Home News Technical Articles Interviews Cover Story Orders & Contracts
Power Generation
Green Energy

The criticality of enterprise asset management

Sudhir Sharma ,  Tuesday, October 18, 2011, 16:08 Hrs  [IST]

Untitled - 54In today's economic scenario, organizations around the world are grappling with a problem of how to make the most of their existing resources. In order to maintain a healthy level of profits and effective operations, they need to operate at an optimum level. Hence, it is imperative to proactively reduce costs, increase productivity and respond to a rapidly changing regulatory and economic environment. This demands an accurate inventory, detailed analysis of cost history, movement tracking, maintenance and repair calibrations, work and asset management.

It is important to manage assets across the entire organization from a strategic view as well, rather than solely from a purchase or maintenance perspective. Apart from this, the responsibility of corporates to reduce their carbon footprint is also a driving factor for them to adopt solutions that help reduce their carbon emissions by effective operations and process streamlining. For asset-intensive industries, effective asset management becomes the primary motto in to excel in a competitive economic scenario. The fundamental business goal for asset-intensive industries is to utilize capital assets to provide services at lowest cost, in a safe, secure, sustainable, and sufficient manner.

Enterprise asset management (EAM) refers to the optimal management of physical assets of an organization across their lifespan to maximize value. It covers design, construction, commissioning, operations, maintenance and decommissioning/replacement of plant, equipment and facilities. "Enterprise" refers to the management of assets across departments, locations, facilities and, in some cases, business units. By managing assets across the facility, organizations can improve utilization and performance, reduce capital costs, reduce asset-related operating costs, extend asset life and subsequently improve return on assets.

The functions of asset management are taking a fundamental turn where organizations are moving from historical reactive (run-to-failure) models and beginning to embrace whole life planning, life cycle costing, planned and proactive maintenance and other industry best practices. Some companies still regard physical asset management as just a more 'business-focused' term for maintenance management - until they begin to realize the organization-wide impact and interdependencies with operations, design, asset performance, personnel productivity and lifecycle costs.

While organizations across the world have recognized the need for an effective asset management solution, Indian counterparts have also followed suit. However, there are various asset-intensive organizations in India which still run operations on a reactive model rather than a proactive asset and works management model. This may result in revenue losses and sometimes it might be the deciding factor between profit and loss or compliance and non compliance.

Typically the driving factors for adopting an enterprise asset management solution are include underperforming assets, scheduling issues, increase in unplanned outages, growing maintenance costs, strained cash flows, lack of data around assets, risk-safety & environmental concerns etc. Thus, both public and private asset intensive industries are looking for an IT solution that would help them in maintaining their infrastructure and assets. Enterprise asset management is one such solution which is gaining quick popularity by providing a holistic view of the organizations' assets, and greater control over the operational quality, efficiency, and carbon footprint. Enterprise asset management solutions are specifically helpful in managing huge and complex assets in asset intensive industries like manufacturing, oil & gas, energy & utilities, and transportation where operational efficiency and downtime management is the holy grail.

Rapid population growth combined with an accelerated economic growth has put a stress on the Indian energy and utility sector and this trend is predicted to continue over the coming years. The energy and utilities sector is a flourishing sector in India with a plethora of private and government organizations vying for this lucrative pie. The power sector in India has always been instrumental in the urbanization and industrialization of India. Experts opine that the power sector is going to play a crucial role in the next phase of economic growth in India. The power ministry of Government of India has realized this and has launched various transformational projects to cope with the huge demand that has been forecasted. The power ministry has realized that before taking up the regular distribution strengthening projects, there are two things to focus on - the establishment of reliable and automated systems for sustained collection of accurate base line data and the adoption of Information Technology in the areas of energy accounting.

One such spin-off, has been the Restructured Accelerated Power Development & Reforms programme (R-APDRP) launched by the power ministry. This programme will include asset mapping of the entire distribution network at and below the 11kV transformers. This includes the Distribution Transformers and Feeders, Low Tension lines, poles and other distribution network equipment. The power distribution sector has always been identified as a significant link in the chain of power generation & supply. This is because the financial viability of the entire power sector depends on distribution to be responsible for collecting energy charges from consumers. However burgeoning commercial and technical losses in this sector have always placed enormous financial burden on state and Central governments.

An enterprise wide asset management solution is clearly the answer to the power development and reforms. There is a spectrum of enterprise asset management products which are gaining global popularity. IBM MAXIMO, LOGICA ARM, SAP PM are a few of such popular products which have been adopted by various global enterprises in order to achieve a better asset management operational quality and efficiency. The current scenario and the investments made in the energy and utilities and other sectors in India make it imperative and logical that Enterprise asset management plays an important role in managing huge and complex assets in critical sectors like manufacturing, transportation, energy and utilities etc.

Not only the power sector but even the physical infrastructure sector has grown leaps and bounds in the recent decade and is expected to continue its growth story. Construction of new metro rails, ports, roads, railways and airports is an indicative of the huge amount of investments in assets and infrastructure. While the growth story continues, it becomes imperative to track and maintain the existing assets and infrastructure. Thus, the consistent high volume growth in asset intensive sectors has created a huge scope and market for enterprise asset management solutions, which are about to play a pivotal role in justifying and creating value for the investments.

(Sudhir Sharma is Delivery Head-Energy & Utilities, Logica)
Post Your RemarkYOUR REMARK
* Email :    
  Website :  



© 2017 Electrical Monitor. All Rights Reserved.