A PLAYBOOK FOR WATER & WASTEWATER UTILITIES

ASSET MANAGEMENT

WHY ASSET MANAGEMENT?
ASSET MANAGEMENT FOR UTILITIES
We understand the unique challenges of water and wastewater agencies
managing critical infrastructure. You need to manage both your plant and
network assets to safely deliver essential services we all count on. You’re
facing a backlog of deferred investment and maintenance on aging
infrastructure and there is never enough money or resources to do everything
that needs to be done.
And now you’re supposed to be doing something called asset management.
People are talking about it, conferences are centered on it, state revolving
funds are asking for your Asset Management Plan, and state governments are
mandating it.
So what is asset management? How will it help me? 

And where do we begin?
We’ve been helping water and wastewater utilities answer these questions
and build asset management programs for a long time. We’re pleased to give
you this playbook to get you started. Read it through - and then give us a call.
We know you’ve got questions and we’re ready to help you coach you to
success.
Align your AM program with your agency’s mission.
Identify risk and set the right priorities.
Make better risk-based decisions.
ASSET MANAGEMENT IS NOT…
…SOFTWARE.
Too many organizations make the mistake of thinking that because they have
purchased software, they now have an asset management plan. Software is just a
tool to support an overall asset management strategy and program. This is one of
the reasons so many EAM implementations fail, or fail to deliver expected results.
EAM/CMMS software is only going to be as effective as the Asset
Management Plan it supports.
…A BETTER MAINTENANCE PLAN.
Maintenance is just one part of the asset lifecycle. Asset management is a
coordinated set of business practices that covers the whole lifecycle of an asset
from design to acquisition through operate/maintain to disposition. Asset
management is a strategic discipline that includes the tactical efforts of managing
assets, like maintenance.
…CONDITION ASSESSMENTS.
Too often when a water utility talks about their asset management plan, what they
are really describing is their condition assessment plan for their network. Condition
assessments are vitally important and deliver an excellent return - but again, they
are just one part of the big picture of asset management.
MENTORAPM PLAYBOOK
Service, Asset & Fiscal
Sustainability

A PLAN FOR ASSET MANAGEMENT

Asset Management is the coordinated activity of an AIM
AIM [ Revising Risk ]
organization to realize value from their assets. More Organizational Alignment Realized Value
Reserve and
simply put, asset management is doing the right Underwriting
Risk-Based Decision Making Improved Risk Profile
Opportunities
things, in the right order, for the right reasons, to
get the right results. Capital Planning
Based on Criticality, RCM,
OPTIMIZATION & PLANNING
[ Mitigating Risk ]
and Modeling
Risk-Informed Capital Planning
The MentorAPM plan for asset management helps Balanced Short-term and Long-term Demands
Operational Management Optimization
you identify how to get started, and what you need Based on System Risks, RCM, CM, Operational Improvement
Asset Types Analysis
to do to get where you want to be, in order to
ASSET STRATEGIES
achieve the goals you have set. PM Optimization on RCM/Critical Systems
[ Managing Risk ]
Whole Lifecycle Management
This pyramid shows an outline of activities in a Condition Monitoring on RCM/Critical Systems Targeted Resources
Balance of Cost, Risk and Performance
sequence that drives you toward the aim of service, RCM on Critical Systems
Condition Assessment
on Critical Systems
asset and fiscal sustainability. FOUNDATION
Criticality Analysis on Functional Systems [ Identifying Risk ]
To begin, you need to understand why you exist. Increased Asset Knowledge
Asset Hierarchy Organized By Functional Systems and Asset Types Knowledge Transfer
Documentation
Line of sight
Complete Asset Register

Mission, Values and Level of Service

© MentorAPM, 2019.
 FOR THE RIGHT REASONS

STRATEGY & ALIGNMENT

A successful asset management program connects your overall mission and strategic outlook to the daily execution of asset
care. You start with understanding why you exist, what you do, how you are expected to do it and who is doing it. Doing this
exercise with a cross-functional team will help establish line of sight from the top of your agency to your field crews, build
consensus on priorities and help break down silos. This helps build an efficient and agile organization that knows where it is
headed and can respond to whatever challenges it faces.

