Module 01: Strategy Management


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AM Steering Committee No formal management committee exists to lead asset management activities in the company. An engineering or technical management team meets at least once a month to discuss maintenance or asset management related issues:
• Asset management is a specific agenda item.
• There is limited participation from departments outside Engineering.
• The focus is on short to medium term AM activities.
Formal AM Committees coordinate all AM activities:
• A Steering Committee of senior managers meets at least quarterly.
• The Steering Committee is responsible for the AM Policy, Strategy and KPIs
• An operational Technical Committee meets monthly to manage progress.
• Meetings focus on Maintenance and Engineering issues.
The AM Committees include all AM functions and aspects:
• Material management.
• Decisions about asset replacement and capital projects.
• Compliance with financial, safety and environmental regulations.
• Alignment and coordination of AM activities between departments.
• Regular monthly and quarterly meetings take place as planned
AM Committee meetings are proactive:
• Meetings are integrated with normal management meeting structures.
• All major AM decisions are based on return on capital investment.
• Risk management is proactive and asset-related.
• The focus is also on the environmental impact of assets.
AM Policy No formal long term vision or policy exists for asset management. The long term goals for some AM elements have been defined:
• Asset management or maintenance has been defined as a priority area by top management.
• Asset management is mentioned in the organisations policy statements.
• The goals of the maintenance function are clearly defined.
• Most AM goals are informal and not necessarily endorsed.
A formal AM Policy has been developed and documented:
• It is signed by senior management to show their commitment to AM.
• It defines the AM scope and specific improvement goals.
• It includes all legal requirements.
• It defines the vision for key elements of an asset management system.
• It supports the organisations overall business strategy.
The AM Policy covers all elements of Asset Management:
• There is a clear line of sight with the organisations business strategy.
• It clearly defines the desired vision for each AM element.
• It quantifies the benefits of achieving the vision.
• It is actively used to guide all asset management activities.
The AM Policy is reviewed regularly to ensure relevance and alignment with the organisations business strategy:
• It covers changes in the organisational structure and responsibilities.
• It addresses the organisations policy for environmental issues.
• It is based on a risk assessment.
• It is fully aligned with PAS 55.
AM Strategy No long term strategic plans for asset management exist, only short term activities. Some ad hoc AM strategies and long term plans have been documented:
• Long term plans for maintenance are specified.
• Engineering Management was involved in a planning workshop.
• These long term plans guide some of the short term AM activities.
A formal AM Strategy has been developed and documented:
• It is based on an assessment of the current AM maturity.
• It defines the priorities and focus areas for AM improvements.
• It defines the activities, time frames and responsibilities to achieve the key elements of the AM Policy.
• Considers the life cycle and condition of the critical assets.
The AM Strategy has been reviewed to include all AM related activities:
• It is fully aligned with the AM Policy.
• It covers all AM system elements, e.g. capital projects, facilities, material.
• It is fully aligned with the organisations strategic plans and risk assessment.
• It considers progress made with AM improvements.
• It considers the life cycle and condition of all the physical assets.
The AM Strategy specifies the initiatives required to become leaders in asset management:
• It is based on external benchmarks of best proven practice.
• It considers the use of technology and advanced AM practices.
• It is pro-active and risk-aware.
• It is fully compliant with the principles of PAS 55.
AM Improvement Targets The AM Strategy is not linked to what is measured.  The success of asset management is judged subjectively on emotional factors such as the amount of breakdown downtime and the time required to respond to emergencies. Some AM KPIs are monitored by senior management:
• These KPIs are included in the monthly management reports.
• Maintenance costs are compared against budgets.
• Asset availability or downtime per department/area is measured.
• Safety is monitored.
A comprehensive AM scorecard of high level AM KPIs has been established:
• These KPIs measure achievement of the AM Strategy.
• They focus mainly on maintenance.
• All KPIs have specific improvement targets and timescales.
• The AM Steering Committee developed the AM scorecard for their own use.
The KPIs have been expanded to include all aspects of the AM Strategy:
• These KPIs measure all elements of the AM Policy and Strategy.
• The improvement targets reflect the AM priorities and business goals.
• These KPIs are balanced to address costs, risks and asset performance.
• The AM KPIs have been deployed to everyone involved in AM.
The AM Scorecard has been updated in line with industry benchmarks:
• The scorecard is reviewed regularly to reflect the latest AM Strategy.
