Only 11% of structural assets will fail due to age. 89% of structural assets will unnecessarily and prematurely fail due incorrect asset management practices.
Why is this important?
A popular phrase ” it’s about the economy, stupid”
- The reason why special levies are needed for 80% of cyclic renewals
- The reason why unexpected failures consumes 60% the budget
- Why early replacements are required in 90 % of the time
Design flaw, Misuse and Abuse, neglect, deferred maintenance are all common drivers of structural asset risks and failures. Not surprisingly are they also statistically highly correlated with premature failures and triggered by, and the product of, human interactions . Thus can we conclude that they are the result or consequence of a direct or indirect choice/s managers/owners make. Assuming that asset managers will not willfully cause these events , can we conclude that it was a unnesssary event that will have mitigated/avoided/prevented, if appropriate timeous insight and ability preceded these events.
The graphic below illustrate abnormal decay curve, resulting in early renewal. The cumulative decay result in reduce economic life with a loss of a full renewal cycle.
Through accelerated deterioration and degradation is the decay curve negative impacted and renewal cycles density resulting in reduced economic useful life expectancy . This impact is seen in the renewal cycles shifting backward from the adult stage(30-49) to the childhood (1-16)and adolescent (17 – 29)life stages
Again we ” follow the money”
- Special levies are caused by insufficient funding or escalated cost due to expanded renewal scope of work – unplanned repairs (due to accelerated decay) . Both instances suggest ineffective long-term maintenance strategies, planning & management.
- unexpected failures can largely be prevented (statistically 60%). Failures are the result of inappropriate/deferred maintenance activities with minor failures . Major failures are mostly due to absence/ineffective risk mitigation activities. These point to asset risk profiling , activity scheduling That is a precursor for a effective asset management plan/program
- Early replacements are the result of ineffective long-term financial management resulting in inconsistent renewal events. From a quantitative perspective is this either due lack of diligent event scheduling or financial provision. From a qualitative perspective is the root cause due to improper scope/application of renewal work that is in most cases driven by budgetary constraints.
what asset management practices is relevant ?
- Long-term maintenance planning
- Asset level Risk profiling
- Asset level performance profiling
- Life cycle management
- Maintenance activity scheduling
Applying due diligence to develop an effective dynamic long-term maintenance plan and asset management platform, underpinned by asset life and risk profiling render appropriate maintenance, renewal and risk strategies that will steer a timeous maintenance activity program , financial provision, minimize decay, risks and unplanned failures . Ultimately this maximize the assets life expectancy and value and minimize the cost of owning the structural assets.
or in monetary terms 40% cost reduction
Property management diagnostics pty ltd specialize in life cycle analytics and long-term asset management. For any further information email us on Plans@propertymd.co.za.
If you need assistance in compiling a long-term maintenance plan please contact us on 0799064858 or email firstname.lastname@example.org