Life Cycle Asset Management (LCAM) Overview

Life Cycle Asset Management (LCAM) is an integrated approach to optimising the life cycle of assets from the concept and design, operations and maintenance through to shut down and decommissioning.

The ability to forecast where and when infrastructure capital investments should occur is critical to a company’s service, product, reliability and customer service. LCAM helps you make decisions about how and where to invest capital and maintenance Operating Expenses (OPEX) funds. In addition, it helps to:

Forecast capital renewal, replacement costs over a ten to fifteen-year period
Prioritise capital projects
Forecast funding requirements

With appropriate data driven decision-making, LCAM will deliver:

Refurbish, repair, maintain/replace maintenance strategies
Optimised Preventive Predictive/Prescriptive Maintenance plans
Required inventory requirements with stocking levels
Capital investment forecasts, risk and planning
End of life decommissioning plans
Equipment criticality and hierarchy in the appropriate enterprise resource system format

Life Cycle Asset Management (LCAM) Approach

The MCP LCAM approach can be used for infrastructure and production assets to provide a clear vison of future capital spend requirements. The four elements of MCP’s LCAM approach are:

comprehensive engineering management strategy and engineering risk profile
up-to date condition assessment of all relevant assets
asset performance reliability and cost information
asset life plans based on equipment criticality and future business objectives

To achieve success, these elements must be supported by the right business processes, organisation structure, skills, relevant data and information systems.