ISO 55000: Meet Your (New) Friend SAM

ISO 55000Published in 2014 by the International Standards Organization (ISO), ISO 55000 focuses on asset management of any types of assets, and especially physical assets.

Asset Management has become essential for companies to improve their organization management and financial health. According to John Woodhouse, UK Principal Export, ISO PC251 Committee (developing ISO 55000), an asset management system is a “framework of control, directional alignment, cross-disciplinary collaboration, optimization and continual improvement”. It is not a piece of software, but a set of guidelines that will help you build an efficient asset management system.

This standard “specifies the requirements for the establishment, implementation, maintenance and improvement of a management system for asset management” (SAM), and is referred as an “asset management system”. It outlines the approach an organization should adopt to implement a SAM, step by step and taking into account  factors across departments, including the life cycle of assets.

The ISO 55000 Standards for Asset Management are developed in 3 documents: ISO 55000, ISO 55001, ISO 55002. This is the first international standard for asset management.International Standards Organization

It is intended for people involved in asset management systems (establishment, implementation, maintenance and its improvement) and activities, and people in charge of assessing the systems.

Scope

SAM has 4 components:

  1. Asset management policy
  2. Asset management objectives
  3. Strategic asset management plan and portfolios
  4. Asset management plans

ISO 55000 1ISO 55000 focuses on the following factors:

  • Human Resources:
    • Structure and responsibilities
    • Leadership
    • Skills
    • Cross-disciplinary teamwork
  • Risk Management:
    • Asset criticality and risk level
    • Asset health
    • Risk-based decision-making
  • Information:
    • Trustworthy asset management record
    • Information management systems
    • Work & resource planning and management systems

ISO 55000 2 Asset Management

*PDCA : Plan, do, check, act

Have you implement a system of asset management? Are you thinking of it? Share your experience with us!

 Go further:

If you would like to implement and get certified in ISO55000, find information here.

Visit the Institute of Asset Management website: www.theiam.org

Canadian Asset Managers Network: http://www.cnam.ca/

Sources:

http://www.iso.org/iso/home/news_index/news_archive/news.htm?refid=Ref1813

https://www.iso.org/obp/ui/#iso:std:iso:55001:ed-1:v1:en

http://www.lce.com/Ten_Things_to_Know_about_ISO_55000_the_International_Standard_for_Asset_Management_562-item.html

ISO 55000 White Paper, John Woodhouse, UK Principal Export, ISO PC251 Committee (developing ISO 55000) (link) and his presentation: http://vision-aeam.com/wp-content/uploads/2014/04/3-1-Brief-intro-to-ISO55000.pdf (February 2014)


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The 12 Blog Posts of 2014!

Utility Conferences 2015 1Selected 2015 Utility Conferences & Trade Shows

Large Power Transformers and The U.S. Electric Grid Veracity Critical Spares9 Key Facts from the “Large Power Transformers and the U.S. Electric Grid” Study

Debunking 5 Myths About Purchasing Reconditioned Electrical Assets VeracityDebunking 5 myths of Purchasing Reconditioned Electrical Assets – Infographic

Disposition Surplus Asset Veracity Asset ManagementDetermine the best disposition solution for your surplus assets – Infographic

Investment Recovery Veracity Asset Management UtilitiesInvestment Recovery: the Missing Link in the Supply Chain

Transformer Problem Veracity Connect WillisThe Transformer Problem

SpreadsheetWhy Using Speadsheets is a Risk for Your Supply Chain

We’re one of the 15 Canadian companies CDMNVeracity Is Part of the CDMN’s Outbound Soft Landing Program

Plant decommissioning Energy Nuclear Oil GasDecommissioning Projects: Why It Costs So Much And Takes So Much Time

Supply Chain, Investment Recovery, SustainabilityArticle Highlight: Sustainability, Investment Recovery and Supply Chain

Veracity Connect Critical SparesCritical Spares Infographic

Veracity Connect Utility Critical AssetVeracity Asset Management Group Announces the Introduction of Veracity Connect


