EAM Challenges in Utility Industry
For utilities, asset management is a critical component of business Performance. Utility companies face the challenge of implementing operational and maintenance standards and practices to continually improve the balance between asset reliability and costs. Asset management in Utility has following challenges compared to other industries
- Different operating environments
- Static assets such as overhead cables and poles must be monitored to account for the effects
Of load factors including electrical current, wind, and temperature
- Need of Flexible asset management to optimize core and advanced processes.
- Customer service is an integral part of asset management for planning outage and schedule maintenance
- Accurate information of asset is essential for improving operational efficiency and customer service. Therefore a new technology such as mobility and Graphical information system becomes integral part of asset management to improve the speed and efficiency of asset maintenance and repair.
- Regulatory requirements and demonstrating compliance is common across the utility sector therefore requires a good asset management
- Stringent safety regulations particularly in case of nuclear power industries
The other major challenges are
- Untimely, expensive equipment failures
- Low utilization and return on capital employed
- Long delays due to availability of resource and Spares
- High costs for production interruptions, Constrained Budget, Higher time to repair
- Mandatory requirements of federal, state and local regulatory authoritie
Success of asset intensive industries, such as utilities directly depends on the reliability and productivity of capital asset deployed. Deployment and Maintenance of this asset means investment. Hence the challenge for asset intensive industry is “maximizing the Returns on Investment (ROI)”.
Meeting the above challenges requires focus on the following list of Business Objectives:
- Reduce CAPEX (CAPital EXpenditure)
- Reduce Time to Market
- Reduce OPEX (Operating Expenditure)
- Increase Asset Utilization
- Improve Health, Safety and Environmental (HS&E) Performance
- Meet regulatory requirements (such as PAS55 (UK)) FERC (US)
Note : We will discuss how EAM SAP can help buisness meet its objetives in next issue of the blog.