Listen to Your Assets Closely: Improving Asset Performance Management (APM)

Asset Performance Management (APM) uses predictive maintenance, condition-based monitoring, and data analytics to optimize asset performance and reliability of physical assets, extend lifespan, and reduce operational costs.

APM programs allow you to listen to your equipment proactively with real-time performance monitoring and even detect potential problems much ahead of time with predictive and condition-based maintenance.

In this article, we will delve into the depths of APM, exploring its definition, objectives, benefits, implementation process, and future trends.

What is asset performance management?

At its core, APM utilizes real-time data and advanced analytics to gain insights into asset health, identify potential issues, and optimize maintenance strategies.

It leverages technologies like IoT sensors, machine learning algorithms, and big data analytics to empower organizations to shift from reactive maintenance practices to proactive and predictive maintenance, leading to improved asset performance and reduced downtime.

Who uses asset performance management?

Asset performance management finds applications across diverse industries including manufacturing, oil and gas, power generation, transportation, mining, and utilities.

Any industry relying on critical assets can benefit from APM by optimizing performance, reducing asset replacement/maintenance costs, and ensuring regulatory compliance.

Objectives of asset performance management

Back in 2016, the renowned UK-based grocery retailer Sainsbury's had a mission to optimize the performance of refrigeration systems across stores.

They aimed to tackle three key objectives: slash energy consumption, enhance food safety, and minimize equipment downtime.

To achieve these goals, Sainsbury's turned to Asset Performance Management (APM). They implemented a state-of-the-art solution that integrated sensors and monitoring devices into their refrigeration units.

This allowed the APM system to gather real-time data on temperature, energy usage, and performance indicators. Through the power of advanced analytics, the collected data was analyzed to unveil patterns, detect anomalies, and even predict potential equipment failures.

Equipped with the insights provided by the APM system, Sainsbury's took a proactive stance in addressing issues such as temperature deviations and system malfunctions.

They swiftly implemented corrective measures to prevent food spoilage, maintain ideal storage conditions, and raise the bar on their food safety standards and moved away from rigid maintenance schedules, and embraced a predictive approach instead.

With historical data and predictive models, the APM system forecasted maintenance requirements and identified components at risk of failure. This meticulous approach enabled Sainsbury's to schedule maintenance activities with precision, minimizing costly downtime and maximizing the longevity of their refrigeration systems.

The impact of implementing APM at Sainsbury's was substantial. By significantly improving energy efficiency, the retailer experienced noteworthy cost savings through reduced overall energy consumption. Moreover, their proactive maintenance strategy resulted in fewer equipment breakdowns, minimizing the need for costly repairs and boosting overall operational efficiency.

Sainsbury's successful adoption of APM serves as a shining example of how APM proves to be a game-changer in the dynamic world of grocery retail and across various other asset-intensive organizations.

Here are four key objectives of APM:

1. Enhancing asset reliability: APM aids in minimizing unexpected failures and extending asset lifespan.
2. Optimizing maintenance strategies: By leveraging real-time data and predictive models, APM helps organizations implement proactive maintenance practices, reducing downtime and maintenance costs.
3. Increasing operational efficiency: APM enables efficient resource allocation, better asset utilization, and improved overall operational performance.
4. Ensuring safety and compliance: By continuously monitoring asset health and performance, APM helps organizations maintain a safe and compliant working environment.

Steps involved in asset performance management

From the meticulous collection of data from various sources to the application of advanced analytics techniques, we'll explore how organizations seamlessly integrate, analyze, and monitor asset health in real time.

Here are seven steps to get started with your APM program:

1. Data collection: Gather data from various sources such as sensors, SCADA systems, maintenance logs, and historical records.
2. Data integration: Integrate data from disparate systems into a unified platform, enabling seamless data exchange and analysis.
3. Data analysis: Apply advanced analytics techniques, including machine learning, statistical modeling, and pattern recognition, to extract valuable insights from the collected data.
4. Asset health monitoring: Monitor asset health in real-time using condition-monitoring technologies like vibration analysis, thermography, and oil analysis.
5. Predictive maintenance: Utilize predictive models to forecast asset failures and schedule maintenance activities before breakdowns occur.
6. Performance optimization: Continuously analyze asset performance data to identify optimization opportunities and implement necessary adjustments.
7. Decision support: Leverage insights derived from APM data to make informed decisions regarding maintenance strategies, resource allocation, and asset lifecycle planning.

With PdM and performance optimization as guiding principles, APM empowers decision-makers to make informed choices that drive efficiency, allocate resources wisely, and plan for the future.

Benefits of asset performance management

In a report by Aberdeen Group, it was revealed that organizations implementing APM achieved an average of 22% reduction in maintenance costs, a 15% increase in equipment uptime, and a 25% improvement in labor productivity.

This means organizations also benefit from a significant reduction in unplanned downtimes that costs industrial manufacturers as much as $50 billion a year.

