South African Journal of Industrial Engineering
On-line version ISSN 2224-7890
Print version ISSN 1012-277X
BAM, W.G. and VLOK, P.J.. Optimising invesment in asset management using the multivariate asset management assessment topography. S. Afr. J. Ind. Eng. [online]. 2014, vol.25, n.2, pp.29-38. ISSN 2224-7890.
The multivariate asset management assessment topography (MAMAT) was developed to quantify, and represent graphically, development, adoption, and performance of a business' asset management (AM) systems, as described by standards such as PAS 55. The MAMAT provides a way to visualise clearly the strengths and weaknesses of a business' asset management system. Building on MAMAT, a model describing the relationship between the commitment of resources and the corresponding improvement in the MAMAT assessment outcome is proposed. The goal is to develop an optimisation model that will maximise financial benefits by improving the MAMAT assessment score achieved by a business, while minimising the investment required to attain this improvement. This is achieved by determining the optimal allocation of resources to the different subcategories of the MAMAT assessment framework. The multi-objective cross-entropy method (MOO CEM) is used to find the Pareto set of solutions for this problem. In order to showcase the intended industry application and use of the optimisation model, a hypothetical case study is executed and described in this paper. From this application, it was found that the MOO CEM finds useful solutions that can support the implementation of standards such as PAS 55 by prioritising and assigning resources to implementation activities.