▸ Articulate the mission and values of your agency.

▸ Understand your Level of Service (LOS) obligations

▸ Define standards for how you will evaluate and measure.

The MentorAPM team
offers strategic asset ▸ Identify stakeholders.
management coaching
to help you get started
▸ Consider creating a formal Asset Management Policy (AMP) and a Strategic Asset
and create a road map
for where you want to Management Plan (SAMP). 

go. These documents are a requirement of ISO 55000, the international standard for asset management and are very
helpful for establishing organizational alignment and driving compliance.

© MentorAPM, 2019.
 Operational Management Optimization
Based on System Risks, RCM, CM,
Asset Types Analysis

IN THE RIGHT ORDER

PM Optimization on RCM/Critical Systems

Condition Monitoring on RCM/Critical Systems

Condition Assessment

ASSET KNOWLEDGE RCM on Critical Systems

on Critical Systems

Criticality Analysis on Functional Systems

Service, Asset & Fiscal
Sustainability

Asset Hierarchy Organized By Functional Systems and Asset Types

First, you need to know what you assets you own and manage. It is very important to AIM
Reserve and
Underwriting
Opportunities

Complete Asset Register

include everything. Excluding assets because they are too small or very inexpensive
Capital Planning
Based on Criticality, RCM,
and Modeling

Operational Management Optimization

Based on System Risks, RCM, CM,

could result in overlooking a significant risk. Then, your complete asset register should
Asset Types Analysis

© MentorAPM, 2019. PM Optimization on RCM/Critical Systems

Condition Monitoring on RCM/Critical Systems

be organized by functional systems, in preparation for a criticality analysis.

Condition Assessment
RCM on Critical Systems
on Critical Systems

Criticality Analysis on Functional Systems

Asset Hierarchy Organized By Functional Systems and Asset Types

Complete Asset Register

Mission, Values and Level of Service

© MentorAPM, 2019.

▸ Assemble a complete Asset Register of all assets owned and managed

▸ Organize your Asset Hierarchy by functional systems and asset types
▸ Complete a Criticality Analysis of the entire facility
MentorAPM maintains
multiple concurrent asset
hierarchies allowing different BUT WHAT ABOUT CONDITION AND OTHER ASSET ATTRIBUTES?
roles to use the system as You have likely read that your first steps for asset management are to know what you have and to know what
needed, without conflict.
condition it is in. But, condition assessments and collecting asset attribute data can be very time consuming and
Criticality Analyzer™ expensive efforts - and often not finished for years. Instead, it is possible to complete a criticality analysis without
supports rapid complex
complete asset attribute information. Identifying your most critical assets first allows you to set priorities for
criticality assessments of
your entire facility. condition assessments and data collection, which saves time and money. We strongly recommend that utilities
complete a criticality analysis as one of the first steps in setting up their asset management program for success.

© MentorAPM, 2019.
 Capital Planning
Based on Criticality, RCM,

DOING THE RIGHT THINGS

and Modeling

Operational Management Optimization

Based on System Risks, RCM, CM,
Asset Types Analysis

SELECT & APPLY ASSET STRATEGIES PM Optimization on RCM/Critical Systems

Condition Monitoring on RCM/Critical Systems

Service, Asset & Fiscal
Sustainability

Now that you have identified your most critical assets, you can select the best Condition Assessment
AIM
Reserve and
Underwriting

RCM on Critical Systems

Opportunities

on Critical Systems
strategies for managing your assets and set priorities for activities like condition
Capital Planning
Based on Criticality, RCM,
and Modeling

