Silcar is an asset management organization operating across a wide range of locations and industries within Australia. In large part, the company credits its significant growth to a commitment to their customers’ financial returns via improved asset performance.
Challenges & Issues
- Clearly and consistently communicating the value of asset performance management across the financial, technical asset, and executive domains of an organization.
- Moving customers from a maintenance repair approach to a risk-based asset strategy approach.
Meridium’s Asset Strategy Management (ASM) solution helps Silcar to determine maximum possible production as well as production losses and their associated financial risk, enabling APM value to be communicated and understood throughout the enterprise. Production and production losses are key drivers of value and financial returns. When asset performance is expressed in units of gained or lost production, it is easy to communicate the value of APM across organizational boundaries.
Meridium ASM reviews asset strategies using a risk-based approach. ASM provides a common methodology to define actions and the mitigated risks for any asset, providing the ability to evaluate existing plans with basic qualitative risk analysis that is both straightforward and easy to use. Silcar’s managers can validate existing plans or consider strategy options to update and implement plans which are more effective in managing risk.
High asset utilization with low variability enables significant financial value release through:
- Lower costs via organizational efficiency
- Shorter order-to-cash cycle
- Lower capital commitments to inventories and facilities. Using asset strategy management to identify, contain, analyze, and remove production losses provides a bridge demonstrating the value from APM in financial terms, thus linking the financial and technical reliability domains.
Silcar customer success has translated into a company annual growth rate of 25% since 2000. Starting from one project in the power industry, Silcar has developed into a multi-industry, multi-site global organization, that is now working with blue chip clients involved in heavy and light manufacturing, metals processing, pulp and paper, telecom energy systems, power protection and distribution, mining, and automotive.
“The concept of APM as a key driver of value, a key driver of financial gain, is an idea whose time has come.”
Silcar CEO Bernie Cooper