{"id":1736,"date":"2021-01-19T19:51:05","date_gmt":"2021-01-19T19:51:05","guid":{"rendered":"https:\/\/swefc.unm.edu\/iamf\/?page_id=1736"},"modified":"2026-03-12T21:02:29","modified_gmt":"2026-03-12T21:02:29","slug":"current-state-of-assets-what-constitutes-an-asset-asset-hierarchy","status":"publish","type":"page","link":"https:\/\/swefc.unm.edu\/iamf\/current-state-of-assets-what-constitutes-an-asset-asset-hierarchy\/","title":{"rendered":"Current State of Assets \/ What Constitutes an Asset? \/ Asset Hierarchy"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|tablet” _builder_version=”4.16″ _module_preset=”default” positioning=”none” horizontal_offset_tablet=”” horizontal_offset_phone=”” horizontal_offset_last_edited=”on|tablet” custom_margin=”0px||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”0px|||0px|false|false” custom_padding_tablet=”|||25px|false|false” custom_padding_phone=”” da_disable_devices=”off|off|off” global_colors_info=”{}” custom_padding__hover_enabled=”on|desktop” custom_padding__hover=”0px|||0px|false|false” theme_builder_area=”et_body_layout” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.16″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”et_body_layout”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”et_body_layout”][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}” theme_builder_area=”et_body_layout”]<\/p>\n

Asset Hierarchy<\/h2>\n

<\/span><\/h4>\n

Within a system there are often\u00a0natural groupings of assets\u00a0where one asset might\u00a0be a part of a larger system or function. If assets are entered into the asset inventory in a way that\u00a0recognizes these\u00a0groupings, it is easier to examine asset data and make decisions about asset maintenance, repairs,\u00a0replacements,\u00a0or restoration.\u00a0<\/span>\u00a0<\/span><\/p>\n

This type of grouping is called\u00a0the \u201casset\u00a0hierarchy.\u201d\u00a0There are multiple ways to\u00a0develop an asset hierarchy, depending on your system and how you have chosen to define assets.<\/span>\u00a0<\/span><\/p>\n

A straightforward approach is a simple structure that begins with your system type at the top, then includes assets throughout the system. This image shows\u00a0a water system split into two (2)\u00a0functions: Sources and Distribution, and shows the assets associated with each function.<\/span>\u00a0<\/span><\/p>\n

<\/strong><\/p>\n

Examples of some hierarchy structures are provided for the following:<\/strong><\/p>\n

[\/et_pb_text][et_pb_image src=”https:\/\/swefc.unm.edu\/iamf\/wp-content\/uploads\/2021\/03\/WaterSystem-1.png” title_text=”WaterSystem” admin_label=”Image” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”et_body_layout”][\/et_pb_image][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}” theme_builder_area=”et_body_layout”]<\/p>\n

If you have multiple facilities that are completely independent of each other, each one can be a<\/span>n\u00a0<\/span><\/span>asset category<\/span>.\u00a0<\/span><\/span>Or, if you\u00a0<\/span><\/span>operated<\/span>\u00a0<\/span>multiple systems under one department, each system\u00a0<\/span><\/span>can be a category. For example, a larger<\/span>\u00a0<\/span>system with multiple facilities may need to consider the assets at each facility; therefore, the hierarchy would include each facility<\/span>\u00a0<\/span>as a category and then all\u00a0<\/span><\/span>subsequent<\/span>\u00a0<\/span>assets beneath.<\/span><\/span>\u00a0<\/span><\/p>\n

[\/et_pb_text][et_pb_image src=”https:\/\/swefc.unm.edu\/iamf\/wp-content\/uploads\/2021\/03\/WastewaterSystemDS.png” title_text=”WastewaterSystemDS” admin_label=”Image” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”et_body_layout”][\/et_pb_image][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}” theme_builder_area=”et_body_layout”]<\/p>\n

The hierarchy can flow downward like the examples\u00a0<\/span><\/span>above<\/span>\u00a0<\/span>or they can flow to the side<\/span>. In this example, the system is lab<\/span>eled with ea<\/span>ch type of\u00a0<\/span><\/span>element and the assets within.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n

[\/et_pb_text][et_pb_image src=”https:\/\/swefc.unm.edu\/iamf\/wp-content\/uploads\/2021\/03\/VegetatedSystemDS.png” title_text=”VegetatedSystemDS” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”et_body_layout”][\/et_pb_image][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}” theme_builder_area=”et_body_layout”]<\/p>\n

Systems can develop a\u00a0hierarchy structure in a variety of ways. The most common method is to start at the top and work down.\u00a0Staff can use\u00a0the\u00a0standards\u00a0set for defining an asset\u00a0as a reference\u00a0to\u00a0developing\u00a0the hierarchy\u00a0structure\u00a0that\u00a0the system finds beneficial.\u00a0<\/span>\u00a0<\/span><\/p>\n

Building\u00a0an asset\u00a0hierarchy\u00a0can seem\u00a0daunting and\u00a0may not be right for your utility; however, there are things to consider when deciding if your utility could\u00a0benefit\u00a0from an asset\u00a0hierarchy.<\/span>\u00a0<\/span><\/p>\n