Asset Management Key Areas for Financial Success

Asset management practices and processes focus on sustainability. Developing and implementing five key areas (organisational leadership, acquisitions, operations and maintenance, evidence assessments and capital works planning) cost effectively will lead to financial success and sustainability. This paper provides an experience in developing and implementing the key areas through leadership to achieve financial success. Better strategic planning and acquisition improves operations and maintenance in order to maintain the level of service. Effectiveness of the planning processes takes into consideration infrastructure per person (or per household) per year, renewal/new capital ratio, renewal/depreciation ratio, the impact on service costs and quadruple bottom line prioritisation. Efficient operations and proactive maintenance improves the costs of the services and the service standards. Operations and maintenance focuses on planned maintenance, preventive maintenance, reactive maintenance and lifecycle analysis which include maintaining the agreed levels of services and improving the remaining life of assets. Dynamic and effective evidence based assessments, such as maintenance costs and frequency, failure analysis, risks, conditions, service calls, asset utilisation, remaining life, current value and replacement value improve the asset operations, level of services and renewal planning. Finally, the functions of asset management; strategic planning, operations and maintenance and evidence assessments, leads to deliverable, sustainable capital work planning. An evidence based treatment projections (EBTP) system and asset information consolidation and evaluation (AICE) system are useful for capital works planning, remaining life assessment, maintenance improvements, consolidation and prioritisation for the whole council.