AN ACTIONABLE ASSET MANAGEMENT APPROACH FOR THE UTILITY INDUSTRY
Abstract:As utility budgets tighten, infrastructure continues to decay, expectations regarding service levels rise, and doing more with less becomes the business norm, more utilities seek to investigate, architect, design, and implement an effective asset management program. The primary goal of an effective asset management program is to optimize asset-related capital and operating expenditures operationally and financially. A key step in designing an asset management program to achieve this primary goal is the assessment of current, utility-specific, asset management practices, along with lessons learned and benefits realized. Many utilities have determined that comparisons between their approaches and asset management practices from other geographies are extremely valuable. Utilities interested in implementing an asset management program will find that assessment, awareness development, and comparison can be accomplished incrementally within an overall asset management program.
This paper highlights a global best practice asset management reference model and an approach for developing asset management awareness, a relevant strategic intent, and a prioritized, actionable, implementation plan. Building on the actionable plan, utilities must assess and implement a suitable asset management data framework; design and implement an appropriate organization, business processes, and enabling IT architecture; and develop and implement improved methods for forecasting and planning asset-related capital expenditures and operating expenditures. Methods for funding improvement programs, and then planning continuous improvements to a utility's asset management approaches are also key components of an enterprise asset management program. In summary, key considerations in implementing asset management business discipline are to leverage business policies and processes, technology, and mindset, through a holistic asset management reference model and approach.
Document Type: Research Article
Publication date: January 1, 2004
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