Asset Continuity Planning

Abstract

The aim of this chapter is to describe how to plan for the provision of assets which are required to meet an ongoing need. This is a very common situation, in which demand for a type of asset continues into the future, but older items require replacement and variations occur, due to the changes in demand levels and to market and technical developments. Outcomes After reading this chapter you will have learnt how to plan the purchase of items to sustain an ongoing capability requirement, by calculating the preplan capability gap and then working toward the planning horizon calculating the purchase needs year by year and making suitable purchase decisions. You will become familiar with a spreadsheet-based method for carrying out the necessary calculations and for graphically illustrating the gap analysis and the acquisition costs.