Proactive asset management requires teamwork

It is often assumed that public infrastructure asset management is something limited to a particular profession; however, this is a multidisciplinary function, with a shared responsibility across different professions. This enables a maximum return on investment, while also ensuring defined service and security standards are met. By Bonke Mncwango*

FIGURE 1 Detailed asset life-cycle stages

As an umbrella term, public infrastructure assets may range from intricate underground networks to elaborate building structures, as well as highway systems, recreational parks, and any other equipment necessary to maintain their integrity.

With public-related infrastructure, it is often difficult for the responsible asset managers to protect facilities and structures from accelerated deterioration due to overusage, geological conditions, and climatic effects. Due to inadequate funding, as well as inadequate technological support, certain infrastructure assets have also been neglected and rendered out of service.

As an effective means of managing an asset, repair and maintenance expenditures must be separated from those of capital renewal. Repair and maintenance are defined as interventions that ensure that an asset reaches its maximum service life, whereas capital renewal is defined as the action to completely replace an existing asset.

The lifespan of an asset can be regarded as the length of time it will take an asset to go through its full life cycle. This is shown in Figure 1, which depicts eight phases of an asset’s life cycle. These phases are: needs identification, procurement, construction, commissioning, maintenance, condition monitoring, decommissioning, and renewal. The various stages of an asset life cycle are briefly explained as follows: - Needs identification: Needs identification is part of the planning stage and this is when a need is identified that is currently not being met. - Procurement: Procurement is the acquisition

stage. This stage is only executed once the perfect asset to meet the identified need is known. - Commissioning: It is possible that some assets may be complete and ready for use when delivered. However, many require installation/commissioning, and that process takes place during this stage, especially when assets are large and of a complex nature. - Maintenance: During this stage, the asset is operated and then maintained as necessary. - Condition monitoring: An important stage while an asset is in use is condition monitoring. Should any adverse quality factor

be noted while an asset is being used, attending to it early will save costs. - Decommissioning: Once the asset has reached its useful life or when the cost of operating or maintaining it becomes too high, it is at this stage that the asset should be retired and decommissioned.

What asset management is and isn’t

There exist numerous ideas of what asset management is; however, seldom is it mentioned what asset management is not. Asset management is: - a mindset that sees assets as objects and systems, which respond to their environment, change, and normally deteriorate with usage - a recognition that assets have a life cycle, which governs their lifespan - as important for those working in finance as it is for engineers - an approach that looks to get the best out of the assets for the benefit of the organisation and its stakeholders - about understanding and managing the risk associated with owning assets. Asset management is not: • just for engineers, as is commonly viewed • just an accounting exercise in terms of depreciation – it’s a collective responsibility shared by every part of the organisation in order to achieve increased recognition for economy, effectiveness, and efficiency in asset usage • purely an academic discipline – while asset management may be a worthy subject for academic review and advancement, it remains largely pragmatic in nature.

While asset management may be a worthy subject for academic review and advancement, it remains largely pragmatic in nature.”

Success factors

To ensure successful infrastructure asset management, it is important to determine: • what is owned • how much it is worth • its current condition • the remaining service life of the asset. Anecdotal evidence from numerous typical entities – such as municipalities that oversee a diversified range of infrastructure assets – indicates that many of these entities fare well with the first two considerations; however, they fail on the remaining two and the reasons for this are miscellaneous in nature. These range from being understaffed to the absence of the required skill set needed to make such determinations.

Conclusion

As a stepping stone towards preventing further unnecessary expenditure incurred for the premature renewal of assets, a fresh approach is needed. This requires a detailed review of available capacity, as well as the skills required.

Managing South Africa’s diverse and complex infrastructure assets is vital for socioeconomic growth and is a national imperative that cannot be ignored.

*Research student, Durban University of Technology

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