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Utilities News Roundup! November – December

Nuclear

Southern_California_Edison_(logo) Panel hears bids for storage of nuclear waste http://ow.ly/DoyRO “Southern California Edison’s Community Engagement Panel met on Oct. 14 to hear bids from the two final companies vying to create storage for nuclear waste at the decommissioned San Onofre Power Plant.” #power

Entergy Entergy: $1.24B Is Needed to Decommission Vermont Yankee Nuclear http://ow.ly/Dqile #nucleardecommission

nuclear-power-plant End Of Life Costs For #Nuclear Power A Real Concern http://ow.ly/Et9EM 200 nuclear reactors have to be shut down by 2040: who will lead the #decommissioning projects… and how much will be the bill? #power

Utilities

Georgia Power Georgia Power named IOU of the Year for innovation, industry collaboration and leadership in the solar energy http://ow.ly/DpSIs #IOU #utility

Hydroone Hydro One Invests to Refurbish Ontario Michigan Interconnection Transmission Circuit http://ow.ly/Dq9Bm “The $6.8 million investment refurbished 24 towers on the 5.5-km circuit that runs from Sarnia Scott TS to the Mid River Junction Bunce Creek at the St. Clair River.” #powertransmission

Massachusetts Massachusetts Tops California as Most Energy-Efficient State http://ow.ly/DpWRm #Massachusetts #energy #utilities

LG&E Kentucky PPL Companies LG&E, Kentucky Utilities to add up to 737MW of gas generation http://ow.ly/Dq36g #Kentucky #gasplant

utilities2 Old Is New Again in the Utility Industry http://ow.ly/DKPto #utility #power

mega power plant Infographic: The World’s Ten Largest Power Plants http://ow.ly/DL2gx “with the top 5 located in China and South America.” #powerplant #China

NERC NERC troubled about EPA Clean Power Plan impact on grid reliability http://ow.ly/E4p0E “The NERC assessment, Potential Reliability Impacts of EPA’s Proposed Clean Power Plan, provides recommendations for further analyses to ensure continued system reliability.” #grid #utilities

AES_Corporation_(logo).svg AES to provide 1,284 MW of gas power to replace San Onofre http://ow.ly/E4qTs “AES has been awarded 20-year contracts by Southern California Edison (SCE) to provide 1,284 MW of combined cycle gas-fired generation” #gaspower

Alstom Alstom delivers demand response system to Con Edison http://ow.ly/E8qyK “The product is based on Alstom’s e-terra DRBizNet 3.0​, and provides utilities the ability to compensate energy flow and optimize existing assets.” #utilities

Tamil_Nadu_Electricity_Board_(emblem) Awards for failure-free operation of EB transformers http://ow.ly/E8sQ0 “Over the past five years, transformer failures have come down to 6.25 per cent from 13 per cent in the Tiruchi region which has over 40,000 transformers” #utilities #powertransformers

energy-management-power-grid Northern Michigan is facing a power crisis. How will it be fixed? http://ow.ly/E8z6L #Michigan #powergeneration

BChydro BC Hydro, LNG Canada sign #power deal; project still not official http://ow.ly/ESoMa “The deal […] comes as the Liberal government announced the power rates for LNG proponents.”

the-keystone-xl-pipeline-just-moved-one-step-closer-to-approval-702x336 #Keystone XL price tag hits US$8B amid regulatory stalling http://ow.ly/ESfLD #Albertaoilsands

Federal Energy Regulator Commission FERC issues decision on Duke-Progress merger…after three years http://ow.ly/ESt1X #power

opower_s Opower, FirstFuel partnership yields ‘major expansion’ with #utility customer http://ow.ly/Et5n5 The partnership allies data #analytics and utility software systems.

