Asset Performance Management

Asset Performance Management: A New Perspective

An asset management strategy that incorporates cost, reliability, Environmental, Health and Safety (EH&S), process safety, energy consumption and production into an integrated model… driving better asset strategies at the equipment level. That is what happens within the Operational Sustainability, LLC new APM framework that improves asset performance, reduces risk, and enhances compliance assurance. At the very core, this expanded view addresses process safety, human performance, and asset information management.

Analytics / Integration


OS's expanded view of Asset Performance Management (APM) incorporates:

  • Asset Lifecycle Information Management (ALIM)
  • Asset Information Management (AIM)
  • Process Safety Information (PSI)
  • Human Performance (HP) to reduce human error including
    • Competency
    • Training
    • Human factors
    • Personnel change functions
  • Process Safety Management (PSM) to address risk

APM involves operating and maintaining physical assets to optimize their performance. The new APM includes Enterprise Asset Management (EAM), PHA, Condition-Based Monitoring (CBM), Equipment Health Monitoring (EHM), RCM, RBI, IOW and other relevant tools. This expanded view of APM helps eliminate major safety incidents and environmental permit violations.

Simply said, APM processes are what asset practitioners do (i.e. operators, mechanics) and AIM is what the organization does to manage its asset information. AIM and PSI need to be assembled before startup of a facility and maintained throughout the assets' lives. Management of Change (MoC) is key to the governance of AIM along with PSI such as operating procedures, P&IDs, and materials of construction.

The mechanical integrity (MI) element is a key bridge to asset integrity & reliability, and APM. MI focuses on the management of critical process equipment to ensure it is designed and installed correctly, and that it operates and is maintained properly (i.e. no leaks and all elements are fit for service). MI is a subset of an effective reliability program and overall asset management. It encompasses the activities necessary to ensure that equipment/assets are designed, fabricated, installed, operated and maintained in such a way that they provide the desired performance.

Asset integrity focuses on the ability of an asset to perform its required function safely and reliably. Elements include:

  • Inspection (advanced technologies)
  • Risk Assessment (PHA) and Risk Based Inspection (RBI)
  • Maintenance (reliability, predictive and preventive strategies)
  • Operational and process support (Integrity Operating Windows)
  • Process safety and mechanical integrity services
  • Training in industry codes and competency
  • EH&S and maintenance strategies
  • DCS and MES integration

Below is a table that suggests key elements in New APM activities:

Function Description
Work order management Scheduling requests for asset related work and monitoring performance.
Operations planning and scheduling Requires quality asset information. Important for meeting deadlines, maximizing profits and protecting the quality of your product.
Enterprise Asset Management The evolution of a CMMS to incorporate basic work scheduling and tracking, financials, HR, procurement, and inventory management.
Time-Based Inspection It will help ensure that potential leaks, corrosion, damage and failures are minimized to equipment in operation. Standards for the inspection, repair, alteration, and rerating activities based including standards such as API 510, 570 and 653.
Risk-Based Inspection Optimal maintenance business process used to examine equipment and risk imposed by damage mechanisms along with the probability and consequence of failure. Based on standards such as API 580.
Management of Change Not-in-Kind change emanating from re-engineering requirements of equipment.
Process Hazard Analysis Systematic assessment of the potential hazards of a process aimed at reducing the consequence of unwanted events.
Root Cause Failure Analysis Collection of failure data for performance evaluation. An investigative process designed to identify underlying causes of equipment failure such as human or system error as well as the mechanism of failure.
Maintenance Procedures Developed to ensure the MI for all PSM critical equipment on an ongoing basis.
Quality Assurance The Quality Assurance effort "bridges the gap" between design specifications and the initial installation. Quality Assurance efforts focus on ensuring that Process Equipment is:
• Fabricated in accordance with design specification
• Delivered to the proper location
• Assembled and installed properly
Condition Assessment An assessment done to assess the condition on assets. It provides information to make knowledgeable, fact-based decisions for preserving (though maintenance) or renewal (through replacement) or the need for upgrading (refurbishment) of the assets or infrastructure
MI Audit MI deficiencies are commonly covered by PSM audits.
Lifecycle Cost Analysis A tool to determine the most cost-effective option among different competing alternatives to purchase, own, operate, maintain and, finally, dispose of an object or process, when each is equally appropriate to be implemented on technical grounds.
Equipment Strategy A consistent methodology to capture institutional knowledge and learning, along with a standardized approach to operating and maintaining Equipment, leading to effective selection of the right work enabling sustainable reliability.
Failure Mode and Effects Analysis Step-by-step approach for identifying all possible failures in a design.
Criticality Criticality drives stock levels. Determines how essential equipment, component or a system is.
Preventive Maintenance Maintenance that is regularly performed on a piece of equipment to lessen the likelihood of it failing.
Maintenance Planning and Scheduling Optimal planning and control of maintenance resources.
Predictive Maintenance (PdM)/Condition Based Monitoring Aims to detect when equipment will fail. Techniques include vibration analysis, oil analysis, thermal imaging, and visual equipment observation.
Prescriptive Maintenance Also known as equipment health monitoring. Prescriptive Maintenance is a cognitive process involving symptoms analysis, health diagnosis, consideration of alternatives for treatment, and then a prescription for action on equipment.
Parts Management Efforts to have parts on hand to minimize repair time.
Human Factors Practice of designing products, systems, or processes to take proper account of the interaction between them and the people who use them. Concerned with the fit of the user, equipment and their environment.
OEE How available your equipment is, how it performs versus its spec and what kind of quality it produces.
Return on Assets An indicator of how profitable a company is relative to its total assets.
Competency A set of knowledge required to perform a job along with demonstrated skills and behaviors.

Traditional APM vs. New APM

Traditional APM

  • Inspection Management / Mechanical Integrity
  • Risk Based Inspection (RBI)
  • Integrity Operating Windows (IOW)
  • Reliability Management (Criticality, FMEA, RCM)
  • Process Risk Management (PHA / LOPA / FMECA / JSA)
  • Asset Failure Reporting / RCA
  • Performance Management


  • People
    • Organizational / Personnel Change
    • Competency Management
    • Learning Management System (LMS) / Training Management
    • Human Factors Analysis
    • Procedure Management
  • Conduct of Operations / Work Processes and Execution
    • Operator Rounds
    • Shift Handover
    • Operator Logs
    • Work Management / CMMS
    • Alarm Management
    • Incident Management / BBS
    • Procedure Management
    • Condition Based Maintenance (CBM)
    • Condition Assessment
  • Process Safety
    • Document Management / Redlining
    • Inspection Management / Mechanical Integrity
    • Incident Management / BBS
    • Management of Change (MOC)
    • PSSR / Operational Readiness
    • Organizational / Personnel Change
    • Learning Management System (LMS) / Training Management
    • Competency Management
    • Process Risk Management (PHA / LOPA / FMECA / JSA)
    • Alarm Management
    • Audit Management
    • Corrective and Preventive Action (CAPA)
    • Relief Device Management
    • Control of Work / Work Permitting