Kansas Asset Management Users Group (AMUG)

Asset management is a systematic approach to managing a water utility's assets and equipment, including keeping the utility in working order and deciding when to replace equipment. Asset management allows the system to accomplish its service goals while sticking to its budget. Asset management is maintaining the desired level of service for the performance you want your assets to provide and the lowest life cycle cost. The lowest life cycle cost is the most appropriate cost for rehabilitating, repairing, or replacing an asset.

Asset management is implemented through an asset management program, usually including a written asset management plan. The plan's components include steps to determine the optimal or best time to rehabilitate, repair, or replace aging infrastructure and assets; deal with rising service demands; overcome opposition to interest rate increases; mitigate resources that are running out; increase customer service expectations; deal with increasingly stringent regulatory requirements; respond to emergencies that resulted in asset failures; and protect facility and wastewater collection system assets.

Asset management has many advantages. It can extend asset life, help you make decisions on whether to rehabilitate, repair, or replace equipment through an efficient and focused operations and maintenance program, help you meet consumer demands while focusing on system sustainability, enable the utility to set rates based on sound operational and financial planning; lets you budget for activities that are critical for long-term performance; help you meet service expectations and regulatory requirements; improve emergency response time; and improve asset security and safety.