Abstract
It is common that interdepartmental conflict may arise in an organisation to select which decision to be taken, especially in the area of engineering asset management. In this paper, an engineering asset management related case study is discussed and a derivation of a life cycle cost model is proposed to assist finding the optimum decision. Another challenge in this study is a situation that the data and information required to calculate the total cost is unavailable. To deal with this situation, a cost comparison approach is proposed as well as a sensitivity analysis in order to select the optimum decision if the uncontrolled variable in the system nature changes. The result shows that the total cost model derived from the life cycle cost model is capable to assist selecting the optimum decision. A simple spreadsheet based Monte Carlo model is also developed to represent the randomness of the time to failure during the five years of time horizon of the analysis.
Highlights
The main purpose of asset management is to balance between cost, performance and risk involved in the asset [1]
It is indicated that in [11] the mathematical model of the total cost to select the maintenance policy is derived from a life cycle cost model presented in [2]
It is proposed in this paper that to resolve the interdepartmental conflict discussed in the case study, life cycle cost model is used
Summary
The main purpose of asset management is to balance between cost, performance and risk involved in the asset [1] It leads to essential functions of asset management in making asset-related important decisions in a corporate level. It may generate disputes between different departments related to asset, such as in making decision to keep or dispose the asset, or decision to keep the scheduled maintenance interval suggested by the manufacturer or change the interval. It is understandable that the main reason of the conflict is they have their own KPIs to achieve To deal with this issue, it is suggested that the related departments should seek a solution that provide global optimum in the corporate level instead of local optimum in the departmental level. After the desired mathematical cost model is attained, the model is verified in the discussed case study to verify whether the model is capable to assist in the process of making a better asset related decision
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