Post on 25-Jun-2020
An Introduction to
Asset Management
When you know better you do better
Maya Angelou
LIMITED RESOURCES
AGING OR DETERIORATING ASSETS
DECISIONS REGARDING RUNNING FACILITIES &
MANAGING ASSETS CAN BE COMPLICATED
INCREASING NEEDS
ASSET MANAGEMENT IS……
A PROCESS TO IMPROVE DECISION-MAKING
A WAY TO HELP PEOPLE KNOW HOW AND WHERE TO SPEND THEIR MONEY
MAINTAINING A DESIRED LEVEL OF SERVICE AT THE LOWEST LIFE CYCLE COST
The 5 Core Components of Asset Management
FUNDING
CURRENT STATE OF THE
ASSETS
LEVEL OF SERVICE
Probability of Failure
High Risk
Moderate Risk
Moderate Risk
Low Risk
CRITICALITY
LIFE CYCLE COSTING
CORE COMPONENT 1: CURRENT STATE
OF THE ASSETS
THE CUSTOMER PERCEPTION IS YOUR REALITY
PICS OF PIPES IN NEW CONDITION NEAT AND NICE next a pic of an old clog
pipe Condition of your assets NOTE: add a poll so add picture of an asset ask to
decide what conditions they are in DETERMINE THE
ASSETS THAT
YOU OWN
COLLECT THE LOCATION FOR
EACH ASSET
what
DETERMINE THE ASSETS’ CONDITION
EXCELLENT
GOOD
FAIR
POOR
5 4
3 2
1
PICS OF PIPES IN NEW CONDITION NEAT AND NICE next a pic of an old clog
pipe Condition of your assets NOTE: add a poll so add picture of an asset ask to
decide what conditions they are in
ESTIMATE THE REMAINING
USEFUL LIFE OF THE ASSETS
PICS OF PIPES IN NEW CONDITION NEAT AND NICE next a pic of an old clog
pipe Condition of your assets NOTE: add a poll so add picture of an asset ask to
decide what conditions they are in
ESTIMATE THE REPLACEMENT VALUE
PICS OF PIPES IN NEW CONDITION NEAT AND NICE next a pic of an old clog
pipe Condition of your assets NOTE: add a poll so add picture of an asset ask to
decide what conditions they are in
CHOOSE HOW TO DEFINE AN
ASSET
PICS OF PIPES IN NEW CONDITION NEAT AND NICE next a pic of an old clog
pipe Condition of your assets NOTE: add a poll so add picture of an asset ask to
decide what conditions they are in
CREATE
UNIQUE ASSET
ID NUMBERS
asss
LOOK FOR EXISTING SOURCES
OF DATA
Existing Inventories
Or ID Numbering
Systems
Photographs
Interviews
System Records
asss
CHOOSE A DATA STORAGE METHOD
Word File (CO Forms 1, 2, and 3)
Generic Spread Sheet or Data
Base
Paper (CO Forms 1, 2, 3)
Commercial Product
COLLECT ASSET DATA
CORE COMPONENT 2: LEVEL OF SERVICE
THE CUSTOMER PERCEPTION IS YOUR REALITY
SENIOR FACILITIES ARE IN THE
CUSTOMER SERVICE BUSINESS
CUSTOMER SERVICE IN ASSET
MANAGEMENT TERMS
CALLED LEVEL OF SERVICE
Defines the major goals of the
facility (defines what level of
service the facility will provide)
YOUR LEVEL OF SERVICE DETERMINES…
HIGHER LEVELS OF SERVICE = HIGHER COSTS
LOWER LEVELS OF SERVICE = LOWER COSTS
What you do
How you do it
When you do it
How you spend your
money
TO PROVIDE THE
SERVICE YOUR
PEOPLE WANT
Set Goals for Your Facility
SETTING SMART GOALS
KEEP AND SUSTAINABLE
ONE MORE ACRONYM…..KISS
Keep it Simple and Sustainable
CONSIDER HOW GOALS CHANGE
YOUR OPERATION AND
MANAGEMENT
GOAL ARE NOT SET IN STONE
CORE COMPONENT 3: CRITICALITY
What is the likelihood or probability that an asset will fail? What is the consequence if the asset does fail?
RISK ANALYSIS
PROBABILITY OF FAILURE
CO
NS
EQ
UE
NC
E O
F F
AIL
UR
E
Delivery
Vehicle
PROBABILITY OF
FAILURE
CO
NS
EQ
UE
NC
E O
F F
AIL
UR
E
VISUAL DISPLAY OF EXAMPLE DATA
Walk-In
Freezer
Gas
Fryer
Ice
Machine
Dishwasher
Stove
Roof
Delivery
Vehicle
PROBABILITY OF
FAILURE
CO
NS
EQ
UE
NC
E O
F F
AIL
UR
E
What if the data looked like this?
Walk-In
Freezer
Gas
Fryer
Ice
Machine Dishwasher
Stove Roof
Delivery
Vehicle
PROBABILITY OF
FAILURE
CO
NS
EQ
UE
NC
E O
F F
AIL
UR
E
Or This?
Walk-In
Freezer
Gas
Fryer
Ice
Machine
Dishwasher
Stove
Roof
CRITICALITY CHANGES
CRITICALITY IS NOT STATIC
EACH DAY CRITICALITY CHANGES SLIGHTLY
NEED TO REASSESS CRITICALITY AT LEAST
EVERY YEAR IF NOT SOONER
REASSESS WHEN MAJOR CHANGES ARE
MADE (UPGRADES, REPLACEMENTS, MAJOR
CONSTRUCTION, REHABILITATION,
REDUNDANCY ADDED)
CORE COMPONENT 4: LIFE CYCLE COSTING
THE CUSTOMER PERCEPTION IS YOUR REALITY
PICS OF PIPES IN NEW CONDITION NEAT AND NICE next a pic of an old clog
pipe Condition of your assets NOTE: add a poll so add picture of an asset ask to
decide what conditions they are in
MAINTENANCE ACTIVITIES
ROUTINE
PREVENTATIVE PREDICTIVE
PICS OF PIPES IN NEW CONDITION NEAT AND NICE next a pic of an old clog
pipe Condition of your assets NOTE: add a poll so add picture of an asset ask to
decide what conditions they are in
REPAIR, REHABILITATE, REPLACE
REPAIR
REHABILITATE
REPLACEMENT
CORE COMPONENT 5: LONG TERM FUNDING
THE CUSTOMER PERCEPTION IS YOUR REALITY
WHAT ARE YOUR FUNDING
NEEDS?
Day to Day expenses
(Operation &
Maintenance)
Capital Expenditures
(Long Term Expenses)
HOW ARE YOU GOING TO FUND
YOUR OPERATION?
Community Funding
Taxes? Fees? User
Charges?
Community Funding
or Outside Funding
WHY DO WE NEED THE FUNDING?
WHAT IS THE RISK IF WE DON’T
SPEND THE MONEY?
CONTACT US!
EFC NETWORK.ORG WEBSITE
WE ARE FUNDED BY EPA
Heather Himmelberger
heatherh@unm.edu
https://southwestefc.unm.edu