Federal Energy Regulator Commission FERC Issues Order Authorizing the Disposition of Facilities Re Portland General Electric Company Under EC14-147 http://ow.ly/EtBTL “The Boardman Project includes a 642.2 MW coal-fired generating facility, interconnection facilities to the Slatt Substation and a line used to deliver station power to the generating facility that runs from PacifiCorp’s 230 kV Dalreed Substation” #substation

utility1 monopoly Here’s what to expect for #utility rates in 2015 http://ow.ly/EtIA2 average increase of 1.9 %

 

International

Coal Plant Energy Coal gets cold shoulder from Denmark and Germany http://ow.ly/DK9kV “Denmark and Germany have outlined plans to decrease or potentially eliminate coal plants as part of a push to meet climate goals. ” #coal #denmark #germany

abengoa_logo CCRES Abengoa to develop in Belgium the largest #biomass power plant in the world http://ow.ly/E8wVo Capacity of 215 MW, €315M

map-oman #Oman Enhances #Power Delivery http://ow.ly/ESPHZ 6 new substations will be commissioned to answer electric demand

Rosatom Dhaka, Moscow finalise action plan for Rooppur #nuclear power plant http://ow.ly/EtHlN #Russia

Radioactive California Fukushima Traces of #Fukushima Radiation Detected Off #California Coast http://ow.ly/EuqzU A priori no harm

duke-energy-co-logo Duke Energy announces plans to begin removing #coal ash from four North Carolina sites http://ow.ly/EuCoq ““The initial work at these facilities will help us assess various approaches for the closure plans at our remaining 10 North Carolina facilities,” said Elnitsky.”

Physical & Cyber Security, Extreme Weather Events

grid resiliency Sandy Critical infrastructure sees upgrades since Sandy devastation http://ow.ly/DoLvU States and utilities have improved flood protection, more resistant residential, public services infrastructures and the power grid. #superstorm

NERC Beyond NERC: best practices for worst-case scenarios http://ow.ly/CcjdB “Plan for recovery as well as prevention.” This is why we offer utilities Veracity Connect, a platform to source critical spares, like transformers, in North America #NERC #reliability #criticalasset

UtilityCoRecruit2.1013.large Winter utility assistance plans available http://ow.ly/DK3B9 “With the onset of colder weather in Northeast Ohio, several programs are offering financial assistance to customers who may have difficulty keeping up with the costs of their utilities.”  #utilities

Superstorm Sandy Remember Sandy: Two-Year Anniversary http://ow.ly/DKW78 “Hurricane Sandy affected 24 states, including the entire eastern seaboard from Florida to Maine and west across the Appalachian Mountains to Michigan and Wisconsin, with particularly severe damage in New Jersey and New York.” #superstorm #hurricane #utilities

CPS-Energy-logo Municipally-owned CPS Energy putting San Antonio on the forefront of smart cities http://ow.ly/E8myQ “The grid of the future will be more than a one-way delivery system for electricity. It will be a platform for information and services that we’ve barely begun to imagine,” said Doyle Beneby, CEO of CPS Energy. #smartcity

2000px-US_Department_of_Homeland_Security_Seal.svg #Cyber-attack causes major breach of software controlling critical U.S. infrastructure http://ow.ly/E8tIG The malware [BlackEnergy], although not yet live, can activate anytime and leave these processes susceptible to failure or malfunctioning.

Big_Data-310x224 How four U.S. #utilities are tackling big data http://ow.ly/ERh8D Utilities are well decided to start diving into big data. What will be the outcome? #bigdata

Security_Threat_Report U.S. Orders Electric Utilities to Secure Sites From Attack http://ow.ly/ERay7 Physical #security is becoming a major concern for utilities and industry partners.

storm_arthur.jpg.size.xxlarge.letterbox Storm Hardening the Grid http://ow.ly/E8jhM Are you ready for the coming #storms? We can help you with mutual aid agreements http://ow.ly/E8juF #utilities #mutualaid

604491_LIghtning-storm-in-Alberta-Canada In Orleans, no #storm but responders active http://ow.ly/ERxlS Maximize your mutual aid agreements with Veracity Connect http://ow.ly/ERxHq #mutualaid

North America Grid Weather Forecasts North America 2015 http://ow.ly/ESRxQ Temperatures above normal…which means more snow than usual! Turn your mutual aid agreement on with Veracity http://ow.ly/EucON #mutualaid

Renewables & Smart Grid

Federal Energy Regulator Commission FERC: Renewables account for 40% of capacity additions this year http://ow.ly/DtaYY “According to FERC, there are 62.3 GW of installed wind and another 9.74 GW of solar, but those make up less than 6% of total capacity. The bulk, some 42% of the total, is still gas-fired.” #renewable #utilities

renewables logo New Renewables Will Require #Transmission Upgrades http://ow.ly/DpMzS “is it that simple?”

