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80/80/20 Goals for Managing Assets that can ‘last forever’

28th February 2017

 

StitchHow do we know that we are doing all we can to 'make our assets last forever'? Organisations that follow this guiding principle seem to more effectively understand and manage their risks, have a more reliable works programme, and are in a better position to leverage future opportunities including reduction of maintenance costs.

It’s about thinking and planning long term. However, it’s one thing to say this, it’s quite another to make it happen. Yet, there are plenty of books on the subject. So why is it so hard. Is it because ‘asset management’ is often only focused on compliance rather than achieving better outcomes for the community and customers? As asset managers, we know that the real value is beyond money. So how can we more effectively know how well we are doing when ROI alone is unlikely to be a realistic measure?

The answer could be to implement strategies to achieve these 80/80/20 Goals:

  • 80% of work done is planned - if you only react to symptoms, the problems willbuild up over time to a level that could be too costly to address.  Your investment will be more controllable when you plan and think long term. Recognising there will always be a level of 'reactive works' or ad-hoc works that just can’t be planned. Is 80/20 right for your organisation?
  • 80% of the works programme is driven from the planning process. Making good decisions on evidence that's scientifically based rather than making ad-hoc decisions that may only consider part of your organisation's strategies – getting this right will provide a greater level of success when competing for annual budgets. Again, recognising that there will always be a level of projects identified outside of the planning process. Should all projects (100%) be driven through the planning process rather than just 80%?
  • 20% of your asset register is updated, maintained, improved and changed every year. Good decisions require good data - manage your information strategically by targeting efforts in areas that provide key information that feeds into the planning process.

How this is applied by your organisation will be shaped by the characteristics of your portfolio, what your organisation is trying to achieve, and how success is measured.

You migh also like to read Chris Jenkins’ September 2016 posting on Predictive Models for Asset Lives

 

 
 
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