Introduction to Asset Management from Underground Infrastructure Management Magazine

The Underground Infrastructure Management (UIM) Magazine for January/February 2008 wrote a feature article to promote "Guide to Water & Wastewater Asset Management", a new book that is a compilation of articles which have been published in UIM over the past several years. The article is a great summary of a bit of the history of Asset Management, legal and regulatory issues, and Best Practices. Read the article here: http://www.uimonline.com/index/webapp-stories-action?id=93&archive=yes&Issue=2008-01-01

From my perspective there were two key comments in the article that were of particular interest. The first centers on the fact that Asset Management in the US has "....focused on familiar activities and measures that fall into the tactical and operational planning levels. A comprehensive and ultimately successful long-term asset management program must also include the strategic planning needed to tie the various tactical and operational parts together into a coherent and workable whole. A thorough review of the utility's culture, and the need for changes in that culture, are critical components of the strategic planning process. "

From my experience, the article has hit on a very important point. While my personal focus is very much in the operational realm, having a strategic plan which incorporates the long term objectives for a sustainable program means that the culture of your organization must change drastically. This is more then just renaming what we have always done (operations and maintenance) and calling it Asset Management. We must understand our community's needed services from their infrastructure and then commit to optimizing the way the service is provided. (From previous newsletter, you can hear Barry Buchanan discussing his experiences and how Asset Management requires culture change here.

When considering a strategic plan and what questions you will answer you will want to also review the opening of the article:

The Seven Questions of AM (Examples of Typical Responses)

1. WHAT do we have? (Data collection, GIS, field verification)

2. WHAT is it worth? (Asset valuations, depreciation)

3. WHAT is its condition? (CCTV, SSES, I/I, hydraulic modeling)

4. WHAT do we need to do to it? (Rehab, replacement, CIP, benchmarking)

5. WHEN do we need to do it? (Prioritization, CIP, Master Plans)

6. HOW MUCH will it cost? (Construction cost estimates, O&M studies)

7. HOW will we finance it? (Rate studies, bond issues, grants and loans)


Carefully consider these questions from a strategic or high-level perspective. Part of your plan should be how to quickly arrive at a rule of thumb method of answering these seven questions and how you will open the discussion of the details of the results of these seven questions with the community and staff of your municipality. Please see the next article down for some case studies of how other municipalities are approaching the problem.

I have not had a chance to review the book this article is promoting. However, the articles in UIM that I have read have been informative and the book, which is a compilation of articles, may be a good reference document for your library. The cost is $80 and you can purchase the book here: http://www.benjaminmedia.com/book-store/index.php?_a=viewProd&productId=23