Strategic Asset Management
What is SAM and why is it important?
Strategic Asset Management (SAM) is a systematic, long-term approach to taking care of important things (assets) that focuses not just on day-to-day maintenance, but on getting the best value throughout their entire life cycle.
It's like having a master plan for your valuable things. Making sure they perform the intended task in the most cost-effective way.
Think of it this way: Instead of just reacting when something breaks, Strategic Asset Management asks:
What are our goals and what level of service (LoS) do we expect or need to provide?
What assets do we have that are important in achieving those goals?
How can we monitor these assets (performance and/or condition) to ensure we take appropriate (timely) action?
When (time and/or trigger) should we invest in repairs or maintenance?
When should we plan for replacement?
The "Strategic" part means:
Looking at the big picture (not just individual assets)
Making decisions based on data and long-term objectives
Considering the full lifecycle costs, not just purchase price.
Aligning asset decisions with LoS and other organizational goals
Balancing cost, risk, and performance?
It's about being proactive rather than reactive, and making informed decisions about your assets that support your long-term objectives.
Once you have defined your objectives and developed your SAM plan it’s time for action. Implementation of SAM is all about improving the maturity of your data and processes and taking action at the appropriate time.
Strategic asset management is all about making smart choices about your assets, from the moment you buy them to the day you retire them. Think of it as a master plan for your stuff – buildings, equipment, software, even your people – so they help your business thrive.
SIMPLE EXAMPLE: MANAGING A SMALL FLEET OF BUSES
‘ACME TOURS’ run a small fleet of buses transferring trampers to a trail end.
GOALS: LoS identified by the management team: vehicles available for every shift, maintaining fuel efficiency, passenger capacity, and route coverage
ASSETS: 5 x buses (passenger seats, engines, WOF), 2 x trailers
MONITOR: Record fuel usage per KM, inspect seats and vehicle condition (seats, tires, engine) weekly, and monitor the number buses available (% fleet).
MAINTAIN: Scheduled servicing based on usage patterns and manufacturer recommendations, scheduled deep cleaning twice per year
REPLACEMENT: Plan/budget for replacement buses based on their 10 year lifespan
Why bother with Strategic Asset Management?
Good question! SAM isn't just about keeping track of things. It's about making sure your assets are working with you, not against you.
By implementing Strategic Asset Management for your business you get to:
Save money: SAM helps you avoid unexpected costly repairs and replacements by keeping your assets in top shape.
Work smarter, not harder: SAM helps you streamline your operations, making things run smoother and more efficiently.
Reduce risks: SAM helps you identify potential problems before they become major headaches.
Make better decisions: With SAM, you'll have the data you need to make informed choices about the maintenance and lifecycle of your assets, and to budget for those costs.
Stay ahead of the game: SAM can give you a competitive edge, making sure your assets are performing at their best, whilst managing cost efficiency.
Getting Started with Strategic Asset Management
To make the most of your company's assets? You need a solid strategic asset management (SAM) plan.
Ready to dive in? Here's how to get started:
Gather your A-team: Get people from different departments together to create a SAM dream team.
Know what you want: Figure out what you want to achieve with SAM. What are your goals?
Think ahead: Are there any big changes on the horizon? Mergers? New tech? Factor those in.
Take stock: Make a list of all your assets (an asset register). What do you have, where is it, and what condition is it in? Collect information that will be useful for maintenance and planning and make this information available to your team
Keep things in check: Make sure your equipment is working, certifications are valid and maintenance is up to date. Ensure your business processes (or software systems) let you record maintenance activities and changes to your asset register… Keep this data up to date!
Stay flexible: Regularly review your SAM plan and make adjustments as needed.
Key Ingredients of a Winning Strategic Asset Management Plan
Here's what you need to make your SAM plan rock:
Strong leadership: Get your bosses on board! They need to support and champion SAM.
Level of Service and Risk management: Identify key outcomes and potential problems, monitor them effectively, and have a plan to deal with them.
Measure your success: Track how well your SAM plan is working. Measure the performance of individual assets and the LoS you want to achieve. Are you hitting your goals?
Lifecycle management: Manage your assets from start to finish – buying, using, maintaining, and retiring.
Always be improving: Regularly review and update your SAM plan to keep it fresh and relevant.
Creating a SAM Plan: A Step-by-Step Guide
Know where you stand: How mature is your current asset management? What needs improvement?
Get everyone excited: Share the benefits of SAM with your team and get them on board.
Set boundaries: What assets and departments will your SAM plan cover? Which teams will see the benefits and who will contribute?
Spot the gaps: Take stock of your current practices? Understand where are you falling short? What needs to change?
Prioritize: What are the most important things to focus on?
Track your progress: How will you measure the success of your SAM plan?
Make a plan: Outline how each team will contribute and benefit, and a detailed action plan with timelines, responsibilities, and resources.
Show me the money: Secure the funding you need to make your SAM plan a reality.
Spread the word: Communicate your SAM plan to everyone and provide training.
Keep an eye on things: Regularly monitor your SAM plan and make adjustments as needed.
Download Free Strategic Asset Management Checklist
Choosing the Right SAM Software
Technology can be a game-changer for SAM. Here's what to look for in SAM software:
Does it do what you need? Make sure the software has the features you need to manage your assets effectively.
Can it play nice with others? Can it integrate with your other systems?
Can it grow with you? Choose software that can scale as your business grows.
Is it easy to use? Pick software that's user-friendly and easy to navigate.
Is there good support? Make sure the vendor offers good support and training.
What's the price tag? Consider the total cost of ownership, not just the initial price.
Strategic asset management is a crucial framework for organizations to optimize the value and performance of their assets. By implementing SAM, organizations can achieve significant cost savings, improve efficiency, reduce risks, and enhance decision-making. The key elements of a successful SAM program include strong leadership commitment, proactive risk management, comprehensive performance measurement, and a focus on continuous improvement.
The choice of SAM software can significantly impact
the success of your improvement program.
Organizations need to select software that provides the necessary functionality, integrates with existing systems, is scalable, user-friendly, and offers adequate vendor support.
To successfully implement SAM, organizations need to define clear objectives, develop a comprehensive plan, select appropriate software, and foster a culture of continuous improvement. By following the steps outlined in this paper and learning from successful case studies, organizations can establish a robust SAM program that drives business success and sustainable growth.
Get a Free Asset Management Maturity Assessment Today
Trakk Assets is excited to offer a complimentary Asset Management Maturity Assessment conducted by our expert consultants with over 20 years of experience.
It's a comprehensive evaluation of your organization's asset management practices, providing valuable insights into your strengths and weaknesses. Our assessment will help you:
Identify areas for improvement: Pinpoint gaps and inefficiencies in your current processes.
Benchmark your performance: Compare your practices against industry best practices and identify areas where you excel or need to improve.
Develop a roadmap for optimization: Create a strategic plan to enhance your asset management maturity and achieve your business goals.
Fill the form or contact us today to get your
Free Asset Management Maturity Assessment.
Download Free Strategic Asset Management Checklist
Are you getting the most out of your company's assets? We've created the Strategic Asset Management Checklist, a comprehensive guide to help you assess your organization's readiness for SAM and identify areas for improvement.
This free checklist covers:
Key steps to get started with SAM
Essential elements of a strong SAM framework
How to assess your current practices
Developing a comprehensive SAM plan
Choosing the right SAM software
