Asset Management: Breaking down the Asset Management Plan

An asset management plan should be implemented regardless of how “aged” your assets are. It is never too late to formulate an Asset Management Plan. The Asset Management Plan sets out what your desired level of service will be and providing this service level in the most cost effective way.

The major benefits of an Asset Management Plan include:

  • Prolonging the asset life by efficient and focused operation and maintenance
  • Meeting customer demands and expectations
  • Budgeting and efficient use of resources
  • Meeting service expectation and regulatory requirements

1. What is your current situation?

An extremely important first step to building the framework for your asset management plan as we cant manage what we don’t know.

  • What do we own? (Asset register)
  • Where is it located?
  • What condition is it in?
  • What is its useful life?
  • What is its value?

2. What is the required level of service?

  • What level of service do the stakeholders demand? (Is it ok for the asset to be “down” for a period of time or is the item a “critical” asset)
  • Are there regulatory requirements?
  • What is the current actual level of performance? (Not what we think the performance level is, what it actually is)
  • What is the asset capable of? (Is it running at optimal speed / performance or has it been slowed down to save it?)

3. What are my critical assets?

  • How can the asset fail?
  • How do the assets fail?
  • What is the likelihood and consequences of the asset failing?
  • What does it cost to repair the asset?

4. What are my life cycle costs?

  • What strategies are suitable for my organisation? (Predictive, Preventative, RTF)
  • What would the costs be to maintain, repair, refurbish or replace the asset over the expected life of the asset?

An Asset Management Plan is not a static document. Once you have formulated your Asset Management framework, the components must be reviewed as situations change or new best practices are established.

Stay tuned for the next in our series “The System Health Check”. We discuss some common issues in the industry and some best practises to get your EAM/CMMS running up to speed.

Interested in learning more about unlocking the full potential of your EAM? Let us demonstrate what we can do for you.