Introduction
Asset Management is not a destination, but a continual journey. The Asset Management Roadmap portrays the suggested route. The individual stops detail the fundamental components: the key terms and the examples provide background, and the samples show how the steps can be undertaken.
The Asset Management Roadmap is a resource available to jurisdictions of all sizes to set their asset management vision and implement the steps. Just as jurisdictions can vary in size, so do the provided examples. This roadmap is a living resource designed to be continuously updated as asset management content matures.
Pre-Trip: Organizational Roles, Responsibilities, and Assignments
Key Terms
Asset management
Coordinated activity of an organization to realize value from assets. (Source: ISO 55000)
Stakeholder
A person or entity that can affect, be affected by, or perceive themselves to be affected by a decision or activity. (Source: International Infrastructure Management Manual)
Resources
Establish Asset Management Policy and Strategy
Key Terms
Asset management objectives
Asset management objectives capture the outcome or performance required from an asset in order to deliver (or support) achievement of these organizational objectives. (Source: Government of South Australia, Department of Planning, Transport and Infrastructure)
Financial summary
A high-level summary of the process to be followed to ensure that financial resources necessary for implementation can be provided. This is to address future operating and capital expenditure over the period of the plan. It is intended to draw attention to the need to link the asset management system with long-term funding requirements.
Resources
Set Levels of Services for the System
Key Terms
Asset class
A collection of assets which share similar construction, maintenance, condition, and availability standards. Roadways, sidewalks, street signs, and water mains are all types of asset classes.
Availability
Availability defines the state and period for which an asset is available to meets its primary function and/or the minimum stated level of service.
Condition
The physical state of the asset. (Source: International Infrastructure Management Manual)
Level of service
A quantifiable measure of a combination of parameters that reflect social, economic, and environmental outcomes that the organization delivers. Levels of service statements describe the outputs or objectives an organization or activity intends to deliver to customers. Parameters can be aspects or characteristics of a service such as accessibility, affordability/cost, efficiency, quality, quantity, reliability, responsiveness, and safety. (Modified from source: International Infrastructure Management Manual)
Resources
Assign Risk (Criticality Rating)
Key Terms
Benefit-Cost Analysis (BCA)
A decision technique that quantifies the benefits and costs in monetary terms over the life of the decision (often the life of the asset involved), discounting these to current monetary terms (where non-monetary terms are used, this is called ‘multi-critical’ analysis). (Source: International Infrastructure Management Manual)
Benefit-Cost Ratio (BCR)
The sum of the present values of all benefits (including residual value, if any) over a specified period, or the lifecycle, of the asset or facility, divided by the sum of the present value of all costs. (Source: International Infrastructure Management Manual)
Resources
Collect Asset Information (Inventory, Condition, and Cost)
Key Terms
Asset register
A record of asset information typically held in a spreadsheet, database or software system, including asset attribute data such as quantity, type, and construction cost. (Source: International Infrastructure Management Manual)
Condition
The physical state of the asset. (Source: International Infrastructure Management Manual)
Resources
Set Target Level of Service (Operational)
Key Terms
Critical Spares Analyses (CSA)
These analyses are used to identify critical spares (equipment parts or replacement items) required for critical assets, and the most effective method to procure these spares, taking into account their supply lead time, availability, and the possibility of "pooling" these items with similar organizations.
Benefit-Cost Analysis (BCA)
A decision technique that quantifies the benefits and costs in monetary terms over the life of the decision (often the life of the asset involved), discounting these to current monetary terms (where non-monetary terms are used, this is called ‘multi-critical’ analysis). (Source: International Infrastructure Management Manual)
Resources
Develop Maintenance and Operational Strategies
Key Terms
Infrastructure
The system of fundamental facilities and structures necessary for a public works of a country, state, or region to function. Examples include roads, railway, bridges, tunnels, water supply, sewers, electrical, telecommunications, signs, equipment, fleet, etc.
Infrastructure operations
The people, equipment, and methods used to maintain infrastructure.
Optimization
The process or methodology for making something as functional or effective as possible.
Level of service
A quantifiable measure of a combination of parameters that reflect social, economic, and environmental outcomes that the organization delivers. Levels of service statements describe the outputs or objectives an organization or activity intends to deliver to customers. Parameters can be aspects or characteristics of a service such as accessibility, affordability/cost, efficiency, quality, quantity, reliability, responsiveness, and safety. (Modified from source: International Infrastructure Management Manual)
Useful life
The period over which an asset or component is expected to be available for use by an entity. (Modified from source: International Infrastructure Management Manual)
Criticality
Asset criticality is the relative risk of failure of that asset. Criticality is the relative risk of an asset from a financial, environmental, and social cost, calculated in order to understand which assets deserve attention and money to achieve AM Objectives. (Source: ICMA)
Resources
Develop Capital Improvement Strategy
Key Terms
Level of service
A quantifiable measure of a combination of parameters that reflect social, economic, and environmental outcomes that the organization delivers. Levels of service statements describe the outputs or objectives an organization or activity intends to deliver to customers. Parameters can be aspects or characteristics of a service such as accessibility, affordability/cost, efficiency, quality, quantity, reliability, responsiveness, and safety. (Modified from source: International Infrastructure Management Manual)
Resources
Develop Financial Strategy
Key Terms
Financial strategy
A strategy for budgeting available resources to provide the defined level of service across the full lifecycle of all managed assets, typically through the funding and implementation of a long-range plan that emphasizes cost-effective periodic maintenance activities.
Asset management system
A set of interrelated or interacting elements of an organization, including the asset management (AM) policy, AM objectives, AM strategy, AM plans, and the processes to achieve these objectives. This includes comprehensive activities, documents, software, and resources directed toward implementing AM within an organization. (Modified from source: International Infrastructure Management Manual)
Condition
The physical state of the asset. (Source: International Infrastructure Management Manual)
Resources
Implement the Asset Management Plan
Key Terms
Implementation
Using the information laid out in the asset management plan, the individual steps are placed into action. Implementation occurs after the framework, the asset management plan, is ready to carry out.
Resources
Assemble Asset Management Plan
Key Terms
Asset management plan
Long-term plans (usually 10-20 years or more for infrastructure assets) that outline the asset activities and programs for each service area and resources applied to provide a defined level of service in the most cost-effective way. (Source: International Infrastructure Management Manual)
Performance measure
A qualitative or quantitative measure used to report information regarding the performance of a system or component.
Resources
Review and Adjust
After the asset management plan is implemented, its progress should be monitored and reviewed. Were the steps effective? Which steps need to be evaluated? Solicit feedback from stakeholders. Are there changing parameters, updated vision statements, new practices, improvements, etc., that can be adopted to increase the value of the steps and overall plan?
Resources
Post-Trip
- Review the roles, responsibilities, and assignments accomplished by those in your organization and compare it to what was planned in your Pre-Trip.
- Review your Level of Service Targets. Are they meeting your community’s needs and expectations?
- Review your asset information. Do you have the information to manage to the level of service your community set? Does the information appropriately measure your asset risk?
- Review the way you developed your strategies for maintenance and operations and for capital improvements. Do the methods you used lead you to accomplishing the level of service your community set?
- Review the completeness of your asset management plan. If you implement this plan, will your community achieve the long-term (sustainable) value desired from your assets?
- Determine what areas of your asset management system need to be improved.
- Celebrate what progress has been accomplished toward making your community a better place to live and work!