In order to achieve your business goals and performance targets, you need to develop and execute an appropriate plan for the management of your physical assets (Asset Management Plan). The asset management plan is a consolidated plan that translates your business expectations, goals and your performance targets into what you need to do with your physical assets to achieve these. The asset management plan includes routine maintenance and renewal work, condition monitoring, minor capital projects and major acquisitions and projects.
Asset Management Plan
The Asset Management Plan is the plan that defines what the business needs and not opinions of what may be helpful. The Asset Management Plan is the statement of work to be undertaken on the assets including their risk prioritisation and justification, the estimated cost of such work and resources required, and the schedule which anticipates their commencement and completion. Such a plan will accommodate:
- Budget for routine work such as preventive maintenance and defect rectification;
- Significant OpEx corrective work which will ensure assets achieve their intended design life and advanced deterioration is managed;
- Minor project asset renewals to cover off where maintenance cannot assure required system capability; and
- Major projects for both existing business capability and new capabilities.
The work in the asset management plan is scheduled. The forecast of work to be undertaken on the assets with the following planning horizons:
- 1-2 year schedule which is risk-prioritised and defensible on the basis of supporting information;
- 2-5 year options schedule which allows better grouping of major work into economically optimum packets, ie bring some work forward and defer other work; and
- 5-20+ year strategic view of expected times for major capability renewal and timing for significant investigations as well as contingencies
Two cost control aspects are essential:
- Estimated costs of work should be within 15% of actual costs; and
- Churn of proposed work within the next 1-2 years should be less than 5% by value.
The asset management plan is supplemented by appropriate strategies such as:
- Maintenance tactics development
- Condition monitoring
- Fluids management
- Statutory spares management
One of the most important aspects of the asset planning framework is the use of data and knowledge of asset health to drive forward work. Good asset management is a detailed process, considering thousands of items of work feedback, defect management and condition assessment. The basic building block of this approach is the knowledge of the condition of the assets and then the use of risk plus business analysis to determine the optimal work to be undertaken. The resulting Asset Management Plan is the balance of cost, risk and desired performance to be achieved with available funds and resources as well as access to equipment.
The Value to You
The value that is delivered to you is a bottom-up, risk prioritised plan which covers your assets and allows assessment of investments on a common basis, and tests decisions of deferrals as well expediting work on a risk versus cost vs performance basis.
Cost benefits include:
- Reduction in overall capital project portfolio by 10-30% through removing nugatory work or consolidating work for greater efficiencies.
- Justification to lift annul capital spending on cash-starved assets and thereby reducing risk.
- Productivity gain leading to a maximum of 10% of operating costs.