Solar panel installation Georgia is the nation’s fastest growing #solar market http://ow.ly/ERMAn “Solar-related jobs in the state grew 225% last year”

Microgrid-global-view Are #Microgrids a Myth? http://ow.ly/ESOoF Should utilities promote distributed energy resources?

wind turbine New analysis: U.S. is world’s number one #wind energy producer, leading China and Germany http://ow.ly/ExvpS “Over $120 billion worth of U.S. wind projects have been installed since the year 2000.”

Word Cloud Smart Grid Smart Grid Networking, Communications Technologies Spending Expected to Total $30 Billion over Next 10 Years http://ow.ly/advanced

 

Company NewsMutual AidAsset,Critical Spares Twitter Banner

Veracity is now a proud Silver Associate Member of the NRECA! Cooperatives are essential to the U.S. electric grid. We help coops source critical spares through the power of collaboration: http://ow.ly/Dx7Hp +NRECA #coops #electricgrid

We are proud of being an associate member of the Michigan Municipal Electric Association! veracityamg.com #electricity #collaboration

As a municipal utility or coop, become a Veracity Connect Member to source critical spares http://ow.ly/i/7nB9u http://ow.ly/DtMxC

We wouldn’t have been able to go to Georgia without the help of the #softlanding14 Program. Thanks to @CDMN for helping us #GrowGlobal

 

Recovering value from plant decommissioning? http://ow.ly/xjC1d #decomissioning #powerplant #utilities #energy http://ow.ly/i/79MkB

Decommissioning Projects – Why it takes so long & costs so much: http://wp.me/p2EjZw-7I Share it & share your expertise!

Join the Investment Recovery Canada group and find opportunities for your Canadian company: http://ow.ly/zymGu http://ow.ly/i/7nCOH

Turning your surplus equipment into a financial reward: this is called investment recovery: http://ow.ly/yzrN7 http://ow.ly/i/641yF

Aging grid assets? How to know which equipment to replace and when http://ow.ly/D3B4M Get some help from Veracity Connect: http://ow.ly/D3C2m

#Asset Redeployment Checklist http://wp.me/p2EjZw-8S We assist you in choosing the best option for idle #equipment http://ow.ly/EVCgb

 

Renewable or not, the energy you provide requires an emergency plan if a transformer fails: http://ow.ly/BZJ7k http://ow.ly/i/7nBT6

We know what you go through as a utility company when you look for a spare transformer – Veracity Connect http://ow.ly/BZJ7k #utilities #power http://ow.ly/i/7nByl

Looking for #power transformers? Veracity Connect helps you get in touch with other #utilities, OEM & resellers http://ow.ly/DOC9S

Don’t be left in the dark when a transformer failure occurs – Veracity Connect http://ow.ly/BZJ7k http://ow.ly/i/

Binder, spreadsheet, buddy system… you deserve better to source critical spares for your utility company. Contact us & Try Veracity Connect: http://ow.ly/BonlR

Our surplus utility equipment catalogue is now available! http://ow.ly/DLcVN Check it regularly and contact us if you are interested in some of the featured items! #utility #surplus #powertransformer

 

A cloud platform that helps you source critical spares and reinforce your mutual aid agreement? It exists: Veracity Connect http://ow.ly/Aua0t LinkedIn: http://ow.ly/AuacD

Transformer Fleet, Mutual Aid & Asset Disposition are components of Veracity Connect: http://ow.ly/ET0a7 http://ow.ly/i/7Invt

