Proposing a Holistic Physical Asset Management Strategy to Implement in Food and Beverage Industries in South Africa

Abstract

Due to the increased demand for high-quality products, quality has been identified as the key to success in many food and beverage manufacturing organizations. In order to fulfil the customer’s/consumer’s demand for high-quality products, not only quality, but delivery time and cost need to be considered as the production process of the food industry requires continuous operation of production line equipment. Thus, a good asset management system is important for a manufacturing organization to enhance its competitiveness. For this reason, ISO 55000 series of international standards are advised to provide a standardized framework for an asset management system. Although many food and beverage industries strive to continuously improve operations, external factors are outing the industry under pressure to maximize production capacity, improve product quality, and better align assets to market dynamics. Thus, responding to this pressure, a holistic asset management strategy that focus on asset care is suggested to the food and beverage industry, hence this study investigates this statement. In attempt of implementing ISO 55000 alongside total quality management (TQM), this study propose that a holistic physical asset management strategy will be achieved. This would enable the organizations to develop and sustain within this competitive environment by aiming to earn the status Best-in-Class. A business case for the holistic approach was developed, engaging the examination of the requirements, objectives, organization alignment, financial benefits and the impact that this approach will generate. This study therefore endeavour to improve overall organization excellence in developing countries as well as aims to inform relevant South African food and beverage organizations on the topic of the need and importance to implementing a holistic asset management strategy as it represents a potential source of improvement.

Keywords: Holistic strategy, physical asset management, TQM, food, beverage.