OPE$T - OPEX Planning & Performance Optimization Tool

Through the operating and capital investment phases of an asset, OPE$T now makes it possible to: 

• Forecast operating expenditure (OPEX) to aid investment decisions 
• Facilitate business decisions by simulating their impact on cost 
• Challenge current assumptions 
• Allow analysis of capital expenditure (CAPEX) and OPEX interaction
• Produce a live cost-benefit analysis model 
• Seek and measure improvements generated by change 
• Provide an auditable approach to the analysis of operating costs 
• Assist with budgeting and benchmarking

OPE$T employs several key elements, namely: 

• Whole-life-cycle cost: A cost philosophy to look at the impact of any decision across the whole life cycle of the asset 
• Activity-based costing: The methodology for the allocation of all costs at the level of activity on an asset 
• Asset-based analysis: The process of associating all cost directly to the asset and not to a functional discipline

These elements have been encapsulated into a single process within OPE$T - Asset Business Planning (ABP). This allows the user to capture costs (CAPEX/OPEX) and where needed production/consumption of a product.

OPE$T employs several key elements, namely: 

• Whole-life-cycle cost: A cost philosophy to look at the impact of any decision across the whole life cycle of the asset 
• Activity-based costing: The methodology for the allocation of all costs at the level of activity on an asset 
• Asset-based analysis: The process of associating all cost directly to the asset and not to a functional discipline

These elements have been encapsulated into a single process within OPE$T - Asset Business Planning (ABP). This allows the user to capture costs (CAPEX/OPEX) and where needed production/consumption of a product.

Asset business planning (ABP)
The creation of a dynamic model of the asset against which it is possible to analyze the effect of change. ABP provides a dynamic and proactive tool to search for improvements to the economic performance of an asset, through operating cost reduction or increased production revenues. Without a business plan, it is very difficult to quantify and analyze the strategic impact of any decision.

Activity-based costing
OPE$T uses activity-based costing, which provides significant advantages: 

• Cost can be seen at the lowest or highest level of the system 
• Analyses directly the impact of an activity on one or more assets 
• Allows generic cost allocation to assets 
• Simplifies the structure of the model

Data assimilation
Some of the greatest problems facing an asset manager implementing an ABP are concerned with data. OPE$T provides important advantages in this area, notably: 

• Easing the data collection process 
• Aiding reuse through generic activity databases 
• Allowing easy access and comparison of historical and current information 
• Linking to corporate databases

Generic applications
OPE$T can be used to analyze: 

• Down-manning and other operational studies 
• Maintenance strategy changes 
• Capital investments, e.g. CAPEX/OPEX tradeoffs 
• Facility enhancements

Consultancy services
In conjunction with the methodology and software tools described, IHS has developed a service which is offered for the implementation of ABP studies and dynamic modelling. This frequently includes: 

• Assembling and integrating costs into a coherent structure for each asset 
• Maintaining live asset models 
• Aiding in the analysis and interpretation of results 
• Providing the capability for economic analysis of any changes