Are you a #utility? Have instant access to mutual aid contacts & resources with Veracity Connect http://ow.ly/ExDtr

 

Join us on LinkedIn page http://ow.ly/ET5kW We help #utilities source critical spares & maximize mutual aid http://ow.ly/ET5kX

Why Using Spreadsheets is a Risk for Your Supply Chain http://wp.me/p2EjZw-76 #spreadsheet #supplychain http://ow.ly/i/7jbDs

Subscribe to our Veracity’s monthly newsletter: Critical Spares Management & Investment Recovery for Utilities http://eepurl.com/LVtY1 http://ow.ly/i/73Jj2


 Learn more about our Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

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Asset Redeployment

Some of your assets are sitting in your warehouse, costing you more than what you think (ask your accountant!). Getting rid of it is a solution, redeploying the equipment to another company branch is an alternative to consider first.

The following checklist can help you ensure an effective redeployment:

Asset Redeployment Infographic Utilities

Go further

Collaborative economy and idle asset management: an environmental and financial reward

Investment Recovery: the Missing Link in the Supply Chain

Debunking 5 myths of Purchasing Reconditioned Electrical Assets – Infographic

Determine the best disposition solution for your surplus assets – Infographic


 Learn more about our Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

Stay updated through our social media platforms and website:

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Equipment Criticality

Equipment Criticality Utilities Asset ManagementWhat is Criticality?

Criticality is the quality or state of being of the highest importance. When it comes to industrial equipment, criticality focuses on the “business financial impact if an equipment failure was to happen”, according to Lifetime Reliability. Lifetime Reliability is an Australian consulting firm specialized in industrial business process optimization, reliability maintenance management and life cycle asset management.

The risk rating indicator can be calculated as followed:

Equipment Criticality = Failure Frequency (per year) x Cost Consequence ($) = Risk (in $ per year).

Cost Consequence usually includes the cost of lost production and what it takes to repair the equipment.

Why Determining the Criticality Level?

Heavy pieces of equipment, such as power transformers or industrial machinery, belong to the “low-risk, high-impact” category. Even though failure risks are low, the consequences on the company’s operations are significant.

Knowing when such a failure would occur and how much it would cost to fix it or replace it greatly helps planning operations.

If equipment is then known for a high-risk profile, the company can set “resources, engineering effort, operations practices, maintenance and training” to reduce the risks. The action plan should be the verso of its product sheet: you know the potential problems, you know what to do.

The criticality assessment should logically be led by an experimented team. For a further detailed assessment of the criticality level of equipment, the model Defect and Failure True (DAFT) Costs can be used. A DAFT database is developed in a spreadsheet database (if you have software better than Excel, use it!).

Assessment Team

Let’s focus on the team who will assess your equipment’s criticality. They should know:

  • the design, and how to operate and maintain the equipment;
  • the impact of equipment failure on the production;
  • the financial loss for the company due to a production interruption, and on the clients;
  • They should use all information available from the upper level and workers in order to determine an accurate and up-to-date equipment profile.
  • In the frame of implementing a risk control methodology, they should be familiar with international risk management standards, ISO 31000 being the most common.

One more time, knowledge is power. With a dedicated team and allotted time, assessing the risk profile of your heavy equipment will become a real asset, saving you costs and time in the long-run.

***

Risk Matrix

Lifetime Reliability has designed a series of matrices which helps determine the potential consequences, the failure frequency, the risk identification and assessment and the risk treatment schedule and action plan. Clear and easy to use, they can be the basis of risk assessment.

Business-Wide Consequence

Equipment Criticality ConsequenceThe additional factors can help determine the consequences:

  • Type of industry
  • Lack of equipment standardization
  • Service level and required time
  • Availability of spares and investment
  • Avoiding “just-in-case” model
  • Supply chain network
  • Logistics
  • Available qualified personnel
  • Holistic approach, strong communication and cooperation between operations, purchasing and executive teams.

