Development of asset management model using real-time equipment monitoring (RTEM): case study of an industrial company

Iluore, Oshios Earnest; Onose, Angela Mamudu; Emetere, Moses Eterigho Article Development of asset management model using real-time equipment monitoring (RTEM): case study of an industrial company Cogent Business & Management Provided in Cooperation with: Taylor & Francis Group Suggested Citation: Iluore, Oshios Earnest; Onose, Angela Mamudu; Emetere, Moses Eterigho (2020) : Development of asset management model using real-time equipment monitoring (RTEM): case study of an industrial company, Cogent Business & Management, ISSN 2331-1975, Taylor & Francis, Abingdon, Vol. 7, Iss. 1, pp. 1-26, https://doi.org/10.1080/23311975.2020.1763649 This Version is available at: https://hdl.handle.net/10419/244848 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. 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This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license. Published online: 19 May 2020. Submit your article to this journal Article views: 2600 View related articles View Crossmark data Page 1 of 26 OPERATIONS, INFORMATION & TECHNOLOGY | RESEARCH ARTICLE Development of asset management model using real-time equipment monitoring (RTEM): case study of an industrial company Oshios Earnest Iluore, Angela Mamudu Onose and Moses Emetere Cogent Business & Management (2020), 7: 1763649 OPERATIONS, INFORMATION & TECHNOLOGY | RESEARCH ARTICLE Development of asset management model using real-time equipment monitoring (RTEM): case study of an industrial company Oshios Earnest Iluore 1 , Angela Mamudu Onose 2* and Moses Emetere 3 Abstract: Globally, the issue of implementing efficient and effective asset management systems has been a challenge for most companies, especially those operating in the oil and gas industry due to the complex nature of their operations. In recent years, with the decline of oil prices, market conditions have become so competitive such that even a few minutes of downtime of equipment could lead to significant loss of revenue. A case study of an Industrial Company is presented, with the goal of assessing its current asset management system. Based on the evaluation of the current asset management system practiced by the Company, it was noted that there are significant gaps in the current practice, and the Company is yet to leverage advanced technological tools in managing its assets. Specifically, the Company does not currently have an appropriate system of tracking and monitoring its assets location, and utilization, despite the fact that the assets move from one location to another in fulfilling customer’s needs. A Real-Time Equipment Monitoring system is developed for the industrial company using GPS, Barcodes and RFID Oshios Earnest Iluore ABOUT THE AUTHOR Earnest O. Iluore is a Distinguished Member of the Domtar Reliability Team. He holds the position of Reliability Supervisor Central Services at Domtar. Before joining the Domtar family, he worked for Axiom Equipment Group as a Lead (Maintenance and Services). Prior to that, he worked for Schlumberger as a key player in the Maintenance and Reliability team. He received his HND in Mechanical Engineering from Auchi Polytechnic Auchi, Nigeria, BEng in Mechanical and Manufacturing Engineering from the University of Portsmouth UK and MSc degrees in Reliability Engineering and Asset Management from the University of Manchester at Manchester UK. He is a Certified Maintenance and Reliability Professional (CMRP) and an active member of the Society for Maintenance and Reliability Professionals (SMRP). He is a Certified Vibration Analyst Level 2 (ISO 18436-2) and an active member of the Canadian Machinery Vibration Association (CMVA). He is a Lean Greenbelt Champion Certified by Canadian Association Manufacturer. The authors` practical approach to engineering and asset management makes the text in the journal an essential addition to the library of anyone practicing in these fields. PUBLIC INTEREST STATEMENT Effective asset management systems remains a global concern as companies always seek an effective way to manage their assets to create value for both themselves and their shareholders. A privately owned company with over 15 years of experience in the oil and gas industry was selected as a case study with the goal of assessing its current asset management system. It was based on asset life cycle management process which has Equipment Reception, Maintenance Planning, Maintenance Scheduling, Maintenance Execution and Performance Testing as its highlight. The limitations of this approach include reactive maintenance being practised, unnecessary lag period recorded, poor optimization of asset mobilization, slow reaction to incidents and cases of asset loss. Real-Time Equipment Monitoring which includes the use of Radio Frequency Identification, Barcode and GPS was implemented. Aside from a record of 30.8% increase in asset utilization, specific benefits which include asset value retention, automated workflow, improved coordination and responsiveness were achieved. Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 © 2020 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license. Received: 23 December 2019 Accepted: 14 April 2020 * Corresponding author: Mamudu Onose Angela, Department of Chemical Engineering, Covenant University, Ota, Nigeria E-mail: [email protected] Reviewing editor: Albert W. K. Tan, Education, Malaysia Institute for Supply Chain Innovation, Malaysia Additional information is available at the end of the article Page 2 of 26 technology to provide information relating to assets location, status, condition and maintenance history which led to 30.8% increase in assets utilization. Generally, a benefit analysis carried out shows that the new system will always provide realtime observation data and instrument parameters for maintenance engineers and ultimately company managers for effective decision-making at strategic levels. Keywords: assets; barcodes; industrial company; maintenance; management and real time equipment monitoring 1. Introduction 1.1. Background knowledge The issue of effective asset management systems is now becoming a global one as companies seek effective ways to manage their assets to create value for both themselves and their shareholders. (Jooste & Vlok, 2015). This raises more concern in the oil and gas industry due to their complex nature of their operations. Companies operating in the oil and gas industries in Nigeria have been facing challenging industrial conditions and declining markets in recent years, especially in 2015 and 2016 when the overall revenues generated in the oil and gas industry was subjected to decline (National Bureau of Statistics, 2016). Furthermore, there is increased pressure on Companies from stakeholders with respect to the social and environmental impact of their operations, thus, causing the need for improved efficiency in all aspects relating to company operations. Thus, it is not surprising that companies are even more concerned about their ability to manage and operate their complex offshore assets in a way that they can deliver functional services to the customer throughout the asset life cycle. Asset management is concerned with the life cycle management of assets to achieve the business objectives of any organization that may own or manage assets. Asset management is not just a fancy word for maintenance, and is essential to all companies regardless of size, as poor asset management is often listed as one of the significant causes of an organization’s failure. Generally, in the oil and gas industry, where pretty much most of the assets used are incredibly complex and expensive, asset management plays a significant role in ensuring that these assets are properly utilized, and maintained to ensure better reliability, keep their economic value, and do not get improperly disposed of due to lack of accessibility. One of the ways that companies can effectively manage their assets is through the implementation of an effective asset management system. However, it is almost impossible for companies to navigate through these complex terrains using traditional methods of asset management. Existing literature has shown that organizations, both in the public and private sector face different challenges in managing their assets. In a research paper published by Irene et al. (2016), delegates to an industrial workshop which had different practitioners ranging from asset managers, consultants, designers, etc., in different industries, held at the University of Cambridge, UK, and at the Rutgers university, USA, were requested to provide input relating to the current challenges faced in terms of reducing asset life cycle costs and to identify innovative tools that can help in optimizing costs invested in assets. Amongst the input provided by the delegates, the most common responses are categorized into three broad categories –Asset Performance Monitoring and Prediction, Optimizing Capital Expenditure and Data Management. In the oil and gas industry, for example, the priority on these physical assets over financial or current assets comes from the realization that it is the output of work performed with these physical assets that yield financial returns. Campbell et al. (2016) noted that there are a number of activities and roles that must be performed on the physical assets for there to be said that management has taken place. Some of these include the role of designing, constructing, operating, monitoring, repairing, replacing, and disposing of the physical assets (Maletičet al., 2017). With Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 3 of 26 these roles, it could be said that physical asset management actually encompasses all stages of the business life cycle, and is also a revolving rather than linear activity within the organization. 1.2. Discussion of benefits C. J. Li et al. (2016b) admonished that the selection and use of specific technologies for real-time asset monitoring must fit into a number of contexts, including the size of the firm, the industry of the firm, the functions of the assets, and personnel available to perform the monitoring. In the specific context of the oil and gas industry, there are static and rotating equipment that are used as part of the day-to- day running of oil blocs and operation of companies as a whole. Mhlaba and Masinde (2015)notedthat most of these equipment are used at all verticals of the industry, including upstream, midstream and downstream. Some of these static and rotating equipment include, but not limited to, heat exchangers, pipelines, valves, turbines, furnaces, compressors, boilers, and pumps (C. J. Li et al., 2016b). Each of these types of equipment plays very instrumental roles, without which the work of refineries and oil and gas companies in general cannot be complete. While there are several methods of real-time asset monitoring, Ferdinandus and Setiawan (2016) observed that most of these overlap and so can be categorized into three main