Strategic Asset Management

Asset Management is a business function that enables sustainment related decision making based on an understanding of the costs and risks involved in maintaining or improving asset performanceBenefits
• Enables zero-based budgeting
• Visualises the impact of budget changes on equipment performance
• Encourages a greater understanding of desired asset performance
• Introduces a strategic level of thinking for one off maintenance tasks
• Establishes a common method of communication for various parts of the business when managing asset
performance requirements.

The framework of the Strategic Asset Management System
includes the following elements:

• The Requirements Register. This describes the various business, performance, safety and process requirements
(or limitations) for the assets that are to be managed.
• The Sustainment Plan. The sustainment plan is at the heart of Strategic Asset Management. This is where all the
important information regarding asset decision making is managed. It includes the following elements:

• An Issues Register. This documents all the valid issues that exist where the asset is not meeting its functional or
business requirements.

• A Solutions Register. This is a documented register of proposed or agreed solutions to one or many issues in the
Issue Register. These include a cost and a risk that will be alleviated

• An Investigations Register. This allows all current investigations to be tracked and managed

• A Long Range Plan. As solutions are planned for implementation, this allows the implementation time to be
estimated impacting on Maintenance, Capital and engineering budget reports.
• Capital plan. The expected future spend for capital improvement work. This is risk ranked according to
information held in the sustainment plan
• Maintenance plan. The expected future spend for maintenance work. This is risk ranked according to information
held in the sustainment plan. Although the future costs are controlled through the management of large non-
routine maintenance tasks, the routine maintenance costs are also measured as these provide a cost baseline for
asset management decisions.