Report – Seminar on “Management of Physical Assets To Deliver Business Outcomes Cost Effectively”
CEAI on the initiative by the CEAI-Western Region Centre who collaborated with the Institute Asset Management, UK organised the seminar on 12th October 2017 in Mumbai.
The intent of the seminar was to draw attention to the fact that an asset is a boon only so long as it provides value to an organization and its stakeholders, or else it becomes a liability.
It served to emphasise that building an asset and maintaining that asset so that it can continue to remain fit for the intended purpose in a safe and efficient manner for its design life are two different scenarios. The former is for a short duration but the latter stretches over the life of the asset ranging from a few decades to over a century. The state of un-kept and ill-maintained assets is costing the country dearly. The burden like any other is borne by the masses. There is therefore an urgent and dire need to bringing greater awareness amongst all those involved in managing physical assets; and to promote the adoption of international standards and best practices in India.
Physical assets include public and private buildings, hospitals, education centres, hotels, roads & highways, drainage, railways, ports & harbours, shipping, aviation, water and sanitation, flood protection, space research, defence, chemical & industrial plants, power generation and transmission, oil & gas, telecommunication, irrigation, etc. These assets which include the fixed as well as the movable assets such as plant & equipment are vital for the socio-economic development of any nation.
The seminar brought out that if an organization has multiple assets at the heart of the business, then an efficient asset management strategy, regardless of whether the assets are tangible or intangible, financial or non-financial, would contribute to better operating results, service performance and ultimately improve the bottom line of the organization and at the same time sparing the masses the burden of funding for rebuilding the asset. The concepts and principals of asset management are not limited to organizations per se but can be equally be extended cities, regions and even to individuals.
The International Standards Organization (ISO) has created the ISO 55000 family of standards to give guidance on asset management best practice. This was a collaborative effort of 36 countries, including India. It focuses on helping to develop a proactive lifecycle asset management system. It thus supports optimization of assets and reduces the overall cost of ownership while helping to meet the necessary performance and safety requirements. It was released in 2014.
The incorporation of a chapter on Asset Management in National Building Code of India 2016 will give a much need impetus to proper maintenance of buildings.
The seminar was well attended considering that it was on a captivating, educational and stimulating topical issue of managing physical assets.
The presentations were informative and give a range of perspectives on managing assets.
During the inaugural session Mr. A P Mull, Past President CEAI accorded a warm welcome to the Chief Guest, all the dignitaries and participants. Mr. Uttam Sengupta, Vice President, CEAI and Chairman CEAI-WRC briefed the participants about the seminar. Ms. Sayona Philip, President CEAI also stressed on the need for generating awareness on the seminar theme.
Mr. Neeraj Bansal, Dy. Chairman, Jawaharlal Nehru Port Trust (JNPT) who was the Chief Guest, enlightened us about the proactive measures being taken by the Government and public sector to converge the synergies between finance, logistics and physical management especially in the context of managing such a large asset as JNPT.
Dr. Harshavardhan Subbarao dwelt on the considerations that led to deciding on the theme. Thereafter he convened the proceedings of the day.
Mr. David McKeown, CEO, Institute of Asset Management, UK then took us through the business case for asset management and stimulated a discussion on how every human being is really as asset. He stressed that people from all professions and not only engineers need to be a part of the team for Asset Management.
Dr. Navil Shetty, Director, Fellow & Technical Chair for Asset Management, Atkins Limited, UK provided a clear presentation and summary of the ISO 55000 suite of standards supplemented by practical advantages of optimising the assets through a systematic management system as well as what happens when the assets are not managed properly. He mentioned that long term cost savings result from proper asset management.
Mr. V Suresh, President, Good Governance India Foundation, Vice Chairman, National Building Code of India and Former CMD HUDCO made a passionate speech about the new chapter introduced in the National Building Code of India 2016 on Asset Management that led the audience to question as to what would happen to their house as an asset say 20 years down the line and which stakeholder would be responsible for maintaining it.
Ms. Holley Chant, Executive Director, Corporate Sustainability, KEO International Consultants presentation pointing out to the link between sustainability and physical asset management and describing the earth as the largest and most valuable asset which we need to manage, struck a chord with all present.
Dr. Barun Chakrabarti, General Manager, Asset Management, Engineering Services, L&T Hydrocarbon Engineering Limited described asset management for chemical and industrial plants and the steps that are being taken to design the life of an asset, to create an organised means to extend the life and assess the residual value of the existing physical assets was an engaging exposition.
Mr. Pravin R Shahu, Vice President, Tata Consulting Engineers Limited explained at length how digital technology can be pressed in service for assets management including giving an insight on Resilient Infrastructure Modelling and Digitisation.
Mr. Dinesh Sharma, CEO, DNR Process Solutions PTE Ltd. spoke on efficiency and saving by digitisation of asset management and gave a perspective on the use of technology and steps that can be taken to make it more streamlined.
Mr. Ajay Mathur, Technical Director, PowerQ Technology Pte Ltd. explained at length the need for proper commissioning of each system to obviate problems later on and ensure that they perform as desired.
The Panel Discussion on “Accelerating the adoption of Asset Management standards and best practices in India” was moderated by Dr. Harshavardhan Subbarao, the Convenor, Co-Chairman CEAI-WRC and Past Vice President CEAI. The issues discussed were the experience in other countries, raising awareness in India, the role of Government, Regulatory Bodies and Financial Institutions, Trade Bodies, Professional Institutions and Academic Institutions. There was good participation from the audience. The attendees were keen to adopt asset management as per codes in their sphere of operation.
Mr. Jeffrey Nambiar, Hon, Secretary & Treasurer, CEAI-WRC, proposed the Vote of Thanks.
Please download the presentations
Please see the seminar pics from the following link