APM, therefore, is gaining more popularity across industries by the year because of

1. Improved asset reliability: APM reduces the risk of unexpected failures, extending asset lifespan and increasing operational availability.
2. Cost reduction: Proactive maintenance and optimized asset performance lead to reduced maintenance costs, minimized downtime, and improved resource allocation.
3. Enhanced safety and compliance: APM ensures assets are operating within safety limits, enabling organizations to maintain compliance with regulatory standards.
4. Operational efficiency: APM facilitates better asset utilization, streamlined processes, and improved overall operational efficiency.
5. Data-driven decision making: APM provides actionable insights derived from data analysis, enabling informed decision-making and better allocation of resources.

How to implement asset performance management

When enterprises dive into implementing APM, they actively consider the scalability and seamless integration of the APM solution with existing systems.

You should look for the ability to handle massive data volumes and seek a strong return on investment, ensuring alignment with your business goals from your APM solution.

Here are 6 steps to implementing asset performance management:

1. Assess readiness: Evaluate the organization's current maintenance practices, technological capabilities, and data infrastructure to determine readiness for APM implementation.
2. Define objectives: Clearly define the objectives and expected outcomes of APM implementation. Align these objectives with the organization's overall goals and strategies.
3. Choose the right asset management: Select enterprise asset management software that aligns with your organization's needs, enables seamless scalability, integrates easily with your existing BMS.
4. Data integration: Integrate data from various sources, such as sensors, and equipment maintenance logs, into a centralized platform. This allows for a holistic view of asset performance and enables comprehensive data analysis.
5. Establish metrics and KPIs: Identify the key metrics and KPIs that will be used to measure the success of APM initiatives. These may include asset reliability, maintenance costs, downtime reduction, and overall equipment effectiveness (OEE).
6. Training and change management: Provide training to employees involved in APM implementation to ensure they have the necessary skills to utilize APM tools effectively. Additionally, manage organizational change by communicating the benefits and expectations of APM implementation.

You keep an eye on the availability of skilled resources, systems, and processes to derive actionable insights and the right tools to manage change effectively within your organization.

Related read: Top maintenance management KPIs and how to calculate them

Tips for asset performance management

APM generates valuable insights, but interpreting and acting upon the data requires expertise and analysis. It may take time to fully understand the information provided and develop effective strategies for maintenance and optimization.

1. Embrace a culture of continuous improvement: Encourage a culture of continuous improvement by regularly monitoring KPIs, analyzing trends, and identifying areas for optimization. Regularly evaluate the effectiveness of your APM initiatives and adapt your strategies as needed to drive continuous improvement.
2. Continuously refine and update your models: APM relies on predictive models to forecast asset failures and optimize maintenance schedules. Regularly review and refine these models based on real-time data and feedback from technicians and operators. Continuously updating and improving the models will lead to more accurate predictions and better decision-making.
3. Ensure data accuracy and quality: Data accuracy and quality are crucial for reliable insights. Implement data validation processes to identify and rectify any inconsistencies or errors in the collected data. Regularly monitor data integrity to maintain the reliability of your APM system.

Effective APM implementation requires a combination of technological solutions, data-driven insights, and organizational collaboration.

Suggested read: Creating a strategic asset management plan (SAMP) with five handy steps

Challenges in implementing asset performance management

Point systems and software that don't talk to each other make it incredibly difficult to handle increasing data volumes and accommodate a larger number of assets from multiple sites.

Ensuring a scalable infrastructure that can support the growing needs of APM is essential for long-term success. Some most commonly reported challenges include:

• Data quality and availability: Ensuring the quality, accuracy, and availability of data can be a challenge. Data collection processes and systems should be carefully designed and maintained to ensure reliable data inputs.
• Integration complexity: Integrating various data sources and systems can be complex, especially if there are disparate legacy systems in place.
• Organizational change management: Shifting from reactive maintenance practices to proactive approaches requires a cultural and organizational mindset change. Effective change management strategies, communication, and training programs are crucial for the smooth adoption of APM.

Overcoming these challenges requires effective communication, stakeholder engagement, and investment in data infrastructure.

Suggested read: Moving from record keeping to end-to-end asset lifecycle management

Keeping your assets performing optimally throughout their lifespan

With the right approach and the right tools, assets become catalysts for growth, profitability, and success.

Unfortunately, most legacy CMMS tools are unable to capture all the data APM needs and use multiple tools to store data, creating more silos and data gaps and blinding you from optimization opportunities, efficiency, and cost savings.

A modern connected CMMS like Facilio pools data from multiple systems and provides FMs with centralized visibility, saving time and manpower dependency.

Using Facilio’s connected CMMS approach, a large FM services provider in the Middle East achieved a 20- 30% reduction in costs with more efficient maintenance processes.

Read the full case study, explore Facilio's asset management features, or tell us about your operational efficiency goals. Personalized demo on us!