Question

considering the perfomance standards of an asset, discuss the difference between the desired perfomance of an asset and its built in capacity.

MMN101M/101/0/2019 1.2 Considering the performance standards of an asset, discuss the difference between the desired performance of an asset and it's built in capacity. Give a practical example, different from the ones given in your text book. QUESTION 2 n 140 Thea desired performance of any asset will deteriorate with age, due to several factors. Discus the failures which are not age related. Nardle S QUESTION 3 Mean time between failures (MTBF) is the predicted elapsed time between inherent failures mechanical or electronic system, during normal system operation. One of the big problems asset failure is the random failure which is difficult to predict. Discuss the potential failure curve and the Weibull distribution. Give graphic example of the P-F curves and explain each the probability density function terms. of a (P-F) [10] QUESTION 4 To formul ate a maintenance strategy three key points must be determined namely: at what level within the plant the maintenance is to be performed. what structure is needed to support the maintenance and what resources are needed. . 4.1 Discuss the maintenance strategy of a plant and draw a maintenance policy decision chart [121 4.2 Draw and discuss a typical maintenance resources chart QUESTION 5 When planning a project there are several key points that must be considered. A bar chart based [10] on the work breakdown structure (WBS) of a plant is a very clear means of presenting a me of work. Draw a bar chart and a resource chart derived from the bar chart showing all (14] salient values. QUESTION 6 Table 1 shows the activities for a certain project. Due planners found it difficult to estimate the duration of individual activities. It was PERT diagram to be able to provide the beneficiary with a most optimistic duration, a most pessimistic duration and the most likely duration for that activity. measured in weeks. to the complexity of activities the project decided to use a The activities duration is Table 1 Link a m b Precursor activity Link type Activity a

Answer 1

Like any other resource of the company, even the assets used for production come with life and certain performance standards. These performance standards are based on the business objectives, investment in the asset, the capacity of the asset and performances of assets in the past in the similar process of operations. Based on the performance standards the company sets parameters of desired performance from a particular asset. Which means that while purchasing an asset they expect it to perform in a way for a time with a certain outcome.

Desired performance of the asset is determined by the objectives of the organization and expectancy level from that asset. It is evaluated when an asset is purchased for use in the organization. For example, a company has 50 machines for the production of 5000 units. They have to increase their production due to the increasing demand for the product in the market. The desired output now is 7000 units. For this, they will purchase 20 machines more(to manufacture 2000 extra units). Hence the desired performance of those 20 machines is 100 units per machine. This is based on the performance of the previous machines and the demand of the production levels.

The built-in capacity of an asset will be its capabilities of performance and how much it can actually produce when put to operation. It is important that built-in capacity aligns with the desired performance so that the organization's investment doesn't turn to be a loss. For this, the opportunities and risks of the asset will have to be evaluated and optimised with the business goals. The process of balancing the built-in capacity of an asset with the desired performance is asset management. And to evaluate this balance and optimization the use of performance standards is effective.

With reference to the above example, new 20 machines are purchased for an increased rate of production. But it is also essential to analyse that these 200 machines have a built-in capacity to produce 100 units each. The performance can vary with a deterioration in quality or any such factor and the desired performance as per the performance standard can be different from the built-in capacity of the machine.