1. A general applicable Process Improvement Approach www.amc-rf.com 10 October 2005 Asset Management Control Introduction Workshop

2. 1 Day Workshop Program AMC Introduction (9.00 hr)AMC Introduction (9.00 hr) Asset Management Context AnalysisAsset Management Context Analysis AMC Quick ScanAMC Quick Scan LunchLunch AMC Improvement AssessmentAMC Improvement Assessment AMC Business CaseAMC Business Case Workshop Evaluation (17.00 hr)Workshop Evaluation (17.00 hr)

3. Asset Logistics Process Cycle The Workshop Starting Points AMC Process Definition Matrix Determination of: Assets and Actors involved

4. Business Process Function Model Principles & Definitions BUSINESS PROCESS DOMAIN REALIZE Function Area Actor Chain CONTROL PLAN ARRANGE MANAGE PERFORM ORGANIZE SPECIFY PROCESS ELEMENTS PROCESS PHASES

5. A ‘day to day’ Management Model OPERATIONAL ENVIRONMENT TECHNICAL SYSTEM LOGISTICS PROCESS NeedFunctionality Asset Management Focus REQUIREMENTS ACCOUNTS DIRECTIVES CONTROLS PRODUCTS & SERVICES DIAGNOSES (feedback) Key to Symbols: ACTOR ENTITY EXTERNAL COMMUNICATION INTERNAL COMMUNICATION ASSET MANAGEMENT FOCUS Utilization Authority Mainten. Authority Purchase Authority Design Authority The Context Analysis Framework

6. The context of systems thinking Cost-Effectiveness View on Performances View on Cost Asset/System Structure Logistics Process Structure Methods & Techniques Actors serviceability applicability attitude skills mindset knowledge Asset Management Control

7. Context Analysis Reports System Specifications (technical & logistical)System Specifications (technical & logistical) Organizational Aspects (men & means)Organizational Aspects (men & means) Process Performance (quality & quantity)Process Performance (quality & quantity) Management Control (relevant & reliable)Management Control (relevant & reliable)

8. AMC Quick Scan (3 Questions per Function Area) AMC DOMAIN (ASSET RELATED) REALIZE CONTROL PLAN ARRANGE MANAGE PERFORM ORGANIZE SPECIFY PROCESS ELEMENTS PROCESS PHASES SERVICE LEVEL AGREEMENT CONTRACT MANAGEMENT RESOURCE MANAGEMENT CONTROL PLAN LCM SYSTEM PLAN SYSTEM COST- EFFECTIVENESS TEAM WORK ACTOR DEFINITION MODEL LIFECYCLE MANAGEMENT TEAM MANAGEMENT ORGANIZATIONAL PLAN ACTIVITY PLAN MANAGEMENT CONTROL SYSTEM INFORMATION PORTAL TEAM BUILDING LIFECYCLE MANAGEMENT MODEL A possible result with 4 red areas to improve!

9. The Team Based AMC Model OPERATIONAL SYSTEM TECHNICAL SYSTEM LOGISTICS SUPPORT SYSTEM LCM-systems NeedFunctionality LCM-team REQUIREMENTS ACCOUNTS DIRECTIVES CONTROLS PRODUCTS & SERVICES DIAGNOSES (feedback) Key Elements: ASSET MANAGEMENT PROGRAM ENGINEERS & MANAGERS ANALYSIS & CONTROL TOOLS COMPUTER APPLICATIONS WIDE AREA NETWORK The Business Case Framework

10. AMC Improvement Factors 1. well-specified objectives 2. transparent (technical) system breakdown structure 3. transparent (logistics) process structure 4. system effectiveness measures 5. (life cycle) cost measures 6. key performance indicators 7. system knowledge 8. logistic knowledge 9. management control knowledge 10.information & communication technology The Business Case Baseline

11. The RNLN Air Defense Frigates Business Case (for example) The baseline for an AMC Realization Project

12. Evaluation Asset Management Control eliminates Performance Killers & Cost Drivers by getting Systems in Control