Asset Management Framework: Planning-Strategy-Policy

Asset Management Framework:

In any asset intensive organization, Asset Management Framework is a pyramidal structure, base layer is Asset Management Planning and subsequent layers are Asset Management Strategy & Asset Management Policy as shown in the caption picture.

Objective & Definition of Asset Management Planning:

The objective of Asset Management Planning is to select the right assets and derive maximum life cycle value from each asset, affecting operations and finance. In other words, an Asset Management Plan #AMP is a plan developed for the management of one or more asset types / asset classes with a view to operating, maintaining and renewing the assets of same type / class in the most cost effective manner possible, whilst providing a specific level of service.

Objective & Definition of Asset Management Strategy:

• An Asset Management Strategy is a strategy for the implementation and documentation of asset management practices, plans, processes and procedures within an organization. It is a high level but very important document that guides the overall asset management activities within an organization.
• Definition of Asset Management Strategy as per International Infrastructure Management Manual: The International Infrastructure Management Manual defines an asset management strategy as "a strategy for asset management covering the development and implementation of plans and programs for asset creation, operation, maintenance, rehabilitation / replacement, disposal and performance monitoring to ensure that the desired level of service and other operational objectives are achieved at optimum cost."
• Definition of Asset Management Strategy as per ISO 55000: ISO 55000 considers an "Asset Management Strategy" to be an alternate name for a strategic asset management plan.

Objective & Definition of Asset Management Policy:

• An Asset Management Policy is a high level document that describes how an organization intends to approach asset management within the organization.

Asset Management Planning Activities:

Asset Management Planning generally consists of two major activities:

• Asset Life Cycle Management: Asset Engineering & Selection, Asset Acquisition-Installation-Commissioning and Asset Performance Management and Asset Salvation & Disposal
• Asset Failure Investigation & Analysis

Asset Performance Management #APM and Performance Indices (AHI, AMI, ACI & ARI):

• #APM consists of following five major works: Asset Condition Monitoring, Asset Diagnostic Testing, Analytical Assessment of Asset Maintenance & Replacement requirement through health indices (i.e. #AHI, maintenance index #AMI, risk index #ARI and criticality index #ACI), Asset Maintenance Planning, Asset Replacement Planning
• AHI (asset health index): is designed to evaluate residual life for replacement decision making based on "Ageing Factors".
• AMI (asset maintenance index) provides analytical basis for maintenance needs, so is built according to different "Failure Modes" of each Asset Type.
• ACI (asset criticality index) and ARI (asset risk index) complement maintenance and replacement decision making of any asset arrived through AMI and AHI respectively.

To develop Asset Strategy and design Asset Performance Management Analytics (i.e. AHI, AMI, ACI & ARI) you may contact me on [email protected]