Strategies to Startup a Value Added Asset Management Program

 

 

Keywords: Asset Management, Computer Maintenance Management System (CMMS), Integration, Mobile

 

 

Asset management is the buzz word in our industry best practices to address our aging infrastructure rehabilitation and renewal needs, and complying with Governmental Accounting Standards Board (GASB 34) and Capacity Management Operations Maintenance (CMOM) requirements. Most of us are aware about the drivers, benefits and components of an asset management program.  To most organizations, asset management is a new concept and practice which they typically do not have the resources and organizational support to develop an asset management program. Frankly, most organizations are overwhelmed with the level of effort in developing a comprehensive asset management program. How do organizations start up a value added asset management program to get the greatest returns without significant financial and resource commitments?

First, an organization should think strategically about how to develop an asset management program before they dive into the details of asset inventory, condition assessment and rehabilitation needs. Most of us make the mistake of being too focused on trying to collect all the detail information to develop a comprehensive asset management program which could be very labor and time intensive. Instead, organizations need to identify their asset management vision, goals and strategies and then identify the information and resources required to support an asset management program that would bring the greatest value to the organizations.

If an organization is weary about diving into a system-wide asset management program immediately, one should consider some of the following alternative startup approaches:

 

• Needs assessment/Benchmark status review – Determine the organization's asset management vision, goals and strategies. Identify an asset management program that fits the organization's needs and identify the resources and information required to support the program. Evaluate how existing information fits into the asset management program.

 

• Top down renewal and replacement forecast – Evaluate system-wide forecast of rehabilitation and renewal needs. The results of this approach are forecasted financial needs to support an asset management program.

 

• Vertical pilot approach – Asset management pilot project for a specific types assets (i.e. tanks, pump stations) or geographic area of a system (i.e. sewer shed, water distribution zone, process area). The benefit of this approach is that it applies the asset management pilot project to a good cross section of assets.

 

• Risk based approach – Asset management pilot project for the most critical assets across the entire system. The most critical assets are defined as assets that would have a significant negative impact to the operations in the event of failure. The results of this risk based approach would be the start of an asset management program for the most important assets.

These alternative approaches allows organizations to startup and realize the benefits of an asset management program without being overwhelmed of taking on a comprehensive system-wide asset management program. This paper will present case projects where organizations have applied these approaches and can demonstrate key benefits.

 

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