Introduction and challenges
Industrial infrastructure assets – such as transport, energy and utilities – are significant revenue generating assets that have to be maintained over long period of time, often decades. As a result, the management of long-term CAPEX and OPEX decisions are critical to ensuring long range profitability and sustainable performance.
Optimising the allocation of infrastructure assets is also critical to the investment decision – whether new, renewal or maintenance – and assets must be carefully aligned to demand.
The strong financial and economic emphasis of the decision making has traditionally led to asset management being financially led using traditional financial tools and metrics.
Today, these traditional ways of working needs to change to achieve a more rounded understanding of performance. A more dynamic view of asset management needs to be taken to include life cycle costs (LCC) and total cost of ownership (TCO). These concepts help optimise the decision making process as they include broader considerations such as the practical operational requirements over the long term.
How we can help
Argon & Co is involved in many aspects of asset management, at both a strategic and operational level.
- At a strategic level, we are involved in the building of decision models that support the location and planning of major investment projects, with integrated operational considerations and assessment of the trade-offs between renewal and maintenance
- At an operational level we support our clients with driving efficiency of maintenance operations including key initiatives such as: supplier development, management of the spare parts supply chain, implementation of digital technology, development of performance dashboards, and assessing make or buy decisions.
We are able to support industrial organisations with the implementation of tactical improvements to enhance performance, such as asset management policy and process improvement, as well as delivering full and wide ranging transformation programmes.