As outlined in the ‘9 Steps in Starting Asset Management’ post we shared earlier, asset management is the methodical process of organizing, operating, maintaining, renewing, and disposing of tangible assets while tracking each asset’s useful life and risk of failure to ensure the greatest return on investment. That post outlined simplistically the process that is utilized when starting asset management and this post is to delve a bit deeper into the first four steps:
The first step in creating an asset management program is to conduct a needs assessment to understand the requirements. Organizations utilize the practice of managing assets to achieve the greatest return on their infrastructure investment. By identifying the needs of the organization, the process of monitoring and maintaining facilities systems, with the objective of providing the best possible service to users, standardizes.
Identifying the goals of the asset management program early in the development process allows the organization to reduce short-term reactive work and increase longer-term lifecycle asset management. Improving the asset utilization and extending its life and performance is completed while reducing additional asset-related capital and operating costs. By managing the infrastructure capital assets it minimizes the total cost of owning, operating, and maintaining assets at acceptable Levels of Service.
Asset management programs encompass whole organizations and rely on the recognition of the dependent relationship of maintenance, operation, performance, productivity, lifecycle cost, and capital planning. Workshops and internal seminars to gain buy-in from program users and find a champion to lead the efforts
Inventory & Assessment:
Once the first three steps are complete, an inventory and registry of the existing assets will need to be created to build the foundation for the program. Identifying and locating each asset throughout the organization’s infrastructure can be challenging, and in many cases location maps are used in the cataloging process. To analyze the infrastructure efficiently, a standard form of measure needs to be established, using an asset management software, which accounts for age, location, consequence of failure, and condition. The ability to build an asset catalog ensures all of an organization’s assets are maintained in one database that can be accessed and understood easily.
Coming up in Part 2 we will cover the additional five steps in this process.