Fundamentals of Asset Management - 11

Fundamentals of Asset Management - continuation

13.0 Asset planning

13.1 An objective is not meant to be just a visionary or an eye-catching phrase, but it must be realized in order to indicate the approach and the path undertaken is the right undertaking and the right strategy. Therefore, an asset management plan must be formulated containing the policies, strategies, objectives, performance measurements (such as service levels) and all activities in the asset life cycle.

13.2 Over-planning is a mystic phrase where an organization plans towards an objective, which is impossible to achieve. Thus, planning must be flexible enough to meet changes, to be able to detect risks and changes over the asset life cycle. A comprehensive plan will achieve the desired outcome, but planning without having an inbuilt performance measurement and reporting system will always fail as the organization would not know whether it has achieved what is set for. Nevertheless, organization must not over plan.

13.3 In asset management, these plans are called Asset Management Plans, which contains the minimum items such as:

a. Purpose of the plan
b. Asset management policies, strategies and policies
c. Asset life cycle management plan
d. Future demands
e. Service levels
f. Monitoring and improvement plan
g. Operating and maintenance plan
h. Renewal, replacement and disposal plan
i. Financial Management Plan
j. Asset Management Practices

With these plans, the organization shall be able to ensure that the service delivery is optimized and efficient to meet community and stakeholders demands.