Historical Frequency

Equipment Criticality Frequency Asset UtilitiesRisk Identification and Assessment

Equipment Criticality Risk Identification Utilities AssetRisk Treatment Schedule and Action Plan

Equipment Criticality Risk Treatment Action Plan Utilities Asset

***

Let’s talk about YOUR equipment. The following questions can be asked:

  1. Do you know the risk profiles?
  2. Does your equipment belong to the low-frequency/high-power category?
  3. What would happen if a failure occurs and requires the replacement of the unit?
  4. How difficult is it to source a replacement?
  5. Do you use a buddy system (numerous phone calls, emails to your colleagues or acquaintances) which proves to be not so effective?
  6. Would you accept the help from a specialized third-party like Veracity Asset Management Group?

We specialize in critical spares management and asset disposition. We help companies like utilities on a daily basis to source or dispose of critical equipment.

Contact us at 866-694-1252 or info@veracityamg.com. We are located in Sault Ste. Marie, Ontario, with solutions available for the North American market.

Learn more about our Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

Stay updated through our social media platforms and our website:

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Go further:

6 Tips to Improve Your Spare Parts Management

The Management of Critical Spares in the Electric & Gas Utility Industry

Strategic Asset Management

Veracity Connect: Critical Asset Management Solution

Equipment Criticality Tutorial, by Lifetime Reliability – Solutions

Collaborative Economy & Asset Management: an Environmental and Financial Reward

In the article “Zero Marginal Cost Society: Unlocking Wealth & Cities Too, But Beware the Regulatory Wrinkles”*, April Rinne, Chief Strategy Officer at Collaborative Lab, explains what collaborative economy is, a philosophy shared by Veracity Asset Management Group.

What is “Collaborative Economy”?

Collaborative economy is clearly not just a trend. New business models “promote more efficient utilization of resources”. Reducing purchasing costs in the supply chain is what every business is looking for. Sustainability and environmental risks are becoming a key factor that influences business decisions. But how can we reconcile bottom line and reduced impact on the environment?

Surplus asset management Veracity

Among several opportunities, such as crowd-funded projects and car-sharing, managing idle assets is a rewarding way for companies and public organizations to give a new life to idle equipment and material, and turn them into a new financial stream. Cost reduction and cost avoidance become easily possible, as it costs less to buy a piece of equipment, used, but in good shape and reliable, than to buy a brand new unit for a high price.

Surplus Asset Management

This is why we can link the “collaborative economy” concept with Veracity’s business core: surplus asset management and critical spares management. A key principle of surplus asset management, or “investment recovery”, is the 7 R’s: Reuse, Recondition, Return, Re-sell, Reclaim, Recycle and Remove. The same way we go through our garage and decide to reuse, sell, give or recycle our old DVD players or skates, managing idle assets is relatively similar for a private company or a municipality.

Collaborative economy Veracity asset management group

In the frame of an Investment Recovery program, our Veracity Team can help your company successfully identify, evaluate and choose the right disposition solution for each asset. Let’s say that you have surplus equipment in your warehouse. The holding costs are high and you look for a complementary financial stream. Veracity helps connect the dots, analyze and offer the best options for each idle asset. It can be redeployed to another company branch that needs them, avoiding the cost of buying a new unit. Or it can be sold in an efficient manner to maximize your return, or recycled, avoiding ending up in the landfills.

Think about your idle assets and their hidden value. Contact us at +1-866-694-1252 or info@veracityamg.com, and find out how we can help you unlock their true potential!

Also check our website http://www.veracityamg.com for more information about our investment recovery services!

* http://www.huffingtonpost.com/april-rinne/the-zero-marginal-cost-so_b_5154872.html?utm_hp_ref=business&ir=Business

Determine The Best Disposition Solution For Your Surplus Assets

You identified machines, parts or vehicles that are no longer supporting your company’s operations. What questions should you ask yourself to properly dispose of them?

Disposition Surplus Asset Veracity Asset Management

If you answered yes to one of these questions, you are able to get a maximized value from your obsolete equipment, vehicle or other item.

A “no” to all these questions only offer one solution: sending the item to the landfills. However, it is a decision by default and you should be able to find a better alternative.

