Abstract for: Using system dynamics to improve integrated Life Cycle Cost of Physical Assets
Owners of physical industrial assets often make ineffective Asset Management decisions which may lead to lower returns on investments. This presentation takes a business oriented approach and looks at a practical case in which improvements can be made by using System Dynamics to assess the dynamic behavior of the physical asset and the interactions with the environment. We discuss the case of a large investment company which has experiences in the capital-intensive industry. We observe that facilitating group model sessions and workshops focused on experiencing behavior contributes to collaborative behavior between different organizational disciplines and stakeholders. System dynamics proofs to be a useful tool to create shared vision and understanding of the integrated business processes that ultimately leads to higher returns on investments and a better control on risks.