Chapter 3 Flashcards
What costs should be considered in Whole Life Asset Management?
Pre acquisition costs
Acquisition costs
Installation and commissioning costs
Operating costs
Maintenance costs
Performance/ downtime monitoring
End of life disposal/ Recyling
Analysis of historic performance
Lessons learned feed into identification of needs/ specification
What are the stages of WLAM?
Identify need/ objective/ risk
Procurement
Construction (designing & manufacturing) - most expensive stage
Commissioning - installation, training, insurance, testing, operational performance, quality
Deterioration/ maintenance - reliability, price and availability of spare parts, skilled technicians/ engineers, frequency of service intervals and downtime due to maintenance
Condition performance monitoring
Decommissioning
Renewal/ replacement
Why is deterioration of asset critical to understand?
If research suggest that one asset will deteriorate less then another, then that asset value at the end of its life will be higher when disposed of and will have costs less in spare parts, downtime etc.
Remember, there is a correlation between declining value of an asset to the cost of repairs - the lower the assets become in value, the higher the cost of repairs become.
Why is depreciation of asset critical to understand?
Depreciate is an accounting method used to give a fair and current view of wat the asset is worth at a particular time.
It is also means of converting cost of an asset into an expense over time.
Depreciate of assets can be found via the balance sheet.
The slower an assets depreciates the better as it will hold a higher residual value when disposed of.
What is Conditioning Performance Monitoring?
Process to maximize efficiency of output form an asset. Also known as Up Time.
A Surveillance system used to monitor specific elements of the assets which are integral to its performance. It can measure:
Temperature
Vibration
Output
Speed
Noise
Emissions
quality
etc
What 5 options to address condition performance monitoring exist?
When a problem occurs:
Do nothing, worry later - treat like a commodity
Reactive, fix it when it breaks
Preventative: scheduled maintenance
Predictive: fix it before it breaks
Proactive:
What 5 options to address condition performance monitoring exist?
When a problem occurs:
Do nothing, worry later - treat like a commodity
Reactive, fix it when it breaks
Preventative: scheduled maintenance
Predictive: fix it before it breaks
Proactive: continuous improvement
What is decommissioning?
When an asset reaches the end of its life cycle.
Processes include the following:
Removal of asset
Recommissioning - internally or sold to another organization
Disposal
Which hidden costs exist within the extended supply chain?
Internal overheads - admin costs, researching supplier, travel expense etc
Mobilization
Language barriers and cultures
Exchange rates
Supplier financial position
etc
What are the pros and cons of buying an asset?
Pro:
Ownership
Upgrades can be made freely
Unlimited usage
Cons:
Depreciation has to be calculated
More difficult to upgrade
Maintenance costs
What are the proc and cons of leasing an asset?
Pros:
No initial capital outlay
total amount payable is known
Budgeting is easier
Fewer tax/ depreciation calculations
Cons:
Commitment to payments over a set/ fixed period of time
Overall cost be higher than buying
Ownership never transfers
Could be limits of usage e.g. miles
What elements should a business case cover and why is it important?
Introduction
Objective
Approach
Resources
Benefits
A business case is critical to gain senior stakeholder buy in to WLAM decisions
Can you describe the application of Tuckmans team and group development model? Can you name the stages too?
Tuckman believed that the same stages are inevitable for a team to grow to the point where is is functioning effectively and producing high quality out puts. Regardless of purpose, culture, departments etc, he suggests they all go through the same stages, albeit at different speeds per stage.
Forming - unlikely that all team members joining at the same time so stage is a staggered process. Characterized by uncertainty. Team members will be getting to know each others skills and competencies, forming hierarchies. This would be a good time to focus on team building activities. The focus for manager is to ensure everyone become familiar with each other. Manager needs to set clear objective for each person and the team so members know how they fit into the business outputs.
Storming - Alot of change occurs in this stage. Team members compete for status and acceptance of ideas. As a result, team performance declines. Competition leads to conflict as the more dominant members emerge.
Norming - This is the point that team performance increases as team members start to work together. they may even start to embrace differences and can on each other for their individual strengths. Team manager is less involved.
Performing - The team is performing and delivering benefits, hitting targets etc. Team is functioning at a high level and is motivated. Not all team can reach this level, some will stop at Norming. Is is possible for the team to regress back a stage or two. Any new team members risk this. A new team member will experience these stages on an individual basis too and they fit in.
This model can also be applied to development of cross functional teams.
What is a situational leadership style?
Form of leadership where the leader adapts their style in keeping with the style and needs of the team dynamic. basically, a flexible approach.
There are 4 SL styles:
Telling - leader tells members what to do but not concerned with building relationships. Suitable to inexperienced members who lack confidence and direction
Selling - leader needs to persuade members to buy in this concept. Suitable for teams will low to medium levels of experience and willingness
Participating - Leaders work with teams to collectively make decisions. suitable for experience teams but who lack confidence in their abilities.
Delegating - Leader need to trust team members are able and willing to carry out objectives. members here are accountable for their own actions.
What are the 4 stages of decommissioning?
Preparation
Dismantling
Processing
Disposal
