Asset Management and the Black & Veatch Right Theory

The "right" way to view asset management from Black & Veatch.  From their website:

"Asset management programs focus on replacing the right infrastructure or assets in the right way and at the right time. This year’s survey provides a baseline for the current basis of repair and replacement decisions among U.S. utilities. As expected, staff knowledge of assets and the condition of each is used by more than 85 percent of all utilities in developing repair and replacement programs.

“It is encouraging to see that more than half of respondents in each size demographic also use detailed condition assessments and risk assessments to provide analytical support to these important financial decisions,” said James Strayer, Black & Veatch Department Manager for Infrastructure Planning and Asset Management. “However, deterioration modeling is only used by 15.5 percent of all respondents – a small number – which is likely a reflection of the lack of understanding or awareness of this capability. Deterioration models are powerful tools for forecasting risks and impacts on service levels.”

Justifying capital expenditure and customer rates is a top issue nationally. Deterioration models will help utility leaders demonstrate the need for specific investments and quantify the potential consequences of inaction, Strayer noted.

As greater levels of intelligence and data collection are implemented across the utility enterprise, such as advanced distribution programs and sensors, obtaining data on asset performance and condition over time will enable the development of deterioration models. 

“This appears to be an area of growth and opportunity for the industry,” Strayer said. Approximately 30 percent of respondents stated they are using or planning to improve or implement deterioration models, although this is much greater among large utilities."