Value Creation in Physical Asset Management: A Case Study

Abstract

Physical asset management (PAM) is an important part of any organization as it enables it to realize value from its assets. It focuses on optimizing the life cycle of assets, from conception through use, maintenance, decommissioning and disposal. The purpose of this paper is to present the implementation of the PAM practices. A case study methodology is used to provide insights into the implementation of the PAM practices, with a focus on the maintenance element of PAM. More specifically, it focuses on examining the application of the Value Driven Maintenance (VDM) methodology and its potential benefits for the company. Based on the results of the case study, it is argued that VDM as a methodology has the potential to support the practices of PAM by providing a tool to support the assessment of asset management, identification of potential cost savings, investment decision, etc. Finally, key observations are made to stimulate further studies in the field of PAM.