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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 Spending priorities established
Optimized 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
Year 1
Year 2
Year 3
Year 4
Required Inputs  
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.


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