Impact of the GAO Report – GAO-19-57 Federal Real Property Asset Management

The recent report by the GAO on  Federal Real Property Asset Management . In this post we discuss the implications of this report  for both Private and Public-Sector Organizations.

Background :Senators Claire McCaskill and Tom Carper requested the U.S. Government Accountability Office to study the potential value of the ISO 55000 management system for asset management on the federal government


Can Technology get me to Scheduling Nirvana

The Simple answer  is No, before implementing any technology or even perfoming a major upgrade to your scheduling solution you should consider the following:

Assessment of Current Maintenance Strategy – Have you determined whether it’s more cost effective to perform maintenance or to run equipment to failure? To repair in-house or buy a replacement? These and many more questions are answered. 

Schedule Variances Cost Evaluation – Do you know the costs associated with last minute schedule changes like lost time, expedited shipping, and lost production? Identifying these costs is the first step to reducing or eliminating them. 

Maintenance Value Realization – Recognizing inefficiencies is the first step in correcting them. No matter which EAM/ERP/CMMS system you use, we have the experts to assist your team in developing a solution that works for your organization.  

How Can AJAG help with Inventory Management

Data Standardization and Cleansing – Is your EAM/ERP/CMMS filled with duplication and materials that are no longer used? Review of the asset lifecycle process ensures that ghost assets (assets no longer in use or no longer on site but still on the books) are not costing you in unnecessary taxes, or causing shortages during critical maintenance. 

Bill of Materials (BOM) Development – An accurate BOM is crucial for ensuring the right parts go out with the work order. Let us work with Planning & Scheduling to develop accurate BOM’s. 

Compatible Units – Does correcting the standardization of your material descriptions create problems with your existing compatible units? Does the possibility of moving to a new CU software system present an opportunity to cleanse existing CUs or material records?  

Kitting Program Support – Do you have technicians standing in lines at the storeroom to go shopping for materials for supposedly planned work? How much is that costing you? 

Inventory Turns/Risk Evaluation – Are you carrying materials in stores that don’t turn at least once a year? What happens if you don’t have a part? What is the risk?  

Spare Parts Analysis – What parts are ordered and on what frequency? Can we transfer this burden onto our vendors? Are there parts that should be placed in JIT (Just in Time) inventory?  

Vendor Evaluations – What vendors go the extra mile and which vendors should just go

What is the best approach to stress the importance of having a proper maintenance plan ?

Typical maintenance costs of world class maintenance organizations average 2% or less of plant replacement cost * (Reliability Magazine Article) 

Every $100,000 saved in a maintenance department is equivalent to a $2,000,000 increase in sales, assuming net 5% margins. 

The Criticality Assessment provides improved understanding of facility components critical to continued safe operation. 

Failure Modes & Effects Analysis (FMEA) and Root Cause Failure Analysis (RCFA) development identifies likely failures and consequences of those failures. 

Predictive Maintenance versus scheduled Preventive Maintenance 

Understanding PdM Implementation Costs – Most equipment need not be taken offline to use PdM. The increase in production more than offsets any costs to implement. 

Predictive Maintenance (PdM) Technologies have come down in price. 

Preventive Maintenance on a predetermined time frame can result in unnecessary maintenance, excessive downtime, increased accidents and excessive parts inventories. 

Predictive Maintenance/Condition Based Maintenance is more cost effective. 

Labor productivity losses such as …

Waiting for instructions

Looking for supervisors 

Checking out the job 

Multiple trips to the store 

No special tools 

Waiting for approval 

Too many technicians per job 

Things to Consider when looking at Equipment Reliability

Equipment Criticality Assessments – Are you performing maintenance on non-critical equipment while ignoring maintenance on equipment critical to safety, production or regulatory requirements?  

Failure Modes & Effects Analysis (FMEA) Support – Do you know what equipment is critical and what the true cost of its failure will be?  

Root Cause Failure Analysis (RCFA) Support – Do you know how to identify the root cause of a problem so it can be addressed and to keep it from returning?  

Predictive Maintenance Technologies – Cost-effective application of predictive maintenance technologies can assess equipment health during operations and can help reduce the need for periodic overhaul-type maintenance tasks. Let AJAG’s network of seasoned reliability resources assess your use of predictive maintenance technologies to ensure maximum value from your critical assets. 

Methods and Maintenance Strategy Evaluation – We can help you evaluate typical maintenance strategies, including: 

  • Repair vs. Run-to Failure Analysis 
  • Lost Production Cost Analysis due to PM Practices 
  • Predictive Maintenance Technology Analysis 

Want to Learn more ?

AJAG has a network of senior maintenance and reliability professionals to support the entire lifecycle of your equipment assets from design through disposal, all in support of ISO-55001 compliant Best Practices. Our advisors and facilitators have been where you are and have worked through the problems you have.

Let them guide you to understanding how to extract full value from your equipment assets now and in the future.