It can be said that perfectly managed fixed, physical, and capital assets are the backbone of success for asset-intensive industries. When organizations access data in systems that allow insight into the lifecycle of data (i.e., procure, maintain, repair, refurbish and retire) a critical path can be followed to assure the highest levels of supply chain efficiency, personnel, public safety, field productivity, inventory obsolescence and capital projects that are lower cost and risk. All these benefits translate to the bottom line of the Company’s bottom line.
The first step to enjoy these benefits is a clear-eyed focus of asset data. When the enterprise maintains a focus on asset data governance, quality, and maintenance, a deeper understanding is enjoyed by the field and plant operations, finance, and senior leadership. In many instances, the conversation around data begins with comments like, “I know our asset master data is not perfect, it does require a lot of manual manipulation, but we seem to get by.” Hmmm.
But this article is not about a solution or a product. We can talk about solutions and products in a later article. Let’s talk about what your enterprise could be “leaving on the table” without having perfect data!
Let’s begin with a bold statement. At an enterprise level, value studies suggest that solid master data governance can achieve a reduction of the capital cost of approximately 1.5% ($200m project would result in $3m in savings). Further, reliability and productivity gains (or reductions) can be as significant as $1-$5m for every $1B in assets. But how can these large-scale financial improvements be possible? Let’s review some specifies…
Capital project improvements are realized in reduced costs and risks associated with project delays. These delays are prevented by automating the processes to define, collect, transform, deliver, and sustain the accuracy of information among the vast list of suppliers, EPCs, and owner-operators. Costs and risks are reduced, along with improved plant and resource reliability, availability, and dramatic reductions in obsolete inventories by assuring single, reliable consolidated information sets. Some studies suggest that the value of lost productivity is large as four times the maintenance values.
Environmental Health and Safety are improved with easy and largely enabled access to the right information and the right time. With the right data, field and plant teams can increase their work productivity, achieving at first-call resolution.
Supply Chain efficiency gains can show the greatest financial benefits. In capital projects, this is achieved by incorporating material and BOM standards in contracts, collaborating with suppliers to share original data, and leveraging the knowledge by your suppliers for the right degree of spares, availability, and confirming the right inventories. Studies suggest that inventories are riddled by overstock and obsolete materials and equipment by an overwhelming 25%.
Enterprise Asset Data management, at its core, is the foundation of your enterprise capital project, EH&S, and supply chain best-practice governance. Your keen focus on data perfectly can eliminate manual operations and return dollars to the bottom line.
Contact us to understand how we can work with you and team, to begin you clean data journey!
Written by Todd Hall, National Client Partner, Utopia