Plant safety and asset availability driving asset management strategy

A formal, strategic, integrated systems approach can help reduce cost, provide higher security and lower risk, according to new research.

Concerns about plant safety, increased demand for asset availability and reliability, and environmental issues are having the most impact on organisations' asset management strategies, according to a study sponsored by Lawson Software.

The global study, "Strategic Asset Management Across the Organisation Delivers a Compelling Return' was conducted by Industry Direct Ltd. It included 189 participants from Europe, Australia/New Zealand and the United States that represent utilities, discrete manufacturing, mining, process manufacturing and transportation industries.

The study found concerns about the environment and other corporate social responsibility (CSR) issues are increasingly influencing strategic asset management decisions.

Ninety-seven per cent of respondents said they have at least one CSR initiative in place. Such initiatives include improved energy management programs, ethical business practices surrounding procurement and emission reduction.

A strategic, integrated approach to asset management can play a big role in addressing corporate social responsibility and the other asset issues, said Suzanne Benn, marketing director at Lawson.

An integrated enterprise asset management solution will support these efforts, helping to ensure a company's assets operate efficiently within environmental guidelines. A preventive maintenance program can also help to lengthen the lifespan of spare parts and assets, save natural resources and reduce waste.

Among the study's findings, many early adopters of asset strategy and policy view maintenance as a profit opportunity instead of a cost centre issue. In the study, 39% of respondents said their company strongly believes that maintenance is a worthwhile investment.

The study suggests that if companies do not adopt strategic asset management policies, executives in areas such as finance and procurement may not see maintenance as an investment. That view can impact the amount of budget allocated for asset maintenance.

The full report can be downloaded at: www.lawson.com/IOB.