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A performance management model for physical asset management

Thesis (MScEng)--University of Stellenbosch, 2003. / ENGLISH ABSTRACT: Two fundamental aspects in modem business success are performance management and
physical asset management. The current problem in the asset management environment is the
lack of structured performance management, which is required to effectively control and
enhance the dynamics of the asset and its life cycle. The result is ineffective assets with high
life cycle costs, which will consequently influence the bottom line and return on investment,
negatively.
An Asset _eerformance Management Model (APM2
, pronounced A-P-M square) was
developed. A sound theoretical foundation together with the experience of a leading asset
management consultant resulted in the realization of a model that (i) gives a balanced view of
asset performance, (ii) link asset performance to strategic business objectives, (iii) facilitates
decision-making and problem solving, and (iv) enhances asset control and continuous
improvement. The APM2 was developed by rese~ching and integrating five building blocks,
which encompass the model requirements. The APM2 consists of two distinct components,
namely:
• the APM Reference Structure (APMRS), and
• a range of APM Dockets.
The APMRS is a basic structure that integrates the various building blocks into a framework
for providing guidance and control, giving perspective on the entire model and explaining the
high-level content of the model. It consists of five levels, each with a distinct focus:
• Levell: Enterprise
• Level2: Factory
• Level3: Process Unit
• Level4: Aggregate
• Level5: Component
The APM Dockets are a subset of the APMRS, where each level has a docket. These dockets
are executable, unit-specific procedures, guiding and leading stakeholders towards improved
asset performance. Also each of the five levels consists of six similar and inter-related
elements. These elements are the foundation for each docket: lement 1: Stakeholders
Element 2: Objectives
Element 3: Measures
Element 4: External Monitor & Targets
Element 5: Responsibilities & Decision-Making
Element 6: Control & Continuous Improvement
Element 7 represents the link to the next level in the APM Reference Structure.






Conclusively the APM2,s simplicity and understandability is realized through the APM
Reference Structure, while the range of APM Dockets contribute to the practicality objective.
The model has a strong theoretical foundation, but at the same time is generic, to be used in a
wide range of industries.
A leading asset management consultant plans to integrate the APM2 into their asset
management program based on the thesis documentation. This application will test and
validate the APM2 in practice. It is further recommended that an asset management program,
with the associated APM2
, be used in conjunction with the Theory of Constraints and Total
Productive Maintenance, because of obvious relationships. Further research is also suggested
in relation with some of the experimental asset life cycle phases as well as certain financial
considerations. / AFRIKAANSE OPSOMMING: Twee fundamentele aspekte in hedendaagse besigheidsukses is prestasiebestuur and fisiese
batebestuur. Die huidige probleem binne die batebestuursomgewing is die gebrek aan
gestruktureerde prestasiebestuur, wat 'n vereiste is vir effektiewe beheer en verbeterings
rondom die bate en sy lewensiklus. Die resultaat is oneffektiewe bates met hoë
lewensikluskoste wat gevolglik wins en beleggingsopbrengs negatief beïnvloed.
'n Prestasiebestuur Model vir Bates (APM2, uitgespreek as A-P-M square) is ontwikkel. 'n
Deeglike teoretiese fondasie tesame metdie ondervinding van vooraanstaande raadgewende
batebestuurders, het die realisering van 'n model tot gevolg gehad, wat (i) bateprestasie
gebalanseerd voorstel, (ii) bateprestasie met strategiese doelstellings verbind, (iii)
besluitneming and probleemoplossing fasiliteer, en (iv) batekontrole en voortdurende
verbetering bevorder. Die APM2 is ontwikkel deur middel van die identifisering en integrasie
van vyf boustene wat die vereistes vir die modelomvat. Die APM2 bestaan onderskeidelik uit
twee komponente, naamlik:
• die APM Verwysingstruktuur (APMRS), en
• 'n reeks APM Vouers.
Die APMRS is 'n basiese struktuur wat die verskillende boustene binne 'n raamwerk integreer
en sodoende leiding en beheer fasiliteer, die model as geheel in perspektief stel en die
modelinhoud op hoë vlak verduidelik. Dit bestaan uit vyf vlakke, elk met 'n spesifieke fokus:
• Vlak 1: Onderneming
• Vlak2: Fabriek
• Vlak 3: Proseseenheid
• Vlak 4: Aggregaat
• Vlak 5: Komponent
Die APM Vouers is 'n subdeel van die APMRS, waar elke vlak 'n vouer het. Hierdie vouers is
uitvoerbare, eenheid-spesifieke prosedures wat deelhebbers lei na beter bateprestasie. Ook
bestaan elkeen van die vyf vlakke uit ses soortgelyke en inter-afhanklike elemente. Hierdie
elemente is die fondasie vir elk van die vouers: • Element 1: Deelhebbers
• Element 2: Doelwitte
• Element 3: Metings
• Element 4: Eksterne Monitering & Mikpunte
• Element 5: Verantwoordelikhede & Besluitneming
• Element 6: Kontrole & Voortdurende Verbetering
• Element 7 stel die verbinding met die volgende vlak in die APM Verwysingstruktuur
voor.
Gevolglik word die eenvoud en verstaanbaarheid van die APM2 gerealiseer deur die APM
Verwysingstruktuur, terwyl die reeks APM Vouers bydra tot die praktiese doelwit. Die model
het 'n sterk teoretiese grondslag, maar terselfdertyd is dit generies, sodat dit in 'n wye
spektrum van industrieë gebruik kan word.
Gebaseer op die tesis dokumentasie beplan vooraanstaande raadgewende batebestuurders om
die APM2 te integreer met hul batsbestuursprogram. Hierdie toepassing sal sodoende die
APM2 in die praktyk toets en bekragtig. Dit word verder aanbeveel dat 'n
batebestuursprogram, met die geassosieerde APM2, tesame met die Theory of Constraints en
Total Productive Maintenance gebruik word, as gevolg van voor die hand liggende
verwantskappe. Verdere navorsing word ook voorgestel in verband met die eksperimentele
fases binne die batelewensiklus, asook rakende sekere finansiële oorwegings.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/53286
Date12 1900
CreatorsJooste, J. L. (Johannes Lodewikus)
ContributorsPage, D. C., Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering .
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format116 p. : ill.
RightsStellenbosch University

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