components. First of these involve the use of barcode labels in monitoring assets. Wang et al. (2015) posited that the use of barcode labels is very common for asset monitoring that relates to location identification. The instantaneous manner in which the information is given is what makes them real time (Yu et al., 2018). Many have also criticized the use of barcodes as being more manual rather than virtual and on-the-go Wahap et al. (2016). While this is admissible, several advancements are being made to improve the experience with barcode monitoring such as the ability to scan barcodes with smartphones (Al Mamun et al., 2016). The second system or method of real-time asset monitoring involves the use of Global Positioning System (GPS). GPS tracking of physical assets is seen by many as the most perfect constitution of real-time monitoring. The reason for this is the manner in which GPS trackers give not only instantaneous information but also on-the-go information about assets (Thaduri et al., 2015). In a typical oil and gas company with several branches within the country, the GPS tracker can help the asset monitor to constantly tell the location and status of assets without making any special record for asset information to be sent (Shah et al., 2017). While there are merits, Ferdinandus and Setiawan (2016) found that GPS asset tracking can have its own limitations. The major limitation comes when using this system for equipment that are moved or travel over longer distances. This is because across such distances, there are possibilities that tracking may fail with poor signal transmission across certain locations (Shah et al., 2017). To address this situation, Congress et al. (2018) observed that most modern GPS trackers have therefore been enhanced with advanced signal transmission technology to boost reception of signal strength from satellite systems to report over terrestrial networks. Meanwhile, RFID tags have often been criticized as not constituting or ensuring real-time monitoring. The reason for this is the proximity limitation that comes with tracking via RFID. That is, when an equipment is tagged but is outside the receptive radius of the asset manager or whoever is responsible for monitoring, there could be total loss of communication with the equipment, thereby making it impossible to log information at a specifically needed time (Fang et al., 2016).There are however several researchers including Fang et al. (2016) who consider this as merely an excuse rather than a justification for claiming RFID tags not to constitute real-time monitoring. Adame et al. (2018)also posited that RFID tags are very good options for smaller firms, which cannot afford the more sophisticated and expensive GPS tracking systems. Because the equipment of such small companies are often within a smaller radius of space, it is always effective for their asset managers to know where an equipment is, and its status within 1.25 miles. This is a strong premise for classifying the RFID as examples of real-time monitoring components. Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 4 of 26 1.3. Problem statement In an internal asset reconciliation report circulated by the management of this organization, the company noted that it made a loss in 2017 of 1.0 USD M in either overtime spent on repairing assets, or acquiring additional assets. Prior to this report, the company had issued a similar report where it indicated that it recorded loss related to missing asset and/or asset theft and underutilization of assets costing approximately 3.2 USD M in the year. Consequently, the company needs to implement an improved system of managing its assets, as it currently has no appropriate system of tracking and monitoring its assets location, and utilization, despite the fact that the assets move from one location to another in fulfilling customer’s needs. The aforementioned issues existed mainly because the current asset management system adopted by the company is largely manual; hence, asset data is largely prone to error, and there are no adequate controls for asset inventory management. Consequently, the current asset management system of this Company has been chosen as a case study, with the aim of evaluating its effectiveness, identifying peculiar problems, and developing an asset management system using Real-Time Monitoring (RTEM) to effectively manage the assets of the company, including tracking their location, collating data regarding their operation and maintenance status, with the aim of improving the overall utilization of the assets. One of the major lines of argument in the body of literature relating to the use of real-time monitoring is the fact that it serves as a competitive advantage for the growth and expansion of companies, including those in the oil and gas industry (Rahimi et al., 2017). The competitive advantage is gained as the problems with asset management are eliminated as identified above. This is achieved by ensuring efficiency with assets (Roe et al., 2016), effectiveness with assets operation (Shah et al., 2017) and lastly having good corporate culture (Mamudu et al., 2019; Rødseth & Mo, 2016) 1.4. Methodology ●Gathering of relevant location data, existing and new, necessary to perform an analysis of the current asset management system at the organization. This information would include the organization’s overall objectives, its asset management system, shortcomings, and specific data relating to its asset management. Gantt chart was incorporated to show how different milestones were achieved. ●Informal Interview of personnel responsible for using the system to obtain the required level of detail necessary to identify the current state of the asset management system. ●Identify the shortcomings with the current asset management system, after a thorough analysis. The analysis would be presented in the form of visual representations (Fishbone Diagram, T- Wheel) and qualitative analysis. ●Propose the implementation of a RTEM as a tool for an effective asset management system. ●Perform a benefit analysis of the system to ascertain that the proposed system is worth exploring further and deployed throughout the entire organization. 