both from infrastructure and industrial scenarios around the globe. He presents theories for solutions, not in a mandatory way, but more in the approach of the traditional scientific method. By this I mean that this book is an invitation to challenge and test his theory through our own experience and application. This addresses, I believe, the problem of the evangelist author and his singular truth.
What of the problem of writing about complex organizations and complex asset life cycles? Inevitably in writing a sequential book it is required that the text be divided into chapters. Some readers will be drawn to individual sections to learn or even to challenge. Others will read the whole book from front to back. I am sure Celso would invite us to learn and become expert in each of the areas explored but having known him for many years, I am also sure that he would advocate total adoption of all of the thinking to some extent. For me, this reflects the complex nature of Asset Management, where we need a broad view of context and the ability to apply analytical approaches in great detail into that broad context.
In another potential life where Celso de Azevedo was perhaps Dutch and not Brazilian/French, he may have termed it Total Asset Management like the great Dutch soccer teams of the 1970s. In Total Football, a player who moves out of his position is replaced by another from his team, thus retaining the team’s intended organizational purpose and approach. I feel there is much of this book that reflects this thinking and I hope that you enjoy it, learn from it, test it, and challenge it to deliver greater value for your organization’s stakeholders.
Rhys Davies
Chair of ISO/TC251—Asset Management
The Structural Approach to the Book
The Matrix of Methodological Elements Associated with the Life Cycle Segments of Assets
| Elements of Asset Capability I’ve taken the liberty of color-coding the elements of Asset Management as three different segments: light gray for pre-op, dark gray for operational, and white for the end-of-life, which could serve as “chapters” in which to divide up the book. | |||||||||
| Design and Conception | Evaluation | Specification | Procurement | Installation | Commissioning | Operational | Maintenance and Modification | Replacement vs. Disposal | |
| Value to • Stakeholders • Corporate • Employees • Public • Etc. | The finality and specific nature of the assets must be the driving element of the value-to-extract | Taking into account more that strictly the economico-financiary technics in the definition of values | Need to the interests of stakeholders/ alignment of value | Taking into account of values far beyond purchase price | Optimizing profit from this run-in period by also verifying chances and real values to be extracted | Having an active consciousness of the fact that everyday we can optimize the extraction of value | Realizing that “parts replacement” and “value extraction” are not necessarily compatible | The values of an organization are so many drives for end-of-life arbitration | |
| Constituents of Asset Capability | |||||||||
| People • Engagement/ commitment • Behaviors and values • Competency • Etc. | Anticipation of the life-cycle | Taking into account future needs in terms of competencies linked to the value-to-extract | Raise awareness regarding life-cycle timely for commitment | Impact of BIM on competencies profile | The worst and best moment for understanding competencies required | Adequation between competencies and evolution of the needs, between level of commitment and values alignment | “Loving care” behavior and emotional attachment | “Loving care”/ rise of a need for an aging management structure and roles | |
| Finance • Accounting • Budgeting • GAAP tools • Technology | Life-cycle analysis vs. design-to-cost/ monetization of the risk factor (including technology) | Alignment between asset register and asset costing | Life-cycle cost process | Alignment between asset costing/as set register | Budgetary differentiation between commissionning and operational phase | How asset costing feeds the decision-making process | How asset costing feeds the decision making process | How depreciation rules and provision policies can impact on the timely replacement | |
| Management Systems and Processes • Decisions • Technology • Types of Processes • PDCA • Etc. | Alignment of corporate objectives | Milestone for key elements in the AMS (configuration management) | Alignment of corporate strategies | Theory of signals: Necessity of an aging manager to assess the asset’s end-of-life status/ineffectiveness of practices such as “modification redesign” | Theory of signals: Necessity of an aging manager to assess the asset’s end-of-life status | ||||
| Asset Capabilities | The historical decline of life-cycle costing techniques The importance of FEED approaches which take into account risks and costs in project phase | Success and failure factors of the insertion of the LCC in specification Demystifying untenable counterarguments | The clear and obvious need for LCC in buying processes | Reliability, redundancies | To comprehend this phase as a hiatus from the guiding trade-offs | The importance of operators in the examining of trade-offs The necessary distinction between assets in service life and assets in mature life | The necessary and daily usage of trade-offs and other optimization tools | Mastering the mature life and the trade-offs specific to the asset’s end-of-life | |
| Risk and Decision-Making • Stakeholders • Corporate • Asset • Deterministic vs. Probabilistic vs. Legal • Technology |
Demystification about the interdependency between different factors (stakeholders/ corporate/regulation)
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