By Shane Johnson, Preservar CEO
In the complex world of Asset Management (AM), misconceptions often lead companies astray, causing inefficiencies and missed opportunities. Whether it’s the false promise of quick fixes, the dangers of blind cost-cutting, or the reluctance to embrace new technology, believing in these common myths can hinder sustainable growth and operational success. Understanding and addressing these misconceptions is key to creating a resilient and future-ready asset management strategy. In this article, we’ll tackle three widespread AM myths and explore how dispelling them will benefit you and your operation.
#1: No such thing as a quick fix
One prevalent myth in AM is the belief in quick fixes. Many assume that with sufficient focus and attention, asset performance can swiftly be improved. However, the reality is far more nuanced. We wouldn’t expect years of an unhealthy lifestyle’s heavy drinking and smoking to be corrected with a few weeks of exercise and dieting, so why do we anticipate that years of neglect will be instantly reversed with hasty AM programmes? Often an immediate intervention is indeed required to turn around performance, however, in parallel the systemic issues that caused such performance deterioration must be made transparent and dealt with. Otherwise, we’ll end up in the same situation again and again.
#2: Blind cost cutting is not the answer
Another common flaw lies in the arbitrary reduction of maintenance budgets without a thorough understanding of the associated business risks. I caution clients against blindly cutting costs without considering the long-term system implications. Reducing figures on a spreadsheet without ever having been on site to understand the daily operations is certainly not realistic and/or sustainable. One needs to adopt a scientific approach to budget reduction decision-making, backed by data-driven insights and predictive modelling to clearly highlight the risk and therefore the mitigating actions required to manage these.
#3: Embrace technology, rely less on people
Technology has an ever increasing and important role to play in successful AM, as it enables the integration of various systems (ERP, finance software, asset health etc.) for a view of workflows and equipment condition without which your assets (both human and machine) will be far less productive and reliable. Many current processes are still largely people dependant, especially to maintain and inspect assets. We’ll still need human involvement going forward, however, the role and tasks of people will change in line with the available technology. I believe we will shift to a more technology-dependent model for inspecting and maintaining assets going forward. Just think, for every one satellite sent into space, an entire contingency of people is monitoring and optimising operations back at ground control.
In conclusion, asset management is a long-term commitment that demands more than quick fixes, hasty budget cuts, and resistance to innovation. By recognising and challenging these myths, organisations can pave the way for more reliable, efficient, and future-ready operations. Embracing a strategic, data-driven approach and leveraging technology will enable businesses to not only optimise performance today but also prepare for the challenges of tomorrow.