Asset Management is about realizing value from physical assets, but formal methods how to do this are still missing. In this paper, we present a formal model for decision making in asset management, based on the general concepts of ISO 55000, in particular the notion of value realization. With this framework, we can first define what optimal decisions are, and second show how to solve these problems in the context of Asset Management. The model describes both the cost and the value contributions of assets in an asset portfolio. The basic policy decision problem is decomposed into a budget setting step, and an allocation problem, where the latter can be solved with standard optimization algorithms. We apply the model to the case of an electrical supply network and find that the supply quality (value) can be increased by about 20Â % without spending more money, or the costs can be decreased by 16Â % without sacrificing quality, by optimized asset policy decisions with our model.
CITATION STYLE
Heitz, C., Goren, L., & Sigrist, J. (2016). Decision making in asset management: Optimal allocation of resources for maximizing value realization. In Lecture Notes in Mechanical Engineering (Vol. PartF4, pp. 259–268). Pleiades journals. https://doi.org/10.1007/978-3-319-27064-7_25
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