Asset lifecycle management
Asset lifecycle management
Are you able to effectively sustain your asset investment?
Asset managers frequently grapple with critical questions around the remaining useful life of assets, maintenance costs, and the timing of replacements. Should assets be replaced sooner or later, and what risks are involved? How do today’s decisions affect future generations? Insights from Long-term asset investment planning (LTAIP), long-term asset planning (LTAP), and lifecycle costing (LCC) equip asset managers to develop and compare quantitative scenarios to address these challenges strategically.
Two methods with different functions
LTAIP, LTAP, and LCC are often discussed interchangeably, but differ in their applications. LTAIP strategically aligns investment priorities with organisational goals through scenario-based decision-making. LTAP, conversely, emphasises software-driven modelling and scenario visualisation. Meanwhile, LCC analyses assess the cost-effectiveness of asset maintenance versus replacement.
Distinguishing between long-term asset investment planning and long-term asset planning
LTAIP – aligning investment priorities with strategic goals
Long-term Asset Investment Planning involves structured decision-making that directly connects strategic objectives with practical asset management actions. LTAIP clarifies investment priorities, enhances departmental alignment, and facilitates informed, scenario-based decisions. Organisations leveraging LTAIP typically achieve operational and capital savings of up to 20%. Discover how our LTAIP process can support your strategic goals. Download the LTAIP brochure.
LTAP – software tools enabling tactical decision-making
A long-term asset plan provides an overview of future maintenance and replacement costs, clearly indicating asset lifespans and required budgets. It empowers asset managers to anticipate performance, risks, and expenditures, enabling decisions around strategic maintenance or timely replacements. Pragma’s advanced LTAP software supports scenario analysis for optimal budgeting and decision-making.
Lifecycle costing – cost-effective decision-making for asset purchases
When designing, maintaining, or replacing assets, lifecycle costing (LCC) ensures cost-effective decision-making by evaluating total expenditure over the asset lifecycle. LCC calculations include initial investments, maintenance, energy consumption, operational costs, and eventual divestment or recycling expenses.
During an asset’s design phase, pivotal decisions are made that impact availability and ongoing costs. Pragma’s comprehensive LCC analyses provide quantitative support for informed choices regarding modifications, maintenance strategies, and replacements, factoring in performance, risk, and costs throughout the asset’s lifecycle. Our proven methodologies have led numerous clients to significant savings. Discover more in the LCC brochure.
Why lifecycle costing?
In the design phase of an asset, the most important decisions are made about the asset’s availability and maintenance costs. Asset managers face many questions: Do we need to install additional valves? Which maintenance strategy should we choose? Decisions can be quantitatively substantiated by looking at costs throughout the asset’s life cycle. Pragma supports this substantiation by creating LCC analyses. Similarly, LCC analyses can be applied to choices about modifications, major maintenance or replacements.
Get started with your LTAP and LCC
Our team has assisted numerous clients with developing lifecycle costing models, resulting in substantial savings. Why don’t you call us if you need advice or help with your lifecycle costing models?
