Asset Management Planning Basics - AM Planning

Asset Management Planning Basics - AM Planning

To get started with Asset Management (AM) Planning in NEXGEN, users must be aware of the NEXGEN asset management fundamentals. In NEXGEN, 4 fields control how much organizations can leverage our asset management tools. Prior to starting their AM Planning journey, organizations should familiarize themselves with NEXGEN's AM Planning Pillars, AM Planning configuration options, and NEXGEN AM Planning definitions. If it is your first time reviewing AM Planning in NEXGEN, we recommend reviewing the AM Planning Definitions section first.

What is Asset Management (AM) Planning with NEXGEN?

NEXGEN utilizes various modules to predict when assets will require replacement and to prioritize those assets accordingly. Using a combination of different data points, organizations can use NEXGEN to strategize and estimate when future budgets will be impacted and when critical assets may fail.

By using the Asset Plan, Risk, Funding, and Prioritization modules, organizations can effectively plan for future costs and run through worst case scenarios to prepare for any uncertainty.

Overview Video


Asset Specific AM Planning Pillars


What You Need to Get Started

While you may not have all your data, it is important to prioritize data in a specific way to MAXIMIZE your usage of NEXGEN's AM Planning modules. Without the following data points, no AM Planning tools can be leveraged.

1. Data Needed to Run Basic AM Planning Reports

To do any sort of AM Planning in NEXGEN, users must configure:
    1. Configured at the Class level
    2. Represents the estimated number of years an asset will function before replacement
    3. Theoretical until a Condition Assessment is performed
  2. Asset Install Date
    1. Populated per asset
    2. MUST be captured to see remaining useful life on assets
    3. Condition Assessments are irrelevant until an install date is populated
    4. If missing or unknown, best estimates are recommended
Once an organization has asset useful life data and asset install dates, reports can be generated to predict when assets may fail. However, these basic data points will only let organizations know WHEN they can expect asset failure and will not incorporate costs. To fully leverage NEXGEN's Funding module where organizations can forecast future costs, asset replacement costs are necessary.

2. Data Needed to Use the Funding Module

Once useful life and asset install dates are gathered, NEXGEN recommends identifying an assets':
  1. Asset Replacement Cost
    1. Configured at the asset level
    2. Needed for Funding and Prioritization modules to function
    3. Can be calculated by NEXGEN if purchase date/cost are known
    4. If unknown, NEXGEN recommends software like RS Means for replacement cost estimates
Asset replacement costs in NEXGEN are used in the Funding module predict future expenses. Costs in the Funding module forecast based on today's dollar amounts but organizations can export funding data in an excel format to associate their own inflation metrics for future years.

3. Data Needed to Use the Prioritization Module

The last component of essential AM Planning data is an asset's Impact Index.
  1. Asset Impact Index (Consequence of Failure)
    1. Measures how much of a problem it would be if an asset were to fail
    2. Customizable variables by organization
    3. Common variables: safety, social/environmental, and financial impact (the "triple bottom line")
Since NEXGEN's Prioritization module leverages an asset's overall impact, organizations can run scenarios to illustrate the total cost of asset replacement based on low/high risk assets and simulate what their costs may look like if they postpone/prioritize certain asset replacements.

Idea

AM Planning Pillars Summary

To fully utilize NEXGEN's AM Planning module, organizations need to configure the following data points:
  1. Asset Class Useful Life values
  2. Asset Install Dates
  3. Asset Replacement Costs
  4. Asset Impax Index values
Without these 4 pillars, not all of the AM Planning features in NEXGEN can be leveraged.


AM Planning Configuration Options

Organizations have a variety of options when setting up their site for AM Planning. Ideally, organizations should consider the following before making substantial decisions about AM Planning configurations.
  1. 0-5 or 0-10 asset rating scale
  2. API and AII calculation options
  3. Asset Criticality markers
  4. ARI Calculation

AM Planning Definitions to Know

Term and Definition
Visual Aid
  1. Asset Class
    1. A mandatory component for any asset record
    2. Describes the type of asset based on an asset's category or function
    3. NEXGEN enforces six main asset class groups (area, equipment, linear, miscellaneous, structure and vehicle)

  1. Asset Class Useful Life
    1. Represents the estimated number of years an of the specified class will function before replacement
    2. Useful Life class values are always theoretical until a condition assessment is performed on an asset

  1. Asset Condition Index (ACI)
    1. A score assigned to an asset to identify its current condition
    2. Higher scores indicate a WORSE condition while lower scores mean the asset is doing well
    3. ACI is determined by asset age, until Condition Assessments are performed
    4. Can be manually inputted or generated via a formal condition assessment

  1. Asset Impact Index (Consequence of Failure)
    1. Measures how much of a problem it would be if an asset were to fail
    2. Customizable variables available
    3. Common variables include safety, social/environmental, and financial impact (the "triple bottom line")
    4. Values can be adjusted at the asset level in the Risk module and variables can be configured in the Asset Plan module by class

  1. Asset Probability Index (Likelihood of Failure (LoF))
    1. Helps represent the current asset condition
    2. By default, is equal to the asset’s condition score (ACI)
    3. Variables can be used to increase the overall probability of the asset’s failure (ex. Maintenance Cost, Shut Down Days)

  1. Asset Risk Index (ARI)
    1. Also known as Business Risk Exposure (BRE)
    2. Calculated by multiplying an asset’s probability of failure with its impact
    3. An asset's ARI determines how it is prioritized in the Prioritization module
    4. Higher scores indicate a higher urgency when it comes to asset replacement and maintenance

  1. Condition Assessment (CA)
    1. A technical assessment of an asset.
    2. The result of a condition assessment is an updated ACI (asset condition index), which will affect the remaining useful life of an asset.
    3. CAs can be configured with criteria relevant to specific asset classes.
    4. CAs can also have reference score sheets that are visible when users are rating an asset.





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