Nov 06

Asset Management in Business 1

A Real Life Example of Asset Management

During the dark ages of computers and asset management, the 1970’s and early 1980’s, there was a company that operated large ocean-going integrated tug/barge systems.

The tug engines were twin 5560 HP V-12 diesel engines.

There were 5 parts of these engines that were tracked.

There was an index card for each item and notations were made when any piece was changed.

The vessels had no computer systems, but the First Assistant Engineer brought a personal IBM type computer aboard. The Captain had purchased a Commodore 64, and was writing programs for it in Basic.

Each engine had a counter attached that gave cumulative operating hours. Each piece tracked had the engine hours at installation noted.

The pieces and guidelines for the change out of the pieces were:

Heads 10,000 hours, later changed to 12,000 hours

Right hand intake valve 3,000 hours

Left hand intake valve 3,000 hours

Right hand exhaust valve 3,000 hours

Left hand exhaust valve 3,000 hours

The above items were for each cylinder for both engines, giving 120 items to be accounted for.

The First Assistant Engineer wanted to create a program to track the data and find out the status of each part. He got bogged down in his program, however, and mentioned the problem to the Captain.

The Captain wrote a fast and dirty BASIC program that compared the engine hours at installation to the present engine hours for each item and gave a printout of the status of each item.

It took about 2 days to enter the data and write the program, which then ran through it all in about 30 seconds.

Conditions were, “OK”, if under the replacement hours, “Will need replacement in X hours” or “Overdue for replacement by x hours.”

They then discovered that the entire Port Engine was overdue by no less than 1000 hours and in some cases, quite a bit more.

This sent a shockwave through all Engineroom-related personnel.

Although the information had been entered on the index cards, no one had ever made any practical use of it.

So it was not enough to simply have the data. It had to be applied in a real world situation.

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