Outputs Required
The outputs from an advanced asset management program must ultimately satisfy the corporate business objectives of the organization, to enhance its competitive advantage.
As the business environment is always changing, the relative importance of each of the business drivers should be weighted.
An example of the key business drivers with the relative weightings and the outcome necessary is shown below:
Key Business Drivers | Outcomes Necessary | Business Environment Weighting |
Improved operational efficiency and effectiveness | Optimised Maintenance System modeling Automation Business risk reduction Cost minimization Current Utilization Available capacity | 60% |
Improved levels of service to customers | System performance Satisfied customers Satisfied regulator | 20% |
Achieve optimum life from existing assets | Deferred capital Lowest optimal blend of capital and maintenance | 20% |
It is also necessary to identify the levels of outputs, and their appropriate timeframe. The table below summarizes the key elements in a typical improvement program:
AM Quality Level (Sophistication) | Current | 1 | 2 | 3 | 4 |
Required Inputs | Timetable Status | 2003 | 2004 | 2005 | 2006 |
Asset Register Hierarchical Level % Complete | 80% | 85% | 90% | 95% | 100% |
Physical Characteristics / Attributes | 80% | 85% | 90% | 95% | 100% |
Effective Lives (% adopting condition based depreciation) | Estimated | 20% CBD | 35% CBD | 45% CBD | 55% CBD |
Condition Assessments (simple) | 90% | 100% | 90% | 85% | 70% |
Condition Assessments (detailed) | - | - | 10% | 15% | 30% |
Performance Records/Failure History | 15% | 25% | 45% | 60% | 75% |
Risk Assessment Consequence of Failure | Ad hoc | 10% | 40% | 80% | 90% |
Risk Assessment Probability of Failure | Ad hoc | 10% | 40% | 80% | 90% |
It is desirable to be able to carry out risk analysis of all critical assets so as to reduce the overall business risk exposure.
In this example, the organization is only beginning to understand the implications of risk. Normally, within 3 years of the 'beginning' stage, only elementary or simple risk analysis technique can be justified, and probably only 10% of the critical assets could be targeted for this level of risk analysis.