In a world of aging assets and limited financial and human resources, companies often struggle to decide which asset-related capital projects should get the most attention. Managers are required to compare vastly diverging project justifications and must somehow decide which projects bring most value to the company. The new ISO 55000 standard clarifies some of the principles, but doesn’t help you select or apply a methodology. This article explores how combining asset failure risk evaluations with a well-defined corporate value function can lead to optimal decision making.
This article was featured in the August 2014 issue of SMRP Solutions.
About the AuthorFollow on Linkedin Visit Website More Content by Boudewijn Neijens