Asset Management Excellence: Optimizing Equipment Life-Cycle Decisions, Second Edition

489 Pages·2010·6.461 MB·English

by  John D. Campbell, Andrew K.S. Jardine, Joel McGlynn

S E C O N D E D I T I O N
ASSET
MANAGEMENT
EXCELLENCE
Optimizing Equipment
Life-Cycle Decisions

S E C O N D E D I T I O N
ASSET
MANAGEMENT
EXCELLENCE
Optimizing Equipment
Life-Cycle Decisions
Edited by
John D. Campbell
Andrew K. S. Jardine
Joel McGlynn
Boca Raton London New York
CRC Press is an imprint of the
Taylor & Francis Group, an informa business
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2011 by Taylor and Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Printed in the United States of America on acid-free paper
10 9 8 7 6 5 4 3 2 1
International Standard Book Number-13: 978-0-8493-0324-1 (Ebook-PDF)
This book contains information obtained from authentic and highly regarded sources. Reasonable efforts
have been made to publish reliable data and information, but the author and publisher cannot assume
responsibility for the validity of all materials or the consequences of their use. The authors and publishers
have attempted to trace the copyright holders of all material reproduced in this publication and apologize to
copyright holders if permission to publish in this form has not been obtained. If any copyright material has
not been acknowledged please write and let us know so we may rectify in any future reprint.
Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmit-
ted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented,
including photocopying, microfilming, and recording, or in any information storage or retrieval system,
without written permission from the publishers.
For permission to photocopy or use material electronically from this work, please access www.copyright.
com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood
Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and
registration for a variety of users. For organizations that have been granted a photocopy license by the CCC,
a separate system of payment has been arranged.
Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used
only for identification and explanation without intent to infringe.
Visit the Taylor & Francis Web site at
http://www.taylorandfrancis.com
and the CRC Press Web site at
http://www.crcpress.com
Contents
Preface.......................................................................................................................ix
Acknowledgments ..................................................................................................xiii
Editors ......................................................................................................................xv
Contributors ...........................................................................................................xvii
Chapter 1 Asset Management Excellence .............................................................1
Don Barry
SectIon I Maintenance Management Fundamentals
Chapter 2 Asset Classes and the World of Life-Cycle Asset Management ........11
Joel McGlynn and Frank “Chip” Knowlton
Chapter 3 A Framework for Asset Management ................................................23
Thomas Port, Joseph Ashun, and Thomas J. Callaghan
Chapter 4 Measurement in Maintenance Management ......................................49
Edited by Don Barry
Original by J. Stevens
Chapter 5 Information Management and Related Technology ...........................89
Don Barry, Brian Helstrom, and Joe Potter
Original by B. Stevens
Chapter 6 Materials Management Optimization ..............................................133
Don Barry and Eric Olson
Original by Monique Petit
SectIon II Managing equipment Reliability
Chapter 7 Assessing and Managing Risk .........................................................161
Siegfried F. Sanders
Original by J. Kaderavek and G. Walker
v
vi Contents
Chapter 8 Reliability by Design: Reliability-Centered Maintenance ...............189
Don Barry
Original by James Picknell
Chapter 9 Reliability by Operator: Total Productive Maintenance ..................217
Doug Stretton and Patrice Catoir
SectIon III optimizing Maintenance Decisions
Chapter 10 Reliability Management and Maintenance Optimization: Basic
Statistics and Economics ..................................................................231
Andrew K. S. Jardine
Original by Murray Wiseman
Chapter 11 Maintenance Optimization Models ..................................................251
Andrew K. S. Jardine
Chapter 12 Optimizing Maintenance and Replacement Decisions ....................259
Andrew K. S. Jardine
Chapter 13 A Maintenance Assessment Case Study ..........................................301
Don Barry
SectIon IV Achieving Maintenance excellence
Chapter 14 Real Estate, Facilities, and Construction .........................................317
Andrew Carey and Joe Potter
Chapter 15 Information Technology Service Management Life Cycle ..............351
Brian Helstrom and Ron Green
Chapter 16 Information Technology Asset Management ...................................363
Ron Green and Brian Helstrom
Chapter 17 Achieving Asset Management Excellence .......................................379
Don Barry
Original by John D. Campbell
Contents vii
Chapter 18 The Future of Asset Management Solutions: Consolidation,
Capability, Convergence ...................................................................391
Joel McGlynn and Don Fenhagen
Appendix A: References, Facts, Figures, and Formulas ..................................401
Appendix B: RFID Updates ................................................................................447
Jordan Olivero, Taylor Teal, and Casey Hidaka
Appendix C: PAS 55—An Emerging Standard for Asset Management in
the Industry ..........................................................................................................455
Don Barry and Jeffrey Kurkowski
Index ......................................................................................................................467

Preface
This is the second edition of the Maintenance Excellence book, which is now taking
on the title of Asset Management Excellence as a result of the ever-changing nature
of the business. In the time that has passed since the first edition, suffice it to say
that shifts have occurred. The original authors and contributors of content provided
sound information and principles related to working toward maintenance excellence
at that time. For this edition, new authors and contributors have revisited the content
and have updated and added information based on changes in thinking and the intro-
duction of and improvement in technologies since the first edition.
It has been the opinion of many maintenance and asset management personnel in
multiple industries that at the root of the discipline, “maintenance is maintenance.”
This has been true for many years, from the era of paper-based work-order systems
through the evolution to computerized software, the Internet, and wireless technolo-
gies. The root principles are the same: personnel with tools (electronic or manual)
address the needs of maintaining assets. The application of root principles—as well as
the way enterprises are perceiving maintenance organizations today—is changing.
Maintenance and asset management organizations have some of the same pres-
sures today as in the past, such as asset availability and reliability and regulatory
requirements. Prevalent areas that have driven major transformations in recent times
are globalization and consolidation and technology changes. These elements reflect
changes in thinking. They challenge asset management and maintenance profession-
als to be more efficient in what they do at various levels. Globalization and consoli-
dation have been particularly instrumental in the changes in maintenance standards,
approaches, and the use of technology to become more efficient and cost-effective.
For example, emerging wireless and radio-frequency identification (RFID) technolo-
gies are being heavily leveraged. RFID allows the status of certain components to
be “read” without taking apart an assembly to physically inspect the component.
Wireless technology allows maintenance personnel to have direct access to infor-
mation in the field and to send information from the field. Through RFID, assets
can provide information about themselves (e.g., expiration dates) or even “talk” to
other assets with wireless technology. Some industries are using RFID technology
to tell maintenance personnel the area in which the assets are physically located.
In addition, organizations are using geographic information system (GIS) software
and tools to visually display the location information and spatially enable their asset
management and maintenance organizations. Now organizations have the ability to
know where their assets are and to understand relationships between how assets have
behaved over time and how assets relate to the changing world around them. The
current edition of this book reflects some of these changes, trends, and concepts.
In recent years, an evolution of many of the tools, technologies, and thought pro-
cesses has occurred. Many of these elements have matured and have allowed the
deeper maintenance processes to be rethought. For example, there are trends in the
mix of asset and service management principles. There are also trends in adjusting
ix