STRATEGIC ASSET MANAGEMENT PLAN (SAMP)

STRATEGIC ASSET MANAGEMENT PLAN (SAMP)Asset ManagementAssetivity

DOCUMENT INFORMATION

Document No:

TEM-ASS-009

Version: 2.0

Issue Date:

31 August 2020

REVISION HISTORY

Date

Version

By Whom

Revision Description

14 July 2015

1.0

Assetivity

Initial version released

31 August 2020

2.0

Assetivity

Updated to split SAMP into two documents – SAMP and AM Strategy

COPYRIGHT & DISCLAIMER

Published in Australia by Assetivity Pty. Ltd.

ACN: 092 112 288 | ABN: 32 092 112 288

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© Assetivity 2020. All Rights Reserved.

This template has been produced by Assetivity Pty Ltd for the sole use of the receiving party to assist them to develop a Strategic Asset Management Plan for their organisation.

This template may not be redistributed to any third party or used for any other purpose without Assetivity Pty Ltd’s express written permission.

Each organisation is unique with unique Risks and Opportunities and therefore Assetivity Pty Ltd makes no representation, warranty or undertaking, express or implied, as to the suitability of the template for use within any specific client context.

Assetivity Pty Ltd does not accept any liability for any direct, consequential or other loss arising from reliance on the contents of this template.

Assetivity Pty Ltd may in its absolute discretion, but without being under any obligation to do so, update, amend or supplement this template.

INTRODUCTORY NOTE

This template has been produced by Assetivity to assist individuals and organisations to develop a Strategic Asset Management Plan that is practical and useful, and therefore more likely to be used by an organisation to improve Asset Management performance.

The contents are based on our recommendations that are contained in three articles on our website:

· Asset Management Strategy vs Strategic Asset Management Plan (SAMP) – A Practical Approach

· What does a good Asset Management Strategy look like?

· What does a good Strategic Asset Management Plan look like?

It is our view that a SAMP completed in accordance with the guidance in this template, has been prepared in conjunction with an Asset Management Strategy developed using our separate template for this document, meets the requirements of ISO 55001:2014 relating to the Strategic Asset Management Plan.

Should you have any questions regarding the use of this template, please contact us at https://www.assetivity.com.au/contact-assetivity.html.

I hope you find this template useful.

Regards…

Sandy Dunn

Managing Director, Assetivity

EXECUTIVE SUMMARY

This section provides an overview of the Strategic Asset Management Plan (SAMP) including:

· Overall statement of Strategic Initiatives

· Risk or Opportunity on objectives that may need to be specifically highlighted,

· Consideration of or dependence on critical resources

The purpose of the section is to ensure that senior executives and stakeholders can quickly understand the key elements of the organisation’s asset management strategy and why these are appropriate. To this end, diagrams and tables are often useful.

ContentsEXECUTIVE SUMMARY3SCOPE AND PURPOSE5ORGANISATIONAL CONTEXT5PERFORMANCE – DESIRED AND FORECAST5ASSUMPTIONS6STRATEGIC ASSET MANAGEMENT INITIATIVES7RESOURCE SUMMARY7RISKS AND OPPORTUNITIES8REFERENCES/APPENDICES8

SCOPE AND PURPOSE

This section should contain a brief description of the role of the SAMP in the context of your organisation’s Asset Management System/Framework. It should also describe who the intended users of this document are, and how it is intended that the document would be used. It should also state the time period covered by the plan (including whether this is a 5-year plan, 10-year plan or something else).

An image or graphic outlining links to other related documents in your organisation’s Management framework (such as the Organisational Strategic Plan, Strategic Plans for other Business Functions (e.g. IT, HR etc.) Asset Management Policy, Asset Management Strategy, Asset Management Plans etc.) could also be useful here. These details are likely to be included in your Asset Management Strategy. In the absence of a tailored image for your organisation, the IAM’s Asset Conceptual Model (contained in their Asset Management Landscape) may be a good starting point. The model contained in ISO 55000 may also be used as an alternative starting point.

ORGANISATIONAL CONTEXT

The intent of this section is to provide sufficient (but no more) “bigger picture” context to allow the intended audience to understand some of the factors that have contributed to the selection of the Strategic Asset Management Initiatives which will be outlined later in the SAMP.

The key is to keep it as brief as possible. This section has to be written with the end user in mind. Try to avoid including information that they will almost certainly already know. Also avoid including context that is not relevant to the Strategic Initiatives being proposed.

The starting point for content in this section is the analysis of the current state of the organisation as required by ISO 55001:2014 Clauses 4.1 and 4.2.

The reader should be able to understand the organisation’s strategic priorities and objectives – e.g. cost saving, capacity growth, safety compliance etc. so that they can understand how the proposed Strategic Initiatives align with these priorities.

Accordingly, this section could include brief discussion of some or all of the following:

· Organisational Context and Organisational Objectives

· Relevant Stakeholder needs (regulators, customers, staff, owners…)

· Asset portfolio (general description and condition)

· Asset Management system (general description and condition, including process maturity and workforce competence)

· Relevant considerations from the Asset Management Strategy

Additional detail could be provided as an Appendix if required.

