An Asset Management Framework to Improve Longer Term Returns on Investments in the Capital Intensive Industries

Komonen, Kari; Kortelainen, Helena; Räikkönen, Minna

doi:10.1007/978-1-84628-814-2_46

Cited by 15 publications

(14 citation statements)

References 5 publications

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“…Decisions on resource allocation towards asset management predispose the choice between alternative options of strategic development: greenfield investments, expansion, replacement, or disposal of assets [36]. Prioritization of these limited resources implies that asset management strategies should answer the "make-or-buy" question and carefully evaluate the relevance of in-house production, mergers, outsourcing, or co-production to achieve higher returns on investments and better overall organizational performance.…”

Section: Exploring the Possibility To Align Asset Management Strategimentioning

confidence: 99%

Strategic Aspects of Asset Management: An Overview of Current Research

2020

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Major shifts in the competitive environment encouraged a recent growth in the number of academic articles devoted to strategic aspects of asset management. Organizations start to recognize that a strategic approach to asset management becomes a source of sustainable competitive advantages and long-term survival in the turbulent environment. However, existing studies are largely case-specific in interpreting strategy and draw on various theoretical grounds and approaches. This leads to little theoretical and methodological consistency in understanding current findings and how to design future studies. The key goal of this paper is to systematically review the existing research through the analysis of over 700 articles devoted to asset management with a focus on strategic aspects. Our key contributions are positioning strategic asset management within the vast field of asset management research, describing the nature of strategic asset management research, and confirming that asset management strategies align with different levels of organizational strategy. We visualize the existing research field, and indicate gaps and underdeveloped areas of research. We also shortly outline future research directions based on our findings, thus encouraging a more coherent development of research on strategic asset management.

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Section: Exploring the Possibility To Align Asset Management Strategimentioning

confidence: 99%

Strategic Aspects of Asset Management: An Overview of Current Research

2020

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Section: Introductionmentioning

confidence: 99%

“…All of these decisions, together with the chosen operations and maintenance strategies, affect the productivity of the physical capital (Komonen et al, 2006;Tam and Price, 2008). In order to meet the challenge of low returns on investment, enterprises need to create an asset management strategy and the core issue of physical assets management should be how to sustain or improve the life cycle profits of the original investment (Komonen, 2006). With this regard, one of the challenges in the physical asset management field is to improve the quantification process of costs, in order to be able to evaluate the total cost of operating a production system throughout its life cycle (i.e the so called Total Cost of Ownership) (IAM, 2012; Parra et al, 2009) since it represents a synthetic and complete information that should be considered as a basis for informed decision-making in order to achieve improvement in cost, productivity and profits through good asset management.…”

Section: Introductionmentioning

confidence: 99%

TCO Evaluation in Physical Asset Management: Benefits and Limitations for Industrial Adoption

Roda

Garetti

2014

Progress in Pattern Recognition, Image Analysis, Computer Vision, and Applications

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The aim of this paper is to recall the concept of total cost of ownership (TCO) of industrial asset to highlight its relevance in asset management. Nowadays, being able to evaluate the TCO of assets is more and more recognized by companies and researchers as a basis for taking informed decision making both for investments and managerial issues, nevertheless its importance within asset management strategy still remains generally undervalued. Based on a literature review, the paper defines a framework that categorizes the benefits and potential applications that a TCO model can have for different stakeholders. Together with that, industry related issues that influence its adoption are also considered. Based on that, empirical evidences are analyzed through a multiple case study to understand if those benefits are recognized in practice and which are the limitations, if any, for the practical adoption of a TCO model that should allow exploiting such benefits.

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“…The risk dimension is considered crucial in the framework by Tam and Price 25 in which risk relates to potential hazardous events caused by failures. Risk analyses (both considering the risk related to the asset reliability and performance but also taking into account the business objectives, changes in the business environment, viewpoints of various joint-parties, the balanced governance of potential opportunities and versatile risks), is considered as an important input for the AM decision-making process, together with the technical and economic analyses, in the framework by Komonen et al 24 .…”

Section: Literature Analysis On Existing Frameworkmentioning

confidence: 99%

A Framework to Embed Asset Management in Production Companies

Roda

Macchi

2019

Value Based and Intelligent Asset Management

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The aim of this paper is to investigate how to embed Asset Management in production companies. A framework is defined based on literature analysis and focus groups findings, in which the fundamentals to guide the integration of Asset Management are systematized. Two dimensions are identifiedthe asset life cycle and the hierarchical level of the asset-control activitiesand four founding principleslife cycle, system, risk and asset-centric orientationas levers to integrate Asset Management within an industrial organization. An empirical investigation is then developed through multiple case-study involving eight production companies in Italy, with the purpose to map the elements of the framework against the real mechanisms in the industrial practices. This allows testing the relevance of the framework itself and demonstrating its potential as a support for companies to implement gap analysis on AM practices. Empirical evidence on current practices of AM in production companies is contextually unveiled.

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An Asset Management Framework to Improve Longer Term Returns on Investments in the Capital Intensive Industries

Cited by 15 publications

References 5 publications

Strategic Aspects of Asset Management: An Overview of Current Research

Strategic Aspects of Asset Management: An Overview of Current Research

TCO Evaluation in Physical Asset Management: Benefits and Limitations for Industrial Adoption

A Framework to Embed Asset Management in Production Companies

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