= & SCRIBD Search Q How operation managers can convince executives to solve problems they can't see AUG 29, 2019 . 2 MINUTES Save for Later One of the great questions in the long-term utilisation and management of physical assets is not one of measurement and tracking, but of how to justify budget requests to executive management who have perspectives and prioritiesE ESCRIBD {Search [1'] [:1 E for improvement are missed. Therefore, any investment that deviates from this determination, and from the perspective of the executive, is seen as a poor investment Su ch responses place considerable stress on these who have the responsibility of ensuring infrastructure continues to function in the da y-to-day operations of the business. They also tend to be more common in organisations where risk is pushed down the line to operational managers, placing further burden upon them. Th at's a serious concern, especially in companies where executives make decisions on a priorityoriented basis. In these com panies, the absence of a well- structured business case identifying and quantifying the risk associated with failing to carry out programmed work as per corporate standard or expert recommendations can prove costly in more ways than one. So what are operational managers to do? There are two key elements to gaining the attention and approval of exec utives who manage corporate risk. The first is to extract work history transaction and cost data, and apply engineering principlesfalgorith ms to accurately model trajectories in ope ration losses to present trending risk. A suitably qualified and experienced adviser who specialises in asset management can attend to this element. = & SCRIBD Search Q Establishing the base line ISO 5500x is the standard specific to asset management. It focuses on the management of risk, cost and performance in a balanced manner that seeks to unlock business value from the utilisation of assets. While ISO 5500x does not dictate how to undertake specific asset management tasks, it does specify the key elements that should be present. Establishing the base line means mapping business policy, management structure, systems, procedures and accountabilities to this standard. This process takes the form of an 'asset maturity assessment'. One of the great questions in the long-term utilisation and management of physical assets is not one of measurement and tracking, but of how to justify budget requests to executive management who have perspectives and priorities that differ from those of operational supervisors. Outcomes include a report with a clear graphical or dashboard representation of a corporation's maturity as per the standard, coupled with a suggested continual improvement plan. ISO 55000 states, "Assets exist to provide value to the organisation and its stakeholders." The relevant term here is value, and what value is currently being lost as a function of how asset management is currently being delivered. There are three areas where value can be assessed:& SCRIBD Search Q . assessment of the document framework that defines and governs asset management, and analysis of data relevant to work delivered, and reliability of the assets. These areas are considered in a maturity audit in various ways. One common way is through the rating of areas on a four point scale, where four is the exemplary performance, threes represents compentence and two denotes an oppertunity for improvement. Through analysis of this data, an assessor can note gaps in aspects of the asset management system and make recommendations for strategic improvement. Results that can't be ignored Through the utilisation of historical data and analytics, a solid argument can be prepared to validate a company's strategy for asset management. By mapping a recognised best practice methodology to ISO 55001, a company executive can confirm core processes are undertaken with accepted best practice, that the investment is justified and that critical decisions are well-validated. With the application of these two key elements confirmed, the decision-making process is returned to operational managers, and leaders can more accurately determine and invest in top priorities. What's more, they can identify and help deliver potential cost savings by avoiding over-servicing, unnecessary capital outlay and ineffective servicing schedules. For further information, or to book a consultant, please contact the writer.& SCRIBD Search Q f in M FM FROM THIS ISSUE August - September 2019 Facility Management Related Articles Marketing . 3 min read Way Out While 'no risk, no reward' has become an axiom of creative thinking, the behaviours that we would normally associate with such an approach have never strongly filtered into the modern marketing mainstream. Local brands, for the most part, throughout Best Self Magazine . 3 min read Want to Succeed? Stop Planning to Fail - Are you an expert at anticipating and avoiding obstacles, up and/MevRy LD problems, and potential risks in business and life? This 'talent' may actually be the exact thing that is holding you back from being... NZ Property Investor . 1 min read DAN & ALLENA'S INVESTING TIPS . 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