Uptime Magazine - October/November 2008 - (Page 8)

Creating An Oasis Asset Management in the Arabian Gulf by James W. Davis I n the last few years, many industrial companies in the Arabian Gulf and Gulf Corporation Council (GCC) have begun to realize the importance of Strategic Asset Management (SAM) as an enterprise strategy that, properly implemented, will result in Sustained Business Performance Improvement (SBPI). Typical results of an effective Strategic Plan for Asset Management include a 20% - 50% reduction in maintenance cost accompanied by a 15% - 20% increase in real capacity, with no capital investment in production equipment. The tangible results include a significant increase in profitability accompanied by a dramatic reduction in unit cost. In the modern world, the leadership and management of the large industrials in this region are highly competent, well educated individuals. They are actively seeking strategies that will enable their companies to compete successfully in regional and global markets. They are supported by engineers and professionals in other technical disciplines who are well trained and competent in their chosen professions. This is no longer the Arabia of Lawrence; it is a modern, growing industrial base with no foreseeable limitation on revenue to support growth and expansion. In her paper “Improving Profitability Through Reliability” Dr. Carol Vesier states, “The goal of all public companies is to enrich their investors. A requirement to increasing shareholder wealth is profitability. Profitability is the return on an investment. Measurements of return include cash flow and net income while measurements of investment include operating assets, total assets and equity. All strategies to improve profitability can be classified as employing one or more of three fundamental mechanisms: • Eliminate waste • Change the rules of the game. • Improve reliability Research has shown that increasing asset productivity and reducing costs are powerful contributors to improving profitability. 8 october/november 2008

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

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