A third party specialized in investment recovery / surplus management, such as Veracity Asset Management Group, can help you analyze and identify the best disposition option for your surplus assets. You can delegate the whole disposition process to the third party and only worry about what you will do with the cash back to your bottom line.

Go further in details with the 7 disposition methods for surplus assets:http://wp.me/p2EjZw-3m

Do you need help recover value from idle assets or are you curious about disposition management? Contact us at info@veracityamg.com or 1-866-694-1252.

Key Points From The Latest Issue of Asset 2.0, “The Investment Recovery Business Journal”

  • Like any other business, creating an investment recovery (IR) department requires a solid business plan. Day-to-day operations may work for sometimes, but in the long-run, everything may fall apart if nothing is planned.

Asset 2.0 Investment Recovery Association Veracity Asset Management Group                “Investment Recovery professionals are trained to handle an assortment of products and look for the best method to dispose of an asset for a company. When utilized, the IR professional will ensure that a company’s return on investment and total cost/benefit are maximized by evaluating what is the best way for a company to remove an asset. Many times, however, the IR professional is bypassed and others take on the IR role who aren’t trained, oftentimes looking at retired assets as an afterthought and just something to get rid of. This duplicative effort exposes the company to unnecessary risk and loss on investment that the IR professional reduces and eliminates.”

“Look upon your IR function as a separate business. As with any business, you are much more likely to succeed if you do the following: Have a plan, work your plan, review your progress, refine your approach. Be especially honest about your situation, your capabilities and your potential for improvement with yourself and your team. And don’t ever lose sight of the critical foundation for building your successful business … long-term client trust and satisfaction.”

  • Is video a good way to advertise the surplus assets you are trying to sell? The answer is yes. Using pictures is a must when you want to reach potential clients. But Youtube videos are more and more used and well appreciated by companies, as they are not expensive, efficient and help customers have a better idea of the conditions the assets are in and may answer many of their questions. The video can be linked to the auction catalog and boosts its reach.
  • How does your investment recovery department align? Survey results carried out by the Investment Recovery Association bring 3 statements. It is common for IR departments to handle fleet transactions. IR departments tend to manage “all” IR functions: large equipment, smaller items, scrap and other salvage projects, sometimes with the help of a third party. The IR departments often get involved in decommissioning and demolitions for their business. “Unless you’re an IR professional, the IR work is a process considered more a secondary task to your core duties and many times results in poor business decisions being made on IR activities.” This is why numerous companies choose to work with an external IR partner, such as our company Veracity.
  • “Data is King when Selling Fleet Vehicles”. Data is key when you want to sell fleet vehicles. Information needs to be accurate and offered along with pictures. “When we as buyers have two identical units to choose from, we are always going to pay more for the unit that has the best description and photos, just like any buyer in the market for a used car would.” The more information the customer has, the better he/she is ready to make a decision in your favour. We can mention for example make, model, age, condition, mileage, condition, additional equipment and location. Vehicles tend to be sold online, more than at traditional auctions, as customers have a better access to uniform information.
  • What do companies do with extra “Maintenance, Repair and Operating Parts” (MRO)? These parts help the facility running, such as light bulbs, bolts and motors. Managing inventory helps provide the right parts at the right time, and with a minimal cost. But, “of the $100 billion worth of parts purchased in 2012, approximately 15% of that inventory will remain on the shelves and potentially never get used.” The following questions need then to be asked: “Are we sure we cannot use it here?”, “Can any of our other sites use this material?” and “Can I sell it back to the Original Equipment Manufacturer that I bought these from?”. There are several options that can be chosen to recover value from these items, such as redeploying them, returning them or reselling them. Learn more about the whole range of investment recovery solutions through this blog post: http://wp.me/p2EjZw-3m.

Find the full issue at http://ow.ly/zzYMY.

Explore the Investment Recovery Canada LinkedIn Group and share your thoughtsInvestment Recovery Canada Veracity Asset Management Group

Learn more about our investment recovery services and surplus asset disposition solutions:Veracity Asset Management Group

Or contact us at 1-866-694-1252 or info@veracityamg.com! We will be glad to answer all your questions and see how your company can get the most of its surplus.

