Categories: Global Summit
By: Zahid Khan
Deputy Director Asset Management, Sound Transit
Traditionally, projects have been designed and constructed without integrating asset management (AM). Either AM was overlooked or an afterthought when the assets are delivered. Project management professionals are focused on completing their projects in a timely manner and within in budget and often are not aware of operational requirements. Organizations often do not have any framework for integrating asset management during project planning. As a result, during the project planning phase, asset requirements are not effectively incorporated in design, construction, and procurement of physical assets. Lack of timely and effective incorporation of asset requirements and performance data reduces the ability of the organizations to optimize the value chain delivery.
How can organizations assure that the value created by projects will continue to meet stakeholders’ expectations? This presentation includes a strategic approach for systematically integrating asset management in project, program, and portfolio management throughout the asset lifecycle. This presentation also provides a practical approach for developing and implementing an organizational change management approach for integrating AM processes with portfolio management.
How to … or What is the Solution?
Portfolio Management (PfM) aligns interrelated processes that support decision making and balancing priorities of the portfolio. Sustainable value delivery requires strategic integration of AM in PfM. ISO 55000 defines AM as “the coordinated activities of an organization for the purpose of generating value from assets”. AM approach can be integrated in PfM through development of governance to maximize value delivery by:
- Developing AM Framework (AMF) which integrates asset performance, risks, reliability, and operational requirements
- Utilizing asset data for decision makings
- Integrating asset requirements in project planning
- Aligning with organizational missions
- Implementing a management system to:
- Unify PfM and AMF to ensure value proposition
- Manage risks, quality, and performance domains consistently
- Implementing Plan-Do-Check-Act process throughout the asset lifecycle
Organizations that are in the process of maturing their PfM and AMF can implement the Integrated PfM by:
- Garnering support from all levels to champion AM
- Developing governance to integrate AM in applicable business processes
- Educating Stakeholders to understand the value of AM
- Championing a cultural shift to work across silos
- Managing change to foster data informed decision making
This presentation will describe the value of integrated PfM. We will discuss two real-life examples where AM was integrated in PfM to make asset data informed decision-making for sustaining value derived from the projects. These examples will help you understand how you can integrate AM in your portfolio management system.
Closing – Interested in Learning More?
By integrating asset management with project, program and/or portfolio management your organization will realize sustainable value chain delivery. Value created by projects can be further improved and/or sustained by integrating AM through the utilization of a governance structure or a management system. We will discuss how various organizations can prepare to establish an asset management system that can be seamlessly integrated to an existing portfolio management system.
Interested in learning more and furthering the dialogue? Join us on December 1 at the Global Summit event for this presentation and take part in the question and answers with us and the rest of the PM community.