2. Company profile The company in question is one of the world’s leading oilfield service provider with over 15 years’ experience in the upstream sector of Nigeria oil and gas industry. Its operations include drilling, production and well intervention service, spread across over 10 locations within Nigeria and three other African countries (Gabon, Ghana and Senegal). It offers services such as well services, directional drilling, oil testing, mud logging services, sales and rental of production equipment, amongst others to several exploration and production companies. Given the nature of its operations, the different functions are all decentralized, under the leadership of an asset manager who is responsible for the management of its own department’s assets. However, the asset managers of each department follow already established asset management practice designed and implemented by the Company’s general asset manager. Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 5 of 26 For the purpose of this study, the asset management practiced at the well servicing department has been selected as the case study, primarily because it is the largest operation at the organization, with the highest number of assets. The department manages approximately 2680 assets, which move from a central warehouse, and in some cases from the Company’s operational base in Port Harcourt, Rivers State to different sites, or locations specified by the customer in a year. In some instances, certain contracts span a period of more than 1 year, with the deployed asset remaining at the client’s site throughout the contract duration. 2.1. The well services business segment The Well Services segment is made up of three business units, namely,; Well Intervention, Well Stimulation and Well integrity. The well intervention segment is responsible for maintaining or enhancing the well productivity after the well has been completed, and production has begun from the reservoir. In carrying its functions, the department employs the services of coiled tubing which are long, and often continuous length of pipes that are wound around a spool. The pipe diameter can range from1in.to4.5in,whilethecoiltubingcanbefrom2,00 ft to 15,00 ft, and longer lengths in some cases. The well stimulation processes involve fracturing, acidizing and water control treatments using a stimulation pump float or skid configuration at a high-horsepower in order to achieve an increase in the well productivity. One of the main equipment used in carrying out this operation is a Stimulation Pumper with Figure 1showing the correlation between the pump discharge pressure and the pump rate. The well integrity segment supports and protects well casing and also helps for zonal isolation. These services are very critical and common as their application cuts across many stages in the oil and gas production activities. This aspect of business uses a cement pumper to deliver a highpressure service. Figure 2shows the engine performance curve of the front and back, respectively. 2.2. The current asset management system The well servicing division manages about 60% of the company’s drilling assets, with an annual capital investment of approximately 1 million US dollars, most of which is spent on materials, spares, and other asset purchases for use in both new and existing projects. Due to the nature of operations of the company, assets are typically moved from one client’s location to another, and the wide spread of clients can pose logistical challenges. Also, some of the assets and spares are typically imported into Nigeria from different countries, which means that in some cases, there would be a significant lead time between material order time and delivery time. To counter the Figure 1. Pump discharge pressure versus pump rate. Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 6 of 26 effect of the lead time, the company has established a warehouse system at various locations where required items can be ordered in advance, stored, and picked off when required. The organization currently has a total of 53 designated warehouse and storage location in areas it operates across Africa. Of the 53 locations, 46 of them hold only equipment used for providing well services, as that is its largest operations. As at the time of carrying out this project work, the warehouse located at Takoradi holds about 373 pieces of drilling motors, 457 pieces of 3”drilling pipes, and varying other materials together valued at 3.28 USD m based on data obtained from the Maximo Asset management system. The general asset management is categorized into two, namely, material management department and the maintenance department. The material management department is responsible for procuring assets, and provides services to the different departments within the Company. It acts as a supermarket to the different departments