At AES Jordan we believe in maximizing the long-term value of our assets by applying the principles of Asset Management. We have implemented Asset Management Framework, which is in compliance with ISO 55001:2014 Asset Management – Management systems – Requirements.
Asset Management Framework has been created to align with the AES Corporation targets, in delivering Strong Operational and Financial Performances, Leveraging our Synergies and Scale, and Building an Operating Culture around our Values.
Asset management is defined as the: systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan.
The Asset Management Framework is primarily designed to support the delivery of the Company Business Plan through the development of the key asset management elements – the Asset Management Policy, Strategy, Objectives and Plans. These, direct the optimal combination of life cycle activities to be applied across the portfolio of asset systems and assets (based on their criticality, condition and performance). This connective thread is a key feature of an Asset management System, providing clear “line of sight” from the organizational direction and goals down to the individual, day-to-day activities. Similarly, looking upwards, the monitoring of asset problems, risks and opportunities provides the factual basis for adjusting and refining Asset Management strategies and plans, through a process of continuous improvement.
Effective implementation of asset management requires a disciplined approach which enables an organization to maximize value and deliver its strategic objectives through managing its assets over their whole life cycles. This includes determination of appropriate assets to acquire or create in the first place, how best to operate and maintain them, and the adoption of optimal renewal, decommissioning and/or disposal options.
Asset management represents a significantly greater scope than just the maintenance or care of physical assets, and is closer to the central purpose of an organization. Good asset management considers and optimizes the conflicting priorities of asset utilization and asset care, of short-term performance opportunities and long-term sustainability, and between capital investments and subsequent operating costs, risks and performance. “Life cycle” asset management is also more than simply the consideration of capital costs and operating costs over pre-determined asset “life” assumptions. Truly optimized, whole life asset management includes risk exposures and performance attributes, and considers the asset’s economic life as the result of an optimization process (depending upon the design, utilization, maintenance, obsolescence and other factors).
Asset management is a holistic view and one that can unite different parts of an organization together in pursuit of shared strategic objectives. The key principles and attributes of successful asset management can be explained as follows:
- Holistic: looking at the whole picture, i.e. the combined implications of managing all aspects (this includes the combination of different asset types, the functional interdependencies and contributions of assets within asset systems, and the different asset life cycle phases and corresponding activities), rather than a compartmentalized approach;
- Systematic: a methodical approach, promoting consistent, repeatable and auditable decisions and actions;
- Systemic: considering the assets in their asset system context and optimizing the asset systems value (including sustainable performance, cost and risks) rather than optimizing individual assets in isolation;
- Risk-based: focusing resources and expenditure, and setting priorities, appropriate to the identified risks and the associated cost/benefits;
- Optimal: establishing the best value compromise between competing factors, such as performance, cost and risk, associated with the assets over their life cycles;
- Sustainable: considering the long-term consequences of short-term activities to ensure that adequate provision is made for future requirements and obligations (such as economic or environmental sustainability, system performance, societal responsibility and other long-term objectives);
- Integrated: recognizing that interdependencies and combined effects are vital to success. This requires a combination of the above attributes, coordinated to deliver a joined-up approach and net value.