PERFORMANCE – DESIRED AND FORECAST

This section should clearly state the Asset Management Objectives (“results to be achieved”) and how these relate to the achievement of Organisational Objectives. These objectives specify the desired levels of performance that are required from the organisation’s assets and Asset Management System if the organisation is to achieve its overall objectives. Asset Management Objectives should be clearly stated, by time period (e.g. year) for the entire time period covered by the SAMP.

These desired levels of performance (Objectives) should then be compared with the performance that is expected to be achieved based on an assumption of “business as usual”.

If this can be done graphically, as illustrated below, this is ideal.

Accordingly, this section should include:

· Asset Management objectives, mapped to the organisational objectives

· Forecast levels of performance, assuming business as usual

· Identified current and future performance gaps

ASSUMPTIONS

This section could be included in the SAMP at this point, or could be included earlier or later, depending on organisational context. However, it must be included somewhere in the document.

All forecasts will be based on certain assumptions. And all assumptions have risks associated with them. So this section should include the details of any significant (high risk) assumptions that have been made in developing the SAMP and the nature and level of risk associated with them. Actions proposed to avoid or mitigate the level of risk associated with the assumptions will be included later in the SAMP, and if significant enough, may also have their own Strategic Asset Management initiatives associated with them.

In certain organisational situations, the levels of uncertainty and associated levels of risk associated with the assumptions made may warrant the development of alternative scenarios for planning purposes. If this is the case, then each of those scenarios should have their own forecasts of performance vs objectives (in the preceding section) developed for them, but ultimately, the organisation will need to decide which scenario it considers to be most likely, and which will therefore form the basis for the plan for future action (although contingency plans could also be developed for application if the expected scenario does not eventuate).

STRATEGIC ASSET MANAGEMENT INITIATIVES

This section is the core of the document. This is where the improvement initiatives required to bridge the gaps between desired levels of performance (“Objectives”) and forecast levels of performance that were outlined earlier in the plan are outlined.

The intent in this section is not to include every improvement initiative that is planned for Assets and/or the Asset Management system. It is expected that these will, however, be included in the Asset Management plans that sit below this Strategic Asset Management Plan. This document, the Strategic Asset Management Plan is intended to be a high level, long-term focused document, and so it should focus on the improvement initiatives that:

· Require coordinated activity across multiple Asset Management Plans and/or

· Are longer-term and higher-level in nature and/or

· Require coordination with improvement activities that may be included in Strategic Plans for other business functions (e.g. Human Resources and/or IT Strategic Plans)

We call these “Strategic Initiatives” and the activities to be performed within each initative should be described.

Once again, carefully consider the level of detail required here. As this is a high-level document, most likely aimed at Senior Executives, it is unlikely that detailed project plans etc would be included here. If desired, links or references to those more detailed planning documents may be included, however.

Each Strategic Asset Management Initiative should be mapped against the Asset Management Objectives (indicating the nature and impact of the initiative on these) and the priority, responsibility, timelines, resources, measures of success and targets for these should be included in this section.

Asset Management Initiative / Action

Objectives Linked

Priority

Responsible

Timeframe

Measure

This section should also highlight any dependencies (and the nature of those dependencies) that exist between initiatives as well as dependencies on other initiatives that are included in Strategic Plans for other business functions. How activities are going to be coordinated across initiatives and across business functions in order to ensure that the plan is achieved should also be outlined in this section.

RESOURCE SUMMARY

This section should include a summary of the financial and other resources needed to undertake the strategic initiatives and achieve the required objectives. This should include:

· Operating Expenditure Forecast

· Capital Expenditure Forecast

· Manning Requirements

Where the forecasts in the SAMP vary from those currently included in budgets, the relevant variations should be highlighted.

RISKS AND OPPORTUNITIES

ISO 55001:2014 Clause 6.1 requires the organisation to assess Asset Management risks and opportunities. This section should include the most significant risks and opportunities associated with the plan (remembering that Risk is defined as “the impact of uncertainty on objectives”).

This is likely to include the risks associated with the Assumptions made in developing the plan (as outlined earlier), as well as any other relevant risks relating to the organisation’s Assets and Asset Management System.

For each risk, the nature and level of risk should be outlined, as well as the action(s) proposed or in place for mitigating the risk. Where more detail is required, reference could be made to external risk assessment or risk management documents relating to the risk. External reference should also be made to the organisational risk register (if this exists) to indicate that the risk has been incorporated in the organisation’s Risk Management process.

Risk / Opportunity

Consequence / Benefit

Likelihood

Risk / Benefit rating

Mitigation

Abc

3

3

Medium

Abc

5

5

Extreme

REFERENCES/APPENDICES

Any supporting detail required that is too lengthy to include in the body of the SAMP should either be referenced from the SAMP or included as an Appendix. Be wary of including detail that exists in other documents. Ideally, try to ensure that there is a “single source of truth” by including links to other documents rather than repeating existing information in Appendices to the SAMP.

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