In last month’s issue, we introduced some of the various international Asset Management initiatives. It should be clear that there are many references, resources, and ongoing research in this emerging field. In this second part of our two part introduction, we introduce our five key elements of Asset Management. Each subsequent article will be based on one of the following elements:

1. Planning and Targets – Implementing Asset Management requires high level strategic plans, then tactical plans that involve resource allocations, and finally, operations plans. The range of plans should have clearly defined goals, objectives, targets for service levels for the organization and its key assets. Asset Management best practices impact all three levels of planning.

2. Practice and Process – Effective Asset Management is supported by standardized and documented business processes for planning, operations and asset management, and work management. Without this rigor, an organization compromises opportunities for continuous quality improvement.

3. Information Systems - Computer systems are the backbone of an Asset Management system. The type of technology employed and how it is utilized dictates whether your organization practices basic or advanced Asset Management. What considerations will underlie wise investments in Asset Management information technology software?

4. Data and Records – The quality (completeness, accuracy, and currency) and scope of data and records determines an organization’s ability to apply Asset Management practices, to benchmark peer cities, and to monitor performance from year to year. What is the balance between essential data and onerous paperwork

5. People and Organization - The final basic element of an organization’s commitment to Asset Management is the ability and willingness to embrace change. How can Asset Management be implemented and communicated across, and benefit all levels of the organization?

One will need to give attention to all five elements for Asset Management to be effective in your organization. The next articles will discuss best practices in each element and provide case studies. The breadth of the five elements should indicate that Asset Management is not just a technical function, but it requires management buy-in, becomes an organization-wide practice, and a new way of doing things.
In our experience, looking at an organizations’ maturity in each of the five elements is the "best first step" to implement effective Asset Management.

Contact Jussi Jaakkola, Trilogics Technologies Inc. by email at jussi.jaakkola@trilogics.net or call 604.484.7188.