Uptime Magazine - October/November 2008 - (Page 10)

to overcome these deficiencies and achieve significant and sustainable improvement in corporate business processes and financial performance. The benefits of a successful Asset Management Strategy include: 1. Accurate analysis of equipment maintenance, repair, and replacement records. 2. Increased availability of production systems and equipment. 3. Fewer failures of production systems and equipment, resulting in fewer unplanned outages. 4. Improved product quality associated with a reduction in costs related to losing or reprocessing product. 5. Lower costs for system and equipment maintenance, spare parts inventory, and capital replacement. 6. Enhanced morale among management and the hourly workforce as they learn to enjoy a proactive environment instead of surviving in chaos. 7. Additional real capacity as operating units are able to operate at higher levels for sustained periods without excessive equipment failure. 8. Higher profits from the compounded effect of reduced conversion costs and increased production levels. In order to understand the impact of this phenomenon in the Arabian Gulf, one must first get a grasp of the culture and history of the Saudi Arabia 262.7 Iran 132.5 Kuwait 99.0 Venezuela 77.2 Iraq 115.0 UAE 97.8 Russia 72.3 Kazakhstan Libya 39.1 77.2 Nigeria 35.3 Figure 1 - Top Ten Countries in Proven Oil Reserves at Year-End 2004 (in billions of barrels) Source: BP Statistical Review of World Energy 2005 region. Most of you probThe SAM Model: ably know the Strategic Asset Management Arabian Gulf as the Persian Managing System LEAD Gulf. However, Information Management Strategic Planning in the region, and especially Capacity Production Asset Healthcare among the Arab EXECUTE Development & Management Management Disposition oil producing countries, it is known as Logistics Management the Arabian Gulf. Most of these counOwnership / Development / Empowerment ENABLE tries are monarchies with government Figure 2 - The Strategic Asset Management Model Workﬂow and industry controlled by various royal of the United Arab Emirates, State of Bahfamilies. In recent years, a very strong move rain, Kingdom of Saudi Arabia, Sultanate of has developed toward privatization. Oman, State of Qatar and State of Kuwait met in Abu Dhabi, United Arab Emirates, where Small Area – Large Global Impact they reached a cooperative framework joining the six states to effect coordination, integraAccording to published OPEC data, Saudi tion and inter-connection among the Member Arabia has approximately 26% of the world’s States in all fields in order to achieve unity, known crude oil reserves; Iran and Iraq have according to article 4 of the GCC Charter. about half that amount and the United Arab Emirates and Kuwait each control reserves Article 4 also emphasized the deepening and equal to approximately 40% the Saudi reserves. strengthening of relations, links and areas of (see figure 1) Tiny Qatar has one of the largest cooperation among their citizens. The underknown “un-associated” gas fields in the world. pinnings which are clearly provided for in the This represents a critical source of energy preamble of the GCC Charter, confirm the spefor industrial development as well feed cial relations, common qualities and similar gas for petrochemical production. systems founded on the creed of Islam, faith in a common destiny and sharing one goal, The current crude oil market is deliver- whereby the cooperation among these states ing a huge influx of cash into the region. would serve the objectives of the Arab nation. Owners and Senior Management of the In recent announcements, the GCC has stated companies in the region are using the op- that the member states will have a common portunity to invest heavily in the expan- currency within the next five years. sion of existing industrial facilities as well as the development of new facilities and Many member companies of the GCC have benew industries, both petroleum and pet- gun to look at asset management as a stratrochemical related and non-petroleum egy for improving the business performance industry. These industries can be very of their organizations. Visit their website at competitive in global markets due to their http://www.gcc-sg.org for more information. geographical location, the low cost of expatriate labor from third world countries, The Strategic Asset Management Model and the very low cost of energy in countries where crude oil is produced at a an In a recently published paper titled “The average cost of approximately 2.5 US Dol- Future of Asset Management” Brad Peterlars per barrel. son, Founder and President of SAMI, stated, “This article explores a broader vision for The countries in the region have estab- asset management than has been previously lished the Gulf Cooperation Council (GCC) articulated and brands this vision Strategic in a structure similar to the European Asset Management (SAM). Based on sucUnion. On May 25th, 1981, the leaders cessful experience with our clients, SAM is october/november 2008 10 http://www.gcc-sg.org

Table of Contents Feed for the Digital Edition of Uptime Magazine - October/November 2008

Uptime Magazine - October/November 2008 Contents Upfront Upclose: An Asset Management Oasis in the Desert Information Technology: Streamlining Through Simplicity Lubrication: Phases for Framing a Solid Foundation Infrared: Do Your Homework Before You Buy Maintenance Management: Get It Together by Getting Together Motor Testing: Key Elements in Motor Decision Making Precision Maintenance: Shedding Some Light on Tolerances Reliability: RCM & the Mortgage Meltdown Ultrasound: A Multidimensional Tool Vibration: The Whirling Pump Mystery, Solved with ODS Upgrade: Are You Looking in the Right Place for Your Wear Debris?

Uptime Magazine - October/November 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.