Methodologies within the industrial asset management landscape, including Enterprise Asset Management (EAM), Asset Performance Management (APM), and Computerized Maintenance Management Systems (CMMS), were seen as a business imperative in the last decade as manufacturers demanded more insights and longevity from their physical assets.
More recently, lines have blurred substantially to address growing expectations; however, traditionally these systems are thought of as follows:
While these transformation areas support operational excellence — and are still in vogue — manufacturers are thinking about the next steps in their digital journey as profit margins tighten, growth agendas remain ambitious, staff turnover presents challenges and consumer expectations continue to elevate. These questions are among those at the top of the list:
Asset Investment Planning (AIP) enters as the latest methodology in the landscape addressing these questions head-on. AIP methodology involves strategic capital investment decisions, typically across five years and, infrequently, less than one year. AIP leverages operational and financial asset information to guide enterprise and site capital needs.
The types of operational information considered in this methodology include health of the physical asset (based largely on maintenance and event history sourced from EAM, APM and CMMS) and an understanding of criticality to the business (consequence of failure) to characterize and quantify risk within a predetermined framework.
The types of financial information considered in this methodology include asset book value (sourced from Enterprise Resource Planning systems) to understand initial investment scale, depreciation, and capital request justifications to determine spend timing. Software solutions have emerged in recent years to converge this operational and financial information with other key data sources considered in long-term capital spend planning.
Manual data aggregation, disparate spreadsheet management and spend determination, based on how well internal selling was done, is quickly becoming a thing of the past. AIP helps quantify asset risk, making it more predictable, and providing a deeper layer of substantiation for multiyear capital budgeting and planning.
Impacts of AIP implementation can be observed across the organization:
AIP enables less time deciding on the right asset priorities, with reduced concern of unplanned budget rework. It is the next step in a manufacturer's digital journey.