UII provides Asset Management support in maintaining a desired level of service for what customers want their assets to provide at the lowest life cycle cost. UII implements Asset Management support programs for our customers through a standard methodology.
1. What is the current state of the system’s assets?
What do I own? Where is it? What is its condition? What is its useful life? What is its value?
· Preparing an asset inventory and system map
· Developing a condition assessment and rating system
· Assessing remaining useful life by consulting projected-useful-life tables or decay curves
· Determining asset values and replacement costs
2. What is the required “sustainable” level of service?
What level of service do stakeholders and customers demand?
What do the regulators require?
What is actual performance?
What are the physical capabilities of the assets?
· Analyzing current and anticipated customer demand and satisfaction with the system
· Understanding current and anticipated regulatory requirements
· Writing and communicating to the public a level of service “agreement” that describes the system’s performance targets
· Using level of service standards to track system performance over time
3. Which assets are critical to sustained performance?
How can assets fail? How do assets fail?
What are the likelihoods (probabilities) and consequences of asset failure?
What does it cost to repair the asset?
What are the other costs (social, environmental, etc.) that are associated with asset failure?
· Listing assets according to how critical they are to system operations
· Conducting a failure analysis (root cause analysis, failure mode analysis)
· Determining the probability of failure and listing assets by failure type
· Analyzing failure risk and consequences
· Using asset decay curves
· Reviewing and updating your system’s vulnerability assessment
4. What are the minimum life cycle costs?
What alternative strategies exist for managing O&M, personnel, and capital budget accounts?
What strategies are the most feasible for the organization?
What are the costs of rehabilitation, repair, and replacement for critical assets?
· Moving from reactive maintenance to predictive maintenance
· Knowing the costs and benefits of rehabilitation versus replacement
· Looking at lifecycle costs, especially for critical assets
· Deploying resources based on asset conditions
· Analyzing the causes of asset failure to develop specific response plans
5. What is the best long-term funding strategy?
Is there enough funding to maintain the assets for the required level of service?
Is the rate structure sustainable for the system’s long-term needs?
· Revising the rate structure
· Funding a dedicated reserve from current revenues
· Financing asset rehabilitation, repair, and replacement
Implementing Asset Management: Follow-up and Continuing Steps
Implemented to achieve continual improvements through a series of “plan, do, check, act” steps.
· Plan: Five core questions framework (short-term), revise asset management plan (long-term)
· Do: Implement asset management program
· Check: Evaluate progress, changing factors and new best practices
· Act: Take action based on review results