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 the most value to the organization. The new ISO 55000 international asset management 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 May/June 2015 issue of Electric Energy T&D magazine.
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