C.F. Romero MSc

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Improving Operational Availability at Chilean Navy assets

“The need of control from Cradle to the Grave”

February 2013

Scientific Supervisor: Prof. Dr W.J.H. van ‘t Spijker

The development of the management around the world, from last century until nowadays, has had been improved and optimized with different types of tools, knowledge or cultures, since the need for living or survive in a competitive and result-oriented globalized world (aiming for money or success).First, in the case of asset management, whether public or private sector, term used in the fields of finance, human or 'intangible', it is a good asset management that maximizes value-for-money and satisfaction of stakeholder’s expectations.Second, the good asset management involves a coordinated and optimized planning, a good asset selection, acquisition/development, utilization, care (maintenance) and ultimate disposal or renewal of the appropriate assets and asset systems.Therefore with the previous issue, a new worldwide standard is under development, the “ISO 55.000” series "Standard for Asset Management", that it is currently in the 'Committee Draft' stage, being reviewed by participating countries until the expected final draft will be finishing and editing during in early 2014.Third, the mentioned initiative started in 2005, but before that time in the naval field, the US Navy has been one of the leaders into development of asset management standards which has been the support and guidance for almost all Navies around the world. On the other hand, an specific initiative related to study in the complex scenario of physical asset management in maritime environments is

Asset Management Control (AMC). An approach managing all the necessary processes by this means achieving a capital asset capable to meet the operational need in the most cost-effective way.

This research shows how some improvements were achieved in the Chilean Navy, with the implementation of the AMC approach in terms of to improve the operational availability of the “Off shore Patrol Vessel” Class, which was severely affected as a consequence of a lack of asset management control in its design, construction and in the 4 first years of utilization.

A case study is performed in order to demonstrate that the AMC approach can be applied in these kinds of asset. The results also shows one of the big roots of the problem that affect the assets operational availability (main effect of all logistics efforts), that is to be a “Failure Event” oriented organization instead of an “Operational Availability” oriented organization.

The improvements in the previous findings were defined as a critical path to be a full cost-effective organization, and shall be considered as a part of a major research to find the way to change the organization culture towards to obtain an effective processes, also with a clear guidance of a main logistics strategy, otherwise, solve a lot of unforeseen and inexplicable failures or to correct a lack of good planning, will remain over the officer's desks, as daily problems to solve

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