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Using a Business Planning Approach to Establishing an Asset Management Program

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Utilities around the world are struggling to address the challenges associated with aging infrastructure and generate funding for repair and replacement of infrastructure assets. In the U.S. alone, industry experts predict funding levels exceeding 1.0 trillion for water and wastewater infrastructure replacement needs over the next few decades. Most utilities are projecting significant capital investment for both the rehabilitation of existing assets as well as the construction of new assets to accommodate growth needs.

Utilities are seeking asset management programs (AMP) to resolve their infrastructure needs, with varying degrees of success. Creating a practical asset management program should not be an overly complex task, yet for so many it is. Many agencies are attempting to utilize the practical benefits of an asset management program within their organizations but are frustrated with the lack of results. Asset management programs that produce results are tied to the overall goals of the organization – service levels, financial objectives, organizational needs, for example. There are few examples of proven methodologies to guide an agency through the development and implementation of a results-oriented asset management program. A business planning approach to asset management is the key to achieving objectives and getting results.
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Document Type: Research Article

Publication date: 2004-01-01

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