How to Create a Utility Asset Management Plan

From exploring the fundamentals to addressing the unique challenges different utility sectors face, I’ll share the background and best practices you need to create a robust utility asset management plan.

What is utility asset management?

Once your utility asset management plan is in place, the final step is ensuring accountability for its execution and ongoing adherence to changing regulations. Maintaining thorough documentation is key. It safeguards against legal risks and penalties, maintains operational integrity, and builds trust with stakeholders.

• Keep compliance top of mind: Regularly train and update your staff on compliance requirements and the importance of following established procedures.

• Include some wiggle room: The goals should be flexible enough to adapt to changing circumstances, such as new regulatory requirements, technological advancements, or shifts in customer demand.

Utility asset management is the strategic process of managing the physical assets and infrastructure involved in delivering utility services. It encompasses a thoughtful approach that takes the unique characteristics of each specific utility into consideration. 

For a more detailed breakdown, read our guide on performing asset criticality analysis.

• Mobile accessibility: With mobile access, field technicians can update and receive information on the go, enhancing responsiveness and operational efficiency.

Prioritizing maintenance work can sometimes feel more like an art than a science. Including criticality, condition, and other goals is a necessary part of determining the right service level. Some assets will be fine with just a little bit of preventive maintenance, while others may require a unique balance different maintenance strategies, all of which come with their pros and cons.

Planning for replacements

• Telecommunications services

How to create a utility asset management plan

• Electric utilities

• Identify maintenance needs: Based on the assessments, identify immediate and long-term maintenance requirements.

• Stay informed on regulations: Keep abreast of all relevant local, national, and international regulations that affect your utility as they change over time.

CMMS solutions are used by small and big organizations alike to optimize their maintenance operations. If you’re not already using some kind of maintenance software, this should be your first investment. 

• Gas utilities

First, identify risks associated with each asset, including:

3. Assess the current state of assets

• Real-time data and reporting: A CMMS enables data-driven decision making by simplifying the analysis of factors like life cycle cost, maintenance costs, team productivity, and other KPIs.

• Determine asset health: Set a baseline for each asset by documenting factors like age, wear and tear, reliability, and failure history that can be compared over time to determine the relative condition of the asset.

Evaluating risk is the first step in risk management, and it enables utility companies to focus their resources and attention on assets that are most critical to their operations. Implementing the right strategies on this critical equipment can minimize potential disruptions and help ensure safety, regulatory compliance, and the appropriate level of service.

• Needs based on asset condition assessment (from Step 3)

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• Pressure and flow sensors in pipelines to detect leaks or bursts early

• Leverage technology for compliance management: Use tools like Limble CMMS to track compliance-related activities, store documents, and manage reporting requirements. These tools can also remind you of upcoming regulatory deadlines or required maintenance activities.

• Potential points of failure

• Leverage technology for efficiency: Use technology solutions like CMMS to gain greater efficiency and get the most out of the resources you do have.

• Predictive analytics for optimizing gas flow and distribution based on usage trends

Lean

How to Create a Utility Asset Management Plan

Eight steps to simplify the process

Your technology investment will ultimately depend on the criticality of the issues you want to prevent, the compatibility with existing systems, and the cost of implementation.

These goals will provide direction for maintenance activities, technology investments, and overall asset life cycle management decisions. Take your time to get this one right by consulting various stakeholders and aligning with bigger initiatives.

• Catalog all assets: Begin by creating a detailed list of all tangible assets, like machinery, pipelines, or vehicles.

• Schedule regular compliance audits: Conduct regular audits to verify compliance with all applicable laws and regulations. Utilize both internal audits and, if necessary, external auditors for an unbiased assessment.

• Waste management

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• Plan your budget: Develop a comprehensive budget that accommodates all aspects of asset management, including maintenance, replacements, technology upgrades, and emergency contingencies.

Schedule a product demo to learn how a CMMS can help your organization.

7. Allocate resources efficiently

• Consider stakeholder input: Incorporate feedback and expectations from various decision makers, including customers, regulatory bodies, and internal teams, to ensure that the goals consider a wide range of operation and maintenance needs.

• Regulatory compliance: A CMMS simplifies compliance management, keeping track of all necessary documentation and maintenance records in one place.

Effective resource allocation ensures all necessary resources are available, optimizes resource use, and contributes to the overall efficiency and sustainability of utility operations.

In the dynamic and demanding world of utilities, mastering the art of asset management and maintenance is critical.

• Develop a response plan for compliance issues: Have a clear plan in place for addressing any compliance issues that arise, including steps for investigation, corrective actions, and measures to prevent future occurrences.

These practices not only help utilities meet regulatory requirements but also contribute to the overall efficiency and reliability of their operations.

