International Journal of Operations & Production Management · 2005 · 209 citations · 16 references
Lifecycle ManagementEngineeringResource Management (Sustainable Manufacturing)Life Cycle CostingLife Cycle ManagementLifecycle DesignReliability EngineeringCost EngineeringManagementSystems EngineeringProcess IndustryAsset ManagementQuantitative ManagementProduct LifecycleLife-cycle EngineeringLifecycle ModelOperations ManagementIndustrial DesignEngineering AssetPhysical Asset PerformanceBusinessLife Cycle AssessmentPurpose Asset ManagementResource Management (Queueing Theory)
Asset management is often the last option for cost savings in a competitive global economy due to its intrinsic complexity, especially in developing countries, and current models are inefficient at addressing life‑cycle costs and sustainable development across commissioning, operational, and end‑of‑life phases. The study proposes an asset life‑cycle management model that integrates generic project‑management frameworks, systems engineering, and operational reliability to overcome these inefficiencies and highlights practical issues for its incorporation into process‑industry practices. Using a case study from a large South African petrochemical company, the authors demonstrate the ALCM components and propose performance measurements for the operation and support stages to guide decision making. The findings show that operational reliability and systems engineering enable optimum value from physical assets over a facility’s lifetime, and they identify the activities that should be completed at each stage of the project life cycle.
Purpose Asset management is often one of the last options to maximise cost savings in a competitive global economy due to its intrinsic complexity, especially in many developing countries. Asset management in the process industry must consider the commissioning, operational and end‐of‐life phases of physical assets when commencing a design and implementation project. However, current asset management models show inefficiencies in terms of addressing life cycle costs comprehensively, as well as other aspects of sustainable development. An asset life cycle management (ALCM) model is subsequently proposed for assets in the process industry, which integrates the concepts of generic project management frameworks and systems engineering with operational reliability in order to address these inefficiencies. Design/methodology/approach Experiences within a large petrochemical company in South Africa are used as a case study to demonstrate and discuss the different components of the proposed ALCM model. Findings Operational reliability and systems engineering are the means to achieve optimum value from physical assets over a facility's lifetime. Thereby, activities are identified that should be completed during each stage of the project life cycle. The application of performance measurements for the operation and support stages is proposed to influence decision making in the process industry. Originality/value Specific issues pertaining to the ALCM model are highlighted to ensure optimal practicality and incorporation of the model with other management practices in the process industry.
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