Cost Reduction Opportunities

The key objective of a capital expenditure review is to determine the degree of confidence that we hold in the capital works programs.

The degree of confidence will be related to how well the organization has assessed and exploited its opportunities for cost reduction.

The key cost reduction opportunities in asset management are:

• Improving productivity of staff
  • Human resource management
  • Developing a competitive commercial environment
  • Shedding non-essential activities
• Altering (reducing) levels of service
• Improving efficiency
  • Specialized equipment
  • Specialized support systems
• Improved effectiveness by reviewing
  • Non-core/essential assets
  • Non-performing assets
  • Deferred capital works
• Optimized renewal decision making
  • Non-asset options
  • Research and development
  • Causal analysis
  • Activity-based analysis
  • Consequence or risk cost analysis
  • Improved information systems and data.