within the Company. Once the department receives assets from suppliers, they are tagged with labels that contain an asset number, which are supplied to the Company by a third-party vendor. The well service function responsible for asset management is known as the well service lifecycle management team (WSLM). The team is responsible for the total asset management from equipment reception to maintenance execution and planning. The asset life cycle management process performed by the WSLM is shown in Figure 3. The equipment reception happens upon completion of work at a client site, when an equipment fails, or when maintenance is scheduled for an equipment. Equipment is received by the WSLM team into the base. The received equipment’s maintenance program is reviewed to identify any pending or due repair, and where there are any pending repairs, the equipment is washed, and Figure 2. (a) Front engine performance curve. BPM –Beats per Minutes, HHP –High Horse Power. (b) Rear engine performance curve. BPM –Beats per Minutes, HHP –High Horse Power. Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 7 of 26 3.2. Enterprise Resource Planning System (ERP) and Computerised Maintenance Management Software (CMMS) ERP systems consist of “different functional modules which are integrated by software architecture and used by organization to enter, manipulate, and process, deliver data with the inbuilt business practices in real time across internal and external partners”(Felix et al., 2016). Integration of the system is one of the most important characteristics of such a system. The main purpose of an ERP system is to streamline and automate processes while ensuring regulatory compliance and gaining real-time insight into the overall performance. The goal of the CMMS is to make available quality data to assist maintenance in decision-making (Terry, 2014). CMMS help promote the standardization of equipment maintenance process and decision-making by providing the right information. In as much as the CMMS reduce the overall budget of the maintenance, it does not include enough feature of project management (Terry, 2014). Therefore, incorporating the ERP and CMMS will provide the required platform for the execution of the RTEM technology efficiently. 3.3. Barcode technology Barcodes are printed horizontal strips of vertical bars used for identifying specific items. Barcodes can be read by optical scanners called barcode readers or scanned from an image by special software (Wang et al., 2015). They are generally used in storing name, address, and other information. Barcodes are much quicker, more efficient entry of information and are inexpensive and easy to implement. As barcodes are printed and processed by machines, they are processed much faster than standard human data entry and with a much higher degree of accuracy. Barcodes have the potential of dramatically improving the productivity and reliability of nearly all applications (Wahap et al., 2016). For example, on an average, it takes 6 seconds for an operator to enter 12 characters of data, whereas scanning a 12-character barcode takes only 300 ms. The 12-error rate for typing is higher than scanning barcodes. A data entry error will translate into additional costs for a business that ranges from the cost of re-keying the data to sending the wrong asset to the wrong customer. 3.4. RFID technology RFID is described as a technology that provides wireless, non-contact data communication among devices in a system. RFID was invented in October 1948 by Harry Stockman. It is an automatic system of identification that can process specific information regarding a targeted object using radio frequency, whose function can be carried out without manual intervention. When compared with bar code technology, RFID has better advantages, including being waterproof, long reading distance, antimagnetic, greater storage capacity, etc. (Robert, 2016). As the RFID technology continues to grow, it has now been used worldwide in the field of asset management to perform activities such as tracking of assets, identification of assets, etc. (Fang et al., 2016). As shown in Figure 8, the RFID works using three main components, namely, the tag, Figure 8. Illustration of RFID working mechanism (Adame et al., 2018). Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 14 of 26 the reader, and the antenna. The antenna works by emitting radio signals which then activates the tag, and read data to it. The RFID reader is often termed the main component of the system as it functions in data acquisition, interpretation, and communication. The antenna emits radio waves in ranges of 100 feet or more, subject to the power output. (Adame et al., 2018) For asset management purposes, RFID tag is attached to both the equipment and the users. The RFID reader is then situated at the location of the assets to record the tags in the area. The location of the assets is equipped with a surveillance camera, and an alarm indicator to record and deal with unforeseen circumstances. The data recorded is stored in a central computer like the CMMS described above. The central computer is often connected to the intranet for effective flow and transmission of information to each asset location’s computer. The main purpose of the data stored on the central computer is to enable management and personnel involved in the management of assets easy to identify and determine the condition of an asset. The RFID tag consists of two parts, which are the integrated circuit (IC) for storing and processing the information, modulating or demodulating a radio frequency (RF) signal, and the specialized hardware for transmitting and receiving the signal. The tag makes it easy to identify and manage assets individually as they can be tracked and monitored through the sensor enhanced RFID technology. The historical data stored can be used in asset management activities like making investment decisions, tracking the assets which can all be done automatically. 