Asset management fundamentals - continuation
8.0 Asset condition and performance
8.1 Asset condition is the physical state of the asset at the material time of assessment whilst asset performance is the ability of the asset to provide the required level of service. We understand that every physical asset will deteriorate due to normal wear and tear or through other factors such environmental degradation and so forth. In this respect, some assets will deteriorate faster from other assets and vice versa. As such, we must assess the asset periodically in order to have a quantifiable physical condition of the asset. Furthermore, the condition of the asset relates to the degree of performance of the asset and performance of asset relate to achieving its service level. At the end of day, we will have a database of asset condition, which will allow the organization to make a strategic decision on the asset. The figure below illustrates a typical performance cycle of an asset.
8.1 Asset condition is the physical state of the asset at the material time of assessment whilst asset performance is the ability of the asset to provide the required level of service. We understand that every physical asset will deteriorate due to normal wear and tear or through other factors such environmental degradation and so forth. In this respect, some assets will deteriorate faster from other assets and vice versa. As such, we must assess the asset periodically in order to have a quantifiable physical condition of the asset. Furthermore, the condition of the asset relates to the degree of performance of the asset and performance of asset relate to achieving its service level. At the end of day, we will have a database of asset condition, which will allow the organization to make a strategic decision on the asset. The figure below illustrates a typical performance cycle of an asset.
8.2 There are numerous ways to assess the condition of asset and the most common method is by visual inspection. However, visual inspection will only give the apparent deterioration but not the physical attributes of the assets such as material strength and so forth. Therefore, a far better and comprehensive method of assessment need to be formulated. As such, a good assessment will give the organization an overall and accurate picture on the physical condition of its assets.
8.3 For a typical condition assessment, the methods used are:
a. Documentation and desktop review
b. Visual inspection
c. Sampling for laboratory testing
d. Analysis on the present and future rate of deterioration
8.4 It is important that the necessary documentation depicting the details of the asset and record of maintenance works must be available for a conclusive assessment. If no documentation is available, the organization must start from zero base, build up the documents especially as-built plans, and so forth. Hence, by accepting asset management, the organization will be building an excellent documentation system.
8.5 It is also equally important to have a rating or a grading condition system to identify the physical state of the assessed asset. With this rating or grading system, the organization will at anytime know the physical condition of the asset and the funds needed to maintain the assets. The combination of the physical condition and performance will be the basis to determine the actual service level of the asset at that particular time. With further analysis, the economic life span can be determined at different scenarios and the expected performance of the asset in the future.
8.6 In general, asset performance is the ability of the asset to provide the required level of service and can be measured in terms of reliability, availability, capacity and meeting customer needs.
8.7 The assessment of asset condition and performance must be a cyclic programme either yearly or frequency determined by the organization, based on condition of the asset or maintenance cost. If the resources to implement the assessment are readily available, the assessment must be on a regular interval. Without this assessment programme, a number of outputs, which are important inputs to the organization’s decision making process, will not be known amongst others such as:
a. The residual life,
b. The maintenance or renewal cost ,
c. Prediction of asset failure,
d. The rate of consumption,
e. Failure pattern and so forth
8.3 For a typical condition assessment, the methods used are:
a. Documentation and desktop review
b. Visual inspection
c. Sampling for laboratory testing
d. Analysis on the present and future rate of deterioration
8.4 It is important that the necessary documentation depicting the details of the asset and record of maintenance works must be available for a conclusive assessment. If no documentation is available, the organization must start from zero base, build up the documents especially as-built plans, and so forth. Hence, by accepting asset management, the organization will be building an excellent documentation system.
8.5 It is also equally important to have a rating or a grading condition system to identify the physical state of the assessed asset. With this rating or grading system, the organization will at anytime know the physical condition of the asset and the funds needed to maintain the assets. The combination of the physical condition and performance will be the basis to determine the actual service level of the asset at that particular time. With further analysis, the economic life span can be determined at different scenarios and the expected performance of the asset in the future.
8.6 In general, asset performance is the ability of the asset to provide the required level of service and can be measured in terms of reliability, availability, capacity and meeting customer needs.
8.7 The assessment of asset condition and performance must be a cyclic programme either yearly or frequency determined by the organization, based on condition of the asset or maintenance cost. If the resources to implement the assessment are readily available, the assessment must be on a regular interval. Without this assessment programme, a number of outputs, which are important inputs to the organization’s decision making process, will not be known amongst others such as:
a. The residual life,
b. The maintenance or renewal cost ,
c. Prediction of asset failure,
d. The rate of consumption,
e. Failure pattern and so forth
Nevertheless, due consideration must be given to short and long-term benefits to the organization when implementing an assessment programme.
8.8 Without these assessments, the organization will be back to the normal maintenance programme and doing things without having a justifiable and value for money programme that is fixing asset when it breaks down. By doing so, the asset will continue to fail and dysfunction prematurely resulting in the deterioration of asset performance and customer’s expectations as shown in the figure below.
