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ISO 55000 puts ‘value’ at the core of asset management. This paper provides a framework to help production companies implement value-based Asset Management (AM) in a way that it contributes to operational excellence. Value-based AM is achieved when the value delivered by assets is used by the organization as the key decision criterion to choose between different AM options (both at tactical and operational level). Given this perspective, it is vital that organizations are able to quantify the value delivered by their assets and manage that value through informed and coherent decision-making. Value-based AM is still a concept more quoted in theory than described in practical terms. A clear understanding about the main elements that are needed to enable it is still missing in industrial practice. The framework presented in this paper provides the key elements needed for successful integration of a value quantification model with the AM system to ensure the effective implementation of value-based approach in AM.
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- A Framework for Implementing Value-Based Approach in Asset Management
Ajith Kumar Parlikad
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