Definition of the service standard

This step defines the performance that the defined assets must have and under what conditions, as well as the service standard for the different parts of the asset system. In short, it defines how the system should work, in a measurable way.

Typically this consists of two parts, the measured performance specifications and the minimum condition level.

The minimum condition level must take into account the consequences of a failure. For example, an anti-flood barrier in an urban area that in the event of a barrier failure will have a flood of 1 meter of water must have a minimum condition level of high (grade 2 or 3). An earth barrier that protects uninhabited land will instead have a lower level of minimum conditions (grade 4 or 5).

If further detail is necessary, the minimum condition level should take into account elements such as the possibility of asset failure and the speed at which this can occur. If the asset presents a slow process that can be monitored, a level of minimum conditions of magnitude 2 or 3 is not necessary. On the contrary, an asset that presents rapid degeneration without prior signs will need a higher magnitude.

Some assets may be linked to legal obligations to provide a certain standard of service.

It is important to understand what function each asset must fulfill, and what minimum conditions are considered acceptable.

Current asset performance

The conditions in which the assets are currently located must be defined. To do this, an inventory of all assets must be prepared with unique identifiers and that also includes information such as owner of the asset, age, estimated lifespan, etc.

This step is important to know the state of the assets currently.

Planned actions and life cycle management

A short text narrating short-term actions is necessary to cover the space between the point where we are currently and the point where we want to be. In the case of already meeting the defined service standard, this action allows determining how to continue in the same state with the lowest possible cost, creating an innovative approach in the method to meet the designated standard.

This step is important to understand what actions will position or maintain the assets above the established minimum condition, and with the capacity to develop their function in the best possible way.

Costs

The short, medium and long term costs for the asset system must be recorded. Cost planning must be made for the operation, maintenance, repair and replacement of assets to maintain the service standard. Ideally, cost planning should cover the cost of the oldest asset in the system to estimate the total life cost of the assets and determine average annual costs.

This section may need to be reviewed and updated annually since it is the reference for financial allocations.

The figures offered for the current year (year 0) and three following years (1-3) must be approximate to reality. After this period, the calculations must plan for large expenses expected in the medium term, and allow sufficient time to make an in-depth appraisal of the cost of replacing assets.

It is important to know the cost of the planned actions, as well as the management and indirect expenses related to a specific asset system. It is also essential to develop the necessary efforts to optimize the approach necessary to meet service standards.

Benefits

Without exception, all assets must offer a series of benefits that can be measured or explained. The most common thing is to transform the service standard into an economic figure. Other benefits, more difficult to measure, may be social or environmental, although it is important to keep a record of them.

This part is important to demonstrate that the asset management plan is beneficial for the company and that the expense it generates is justified by the benefit obtained by the company.

Improvements

The improvements represent a potential change in the service standard and are managed as a complete project, with expense management, comparing different options and selecting the most appropriate one.

Some improvements include the acquisition of new assets, lowering the service standard, or removing or changing assets included in the organization's asset system.

Definition of the service standard

This step defines the performance that the defined assets must have and under what conditions, as well as the service standard for the different parts of the asset system. In short, it defines how the system should work, in a measurable way.

Typically this consists of two parts, the measured performance specifications and the minimum condition level.

The minimum condition level must take into account the consequences of a failure. For example, an anti-flood barrier in an urban area that in the event of a barrier failure will have a flood of 1 meter of water must have a minimum condition level of high (grade 2 or 3). An earth barrier that protects uninhabited land will instead have a lower level of minimum conditions (grade 4 or 5).

If further detail is necessary, the minimum condition level should take into account elements such as the possibility of asset failure and the speed at which this can occur. If the asset presents a slow process that can be monitored, a level of minimum conditions of magnitude 2 or 3 is not necessary. On the contrary, an asset that presents rapid degeneration without prior signs will need a higher magnitude.

Some assets may be linked to legal obligations to provide a certain standard of service.

It is important to understand what function each asset must fulfill, and what minimum conditions are considered acceptable.

Current asset performance

The conditions in which the assets are currently located must be defined. To do this, an inventory of all assets must be prepared with unique identifiers and that also includes information such as owner of the asset, age, estimated lifespan, etc.

This step is important to know the state of the assets currently.

Planned actions and life cycle management

A short text narrating short-term actions is necessary to cover the space between the point where we are currently and the point where we want to be. In the case of already meeting the defined service standard, this action allows determining how to continue in the same state with the lowest possible cost, creating an innovative approach in the method to meet the designated standard.

This step is important to understand what actions will position or maintain the assets above the established minimum condition, and with the capacity to develop their function in the best possible way.

Costs

The short, medium and long term costs for the asset system must be recorded. Cost planning must be made for the operation, maintenance, repair and replacement of assets to maintain the service standard. Ideally, cost planning should cover the cost of the oldest asset in the system to estimate the total life cost of the assets and determine average annual costs.

This section may need to be reviewed and updated annually since it is the reference for financial allocations.

The figures offered for the current year (year 0) and three following years (1-3) must be approximate to reality. After this period, the calculations must plan for large expenses expected in the medium term, and allow sufficient time to make an in-depth appraisal of the cost of replacing assets.

It is important to know the cost of the planned actions, as well as the management and indirect expenses related to a specific asset system. It is also essential to develop the necessary efforts to optimize the approach necessary to meet service standards.

Benefits

Without exception, all assets must offer a series of benefits that can be measured or explained. The most common thing is to transform the service standard into an economic figure. Other benefits, more difficult to measure, may be social or environmental, although it is important to keep a record of them.

This part is important to demonstrate that the asset management plan is beneficial for the company and that the expense it generates is justified by the benefit obtained by the company.

Improvements

The improvements represent a potential change in the service standard and are managed as a complete project, with expense management, comparing different options and selecting the most appropriate one.

Some improvements include the acquisition of new assets, lowering the service standard, or removing or changing assets included in the organization's asset system.