Operational Management Optimization

Based on System Risks, RCM, CM,
Asset Types Analysis

assessments and monitoring, RCM and PM optimization. Resources should be Criticality Analysis on Functional Systems
PM Optimization on RCM/Critical Systems

Condition Monitoring on RCM/Critical Systems

Condition Assessment
RCM on Critical Systems
on Critical Systems

targeted to the most critical assets first to balance cost, risk and performance.
Criticality Analysis on Functional Systems

Asset Hierarchy Organized By Functional Systems and Asset Types

Asset Hierarchy Organized By Functional Systems and Asset Types

Complete Asset Register

Mission, Values and Level of Service

© MentorAPM, 2019.

Complete Asset Register

▸ Maintain a whole lifecycle management outlook

Mission, Values and Level of Service

© MentorAPM, 2019.

▸ Criticality and risk set priority for targeting resources

▸ High critical assets may warrant more aggressive condition monitoring,

MentorAPM includes
extensive Asset Strategy
IoT deployments and RCM analyses
libraries and powerful
APM tools to jump start
your program.
▸ Asset Strategy Management and Preventive Maintenance(PM) should be
Optimized Work based on appropriate failure modes and curves
Management allows you to
target limited resources.
▸ Run-to-failure could be an appropriate asset strategy for low-critical assets

© MentorAPM, 2019.
 AIM
DOING THE RIGHT THINGS IN
Reserve and
THE RIGHT ORDER
Underwriting
Opportunities

OPTIMIZATION & PLANNING Capital Planning

Based on Criticality, RCM,
and Modeling Service, Asset & Fiscal
Sustainability

AIM

As you apply asset care strategies you will be collecting important data that, together Operational Management Optimization
Reserve and
Underwriting
Opportunities

Based on System Risks, RCM, CM,

Capital Planning
Based on Criticality, RCM,
and Modeling

with risk and criticality data will help you make better decisions and optimize your Asset Types Analysis
Operational Management Optimization
Based on System Risks, RCM, CM,
Asset Types Analysis

PM Optimization on RCM/Critical Systems

operations and maintenance plans. This process is a cycle of reviewing and revising
Condition Monitoring on RCM/Critical Systems

Condition Assessment
RCM on Critical Systems
on Critical Systems

PM Optimization on RCM/Critical Systems

Criticality Analysis on Functional Systems

based on analytics, reporting and measuring KPIs. Asset Hierarchy Organized By Functional Systems and Asset Types

Complete Asset Register

Mission, Values and Level of Service

© MentorAPM, 2019.

Condition Monitoring on RCM/Critical Systems

▸ Supports operational improvement RCM on Critical Systems

Condition Assessment
on Critical Systems

Criticality Analysis on Functional Systems

▸ Achieve balance between short-term and long-term Asset Hierarchy Organized By Functional Systems and Asset Types

demands Complete Asset Register

Asset management coaching
is embedded throughout the

▸ Review and adjust as operational constraints change Mission, Values and Level of Service
MentorAPM suite, mentoring
you toward improvement
and optimization. © MentorAPM, 2019.

▸ Risk-informed capital planning

We also offer utility
operations and management
coaching.

© MentorAPM, 2019.
 GET THE RIGHT RESULTS

OUTCOMES YOU SHOULD EXPECT Service, Asset & Fiscal

Sustainability

Implementing an asset management program will deliver positive results for your utility. You will be
able to make better decisions for better outcomes. Just completing a criticality analysis will allow
you to make adjustments to your O&M plans for almost immediate returns. Here are some benefits AIM
you should expect. Reserve and
Underwriting
Opportunities Service, Asset & Fiscal
Sustainability

