Total Asset Management

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8 Νοε 2013 (πριν από 3 χρόνια και 5 μήνες)

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1

Total Asset Management


Managing All the Capital of Enterprise



JohnPaul Kusz



Center for Sustainable Enterprise,

Stuart Graduate School of Business

Illinois Institute of Technology
-

Chicago


2

Environmental Management

What We See



What Others See

3

Survey of Disciplines



SURVEY OF DISCIPLINES


T


B


P


Education












Claim 2 points for a Bachelors degree.


2









Claim 4 points for a Masters degree.


4


4






Claim 6 points for a Ph.D. or similar degree.











Work Experience












Enter 0 if you have no work experience












Claim 3 points for 1


3 years.








3



Claim 6 points for more than 3 but less than 10 years.


6









Claim 9 points for more than 10 years.











Your Future?

(Where do you want to go from here?)












3 (top choice), 2 (next choice) or 1(least interested)



1


3


2



Science/Technical (Fantasy: Be a Nobel laureate)












Policy/Government (Fantasy: Be Environmental Administrator)












Business/Management


(Fantasy: Be the next CEO of your favorite Multi
-
national)











Your likely perspective Total



13


7


5


4


“DESIGNING TOMORROW TODAY”

Extraction

Manufacture

Distribution

Recovery

Industrial Ecology

Conversion

Acute and Chronic

Entropy & Diffusion

The View/Self
-
view

Design Artifact?

The View/Self
-
view

Natural Capital

“Return to Sender”



Natural Systems

Use/Abuse/Reuse


The View

Tomorrow?

The View
Today?

What We See

5

Challenge:


To move the role of Environmental Management

to a strategic position in the organization.

Using the Lexicon of Business!

Going from the “end of the pipe” to the “corner office”


What “Others” See


Costs
Money

Makes
Money

Saves
Money

How is Environmental Management viewed today?


When thinking about Environmental Management,

what does the CEO, Director see?

Environmental Management:


6

Costs Money

Makes
Money

Saves
Money

WASTE
MANAGEMENT

RESOURCE

MANAGEMENT

ASSET

MANAGEMENT

Environmental Management

Enterprise Management

Changing the Paradigm from:


Supervision to “Super Vision”

7

Forms of Capital


Real & Virtual

Constructed
Means Of
Production
Of Goods &
Services



Evolved
Means Of
Production
Of Physical
Capital And
Goods &
Services


Constructed
Value Metric
& Surrogate
For Natural,
Human &
Physical
Capital


Source Of
All Other
Forms Of
Capital
(Basis Of All
Wealth)


Financial
Capital
(Principal)

Physical
Capital
(Principal)

Human
Capital
(Principal)

Natural
Capital

(Principal)

8

Form

Of

Capital




Form
Of

Commodity

Management

& Disposition

Effects Of The
Form Of
Disposition
Management
At The
Enterprise
Level

Natural
Capital

(Principal)


Source Of All
Other Forms
Of Capital
(Bas
is Of All
Wealth)

Human Capital
(Principal)



Evolved Means
Of Production
Of Physical
Capital And
Goods &
Services

Physical
Capital
(Principal)


Constructed
Means Of
Production Of
Goods &
Services

Financial Capital
(Principal)



Constructed
Value Metric &
Surrogate F
or
Natural, Human
& Physical
Capital

Asset

Management


(Life Cycle
Management)


Internal To
Product And
Process

Makes Value

(Capital)



Profit Center


Pre Product

Pre Process

Decision

Restored
Ecology


Offset
Ecology
Depletion


Building

Ecology
Principal ?

Minimal H
ealth
Risks/Costs




Adding To
Human Health
And Welfare

Pre
Production
Plant And
Equipment

Costs



Investment?

Recovered Costs

(Profits)


Return On
Investment


Creating Wealth?

(Principal)

Resource
Management


(Reduce
-
Reuse
-
Recycle)



External To
Product

Saves Value
(Ca
pital)


Cost
Management
Center


Post Product

In Process

Decision

Mitigated
Ecologic
Depletion


Reducing
Principal
Costs

(Interest)

Moderate
Health
Risks/Costs


Stabilizing
Current Human
Health And
Welfare
Conditions?

In Production
Plant And
Equipment

Costs

Reduced
Total
Costs

(Savings)


Slow Wealth

(Principal)
Depletion?


Redistributes
Wealth?

(Principal)

Waste
Management




External To
Process And
Product

Takes Value
(Capital)


Cost Center


Post Product

Post Process

Decision

Highest Risk
Of

Ecologic

Depletion

Harvesting

Min
ing

Eroding
Principal

Highest Health
Risks/Costs


Degrading
Human Health
And Welfare

Post
Production
Plant And
Equipment

Costs

Added Total
Costs




Depletion Of
Wealth

(Principal)


Effects of Disposition

Are Products
Physical Capital?

9

Product as Asset
--------
Restoration

Pre
-
Production Costs
-

Investment?

Utility Transaction(s)

-

Annuity
-

ROI?

Product as Resource
---
Mitigation

In
-
Production Costs
-

Linear (Cost + Margin)

Unit/Utility Transaction(s)

-

Sale
-

Possible Recovery

Product as Waste
--------
Degradation



Post Production Costs (Public)
-

Unit/Utility Transaction(s)

Sale






Acute/Chronic Disposition



Product


Asset, Resource or Waste?

10

The Academic & Business Link

Supply Chain Project

Product
Development/



Organizational
Behavior

Marketing

Economics

Accounting

Statistics


Industrial Ecology

Energy

Management


Financial Capital
(Principal)

Metrics of Returns &
reinvestment


Physical Capital
(Principal)

Production

Need Fulfillment

Scale

Human Capital
(Principal)

Organizational
Management

Distribution

Natural Capital

(Principal)

Resource

Management
Allocation

Later Supply Chain

Project /Facility

Product Dev.

Practices

Human Resources

Marketing

Practices

Finance

Accounting

General Management

Practices

Resource Energy
Early Supply Chain
Management

Practices


Stuart

MBA & E M

Programs


Teaching

Research Stuart

MBA & E M
Faculty

Learning

Center for
Sustainable
Enterprise &

Businesses

Sharing

11

...the next phase:

Sustainability

or

Comprehensive
Enterprise

Modeling


WASTE
MANAGEMENT

RESOURCE

MANAGEMENT

ASSET

MANAGEMENT


where:


Environmental Health = Economic Health



(Wealth)



(Wealth)




Environmental Management

12

If everything that enters the enterprise
system is viewed and managed as an
asset, the resulting model of wealth
creation is circular and contained rather
than linear. The continuous dividends
generated by the asset management
model lead to an effectiveness that
defines the next level of competitiveness
in the business model, and the nature of
wealth (health) in the community model.

Total Asset Management

13






Thank You



JohnPaul Kusz

Stuart Graduate School of Business

Jpkusz@stuart.edu

Center for Sustainable Enterprise

www.stuart.edu/cse