Optimum Decision Making in Asset Management by María Carmen Carnero Vicente González-Prida

Author:María Carmen Carnero,Vicente González-Prida
Language: eng
Format: epub
Publisher: IGI Global

Asset Management should aim to create maximum business value from the use of physical assets. To do so, it is crucial to take a multidisciplinary approach towards Asset Management, to be aligned with the corporate objectives, and to focus on the complete lifetime of the asset. Asset Life Cycle Management (ALCM) has been used to describe this “ideal” way of doing Asset Management.

To assist strategic Asset Management decision-making, an integrated insight into the remaining lifetime of the asset is necessary. This insight can be developed by the use of an Asset Life Cycle Plan (ALCP). An ALCP starts with the strategic objectives a company has for the asset in order to let it create business value. The current and expected performance of these objectives is reported to show how the asset delivers business value. Additionally, future impacts and trends on the value creation with the asset are identified, and their effect on the performance is estimated. Finally, the ALCP gives an overview of the Asset Life Cycle Management interventions that may be useful to secure or increase the asset’s value for the company.

Current maintenance concepts and tools primarily focus on the short term of the asset’s life and often do not take a multidisciplinary perspective; hence, these tools do not assist in the identification of future impacts and trends with an impact on the asset. To support strategic decision-making in Asset Management, the identification of these “lifetime impacts,” as they have been called in this paper, is vital. Therefore, a twelve-step approach has been presented to identify lifetime impacts from a multidisciplinary perspective. Five different perspectives are used for the identification: Technical, Economic, Compliance, Commercial, and Organizational (TECCO) lifetime impacts result. The lifetime impacts from these perspectives are identified by making use of the knowledge and information available within the company, primarily by bringing experts together in an expert session. In such a session, a joint understanding of the asset and its future will develop, and the relevant lifetime impacts can be identified.

By following the practical twelve-step approach presented in this paper, an ALCP can be written. The approach is illustrated with an ALCP written by Liander, the largest Dutch network operator. This illustration shows how an ALCP supports asset managers in making strategic decisions in a timely and effective manner.

DISCUSSION AND IMPLICATIONS

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