Understanding these asset management documents will set the stage for an asset management program.
Aligning an organization is a critical step to implementing and ensuring the success of an asset management system. Various change management techniques will be used to bring about the change, but how do you ensure the message, direction, and principles of the asset management program are communicated consistently and clearly?
There are 3 key documents in any asset management program:
- Asset Management Policy
- Strategic Asset Management Plan
- Asset Management Plan
While the length, size, and level of detail will vary between organizations, the core of the documents will be the same. The purpose of these documents is to align the organization to common goals, and a common approach to asset management. Now, on to the documents
Asset Management Policy
The asset management policy is a short document, typically not extending more than a single page. The asset management policy highlights key principles and requirements that the organization must follow for implementing and sustaining and asset management strategy and defining the asset management objectives.
These principles and requirements are derived from the organization’s strategic plan and should directly support the organization’s key objectives. These principles and requirements could be;
- All decisions relating to asset management shall be formally assessed against risk and economic outcomes
- Maintain assets in a manner that ensures they meet the life cycle requirements
- Ensure adequate resources are provided to achieve the asset management objectives.
The asset management policy sets the stage for the asset management program for the entire organization. As such, it should be reviewed and approved at the highest levels of the organization, and communicated and displayed with all other organizational policies, such as quality, safety, etc.
Strategic Asset Management Plan
AKA the SAMP is a key document which takes the asset management policy and specifies how the principles and requirements will be carried out to achieve the goals of the organization.
Depending on the size of the organization the asset management policy may be combined with the SAMP. This is typically found in smaller organizations or organizations without a complex asset portfolio.
The SAMP will describe;
- the asset management objectives and how they support the organizational objectives
- the role of the asset management program in achieving the organizational goals
- the approach for developing asset management plans
The document summarizes a variety of additional information related to asset management at the strategic level. This includes, but is not limited to;
- the asset management framework
- what assets will be covered by the asset management program
- the organization context and the need for an asset management system
- the risks and opportunities associated with asset management
- the asset management planning process provides a summary of the approach to selecting the objectives
- a documented approach to achieving the asset management objectives. This may include decision-making criteria, the analysis techniques used or RACIs
- the specific asset management objectives
- any specific asset management initiatives that could impact the asset management program
- any measures that the asset management program will be reviewed against.
The overall goal of the SAMP is to provide clear direction, accountability, and responsibility for all those involved in the asset management program.
Asset Management Plan
The asset management plan (AMP) is where the rubber meets the road. It describes in detail the activities, resources, and timelines required for a specific asset, or class of assets, to achieve the asset management objectives.
In smaller organizations, or those with simple asset portfolios, a single AMP may be used, whereas large organizations with multiple business units and asset classes may have an AMP for each type of asset.
The AMP will typically include:
- information on the asset or asset class such as a description of the asset(s), the roles of the asset(s), the criticality, quantity or assets, the geographical distribution, and the replacement value of the asset(s)
- information on the stakeholders which will have an impact on the asset(s) and who is generally responsible for what
- the current performance and service levels of the asset(s) and any gaps to the desired level of performance
- any life limiting factors of the asset(s) such as age, design, capacity, etc.
- any specific environmental, health and safety or regulatory requirements of the asset(s)
- the lifecycle strategy for the asset(s) in all phases, such as acquisition, operation, maintenance, and disposal
- a summary of the budget requirements for the asset(s) to maintain, operate and any CAPEX requirements
- any asset specific risks, and any measures to reduce the risk
- any improvement initiatives across the asset(s)
Upon the conclusion of reading the AMP, anyone should know how exactly the specific asset or asset class will be managed over its entire life cycle and the current state of the asset(s).
But it’s Complex
These documents may seem complex, but there are some great resources available to assist in developing them. I do not advocate using a template, as the documents must match the needs of the organization. But there are examples available on the web.
However, the Asset Management Council of Australia has an ebook available that highlights what should be included in each, along with the ISO 5500x series of standards.
Developing these and other documents will not give you an asset management program, nor will it certify you, but developing them will provide additional alignment within your organization.
Remember, to find success, you must first solve the problem, then achieve the implementation of the solution, and finally sustain winning results.
I’m James Kovacevic
Where Education Meets Application
Need help understanding how Asset Management can help your organization? What to benchmark your Asset Management system? Eruditio, LLC has Certified Asset Management Assessors on staff to support your journey into asset management. Click here to book a free 1-hour consultation to see how we can help you achieve your goals.
- ISO 55000 Asset Management Series
- Asset Management Landscape – GFMAM
- Certified Asset Management Assessors
- Asset Management: An Anatomy – IAM
November 9th by kate hiscock
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