Transcription of The Fundamentals of Asset Management - SIMPLE
1 The Fundamentals of Asset Management Executive Overview A Hands-On Approach Emerging utility business conditions z Increasing demand for utility services z Diminishing resources z Leveling of production efficiencies z Increasing restrictions on output z Aging infrastructure Result: increasingly expensive treatment options Fundamentals of Asset Management 2. Emerging utility business conditions z Aging customer base z Diminishing technical labor pool z Larger and more sophisticated facilities z Loss of knowledge with personnel retirements z Public resistance to rate increases Result: increasingly complex Management environment Fundamentals of Asset Management 3.
2 Changing utility business environment z Demand to do more with existing resources z Need to make every dollar work to better use capital and operating budgets z Move from reactive to proactive work environment Fundamentals of Asset Management 4. A paradigm shift . z Transition from building and operating to managing assets Extending Asset life Optimizing maintenance and renewal Developing accurate long-term funding strategies Sustain long term performance! Fundamentals of Asset Management 5. Infrastructure is the foundation to sustained quality of life Fundamentals of Asset Management 6.
3 Consequences of Asset failure can be severe Fundamentals of Asset Management 7. Asset Management improves . Decision making throughout the life cycle of the Asset z Acquisition z Operations z Maintenance z Renewal Resulting in lowest total cost of ownership Fundamentals of Asset Management 8. This training describes . z What is Asset Management ? z Why do it? z What deliverables do I get from it? z What are the steps? z How do I move my organization forward? Fundamentals of Asset Management 9. Views on Asset Management z Life cycle z Conceptual framework z Charter principles z Asset Management plan Fundamentals of Asset Management 10.
4 What is Asset Management (AM)? z Systematic integration of advanced and sustainable Management techniques into a Management paradigm or way of thinking, with z Primary focus on the long-term life cycle of the Asset and its sustained performance, rather than on short- term, day-to-day aspects of the Asset Fundamentals of Asset Management 11. Views on Asset Management a framework z Asset Management can be thought of as an object - a box or framework z Following is a brief characterization of 8. different views on Asset Management z These views make up the framework Fundamentals of Asset Management 12.
5 View 1: Definition - Asset Management z Management paradigm and body of Management practices z Applied to the entire portfolio of infrastructure assets at all levels of the organization z Seeking to minimize total costs of acquiring, operating, maintaining, and renewing assets . z Within an environment of limited resources z While continuously delivering the service levels customers desire and regulators require z At an acceptable level of risk to the organization Fundamentals of Asset Management 13. View 2: Life cycle business processes Plan Support processes Demand Management Knowledge of assets Dispose Acquire CIP validation Core Accounting & economics Condition & performance Processes monitoring Business risk exposure Renew Operate Works resource Management Review & continuous improvement Maintain Fundamentals of Asset Management 14.
6 View 3: Core AM program elements Information Systems Lifecycle Data &. Process &. Knowledge Practices Total Asset Management Plan Organizational People Issues Issues Commercial Tactics Sustainable, best value service delivery Fundamentals of Asset Management 15. View 4: Management framework Asset Management Business Processes Asset Management Plans Strategic Initiatives Annual Budgets Operating Budget Capital Budget Fundamentals of Asset Management 16. View 5: Five core questions 1. What is the current state of my assets?
7 Z What do I own? z Where is it? z What condition is it in? z What is its remaining useful life? z What is its remaining economic value? 2. What is my required level of service (LOS)? z What is the demand for my services by my stakeholders? z What do regulators require? z What is my actual performance? 3. Which assets are critical to sustained performance? z How does it fail? How can it fail? z What is the likelihood of failure? z What does it cost to repair? z What are the consequences of failure? 4. What are my best O&M and CIP investment strategies?
8 Z What alternative Management options exist? z Which are the most feasible for my organization? 5. What is my best long-term funding strategy? Fundamentals of Asset Management 17. View 6: AM plan 10-step process Determine Develop Assess Determine Set Target Live Cycle &. Asset Condition, Residual Levels of Replacement Registry Failure Modes Life Service (LOS). Costs Determine Optimize Optimize Determine Build AM. Business Risk O&M Capital Funding Plan ( Criticality ) Investment Investment Strategy Fundamentals of Asset Management 18.
9 View 6: AM plan 10-step process System Layout; Condition Demand Anal.;. Expected Life Data Hierarchy, Assessment Valuation; Life Balanced Tables;. Standards, and Protocol; Rating Cycle Costing Scorecard;. Decay Curves Inventory Methodologies Perform. Metrics Determine Develop Assess Determine Set Target Live Cycle &. Asset Condition, Residual Levels of Replacement Registry Failure Modes Life Service (LOS). Costs Determine Optimize Optimize Determine Build AM. Business Risk O&M Capital Funding Plan ( Criticality ) Investment Investment Strategy FMECA; Confidence Level Asset Mgmt Plan.
10 Root Cause;. Business Risk Rating; Strategic Renewal Policies and RCM; PdM;. Exp.; Delphi Validation; Annuity Strategy;. ORDM. Techniques ORDM Annual Budget Fundamentals of Asset Management 19. View 7: Seven principles of Asset Management 1. The Value Added/Level of Service Principle assets exist to deliver services and goods that are valued by the customer-stakeholder; for each consumer-stakeholder there is a minimum level of service below which a given service is not perceived as adding value. 2. The Life Cycle Principle all assets pass through a discernable life cycle, the understanding of which enhances appropriate Management .