John Mitchell had published his famous book : Physical Asset Management Handbook, 4th Edition, https://www.clarion.org/index.php?mod=product&id_prd=55. Physical Asset Management, Fourth Edition, is a major update and expansion – more than 100 pages – of the valuable material contained in the acclaimed third edition. John Mitchell and editor John Hickman have crafted their experience-based contributions, and those of ten leading practitioners of Physical Asset Management, into a top-to-bottom description of the processes, practices, technology, implementation, and results attainable with Physical Asset Management in a highly practical, experience oriented, results directed format.

Chapter 6 of this book is overview of Implementing Asset Management Within the Power Generating Industry, was contributed by Grahame Fogel. This Chapter covered the Journey of PT Pembangkitan Jawa Bali (PJB) in implementing Asset Management. Grahame Fogel, an International Asset Management Consultant, is MTS Indonesia's Expert who involved in implementing Asset Management within PJB.

These are quotes from Chapter 6.

VI. AN OVERVIEW OF IMPLEMENTING A COMPREHENSIVE ASSET MANAGEMENT PROGRAM WITHIN THE POWER GENERATING INDUSTRY.
Contributed by: Grahame Fogel, Capaciometrics, Hout Bay, South Africa

DEFINITION OF THE NEEDS OF THE PROJECT
Indonesia is a recent democracy, having emerged out of a complex political past that involved circumstances under which public assets had been undervalued and under maintained. Today, there is a National Priority to place the Indonesian economy on a footing that will allow it to compete with the other fast emerging SE Asian economies. One of the fundamental prerequisites for this is to provide an affordable, stable, dependable power supply. However, within Java Island, where the main concentration of industrial output and power consumption resides, the electricity demand curve is fast approaching the supply curve, and in some instances has indeed already surpassed it.

As an emerging economy that faces significant economic challenges, including the devastation of the recent Tsunami, Indonesia has restricted access to capital. Therefore, any strategy that is developed to address the power situation has to ensure that what little capital becomes available is employed to:
- Ensure the existing infrastructure operates as close as possible to its capacity
- Improve capacity factors, where possible.

PJB (PT Pembangkit Jawa Bali) is an Indonesian state owned power utility. It manages four major thermal generating stations together with two hydro generating units. It has a total generating capacity of 6526 MW. As a response to the national need to become a cost effective supplier, PJB has developed an asset optimisation and productivity program, the goal of which is to optimise asset contribution in order to become a more effective power generator. With the support of outside expertise, PJB developed a response to the situation and has implemented an integrated asset management optimization programme abbreviated Maintenance Optimization Programme (MOP).

PJB developed a broad definition of what constitutes an asset, as anything which creates strategic value. As such, four classes of assets were defined. These are:
1. Physical assets (the plant)
2. Human and work culture assets
3. Knowledge assets
4. Accessible capital (for improvements)

In the following, we will describe the methodology and procedure that was followed in the design and implementation of MOP, the integrated asset management optimization programme adopted by PJB.

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