ASSET MANAGEMENT AS A TOOL FOR EFFECTIVE LONG TERM PLANNING
Abstract:Implementation of an asset management program provides agencies with a unique opportunity to examine in detail the current and future condition of their facilities as well as the effect of various maintenance decisions on financial aspects of the agency. The development of an asset management program can be broken into seven basic steps. The first step in an asset management plan is to define a strategic vision for the program including defining the objectives and strategies for the program. The second step involves performing a detailed inventory of the physical assets. The third and fourth steps require conducting an evaluation of facilities and performing a financial valuation of the facilities. The fifth step is to link the operations and maintenance (O&M) program with the capital improvement plan (CIP) to provide for a “what-if” analysis in the asset management program. The last two steps involve the analysis of the best replacement/repair/retire strategy for each asset and the implementation of the asset management program. Once implemented, an asset management program can provide insight into the effectiveness of the existing maintenance programs and determine a life-cycle plan for an agency's assets. When used in conjunction with a financial analysis, it can also provide a direction for the future on how to provide for maximum benefit from facilities and equipment. Carollo Engineers performed several steps of an asset management program in the asset valuation work performed for the City and County of Honolulu's Waianae, Wahiawa, Honouliuli Wastewater Treatment Plants. Procedures and experiences from this work provide for highlights of some of the steps involved in an asset management program.
Document Type: Research Article
Publication date: January 1, 2002
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