Asset Life Cycle Management

What is it all about?

Asset life cycle management describes the best practices regarding life cycle decisions about assets. It explains how to develop life cycle
plans for critical assets in terms of their expected economic life, mid -life overhaul plan, maintenance approach, suitability of the
technology and life cycle costs. This process aims to realise and optimise the value of assets and assists asset managers in making
repair/replace decisions.

 

Another focus area is the organisation’s whole asset portfolio. It considers the life cycle plans and replacement cycles of individual assets, as well as the demand forecast for products and services to optimise the composition and location of the asset portfolio. This process is supplemented by capital investment decisions based on the ROI of the proposed assets.

 

Once the capital projects for new assets have been approved, the asset acquisition process kicks off. The training covers the asset creation and acquisition process, in conjunction with the analytical systems engineering process. Old assets need to be disposed of in a structured way at the same time. The last step is to commission and hand over the new asset to Operations and Maintenance.

 

This training course is aligned with the GFMAM’s 39 Subjects with a specific focus on the following subjects: demand analysis, capital investment decision – making, life cycle value realisation, asset creation and acquisition, systems engineering, asset decommissioning and disposal.

 

Who should attend?

  • Senior managers and executives in asset intensive organisations
  • Project managers/engineers
  • Asset managers
  • Production and operations managers
  • Financial managers
  • Maintenance and production engineers
  • Risk managers

What makes it different?

This training course is based on proven methodologies and industry best practices and aims to provide learners with:

  • a unique model to depict the life cycle management of assets
  • a practical understanding of how life cycle costs are calculated
  • examples and templates for asset life cycle plans
  • a structured way of developing capital budgets
  • a methodology for making optimal capital investment decisions
  • real life case studies of successful and unsuccessful capital projects
  • the concepts and terminology from the latest asset management standards – ISO 55000 and the Asset Management Landscape

Course outline and expected outcomes

Introduction to Asset Life Cycle Management

Introduces the model and definitions of asset life cycle management.

  • The need for formal asset management
  • Definitions of an asset, an asset system and an asset portfolio
  • The model of asset life cycle management

Capital Investment Decision-Making

Provides learners with the tools and techniques to make optimal investment decisions regarding new assets.

  • The challenger and defender concept
  • Equivalent annual cost comparisons
  • Return on investment calculations
  • Compiling a capital budget

Life Cycle Costing

Provides learners with the financial tools and formulae to calculate the value and return on investment of assets.

  • Life cycle costing principles
  • The elements of LCC
  • Formulae for present value, future value and net present value
  • Examples and practical exercises

Systems Engineering

Introduces learners to the principles and techniques of systems engineering to translate user requirements into detailed item specifications.

  • Systems and systems thinking
  • The systems engineering process
  • The format of user requirements
  • The format of item specifications
  • Integration and verification
  • Case studies and practical exercises

Realising the Value of Assets

Explains the aspects to be considered to optimise the value of individual assets over their full life cycle.

  • Official terms and definitions
  • The format and content of an asset life cycle plan
  • The problem of ageing assets
  • Determining an asset’s economic life
  • Repair/Replace decisions

Asset Creation and Acquisition

Provides learners with an overview of capital project management principles.

  • Official terms and definitions
  • Reducing risks during capital projects
  • Consideration of LCC during asset acquisition
  • Steps and best practices in the acquisition process
  • Asset installation and commissioning
  • Case studies and practical exercises

Demand Analysis and Portfolio Management

Focuses on the process to optimise an organisation’s full asset portfolio based on the individual asset plans and the expected demand for products and services.

  • Official terms and definitions
  • Analysing the demand forecast against available capacity
  • The process of asset portfolio management
  • Case studies and practical exercises

Asset Decommissioning and Disposal

his module deals with aspects to consider when disposing of old assets.

  • Official terms and definitions
  • Steps to dispose of redundant assets
  • Considerations and best practices
  • Examples and case studies