Overview

It can be said that management is synonymous with decision-making and the essence of management is choice. Choice requires the specification of a set of optional courses of action, listing the consequences of each option, ranking the options in accordance with utility function, then selection of one approach using a decision rule.

The essence of responsible asset management is choosing the right option, which requires sound asset management processes, appropriate information systems, and adequate data.

This manual has been developed to assist those organizations that have realized the key relationships of Advanced Infrastructure Asset Management and their service delivery performance.

Once the appropriate asset management information systems are in place then the data needs to be analyzed and decisions made. The key result area is to derive the greatest benefit for the resources invested in meeting the business objectives of our organizations.

This manual had been developed to assist clients to proceed through this phase in their asset management strategy.

ORDM is not a process for economic evaluation. It is a process that attempts to ensure that:

• All options to overcome the mode of failure are considered.
• Intervention levels are determined for different treatment options.
• All benefits are equally assessed, for example: risk exposure, probability of failure, life extension.

Each treatment option and its associated cost/benefit then needs to be assessed economically using the organization’s policy on economic evaluation technique. These techniques are only as good as:

• The options evaluated or assessed:
  • Asset and non-asset options.
• The accuracy of the data used:
  • Condition/probability of failure
  • Risk/consequence of failure
  • Effective lives/loss of value
  • Treatment costs
• The validity of the process used:
  • Both ORDM and economic evaluation techniques.