|Title:||Asset management : from minimizing costs to maximizing value creation|
|Authors :||Heitz, Christoph|
|Conference details:||World Maintenance Forum 2013: The 2nd World Maintenance Forum, University of Applied Sciences and Arts of Southern Switzerland (SUPSI), Lugano, 4–6 September 2013|
|License (according to publishing contract) :||Licence according to publishing contract|
|Type of review:||Not specified|
|Subject (DDC) :||658.5: Production management|
|Abstract:||Asset management is the management of physical assets over their lifetime for generating maximum value for the company with minimum costs. In doing so, asset management has to combine the three aspects costs, technical performance, and value creation, and clarify the relationships between them. In maintenance management, the relation between costs and technical performance has been studied for a long time, and there are well established methodologies for achieving a given technical performance with minimum costs. However, the aspect of value creation is mainly ignored. We argue that asset management is more concerned with maximizing of the system’s value creation process than with minimizing asset costs (the classical maintenance focus). We show that, for a given total asset management budget, focusing on local cost minimization may lead to asset lifetime decisions that create less value for the company than focusing on value maximization. This means that a focus on cost minimization does not make optimal use of the technical capabilities of physical assets, and that classical maintenance methodologies may lead to suboptimal results in the wider and more holistic perspective of asset management.|
|Departement:||School of Engineering|
|Organisational Unit:||Institute of Data Analysis and Process Design (IDP)|
|Publication type:||Conference Other|
|Appears in Collections:||Publikationen School of Engineering|
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