Development of a Strategic Asset Management Framework

Abstract

Success of an asset intensive organisation is based on adoption of high quality asset management practices and systems. A strategic asset management framework (SAMF), ties an asset management organisation from end to end, and is targeted at improving efficiencies, effectiveness and overall performance whilst meeting the business objectives. A SAMF relies on three critical components — People, Process and Technology (Tools and Systems). Appropriate level of maturity is required in all the three aspects to ensure consistency and sustainability of the asset management outcomes. The development and maintenance of a SAMF is a continuous process and needs to be executed over the entire life cycle of an organisation. A sound approach has to be followed to ensure that an appropriate framework on asset management exists and is practiced and maintained by the organisation. Apart from a thorough understanding of the business objectives, a SAMF ensures harmonious operation of an organisation (consistency) and continual improvement (sustainability). This ultimately leads an organisation a step closer to achieving business excellence. The paper defines a strategic asset management framework and discusses steps involved in the development and implementation of such a framework. The approach presented in this paper can be applied to any asset management organisation.