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Quality Framework Value Chain

Assets make vital contributions to the performance and outputs of many public services and to private sector activities.

Depending on the type of business and the part that assets play in the service delivery, assets can play a significant through to minor role in the overall business performance or service delivery. The following table shows the part that assets can play in the annualized cost of various different service providers. The table is an example - each organization within a service type may value its assets differently, and each will need to develop its own value chain.

Service Type

Asset Management

Administration

Water
90%
10%
Wastewater
94%
6%
Drainage
92%
8%
Irrigation
88%
12%
Electricity
86%
14%
Gas
92%
8%
Telecoms
55%
45%
Ports
42%
58%

We define the value chain as:

"The value that each life cycle asset management activity or tertiary quality element brings to the service delivery of the organisation."

In other words this means coming to the right decision at the right time by following the right processes and using accurate data and knowledge.

An organization needs to fully understand where:

  • It is consuming its current resources
  • Where its money will need to be spent
  • Where its greatest business risks are.

By developing advanced asset management processes and practices the organization can answer these questions.

By using the quality based TEAMQF process we can see the improvements that could be made.

The key issue is to be able to drive the improvement program for the greatest value to the organization. This is where the process gets more difficult but it is also where the value chain proposition really comes into its own.

By understanding the different key business drivers or value chains that could be impacting on our organization, we can see where the greatest benefits can be derived from the improvements programs or options available.

We should use this approach to assess the confidence ratings we need to ensure that our organization is sustainable, not only for long term asset management, but also for the organization as a whole.


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Life Cycle Processes   Benchmarking