by Aaron L. Davis — Optimizing asset performance and minimizing cost and risk are fundamental objectives of asset management. Managers tasked with sustaining such assets are often faced with funding constraints, resource capacity limitations and environmental regulations.
The challenge with successfully incorporating sustainable asset management practices is often found within the organizational culture. Change is not easily accepted and “business as usual” seems to be the motto when new ideas or methods are introduced. However, in any organization, at any point in time, change is necessary and will more than likely require a gradual, result-driven integration.
Today, sustainable asset management is not the sole responsibility of one department; it must become a part of the organizational culture. At all levels within an organization, there are lessons to be shared with regard to the synergy between sustainability and asset management. This article offers ways to incorporate sustainable practices throughout an organization with short- and long-term goals that can aid in successfully moving toward effective asset management.
1. Get familiar with ISO 55000 asset management standards
The International Standards Organization (ISO) recently introduced its ISO 55000: Asset Management Standard family, providing guidance and best practices focusing on a proactive, systematic approach to asset management. These standards can be used to establish an asset management benchmark for your organization. In the short term, determine your gap analysis highlighting areas for improvement. This is the first step in being able to make future capital improvement decisions based on actual metrics.
In managing assets, your ultimate goal is to increase reliability and lower the total cost of operating these assets. The ISO 55000 standard provides a framework for effectively and efficiently managing assets in an organized manner by utilizing information to report asset performance measures, project future capital expenditures and offer valuable process improvement. Being able to convey the benefits of the ISO 55000 standard provides support and justification for projects, initiatives and improvements needed within your organization.
Obtaining the ISO 55000 certification is the one of the highest recognitions with regard to leadership in asset management and may be a long-term goal for your organization. However, compliance with these standards will still improve reliability, reduce your total cost of ownership as well as elevate the understanding of the importance of sustainable asset management to personnel at all levels of your organization.
2. Understand total cost of ownership (TCO)
During an asset life cycle, there are necessary costs that are associated with maintaining desired levels of service. Whether fixed or variable, it is imperative to capture all costs related to owning any asset. Storing all asset costs in a central repository allows owners and managers to identify the present net value of an asset at any point in the life cycle. It is important to keep accurate record of these unavoidable expenses, as information derived from analyzing TCO can actually save you time and money in the long run.
Once you are able to identify and track all associated ownership costs, TCO becomes a primary key in decision making throughout the life cycle. Total cost of ownership allows for accurate measurement and calculation of condition indices, thus analyzing the overall performance of an asset in comparison to its intended useful life. Although it is not the only deciding factor for future capital investments, TCO can help FMs make a convincing case to decision makers through clear, concise, cost-related metrics.
3. Obtain buy-in from senior management
It may seem a bit out of place to recommend obtaining buy-in from senior management in the middle of this article, yet there is initial groundwork that needs to be done in order to paint the sustainable asset management picture you want to portray. Being able to present the current gap that exists within your organization after familiarizing yourself with “world-class” standards sets the tone for closing that gap.
It is also beneficial to be able to quantify the financial impact of assets requiring attention, primarily those reaching the end of their useful lives. Providing senior management with real-time net present value and sunk costs based on metrics derived from the total cost of ownership analysis can support renewal and replacement decisions. It is imperative to support any case for capital improvement funding with facts.
Contrary to the latter, senior management buy-in is often a prerequisite for actions or initiative requiring written approval or financial support. The recommendations that follow include developing policy and implementing sustainable asset management options that require approval and financial investment.
The main reason for obtaining senior management buy-in at any stage in the process is to obtain support. When you’ve presented the framework for improving asset management
practices and laid the groundwork for reaching certain goals, it gives senior management more confidence in your vision and mission. Through written approval and clear direction from the top, the practice of incorporating sustainable asset management becomes contagious at all levels and finds its way into the organizational culture.
4. Implement sustainable operations and maintenance procedures
Efficient operations and maintenance (O&M) within any facility is the lifeline for preserving and extending asset life expectancies. Yet, developing sustainable O&M standards that meet the intended levels of service as originally designed is the ultimate goal.