Simplify utility asset management with a CMMS

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4. Set asset management goals and objectives

• Prioritize based on asset criticality: This ensures that the most important assets receive the necessary attention and funding.

Here are some tips on how to handle resource allocation:

While unique challenges face each type of utility, they all benefit from a strategic approach to asset management. Follow these eight steps for creating a comprehensive utility asset management plan that will position your business for long-term success and sustainability.

• Grid-condition monitoring sensors to detect fluctuations or disturbances within the electrical grid

• Gather detailed information: For each asset, collect information including make, model, purchase date, maintenance history, and performance data.

• The other strategic consideration for your maintenance plan is asset condition. The age, performance, and maintenance needs of each asset will dictate the prioritization of maintenance resources and budgets.

8. Ensure compliance and documentation

• Assess resource requirements: Quantify the financial resources, labor, tools, expertise, and technology your plan requires.

Utility companies play an essential role in our communities, supporting our well-being and quality of life. But providing always-on services that rely heavily on machinery, technology, and other assets can pose a challenge. In the dynamic and demanding world of utilities, mastering the art of asset management and maintenance is critical.

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Having well-defined asset management goals will help give your utility asset management strategy the direction it needs to support the organization as a whole.

Comprehensive maintenance and replacement plans play a crucial role in prolonging the life of assets, preventing unexpected failures and ensuring that replacement decisions are timely and cost effective.

There are then several ways you can evaluate the severity and likelihood of each risk, such as analysis of historical data, predictive modeling, and expert evaluation. Be sure to consider how factors like weather conditions, geographic location, and regulatory changes may affect the risk over time. This should provide you with enough data to create a risk matrix. 

2. Identify and prioritize critical assets and their risks

• Maintenance recommended in OEM guidelines

• Regulatory considerations

• Smart meters for monitoring electricity usage and demand patterns in real time

• Predictive maintenance capabilities: Advanced predictive maintenance features combined with condition-monitoring sensors help utilities foresee potential issues before they escalate, ensuring uninterrupted service.

• Water utility and treatment facilities

• Priorities laid out in your criticality and risk analyses (from Step 2)

• Involve cross-functional teams: Ideally, you will be able to include the operations, maintenance, and finance departments in the assessment process to get a holistic view of the asset’s condition and its effect on different parts of the organization.

• Use a structured approach: Classify assets by type, location, function, or any other categorization that might support your strategy.

• Renewable energy

• Document and record findings: Ensure all findings from the assessments are well-documented and recorded. Use a CMMS system to make documentation as well as condition comparisons and analysis easier.

• History of maintenance needs from your records and expertise from your team

Develop a detailed preventive maintenance schedule based on:

5. Develop maintenance and replacement plans

Utilities that need a utility asset management plan include:

The utility industry is continuously evolving, facing new regulations, infrastructure requirements, and increasing customer expectations. Limble CMMS is a tool for today’s needs and a partner for tomorrow’s challenges. Its scalable architecture and flexible design allow it to adapt to any type of utility, ensuring that you are always equipped with the best tools to face the future.

• Maintain comprehensive documentation: Keep detailed records of all asset management activities, including maintenance records, compliance checks, audits, and any corrective actions taken. Documentation should be accurate, up to date, and easily accessible.

Published: Thursday, February 15, 2024 – 12:03

• Optimize the use of your workforce: Plan staffing based on the skills required for various asset management activities. Consider cross-training and upskilling to maximize workforce flexibility and set your team up for success by providing the right tools for the tasks at hand.

• Consider business goals: Ensure that asset management goals are designed to support the overall strategic objectives of the utility company.

• Safety hazards

No set of asset management practices is complete without a plan for replacement assets when they inevitably reach the end of their useful life. Identify a process in your utility asset management plan for how repair vs. replace decisions will be made and approved. This ensures that replacement costs are included in your financial plan. 

• Corrosion-monitoring sensors on pipelines to predict maintenance needs

A comprehensive asset inventory that pulls together basic but important details of each asset is the foundation upon which all maintenance and management activities will be built.

• Tilt and vibration sensors on cell towers to detect structural issues

Other technologies to consider include IoT devices and condition-monitoring sensors that track asset conditions in real time, as well as predictive analysis to anticipate potential issues and optimize maintenance schedules. Here are a few examples:

• Centralized asset information: A CMMS provides a centralized platform for all your asset information, making it easier to track and manage maintenance tasks and assets across various locations.

• Gas-leak detection sensors connected to an IoT network for immediate alerts and response

• Environmental impact

• Balance performance and cost: Aim for goals that balance asset performance with cost effectiveness. This includes optimizing maintenance schedules, investing in new asset management tools and technologies, and making decisions that provide the best return on investment.

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6. Implement technology solutions (CMMS, IoT, AI)

This article published Jan. 25, 2024, by Limble.