Decision Analysis/Implementation Guidance ‒ Asset Management Tools Development Research Digest: Phase 3

Abstract

Asset management can be defined as a way of management thinking. It is also a set of best practices built around a structured framework that helps the asset manager to make the most cost-effective investment decisions on existing and new assets. Its goal is to sustain long-term performance of the assets in an environment of limited resources; these decisions represent an integration of operations, maintenance, and capital intervention strategies. At the heart of the framework is the concept of business risk – a metric that measures the interaction of the probability of failure, the consequence of failure, and risk mitigation strategies.In 2006, at the direction of its members through a series of facilitated national focus groups, WERF launched a multi-year research and development project to strengthen the practice of asset management. The project is called the Strategic Asset Management (SAM) project. It is comprised of four separate, but integrated Tracks. Track 3 was developed to “provide guidance on implementing SAM…and develop analytic tools for SAM implementation” – the Decision Support Tools and Implementation Guidance goal. In Track 3, the Decision Support Tools and Implementation Guidance goal was organized around two major elements:♦Analytic, Decision Support Tools – Staged, user-friendly analytic and decision support tools (gap analysis, cost benefit analysis, risk management, life cycle costing, condition assessment selection tool, etc.) for SAM implementation and continuous improvement.♦Implementation Tool – Practical, accessible guidance for an implementation tool to undertake SAM in incremental stages leading to a well-planned, structured, and progressive implementation to suit the needs of a diverse range of utilities’ communication practices.This Phase 3 of the SAM project provides for the development of and inclusion in SIMPLE (WERF’s online Asset Management Knowledge Base) the following five asset management support tools:♦Asset Hierarchy Tool♦Remaining Effective Life Tool♦Life Cycle Cost Projection Tool♦End of Asset Life Reinvestment Decision Support Tool♦Business Case Tool♦Asset Management Plan Template ToolThese tools join the Gap Analysis and the Benefit Cost tools developed in Phase 1 and the Level of Service, Condition Assessment Scoring, Business Risk Exposure, and the Capital Investment Validation and Prioritization tools developed in Phase 2. This phase (Phase 3) completes the scheduled work on Track 3 for WERF’s SAM project.This research digest briefly outlines the tools developed in this phase. Each chapter describes a separate tool. The tools have been added to SIMPLE, WERF’s web-based asset management knowledge base. The tools are also available in stand-alone versions by downloading the desired tool or tools from SIMPLE.This title belongs to WERF Research Report Series.ISBN: 9781780405032 (eBook)