Asset Life Cycle Plans

Abstract

Effective management of physical assets should deliver maximum business value. Therefore, Asset Management standards such as PAS 55 and ISO 55000 ask for a life cycle approach. However, most existing methods focus only on the short term of the asset's life or the estimation of its remaining life. These methods do not consider alignment to changing corporate objectives in a variable context, nor do they adopt a multidisciplinary perspective. This chapter argues that, to create maximum value, Asset Management should be a multidisciplinary and strategic practice that considers the complete life cycle of the asset: Asset Life Cycle Management. A practical twelve-step approach is presented to develop an Asset Life Cycle Plan (ALCP) in which expert sessions are used to identify the main lifetime impacts that influence the creation of business value from the use of the asset. The steps are illustrated with an example from practice. The chapter concludes that the ALCP supports asset managers in making long-term strategic decisions in a timely and effective manner.

Designing for Successful Circular Action: A Longitudinal Case Study in the Energy Sector

“…The starting point for the longitudinal case was the start of 2014 when Liander started working on circularity. Around that time, the third author of this paper started to collaborate with Liander on Asset Life Cycle Planning [30]. In 2016, the second author of this paper joined the collaboration, which then shifted focus toward Life Cycle Valuation [31].…”

A Comprehensive Study of Assets Management Company , Focusing on Investment Strategies, Performance, and Regulatory.

“…However, despite the growing body of literature, there is still no coherent understanding of the phenomenon from a holistic perspective due to its origin that was practice-oriented and focused primarily on technical aspects [11,12]. The concept of strategic asset management lacks a clear focus as different interpretations are promoted by various communities of practice [4]; thus, the place and role of strategic asset management research remain unclear.…”

Mitigating change in the goals and context of capital assets: Design of the Lifetime Impact Identification Analysis

“…Many authors emphasize the fact that a long-term and strategic focus is needed in Asset Management [7,40,2,3], which may indicate that such a focus is currently often lacking. In earlier research, we have researched other Asset Management divisions in different industries, where the same idea of 'firefighting' was mentioned as an important issue and challenge [46,47].…”