Taking a proactive approach to O&M offers an advantage in staying ahead of the “depreciation curve.” Signs of deferred maintenance will eventually reveal themselves and cost owners more money the longer the maintenance is postponed. Operations and maintenance standards should be used as a benchmark and frequently compared to actual asset performance metrics. Having a strategic plan to manage O&M procedures prior to procurement in addition to budgeting the necessary funds to maintain asset performance pays off in the end.
Following are six sustainable O&M practices that can be implemented within your organization:
- Put your sustainable O&M practices in writing. Written policy sets a baseline for acceptable tolerances and sets standards for sustainable expectations.
- Foster a culture focused on continual commissioning to ensure optimal asset performance and energy efficiency.
- Develop predictive life cycle asset management programs and/ or plans aimed at improving the reliability of assets at scheduled intervals.
- Be responsive to changes in the original intended use of the facility.
- Look for opportunities to reduce waste or recycle materials.
- Buy green. Procuring environmentally friendly products contributes positively to the indoor air quality.
5. Take advantage of available technologies
New asset management technologies have evolved over the years and have had a major impact on the way we capture information, analyze data, track performance and closely monitor and control assets. These technologies are designed to more easily control or adapt to varying environments.
Below are several new technologies that lend a helping hand to sustainable asset management:
The main objective of an enterprise asset management system is to have a holistic approach to managing physical assets. There are several types of enterprise asset management systems ranging from simplistic spreadsheets and/or database tracking to complex systems with an integrated methodology offering life cycle modeling, asset analytics, maintenance scheduling, real-time dashboard reporting and geospatial information system integration. Technology has even provided these capabilities in the form of mobile devices allowing access to asset information on the go.
Whether simple or complex, be sure to select an enterprise asset management system that best fits your organizational needs.
Building management systems can serve as a beneficial tools for facility managers. With the proper controls in place, building management systems provide a real-time look at the vital signs of a facility.
This technology allows managers to improve energy efficiency by providing energy usage information and even making automatic adjustments for systems that are out of acceptable operating parameters. A building management system automatically provides alerts that help personnel respond quickly to urgent issues. Although building management systems aid in monitoring asset performance, there still remains the human aspect of decision making that should be not omitted but supported by the use of such new technology.
Whether you are managing one asset or many, implementing geospatial information systems off ers many benefits that compliment sustainable asset management. Th is technology has transformed over the years into more than just a mapping capability of correlated data points. This advanced technology has the ability to combine various attributes of an asset from a very high level (such as gps coordinates) down to the small details (including layered space allocation) for any room in a facility.
Using geospatial information systems provides consistent and readily available asset information by visually depicting resources such as utilities, roadways, storm water infrastructure, structures and buildings. Geospatial information systems provide great benefits when integrated with enterprise asset management systems.
A progressive approach
The recommendations presented in this article are aimed at providing gainful insight to various sustainable asset management options. There is no one way to go about approaching this topic. However, this is theme may reach all industries where fixed assets exist. No matter the industry, no matter the discipline, managing assets in a more efficient and sustainable manner is a goal we should all be striving to achieve. It’s the progressive approach to learning, shared best practices, lessons learned and action-driven solutions to issues and challenges that drive continual improvement within sustainable asset management.
To further this discussion, IFMA’s Airport Facilities Council has partnered with Hartsfield-Jackson Atlanta International Airport, the world’s busiest and most efficient airport, to host an International Sustainable Asset Management Conference, June 23-23, 2015 in Atlanta, Georgia, USA. For more details on how to get involved or to attend, visit www.isamconference.com.
Aaron L. Davis, PMP
currently serves as senior asset manager for Hartsfield-Jackson Atlanta International Airport, the world’s busiest and most efficient airport. He is responsible for planning and maintaining the airport’s running 10-year capital improvement plan for future renewal and replacement initiatives. He is also instrumental in implementing sustainable asset management practices and performing total cost of ownership evaluations for the airport.
Davis is a certified Project Management Professional with more than 10 years of professional management experience and training with both the transit and aviation industries. He is a member of IFMA, the IFMA Atlanta Chapter, IFMA’s Airport Facilities Council and the Conference of Minority Transportation Officials.