Asset Management that’s Responsible

Circular Economy Blog 2

Paul McNamara

Being competitive doesn’t simply mean faster time to market and better products.  It also means employing asset management strategies that are sustainable. Achieving success in such big endeavors must be a team effort requiring all hands on deck. Company asset management teams and their management are uniquely positioned to play a big role in helping with sustainability challenges. We all have a responsibility and a role to play. With our solutions, we will be responsible for helping.

Responsible: being the cause or answer.

Sente’s Scireo solutions have a history of helping companies bring products to market faster with dramatically lower cost structures. Our capabilities also help companies answer the call to help produce sustainable operations. We do them both in the same way. By leveraging previously unheard-of levels of reuse and sharing and creating a circular economy within our customer’s operations we drive a company’s competitiveness and sustainability. Here’s how.

Physical Assets Drive Energy Consumption

Assets and the facilities they operate in significantly impact energy consumption. Efficient use of assets through reuse drives a reduction in the number of assets and therefore in energy required to power the assets and in the facility footprint required to house them. Driving these kinds of results requires a different orientation to asset management beyond the common “control of assets” approach. It will require new skills and new approaches to overcome the habitual practice of equipment hoarding that result in low asset utilization and higher energy consumption. These new skills increase human capital making the employees and the companies they work for more competitive. They enhance employees’ ability to fulfill their personal ambitions, improving their satisfaction and retention.

Sustainable Asset Management Strategies

Our asset solutions get the asset management team focused on enterprise priorities that make a big difference, like speed-to-market and significant reductions in costs. It turns out, these results, and the strategies we use to achieve them, happen to be perfectly aligned with the strategies companies write about in their annual Sustainability Reports. This and the performance outcomes we outline below are what make Scireo aEAM The Responsible asset management solution.

Without exception, the strategies companies are using to produce more sustainable operations include some combination of 1) governance, 2) human capital, and 3) dramatically more asset-efficient operations. Other strategic elements include alternate forms of sustainable energy, other human capital strategies like working from home, and improved employee engagement and satisfaction. Our practices help in each of these areas.

Producing Asset Efficient Operations

Our practices double to quadruple asset utilization. One of our customers, operating in a very costly, asset-intensive engineering environment, reduced their asset base by 50% as they doubled revenues. Fewer assets mean more sustainable operations.   This resulted in a 50% reduction in support costs as well as a reduction in facility footprint requirements and capital spending on equipment. While overall capital spending is reduced, some of the capital savings can be invested in better equipment, enhanced automation, and further reductions in energy consumption. See how one customer reduced their asset base by 50%.

Improved Human Capital/Skills

The practices that drive asset efficiency do so by increasing a company’s “circular” or sharing economy with is a key asset strategy for sustainable operations. Significant sharing has historically been thwarted by equipment hoarding, a costly habit that drives increased costs and delays. Elimination of hoarding is made possible by new practices, skills, tools, and roles owned by reconstituted asset management teams and which drive increased collaboration and engagement. Equipment users are able to get the equipment they need when they need it allowing them to focus on the value-added activities they love doing. With this focus, they use data accumulated in the asset management software to improve their knowledge, capacity for innovation, and job satisfaction.  See the role culture and human capital play in digital transformation that significantly reduces assets and moves the needle on more sustainable operations with Asset Management 5.0.

Governance and Alignment

It is a maxim of management that whatever gets measured gets managed. It at least produces a focus that enables teams to learn the mechanisms at work and levers that can be used to increase performance. The governance process is a key component of our solutions, producing alignment up and down an organization about what is important. We provide metrics in the following categories: operational, e.g., utilization, cycle times, and redeployments/reuse; technological, e.g. capability, capacity, and obsolescence; knowledge, e.g., lessons learned and equipment requirements; and financial, e.g., cash, opex, and budgets. Many of these outcomes correlate with sustainability goals like footprint, energy consumption, and human capital development.

As individuals, teams, and enterprises we are called on to fulfill our obligations to ourselves and each other. Depending on our role this means holding obligations to customers, employees, employers, suppliers, colleagues, and even the communities where we live. We look forward to helping asset management teams and their customers fulfill today’s most important business outcomes, including their sustainability goals.

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