Asset Management: Why You Should Not Delay Its Integration!

Implementing an effective asset management strategy from the beginning of a greenfield project is not just a best practice—it’s a necessity. Yet, many organizations choose to delay this integration until the execution phase, overlooking the strategic value it can deliver early on. This delay is a gamble that can jeopardize the entire venture.

In this article, we explore why integrating asset management early in the project lifecycle is critical and how delaying it can lead to significant operational setbacks.

1. Why Early Integration of Asset Management Matters

Early integration of asset management allows organizations to sidestep several major pitfalls that can significantly disrupt operations and profitability. Here are some key reasons why it should be a top priority:

1.1 Prevent Equipment Failures Before They Happen:

Skipping proactive asset management from the start almost guarantees equipment failures once operations kick off. Without an early focus on asset reliability, equipment selection, design, and installation may not align with the demanding industrial environment. This misalignment results in frequent breakdowns, which require costly reactive maintenance interventions and reduce the overall lifespan of your assets.

1.2 Avoid Costly Reactive Maintenance:

Postponing asset management until the execution phase locks organizations into a cycle of costly and inefficient reactive maintenance. During this period, the focus shifts to fixing issues as they arise, rather than preventing them altogether. This reactive approach leads to increased operational costs and longer downtimes. Conversely, implementing asset management practices early on enables a seamless transition to preventive or predictive maintenance.

 1.3 Gain Real-Time Asset Visibility:

Delaying asset management integration blinds you to real-time asset status, especially in large or remote projects. A lack of visibility not only complicates decision-making but also leads to poor resource allocation and heightens operational risks.

 1.4 Mitigate Risks to Safety, Productivity, and Profitability:

The risks associated with delayed asset management are not static—they tend to snowball, triggering a chain reaction that undermines safety, productivity, and profitability. Operational risks escalate as issues pile up, creating an unsafe working environment and leading to subpar production rates. Starting asset management early defuses these risks, paving the way for smooth, successful operations.

2. Analyzing impacts through 3 scenarios

Based on our experience, we have observed three typical scenarios regarding asset management integration in greenfield projects. Let’s examine the outcomes of each approach.

2.1. Not Investing in Reliability

In this scenario, the organization does not invest in asset management or reliability initiatives during the initial project phases. As a result, production increases gradually during startup, but the ramp-up is slower compared to the optimal scenario. The plant’s performance eventually stabilizes at a level somewhat below the industry average. While the organization avoids the upfront costs of implementing a robust asset management strategy, the missed opportunity for improved performance results in lower profitability in the long run. 

Key Takeaway: A relatively small, one-time upfront investment in asset management could have been quickly paid for by significantly higher profits sustained for years to come. 

2.2. Delayed Investment

In this scenario, the organization decides to invest in asset management during the startup process or afterward. Initially, production ramps up slowly, similar to the first scenario. Once the reliability investments are made and implemented, performance and profitability increase dramatically.  Unfortunately, the delayed investment meant a delayed realization of benefits. Additionally, the costs of implementing asset management during or after startup are higher due to re-work, modifications, and potential retrofitting requirements.

Key Takeaway: Delayed integration is less efficient and more costly because the ideal conditions for asset management setup are lost once operations begin.

2.3. Investing During Design

This is the optimal scenario where the organization integrates asset management during the design phase. The startup curve is steeper because the reliability initiative was embedded from the beginning. The startup process is smoother, and top quartile performance, as well as the profits that accompany it, are realized more quickly. Implementation costs are also lower because everything is built with a reliability-focused approach, and the need for rework or retrofits is drastically reduced.

Key Takeaway: Investing in asset management during the design phase leads to faster ramp-up, higher performance, and reduced costs.

Conclusion: Don’t Gamble with Your Assets—Start Early

In conclusion, delaying asset management integration in a greenfield project is a high-risk move that can lead to equipment failures, increased maintenance costs, and reduced operational visibility. These risks compound over time, impacting safety, productivity, and profitability. Investing in asset management during the design phase ensures a smoother startup, faster achievement of optimal performance, and lower overall costs.

Don’t let your greenfield project become a cautionary tale—integrate asset management early and position your organization for long-term success.

Erwan Lecuyer,
Spartakus Technologies
[email protected]