Utility asset management plans provide utility managers with information on assets and investments in order to effectively make decisions. Plans should include an inventory of assets, their condition and performance, and any future maintenance.
Having a utility asset management plan also ensures that there is enough money to pay for maintenance, repairs, and replacements so you can keep assets healthy and working properly.
What is a utility asset management plan
Utility asset management plans make for an effective asset management system. They outline the long-term strategy and steps necessary to properly and effectively manage assets over time. This includes the characteristics and condition of assets, their levels of service, planned maintenance, and more.
Keeping track of the assets of the company is an important task that can save companies money and time. With a wide range of assets that include fixed and liquid assets, it is important for a business to be able to manage all of its assets and use them to get the maximum possible returns.
Why you need a utility asset management plan
The ISO 55000 series of standards for asset management states that asset management plans provide the roadmap for achieving value from physical assets by optimizing cost, risk and performance across the asset lifecycle.
As critical resources to support a healthy community, water and wastewater companies must also tackle any and all water issues in order to be sustainable and successful. This all starts with your utility asset management plan.
Utility asset management is important because it helps a company monitor and manage their assets using a systemized approach. Utility asset management plans not only allow managers to track the overall performance of their assets, but they outline the entire lifecycle of an asset, ensuring they are managed effectively and efficiently. When managed effectively, there are a number of benefits.
4 benefits of a utility asset management plan
Utility asset management plans need to be supported by an asset management system, like asset management software, in order to be effective.
- Keep track of all assets. Utility asset management plans tell you where the assets are located, what their service level is, how they are used, and when and what changes were made to them. Data from a utility asset management software solution can ensure proper tracking, and that asset recovery will lead to better returns, improved reliability, and regular compliance.
- Greater efficiency when managing assets. Plans are created for efficiency. Utility asset management plans allow everyone in the organization to understand the capabilities of its assets and how they are maintained. This includes a clear definition of service levels, and the ability to measure and monitor the life cycle of assets to ensure they are being used effectively.
- Promotes collaboration on assets. Utility asset management plans require working across other business departments, locations and facilities for effective asset management. Not only that, but assets like vehicles, tools, equipment, processes, and workers can be managed efficiently from one central location using software for your management system. This type of collaboration across the organization improves efficiency and reduces costs.
- Reduce asset maintenance costs. Like any tool or equipment, assets require maintenance, and maintenance is a business expense that’s easy to overdo and can cut into the profits of the company. Make sure your utility asset management plan outlines when and how often to perform maintenance on certain assets to ensure you are not overspending.
In addition to these benefits, a utility asset management plan also requires you to plan for asset recovery and risk management so you can ensure your assets are properly managed and accounted for throughout their entire life cycle.
Asset recovery should be in every utility asset management plan. In fact, they are automatically reflected in an asset management system. Asset recovery means that once assets are scrapped or sold, they will be completely removed from the records and books of the business. Related assets, such as consumables and spare parts, are written off or sold to free storage space. A proper asset recovery process will ensure that the company maximizes the returns with no items lost.
Utility asset management plans allow for the implementation of a risk management plan. This is especially important because managing assets also includes the management of the risks connected with the use of those assets. In order to manage assets properly, evaluating the assets can help identify any risks so you can come up with a solution on how to avoid them.
Including asset recovery and risk management in your utility asset management plan makes for a full, comprehensive asset management strategy. With a utility asset management plan, you can properly manage your assets and optimize your operations.
As you can see, it is important for a company to implement a utility asset management plan. With a long-term strategy and leadership engagement, your utility asset management plan will serve as a roadmap for your objectives so you can effectively manage your assets for utilities.
Find out what to consider when creating an asset management plan for water utilities.