are you considering implementing risk-based maintenance? Let us know your experiences in the comment section!

author
Written By
Kim Custeau

Kim Custeau has 30+ years of experience in industrial asset management software and services. She is currently responsible for the strategic direction, commercialization and development of AVEVA's Asset Performance software portfolio globally, delivering solutions that help customers improve asset reliability and performance to maximize return on capital investments and increase profitability.

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