June Digest – Time to Catch Up!

Summer is here, but it does not mean that the energy sector is on holidays!

Catch up on what happened with our June Digest.June Digest Veracity Asset Management GroupUtilities Standards Forum Veracity Asset Management GroupVeracity Asset Management Group introduced Veracity Connect to the Utilities Standards Forum Members. http://wp.me/p2EjZw-32

 ISO14001 Veracity Asset ManagementThe new standard ISO14001 is to be drafted this year and released in 2015. What will be the impact on companies, their supply chain and their sustainability practices? http://wp.me/p2EjZw-3b

Veracity Asset Disposition ManagementFind out how the 7 ways to dispose of your surplus equipment can help your company maximize the value of these assets: http://wp.me/p2EjZw-3m.

Veracity Connect Critical SparesCritical spares in the utility industry? Get a better idea with this infographic: http://wp.me/p2EjZw-3D

Veracity Newsletter Investment Recovery Critical SparesIn your mail box: Veracity Connect June newsletter. Reconditioning as an investment recovery method, our clients’ feedback and corporate sustainability are on the menu. http://wp.me/p2EjZw-3H.

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Large Power Transformers and The U.S. Electric Grid Veracity Critical SparesThe “Large Power Transformers and the U.S. Electric Grid” report was released last April. Here are the 9 key facts which explain why large power transformers are critical to the US energy sector. http://wp.me/p2EjZw-3S

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7 Ways to Dispose of Your Surplus Equipment

Veracity Asset Disposition ManagementIs sending obsolete or surplus items to landfills the only solution companies use to dispose of them?

We often forget that there is a full range of disposition means. Similar to what we do with our garage sales or eBay auctions, there is plenty of choice to manage your surplus assets.

Veracity Asset Disposition Management

Let’s detail each of the seven options, often called the 7 R’s, from the most rewarding solution on:

1) Reuse

Veracity Asset disposition managementAlso called “redeploying”, this is the most rewarding option for a company. Relocating equipment to another branch avoids buying a new unit and saves on procurement costs. It is the best stewardship from an environmental and social point of view.

2) Recondition

Also referred as “refurbishing”, it is the method of putting used equipment and parts back in service. Of course, it is less expensive than buying new, and allows the company to have products in like-new state.

3) Return

Veracity Asset disposition managementEquipment and parts can sometimes be returned to the Original Equipment Manufacturer (OEM) or the vendor for cash or credit value. An increasing number of OEMs offers “buy-back” solutions, as they do not want their products to end up in landfills either.

4) Resell

Veracity Asset disposition managementIdle assets can be sold again on the open market to resellers. Auction platforms are the most common tools used to sell used machinery and spares, but trades and bartering are other possibilities. Donating is also considered as a reselling option, as it benefits your corporate citizenship and involvement in the community.

5) Reclaim

Chemicals, hazardous substances and metals can be recovered in a responsible and environmental way, and used again.

6) Recycle

Veracity Asset disposition managementNon-ferrous and ferrous metals, plastic, paper, and glass can easily be scrapped, recycled and sent back to the raw material streams. We tend to forget the value of raw materials… think about copper thieves! Even waste is definitely not wasted, as it can be burnt for energy (“biomass”).

7) Remove

Surplus assets are sent to the landfills at the expense of the company. It tends to be a decision made by default by a number of companies: it is easier to throw something away to the dump or laydown yard, than looking for a better-adapted solution… But it is the most negative solution from an environmental and corporate reputation perspective. Fortunately, this is the last resort choice. It is rare when nothing can be recycled and properly disposed.

Managing surplus assets is indeed a critical aspect of the supply chain. Choosing the proper disposition means for each asset requires times, skills and networks. This is why investment recovery professionals like Veracity partner with companies to implement an efficient disposition management program. A well-run program can easily return at least $20 for $1 spent and helps the company get closer to sustainability.

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