• The KPI targets are in line with industry benchmarks.
• Frontline staff participated in the development of the AM Scorecard.
AM Master Plan No structured plans exist to implement an asset management system or improve the performance of assets. Some ad hoc plans exist to implement AM improvement activities:
• Plans are fragmented or independent.
• Plans focus largely on maintenance activities.
• Plans have deadlines and responsible persons.
A formal AM Master Plan has been derived from the AM Strategy:
• It addresses the key elements of the AM Strategy.
• It has a one year horizon.
• Each activity has specific milestones, responsibilities and detailed action steps.
• The Master Plan is used to manage the AM improvement programme.
The updated and expanded AM Master Plan includes all AM improvement activities:
• It addresses all elements of the AM Strategy.
• It includes a budget and resource requirements for these activities.
• It is in sufficient detail and correct format for effective project management  
The AM Master Plan is used to optimise and coordinate all AM activities:
• It shows cross-departmental activities and defines their interdependencies.
• It shows the resource loading and is used to balance resources.
• It prioritises activities based on their impact on risk and performance.
Strategy Communi-cation The AM vision and action plans are not communicated to or understood by the employees and other stakeholders. The AM focus areas and improvement plans are discussed informally with people directly involved in AM:
• These discussions are informal, ad hoc and mostly top-down.
• Understanding of the AM focus areas and plans is limited.
• People outside Engineering and Maintenance are not aware of the plans.
The AM Policy, objectives and plans are discussed with employees:
• Engineering and Maintenance staff understand the AM focus areas and improvement plans.
• They know how the plans affect them and their role in them.
• They understand the selected KPIs and improvement targets.
• They have opportunity to ask questions and make comments about the plans.
The AM Policy, Scorecard  and progress with implementation are communicated to all AM stakeholders:
• All AM stakeholders are included, e.g. service providers and other functions.
• Various mediums are used for  communication, e.g. work sessions, notice boards and newsletters.
• All AM departments understand the plans and engage in regular 2-way communication about it.
The AM Communication Sessions have  expanded to  AM Discussion Forums:
• Progress and improvements are discussed during team meetings, with subsequent feedback to management.
• Interesting AM topics are discussed regularly to increase AM knowledge.
• Successes and achievements are shared during regular internal AM conferences.
Progress Management AM objectives and action plans are not followed up or reviewed. Monthly Engineering Management meetings are used to monitor progress:
• Progress against the plans is discussed.
• Corrective actions are recorded in the minutes.
The AM Steering/Technical Committees monitor progress of the AM Master Plan:
• The Master Plan progress review is a formal agenda item.
• The responsible persons formally present progress against the plan.
• Obstacles are discussed and resolved using specific action plans.
The progress review at the AM Committees is streamlined:
• Presentations include progress reviews, contingency plans and success stories.
• The effect of actions on the AM KPIs is discussed.
• Progress reviews are professional and interactive.
• The Master Plan and AM KPI targets are updated if required.
The progress reviews focus more on analysis and future plans, than reporting past activities:
• Reports include  risks and countermeasures.
• Reports include an analysis of progress, identifying the key success factors.
• Focus is on KPI trends and predictions.
AM Maturity Assessment No formal external AM maturity assessment has been done during the past 3 years. A formal AM Maturity Assessment has been done by AM experts during the past 3 years:
• The assessment used a template of best practices for key AM elements.
• The report with results and recommendations is available.
• Some recommendations to improve the AM system have been implemented.
A formal AM Maturity Assessment was done during the past year:
• The assessment was done by external or corporate AM consultants/experts.
• All the elements of an AM system were assessed.
• Gaps and recommended improvement actions were identified.
• The assessment forms the basis for the AM Strategy and Master Plan.
AM Maturity Assessments are conducted annually:
• The AM SteerCom commissions these assessments.
• Most AM staff participates in these assessments.
• Feedback is used to update the AM Strategy and Master Plans.
• They form part of the Engineering Managements personal objectives.
• Everyone involved in AM receives feedback about the assessment.
The external AM Assessments are supplemented by internal progress reviews and associated assessments:
• An internal team conducts regular AM assessments (at least twice a year).
• The AM maturity assessment results form part of all AM managers personal objectives and performance contracts.
• Other assessments (e.g. ISO, EHS, Insurance Risks) are integrated and aligned with the AM Assessment.