Why Current Investments in Asset Performance Management (APM) Programs and Technology Are Falling Short

In recent years, organizations have increasingly invested in Asset Performance Management (APM) technologies and program implementations, driven by the promise of significant returns through cost reductions and production uplifts. However, most companies are finding that these investments have not yielded the anticipated results.

What we find in most organisations is that the system is rarely used beyond an initial project when it comes to reviewing maintenance plans and optimising maintenance tasks and costs, there are likely only some specific, disparate pockets of predictive analytics but no real scale, and no workable connection to the practicalities of work management execution, planning and scheduling.

Logically, APM programs make perfect sense, improve predictive analytics and deploy at scale, use reliability first principles to continually optimise maintenance tasks based on current operating context and asset condition, structured root cause analysis for when failures or early life degradation does occur, manage our asset integrity program and of course connect all of that to our work management solution and process for a continuous living program of performance improvement. So why are we not seeing the returns?

Firstly, there is a persistent misconception that APM is merely a technology solution. In reality, APM is fundamentally a process that should be supported by technology, not the other way around. When organizations prioritize technology over process, they risk implementing solutions that do not align with their operational needs. This misalignment can lead to ineffective use of APM technologies and ultimately hinder their ability to drive meaningful improvements.

Things start going in the wrong direction right back at procurement when it comes to APM solutions. Most organisations create a list of “functional requirements” that they then assess potential products against – to ensure they select the best fit. The problem of course is that while a solution may deliver all the requirements – can it string them all together in a workable process? See this earlier post for more….. https://www.linkedin.com/pulse/dont-make-mistake-select-technology-its-ability-digitise-jason-apps-d8y5c/?trackingId=NVigNqVz0nhCnAROxHkY6A%3D%3D

Moreover, a significant gap exists between APM and maintenance execution. Many organizations utilize systems like SAP to support maintenance activities, but these systems often operate in silos, disconnected from APM initiatives. This chasm, and it is a chasm, creates inefficiencies, as data and insights generated by APM systems are not effectively integrated into the maintenance execution process. Consequently, organizations struggle to translate APM insights into actionable maintenance strategies, limiting the potential for cost savings and performance enhancements.

Another critical issue is the lack of focus on data quality and completeness. APM systems rely heavily on accurate and comprehensive data to provide valuable insights. However, many organizations have not prioritized the collection and management of this data, resulting in incomplete or inconsistent information. While the simple realisation is that without high-quality data, APM technologies cannot deliver the expected return on investment, the more effective strategy is to reshape our processes and approach to recognise this requirement and improve our data capture and part of the process – not a once-off input into the process.

To turn an APM investment around, organizations must take proactive steps to enhance the effectiveness of their APM technologies and programs. Here are several strategies that can lead to significant improvements:

1. Focus on Process Improvement: Organizations should conduct a thorough review of their APM processes, to identify areas for enhancement that drive adoption through practical outcomes. Minor changes to workflows can drive data completeness, consistency, and quality, ensuring that APM systems have the reliable information they need to function effectively.

2. Foster Collaboration: It is essential to align APM and maintenance execution teams. By encouraging and structuring processes to drive collaboration between these groups, organizations can create a more integrated approach to asset management. This collaboration should focus on leveraging APM insights to inform maintenance strategies, driving a culture of continuous improvement.

3. Execution-Led Improvements: Allowing improvements to be led by execution teams can enhance engagement and ownership. When maintainers and frontline employees see the direct impact of APM insights on their work, they are more likely to embrace the technology and contribute to a culture of improvement. This is a subtle but significant shift that requires a structured program of change.

4. Conduct a Technology Landscape Review: Organizations should undertake a high-level review of their technology landscape and asset management domain. The outcome of this review should not be focussed identifying new technologies for procurement but rather re-evaluating the capabilities of existing technology investments and their ability to support the required processes. These reviews can help identify quick fixes and opportunities for improvement, ensuring that APM technologies are utilized to their fullest potential.

In summary, while the promise of APM technologies is significant, realizing their full potential requires a shift in focus from technology to process. By enhancing data quality, fostering collaboration, and aligning execution with APM insights, organizations can begin to unlock the true value of their APM investments. Now is the time to take action—conduct a review of your asset management practices and technology landscape to identify quick wins that can drive performance improvements.

By Jason Apps

-------

Jason Apps is an Executive Level Asset Management Consultant, providing support to organisations in pursuit of high-reliability world-class asset management practices. He is the Author of ASMx: Asset Strategy Management - A Leaders Guide to Reliability Transformation in the Digital Age, a regular presenter, workshop facilitator and trainer.

Jason has delivered significant performance improvement, cost reduction, and risk management to global, blue-chip clients, for the last 20+ years. With a proven, unique, pragmatic approach to identifying improvement initiatives, implementing and structuring for enduring success.

Email Jason at Jason.apps@exar-am.com or visit exar-am.com