Proactive Life Cycle Asset Management

Facility managers throughout all industries are seeking ways to preserve their capital assets, restore their infrastructure and continue to operate effectively and efficiently with their current facilities, while needing to accomplish this with decreasing budgets. This has forced building managers into a largely reactionary mode, responding to unexpected component breakdowns and system failures at the most inopportune and expensive time. In addition, many buildings currently serve some function to the mission that is much different than the originally intended purpose when designed.

There is a critical need to operate efficiently and predictably in an era of scarce resources. Maintenance and repair funding shortfalls can result in significant operational consequences. In some cases, systems are allowed to run to failure simply to initiate the investment in capital improvements. There has to be a better way.

One approach is to conduct a thorough facility condition assessment and calculate the current Condition Index (CI) for each major building system and components. One can then develop prioritization schemes to manage around probability and consequence of system failures as aligned with funding. Based on prioritization we can then determine multi-year capital spend plans required to maintain the appropriate facility condition level. It is all about keeping the facility in a stable operating condition at a predictable cost.

If this approach is done appropriately it will inform long-range strategic planning and ensure operating continuity and predictability. It will identify known exposures versus run to fail scenario – i.e., no surprises. Lastly, it supports highly efficient use of maintenance and repair dollars with maximum benefits.

As an example of how this approach can be employed, the CFO at a hospital in Minnesota received an emergency request to replace a critical heat exchanger which was not in the current budget. The exchanger had been assessed two years earlier and noted as needing replacement, but funding constraints kept that from occurring. Now they were facing a near disaster because a proactive asset management plan was not in place. As a result, the hospital now employs a proactive and comprehensive life cycle asset management program.

This program provides for prioritization of projects based on specific criteria to avoid the risk of failures which could jeopardize facility operations and patient care.

For more information about this approach, please feel free to contact us:

Chip Cogswell Jerry Turner

678-388-0453 715-957-0011

Chip@cogswellpds.com jerryturner7@gmail.com