3.5. GPS technology Global Positioning System (GPS) is a technology that is used for tracking and route planning. It is a satellite technology that uses a constellation of between 24 and 32 Medium Earth Orbit satellites to transmit accurate microwave signals that enable GPS receivers to determine the current location, velocity and time of the assets. The amazing system began as an application for the American military as a way to enhance the accuracy of booms and ensure the safety of the bomber pilot (Greg, 2016). The GPS makes use of a tracking unit which makes it possible to identify the exact location of an object and to record the position of the object at regular intervals (Thaduri et al., 2015). The position of the object is typically stored regularly and, in some cases, transmitted to a central database location or sent via internet connection to computers using General packet radio service (GPRS). This information which is considered accurate can then be extracted by customized software or web services provided by different companies (Congress et al., 2018). Nearly 3 billion mobile apps clogging the world`s phone and tablets use some sort of GPS-derived positioning information (Greg, 2016). More recently, tracking devices currently used are based on a GPS receiver chip embedded in them because this technology is the cheapest solution with a rapid growth among other ways. The application of GPS devices in tracking and positioning objects has significantly increased in the past decades, and its application includes tracking, vehicle navigation, and mobile pattern recognitions (Zhao, 2015). GPS technology is still considered relatively new; hence, the potential of its use is still being investigated and researched. GPS Trackers (or GPS receiver) are of different types, and mainly designed for different purposes. The trackers contain data logger, data pusher, and data puller. The data logger keeps a record of the position of the device at regular intervals, which is either saved in the internal memory or internal flash memory. GPS Trackers (or GPS receiver) are of different types, and mainly designed for different purposes. The trackers contain data logger, data pusher, and data puller. The data logger keeps a record of the position of the device at regular intervals, which is either saved in the internal memory or internal flash memory. This data is subsequently transferred into a computer for further analysis using certain specified software. In Asset management GPS devices, data logger is important to record the asset history and must be saved on a regular basis. Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 15 of 26 The data pusher is used to locate objects at regular intervals of time, and determine which server can analyze the data instantly. A GPS receiver is embedded in a system such as mobile phones, computers, and at regular intervals, the system sends messages with the information from the GPS receiver. Some organizations also provide data push technology that enables GPS tracking for asset management. 3.5.1. GPS devices employed There are different GPS devices that have been developed by different manufacturers. Table 2 shows a summary of the GPS devices used in this work. 4. Proposed asset management strategy at the industrial company It is important to develop an asset management strategy that aligns with the organization’s overall strategic objectives. During the review phase prior to the development and implementation Table 2. Summary of GPS device specification (Author) Device picture Device name Operational environment Satellite constellation Expected power lifespan AssetLink AP3 3300 GPS Terminal Land only-no offshore certification Iridium On-board battery with rechargeable solar cell (nonreplaceable) SkyWave IDP- 800 GPS Terminal Land only-no offshore certification Inmarsat Replaceable lithium batteries Geoforce GT1 GPS Tracking Device Offshore-ATEX, IECEx Zone 0 Certification Globalstar Integral, ported lithium battery (nonreplaceable) Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 16 of 26 of the RTEM system, the current system was evaluated and the shortcomings identified. These were the basis upon which the asset management strategy was created. The strategy involves adopting a global traceability building block that uses standard barcode labels, RFID tags, and transponders on all of the company`s technologies, products, materials and parts to enable the Company capture the data needed to: ●Identify equipment, parts and products, ●See their time and position throughout the value chain, ●Record their manufacturing and maintenance history, ●The goal is to vastly reduce the time spent locating assets and to increase the utilization of its assets globally. The overall asset management strategy adopted is expected to impact all functions and levels of the value chain within the organization and will impact certain transformational goals. The overall strategy is summarized in Figure 9. Figure 10 also below depicts the RTEM Asset management model and its features: Connectivity, optimization, transparency, proactivity and agility. Each of these futures plays a great role in enabling more informed decisions, thereby shifting from linear, sequential asset management to an interconnected, open system asset management strategy. This model can lay the foundation for how asset management organizations compete in the future in line with the trending fourth industrial revolution. The RTEM Asset Management Model (AMM) represents a leap forward from the traditional asset management model to a fully connected and flexible system that integrates data from system-wide physical and human assets to drive asset management. Each department in the business system can access asset information when desire. Figure 9. Asset strategy overview. Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 17 of 26 5. Implementation The steps adopted in implementing the RTEM system are enumerated below as: ●Gathering of all available location data ●Tagging the relevant assets at the location ●Updating the business systems, i.e., CMMS to reflect the new tag information ●Beta test The process described above is presented in a pictorial image (Figure 11). Figure 10. Topological graph of the RTEM asset management model (Author). Figure 11. Visual detail of the pilot phase of the RTEM-based asset management system (Author). Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 18 of 26 5.1. Data gathering Existing available equipment data, including location, types, serial number, and maintenance history, were obtained from existing systems such as Maximo, Rite and the operations portal. The application of the equipment determines which of the GPS device will be installed as the Geoforce 1 was mounted on the offshore location assets and the land location asset had either the SkyWave, or Assetlink installed on them. The downhole tools had the barcode tags. 5.2. Mapping and installations 5.2.1. GPS mapping and installation The GPS devices were mapped to enable them to report data regarding the asset being attached to. The mapping was done automatically but, in some situations, it was not pragmatic to associate the GPS device to the asset while using the application. In such a situation, a manual mapping was done as shown in Figures 12,13and 14below. The GPS devices were installed on the assets securely on mounts that are rigid to withstand weather checks and the weight of the device. The devices were placed in areas where they are not affecting the safe operation of the asset. For the fact that the GPS devices communicate with satellite networks (not cellular), special and deliberate care was considered during the installation of these devices for them to function and be able to transmit or receive data optimally. The following guideline has been put in place for a proper installation: ●The GPS device is installed as high as possible on the asset to minimize any blockage of the sky view. ●The device must be powered on and mounted horizontally facing the sky. ●Ensures the GPS device has 35 degrees of unobstructed visibility in all directions. ●The GPS device should be connected with the unit at all times unless undergoing a maintenance activity that requires remover of the device (Asset Manager’s approval is required for any device removal). ●The device must be associated (i.e. mapped) using the RTEM application during the installation process. Figure 12. GPS devices mounted facing the sky, on top of the asset (Author). Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 19 of 26 5.3. Barcode label installation For proper installation of the barcode, the areas on the asset were cleaned thoroughly before attaching the barcode-printed labels as shown in Figures 15 and 16below. At least four stickers are recommended to be installed on each asset and they were placed at eye level where possible on the front of the assets for easy identification, in order for technicians performing tasks to identify unit at ground level. Figure 13. Geoforce GT1 Mount. Figure 14. Pictures of the asset with SkyWave. Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 20 of 26 5.4. BETA TEST The BETA test is an acceptance test performed by the end-user of a product to validate its functionality, reliability, usability, and compatibility. Subsequent to the implementation phase of the RTEM, the system was tested for functionality and its fitness for purpose as well as assess whether the system meets the objectives intended in the asset management strategy. 5.4.1. Email alert (Real time information) Subsequent to gathering of data, tagging of the assets, mounting the GPS device, details of an asset logged in as arrival to the base, and it immediately sent an email alert to the registered recipient on the status of the asset as seen in Figure 17. 6. Benefits of the RTEM Solution set for asset management at the industrial company Based on the beta test carried out, the system appears to be able to achieve all that it was designed to achieve in relation to asset tracking and management. The system was able to provide the exact location, status, condition, and maintenance history on the asset leading to 30.8% Figure 15. Sample Barcode on the asset at eye level and possible locations (Author). Figure 16. Sample Barcode on the asset at eye level and possible locations (Author). Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 21 of 26 increase in the asset utilization (Figure 18). The specific benefits identified from the model are highlighted below: 6.1. Automated workflows The RTEM model significantly automated the Company’s workflows from maintenance scheduling to spares ordering and asset tracking. The data related to activities of the assets can now be stored electronically, and retrieved easily. Based on the RTEM model, each time the maintenance personnel carries out maintenance on an equipment, they simply scan the code on the tag of the assets and complete a check box on a form in the portable computer device, which then sends data to the cloud, where it is saved on a master database. This would then update the record of the assets with the maintenance activity that has been performed on it. When the database is subsequently queried, the results generated would include the assets locations, all tasks completed and pending, as seen in the screenshots shown on the BETA test. It is also possible for the maintenance personnel to upload pictures that depict the condition of the asset if necessary. Also, if the database is queried and shows an asset in an unauthorized location, alerts can be issued to the general asset manager to commence the investigation immediately. 6.2. Saving time and potential errors The RTEM model was also integrated to facilitate ordering of spares for certain assets, rather than the previous system of ordering spares when they are not required. With the RTEM, if personnel determine Figure 17. Screenshot from email alarm system showing information of a tagged asset entered on the database (Author). Figure 18. Benefits of RTEM. Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 22 of 26 that spares need replacing, they can take picture of it, include the part number of the spares that need replacing, and include it on the information of the asset that is stored on the database. This information can then be sent to the appropriate personnel that manages Company inventory (purchasing and warehousing), the finance department, and the relevant approval personnel. This significantly reduces communication errors and confusion, as the correct parts would be ordered, shipped. 6.3. Improved coordination The RTEM provides a web-based interface that displays real-time, and detailed view of all the activities (past and current) relating to the managed assets. Real-time information includes details like serial number, category, current location, warranty dates, and any other relevant information. Hence, asset information can easily be retrieved from the cloud storage, reviewed, printed, where necessary. Relevant personnel, e.g. general asset manager, the department’s general managers and management team, can access the information securely from any location, and at any time. This helps management to evaluate the efficiency of processes against set benchmarks for asset management. Also, the ease with which information is retrieved on a real-time basis significantly reduced the time it takes to search or locate an asset thus significant time is saved during the periodic audit and asset count by external auditors of the Company, thereby saving money in external audit fees. Other benefits include greater visibility, reporting and insights, improved responsiveness and skills utilization, accelerated workflows, asset value retention and better business opportunities. 7. Limitations It was initially challenging obtaining internal documents and technical documentation from the company; however, the author was later granted the individual user access to various applications needed. The extensive number of different applications and databases that needed to be accessed exemplify some of the challenges the industrial company face as an organization in relation to data and information management. 8. Conclusion This study set out to evaluate the asset management system at the industrial organisation, identify the challenges and propose a system of asset management using RFID. A contextualization of this theory has been made by looking into what current organisational experience in relation to this aspect, and this has led to the identification of several areas. Firstly, challenges related to identifying and location of assets for effective asset management were identified. It can be concluded that the extended application of RTEM and the utilization of the obtained data for implementing this model of asset management system hold the potential for significant improvements to asset utilization in the future. By the implementation of an RTEM solution, which has the ability to perform advanced diagnostics and prognostics, managers overseeing various industrial companies can obtain benefits related to safer and more efficient operation of equipment, improved maintenance planning, reduced maintenance costs and so on. By taking on a holistic approach to the subject of asset management, the traditional organizational barriers can be removed, and thus the introduction of external expertize as well as the possibility of monitoring and operating equipment from remote locations can be achieved. 9. Recommendation for further studies The topic of asset management has become very relevant during the last few years, with several large organisation embracing the new ISO55000. The vast amount of data we are producing in the world today have now become so extensive that it is hard to comprehend. It is the author’s opinion that those organizations that can develop and manage systems for the effective exploitation of this unprecedented amount of data to improve business performance and processes in the future Iluore et al., Cogent Business & Management (2020), 7: 1763649 https://doi.org/10.1080/23311975.2020.1763649 Page 23 of 26