Efficient Plant April 2020 - 21

asset management

Catalog Your Assets
WHEN COMPANIES WANT to develop or improve their
asset-management program, it's quite common for them to
discover they don't have an accurate list of the assets. The catalyst for some organizations is compliance with the ISO 55000
series of standards. This requires understanding how goals and
objectives relate to the physical assets, followed by identifying
the current asset condition and the likelihood of them meeting
those requirements.
Other organizations are prompted to seek help when they
look to replace aging infrastructure. In this situation, they are
usually asking for help to create an asset health index or asset
register. Developing either isn't feasible without a comprehensive
list of the assets.
To develop a holistic asset-management system, first gather
asset master data. Organizations usually begin with these two
business processes: Asset Data Collection and Asset Hierarchy
Development.

Rick Wheeler is the Executive Director of Asset Management Services
at Life Cycle Engineering, Charleston, SC (LCE.com).
He is responsible for deploying new products and services to support assetmanagement systems based on the ISO 55000 body of knowledge. Rick
is a member of USTAG 251, which updates and improves ISO 55000
standards and of the GFMAM P-20 work team, charged with updating
the Maintenance Framework document. Reach Wheeler at
rwheeler@LCE.com.

APRIL 2020

EP2004rmclce.indd 21

Rick Wheeler, Life Cycle Engineering

ASSET DATA COLLECTION (ADC)

ASSET HIERARCHY DEVELOPMENT (AHD)

is the process used to identify and collect asset data and asset-type
characteristics so they can be entered into a computer maintenance
management system (CMMS/EAM) to a master record of asset data.
Complete and accurate asset data makes possible informed and appropriate decisions across the asset-management spectrum. Accurate data is
necessary to build an asset hierarchy, perform asset-criticality analysis,
manage spare parts, establish a bill of materials (BOM), and develop a
maintenance strategy.

is the process used to create the hierarchical relationships between
company, sites, systems, and assets as a way of showing the grandparent-parent-child relationship for the purpose of effective asset management. As a fundamental component of your CMMS/EAM system, asset
hierarchy plays an integral role in work management, failure tracking,
maintenance cost accounting, and asset downtime tracking. A welldefined asset hierarchy will allow more accurate planning and assignment of work, better control of parts/components, and allocation of
maintenance costs to the right equipment at the correct level of detail.
It allows the condition and performance of equipment to be tracked and
managed and feeds critical information into the asset-health register
which, in turn, informs the strategic capital plan.

While it's certainly not as glamorous as Industry 4.0, establishing accurate, comprehensive data is foundational to your asset-management system
and your asset-health register. EP
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Efficient Plant April 2020

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