An AMP (Asset Management Plan) is the end result of many tasks undertaken by an organisation to manage its portfolio of assets. Asset management means different things to different people in different industries. However, ISO 55000 has clarified this as it defines what’s meant by an AMP and a Strategic AMP.
To simplify across the different facilities-based industries, think about asset management as a way to ‘make facilities last forever’ - assuming there is an on-going need for these facilities.
The challenge is to implement the processes in a ‘smart’ way that makes a tangible difference. Smarter asset management adds value to the organisation, rather than being seen as a cost.
Facilities that last forever
When there is an on-going need for a facility, it can be maintained to perpetuity. Recognising that most buildings won’t and shouldn’t last forever, business processes are in place to provide evidence to support any type of decision with confidence.
This is the point of asset management planning: as organisational objectives and strategies change, the asset portfolio must align with these changes. It is the role of the asset manager to have the data, systems, process and people in place – and knowing the financial, risk, and people implications of making asset related decisions – in a smart way.
What is a ‘smart AMP’?
A smart AMP will be produced from having a good planning framework and working to a ‘hierarchy of care’ that would enable a facility to ‘last forever’:
1. Asset planning framework:
- Accurate asset register.
- Assessing the condition and lifecycle of components.
- Analysis of current and future needs based on standards and policies.
- Plan what should be done to address risk and achieve the organisation’s goals.
- Decide on priority projects while recognising the implications of deferred works.
- Implement the projects.
- Feed the resulting information back into the asset register and update the AMP.
2. The hierarchy of care:
- Operations including water, energy.
- Maintaining safety aligned with the BCA.
- Maintaining a healthy environment with cleaning, security and pest control.
- Expectations from building users/occupants regarding reactive maintenance.
- Extending life of components with planned preventative maintenance.
- Lifecycle planning with renewals, replacements and refurbishments of components and spaces.
- Adapting to change with extensions, reconfigurations and upgrades.
Smarter AMPs need to make a difference and drive the project-level decision-making process – with or without having component level data or evidence. The top-down approach to asset management is based on having well-informed projects aligned with the asset-planning framework. The bottom-up approach is based on having a component level breakdown of a facility so that evidence supports decision making.
A mixed approach allows an organisation to start its list of planned projects over the next one to five years. An 80/80/20 approach is recommended:
- 80% of work is planned;
- 80% of all projects are determined through the asset planning framework;
- 20% of all asset data is updated annually.
Projects that are more critical or address a higher level of risk should have component-level evidence as support.
Consider making the Asset Manager accountable to the governing body: report quarterly on KPIs and provide performance incentives.