An asset management program encompasses many aspects of an organization's day-to-day business. Systematically including each stage in a hierarchy format will help an organization successfully implement the six-step planning process (described below) to a complete program. These "domains," explained in the following paragraphs, make the process of developing a program simple but thorough.
Strategy
Public utilities are facing a daunting set of realities: cost competitiveness, new regulatory trends, new technology, new information requirements, aging infrastructure, and a mature, shrinking workforce. These realities are driving the development of new strategies. Asset management is the latest and perhaps the most comprehensive of those strategies-the next evolutionary step in becoming and staying competitive. When developing a strategy, you establish your organization's business objectives and subsets that will be supported through an asset management program. In this process, it is vital to develop your strategic, tactical, and operational plans, which will all work together toward your end product.
Finance
CDM has long recognized the complex regulatory, legal, institutional, and financial issues facing public works departments. Obtaining grant and loan funding can be a daunting task, as can effectively balancing and allocating in-house budgets. To manage your assets, CDM can help you develop long-term financial plans, undertake strategic plans, and develop asset management information systems. Specifically, CDM will help define the fund acquisition, disbursement, accounting, and financial reporting rules of your organization.
Process
Business process modeling is a systematic approach to engage organizations in examining their business processes, identifying ways to improve these processes, and addressing barriers that may be impeding their ability to achieve business goals efficiently. Managing and continually improving an organization's business processes-especially maintenance practices-that deliver value to ratepayers in accordance with the financial rules and in support of the business strategy will provide a complete picture of what is needed for the asset management process.
People
Becoming cost competitive, assimilating new technology to improve efficiency, or modifying institutional arrangements can create significant stress within an organization. For many utilities, small change initiatives can be a major management challenge; enterprise-wide change is even more difficult. Public agencies are increasingly called upon to accept these challenges, yet few have the prior experience to effectively address the issues that inevitably arise.
By utilizing the business process modeling approach described above in conjunction with the strategy and financial support, this step in the asset management process can help develop, retain, and effectively utilize employees' vital skills and institutional knowledge to carry out the business processes with pride, buy-in, and a commitment to excellence.
Technology
Utilities are turning to state-of-the-art information systems available to help improve operational efficiency and productivity. Designing, selecting, integrating, and implementing utility information systems can be challenging for both large and small systems. CDM's information management system specialists can assist your public works department with system integration needs, promoting more efficient, enhanced productivity. After examining existing business processes and communications networks, we develop strategies to facilitate the sharing of data among individual software systems and provide the tools to improve workflow.
The Six-Step Planning Process
The creation of an asset management program requires the involvement of engineers, financial planners, maintenance professionals, operators, and, in some cases, attorneys. Data integration from key business units is critical to creating an asset management strategy and program. To simplify the development of an asset management program, CDM has developed six incremental steps:
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Develop an asset management strategy
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Acquire an inventory of assets
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Assess the condition of assets
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Perform a financial valuation of assets
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Establish capital and operational budgets
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Maintain, repair, renew, and replace assets