Asset Performance Management
Asset Performance Management (APM) is a set of work processes to maximize physical asset performance, mitigate risk, and optimize cost in a business enterprise. Technology, work processes and expertise combine to improve asset performance and deliver value.
“Asset performance management (APM) encompasses the capabilities of data capture, integration, visualization and analytics tied together for the explicit purpose of improving the reliability and availability of physical assets. APM includes the concepts of condition monitoring, predictive forecasting and reliability-centered maintenance.” Gartner[1]
APM improves performance and delivers value by:
Reducing RISK
- Single view to uncover hidden risk with actionable insights
- Protect brand and reputation
- Knowledge transfer of changing workforce
Improving UPTIME
- Reliability and Availability
- Increase Predictability/ Decrease Uncertainty
Optimizing COST
- Uncover and address the cost of unreliability across the asset ecosystem and the supply chain
APM and technology
"New asset management standards, increasingly complex assets, smaller and changing (aging) workforces, and more outsourcing options for equipment maintenance and monitoring contribute to the need for an integrated ecosystem to connect assets to insights.” ARC Advisory Group
APM and business
“Billions of dollars are invested in plants worldwide…. acquiring, maintaining, and disposing of these assets is a very serious business. A one percent improvement in performance can be worth millions annually.” ARC Advisory Group
“You see APM talked about as focused solely on maintenance, but that's short-sighted. When you start managing from a financial performance perspective, you're talking about the next wave - APM. With APM, you bring in operations and the business aspects of enterprise strategy.” Aberdeen Group
“All worlds come together at the asset. However, assets are viewed as depreciable sunk costs, but they're not — they're competitive differentiators, and contribute to profit margin.” AMR Research