Treatment or Risk Reducing Cost Options

Often particular courses of action for reducing risk are bound by particular restraints.

A separate Treatment Options/Cost Database aims to capture these restraints, and assist the asset manager in the decision making process.

Much of the information for this system is supplied by other asset management information systems, with some additional inputs, including:

• The dates by which each option would need to be completed to be effective
• Future maintenance costs
• Future operating costs.

The system would then assist the asset manager by identifying the effect of each option on:

• Management (overheads) (inputs)
• Predicted operating costs
• Predicted maintenance costs
• Extension of asset life
• Increased asset production or income generation
• Improved level of service
• Reduction in risk exposure (risk cost).

The asset manager can then work through the following steps:

• Assess the NPV of each of the above beneficial effects together with the cost
• Identify the most effective (current) solution for the asset
• Add this work to the forward works program for the period required by the option.

Much of this information can be automated, with business rules designed to meet the needs of the organization. This information will become a feed for the Asset Strategic Planning module.