Capital Planning AIM

▸ Improved asset availability and reliability Based on Criticality, RCM, Reserve and
Underwriting
Opportunities

and Modeling Capital Planning

Based on Criticality, RCM,
and Modeling

Operational Management Optimization

Based on System Risks, RCM, CM,

▸ Increased LOS security

Asset Types Analysis

Operational Management Optimization PM Optimization on RCM/Critical Systems

Based on System Risks, RCM, CM, Condition Monitoring on RCM/Critical Systems

Asset Types Analysis

Condition Assessment
RCM on Critical Systems
on Critical Systems

▸ Stable budgets and improved financials

Criticality Analysis on Functional Systems

Asset Hierarchy Organized By Functional Systems and Asset Types

PM Optimization on RCM/Critical Systems

Complete Asset Register

Mission, Values and Level of Service

▸ Knowledge preservation and transfer from your aging workforce to the next generation
© MentorAPM, 2019.

Condition Monitoring on RCM/Critical Systems

MentorAPM helps ▸ Ability to do more with less Condition Assessment

RCM on Critical Systems
on Critical Systems
utility managers
truly understand ▸ Improved operation of critical infrastructure Criticality Analysis on Functional Systems

their utility and ▸ Consistent meeting of KPIs and compliance with regulatory standards
Asset Hierarchy Organized By Functional Systems and Asset Types

achieve more with

▸ Stronger health and safety records Complete Asset Register
less.
© MentorAPM, 2019.
▸ Improved utility risk profile

© MentorAPM, 2019.
 UNDERSTANDING RISK AND CRITICALITY

NOTES ON RISK MANAGEMENT

Risk management is central to all aspects of an asset management program. First, you need to identify your risk before you can start managing
and mitigating it. In effective asset management you should be making risk-based decisions to balance competing demands for maintaining
performance, increasing efficiency and avoiding risk. The ultimate aim of an asset management program is to revise the risk profile of your
utility, which supports modifying your reserves and underwriting. But risk and criticality are commonly confused and misunderstood.

▸ Risk and criticality are often confused but they are not the same.

▸ Criticality is a measure of the relative importance of an asset or system to the overall

mission of your utility. Critical assets are your essential assets.

▸ Risk is a function of criticality (impact of failure) and the likelihood of failure.

Watch this video
on how to avoid 8
common mistakes
in identifying
critical assets.
▸ Cost and condition are not reliable indicators of either criticality or potential risk. An
asset in poor condition could have very little impact on the operation when it fails.
The failure of an inexpensive asset could have catastrophic consequences.
▸ Accurately identifying and understanding criticality and risk is foundational to the
success of your asset management and securing your LOS.

© MentorAPM, 2019.
 ASSET MANAGEMENT COACHING

HOW WE CAN HELP ASSET MANAGEMENT COACHING SERVICES

▸ Asset Management Road Mapping
MentorAPM experts are ready to coach and guide your team in establishing a ▸ Strategic Asset Management Plan (SAMP)
game plan to achieve successful asset management outcomes. development
▸ Fiscal Sustainability Plans (FSP) for State Revolving
We have been working with water and wastewater utilities for over 25 years. We
Fund Requirements
understand firsthand the enterprise asset management challenges and needs of
utilities from the perspective of multiple stakeholders. ▸ Corporate Asset Management Alignment and
Integration
We work to train and empower your people to leverage the expertise you ▸ Level of Service Definitions and Outcomes
already have in-house. Our aim is to make sure you don’t need us in the long ▸ Risk and Criticality Analysis Facilitation
run.
▸ Asset Strategy Development and Implementation
▸ Condition Monitoring Strategies
info@mentorapm.com ▸ Life Cycle Management
434.879.6220 ▸ PM Optimization
CONTACT US Tacoma Zach, CEO ▸ RCM Compatible Asset Hierarchy Development
tacoma.zach@mentorapm.com ▸ Data and Asset Type Reviews
480.414.4636
▸ Data Cleansing
John Clow, COO ▸ ISO 55000 training and pre-certification guidance
john.clow@mentorapm.com ▸ Other relevant ISO standards integration
480.734.7218

© MentorAPM, 2019.