Application of Asset Management System can have many benefits to your company, including the following:
1. Good Business Practice.
Asset management results in better decisions. Aligning management of infrastructure with strategic policies and direction will support the long-term success of the utility’s mission, goals and objectives.
2. More Meaningful Financial Reporting.
An asset management approach can aide a utility in complying with company requirements.
3. Improved Regulatory Compliance.
Part of asset management involves the implementation of better O&M practices, which can significantly improve compliance.
4. Improved Reliability.
More structured day-to-day attention to system assets and their condition means that unexpected failures are less likely, thus minimizing emergency repairs, costly lawsuits and customer relations problems. Assessing the risk implications of asset failure helps focus resources on critical priorities and reduces overall risk to the utility.
5. Long Term System Integrity.
The concept of “sustainable infrastructure” is gaining increased visibility, by relating costs to asset condition and conducting long term planning for each asset, policy makers get the facts they need to help sustain the infrastructure.
6. Cost Savings.
There is evidence that asset management systems that maintain infrastructure in a sound and reliable condition and are based on minimizing life cycle costs, can significantly reduce operating and maintenance cost, as well as long-term capital expenses. A life cycle approach means that the utility always gets the most assets for its money.
7. Eligibility for Federal Funding.
The apparent need for increased infrastructure spending coupled with concerns over the quality of infrastructure management prevalent in the industry have led to a range of provisions in proposed funding legislation that include requirements for “asset management plans.” Although it is speculative at this time, it is likely that qualifying for federal funding assistance in the future will require a demonstration of some level of proper asset management.