Asset Management Benefits
Asset management provides a set of tools and practices that can assist a system in operating, maintaining, and managing assets in a cost-effective, sustainable fashion. There are many benefits to implementing asset management, including working more efficiently, improving knowledge management, and knowing how to use your limited finances as effectively as possible. Some benefits are achieved just by initiating asset management activities, but most benefits come from fully embracing asset management principles.
The type and extent of benefits that can be realized through implementing an asset management program are unique to each system and community. The specific benefits a system achieves will depend on which aspects of the program are most important to the system, where the system focuses its efforts, how robust the asset management program implementation is, and the needs of its community.
The benefits of asset management planning fall within the “triple bottom line,” which includes financial, environmental, and social benefits. There are also overall system or workplace benefits.
Financial Benefits
Cost savings: when a system continues its activity but is doing it in a less expensive way.
For example, a system might determine there is a cheaper way to repair a pipe based on collecting information on the costs of various pipe repair techniques and the duration that the repairs last. The system might see savings in the short term, or it might not see savings until many years later.
Cost avoidance: when the system changes something to avoid having to pay a cost.
An example of cost avoidance is addressing the underlying cause of a failure, so a repeated repair is eliminated.
Revenue Benefits: When a system increases the money coming into its organization.
For example, systems can repair or replace water meters, so they read correctly or are sized appropriately for the flow, resulting in additional revenue. While rate increases are never popular with customers, having good information to show the need for the rate increase might help improve revenues.
Environmental Benefits
Systems can take actions that increase the regulatory compliance of their system or improve compliance beyond the required limit. For example, systems can improve or change a process to remove more of a contaminant than required by regulation. Systems can also improve the overall use of resources through asset management and reduce waste products.
Social Benefits
When thinking about social benefits, system managers should consider the benefits to their customers, elected leaders/governing bodies/owners, and employees. Systems can use asset management tools to improve a process or procedure that will increase safety, reliability, and customer satisfaction. Changing processes might lead more effective and efficient utility operations resulting in optimal production and distribution and a reduction in the number of specific or general customer complaints overall or complaints of a particular type.
System/Workplace Benefits
Asset management tools can also help system staff provide better justification for projects to decision makers and the community, which will make it easier for those leaders to approve funding requests.
Employees are often a forgotten part of the asset management program, but benefits for employees are a critical component. More planned work and less reactive work will improve their ability to perform their job. Additionally, a more organized and efficient workplace will reduce safety incidents and create opportunities for career advancement.