But as the value is subjective it specification could vary, even within the own organization. Look the following examples:
- Potential investors or lenders, finance managers, accountants, and valuers can be focussed on the organization's carrying value, risk exposure and return on investment.
- Some stakeholders can be focussed on the value of the assets and related financial representation of asset deterioration for taxation purposes.
- Shareholders can be focussed on the return on their investment, value determination and value generation.
- Customers can be focussed on the price-quality relationship of the product or service.
- Public service providers can be focussed on the value perceived by the community and its relationship with the cost.
- Regulators can be focussed on legal and regulatory compliance.
Source: R M Media Ltd
As the value does not focus on the asset itself, but on the value that the asset can provide to the organization to determine as best as possible the value of the asset consider how the asset management objectives align with the organizational objectives, the use of a life cycle management approach, and the establishment of decision-making processes.
It is important to insist on the value derived from assets can change over the life cycle of the asset, so during the investment or acquisition phase assets are only incurring costs to the organization, but they have potential value that can be generated once in operation; some assets can have a time delay before generation of value and as higher the delay is higher the value; during the operation and maintenance phases circumstances can lead private organizations to price outputs at a price point that ignore the original acquisition cost; and during disposal phase the functional obsolescence due to changes in technology, changes in organizational objectives, or changes in customer preferences can mean that the value of the asset decrease dramatically.
To support the concept of value some standards are available, like IEC 60300-3-3:2017 Dependability management - Part 3.3: Application guide - Life cycle costing, that establishes a general introduction to the concept of life cycle costing and covers all applications. the life cycle includes the phases of concept or definition, design or development, manufacturing, installation, operation, maintenance, and disposal.
Related to risk and opportunities the ISO 31000:2018 Risk management - Guidelines, that provide, framework and a process for managing risk, The standard helps organizations increase the likelihood of achieving objectives, improve the identification of opportunities and threats and effectively allocate and use resources for risk treatment based in a risk assessment process.
Finally, related to the performance of assets the standard ISO 14224:2016 Petroleum, petrochemical and natural gas - Collection and exchange of reliability and maintenance data for equipment - Annex E Key performance indicators (KPIs) and benchmarking provides a methodology to create KPIs and benchmarking aligned to the objectives organization.
To create an Asset Management System that joints all these parameters to define value for organization and stakeholders and change it during the life cycle of the asset to adapt the real conditions is a challenge to support in the management of business improvement.