Title: Decision making in asset management : optimal allocation of resources for maximizing value realization
Authors : Heitz, Christoph
Goren, Lilach
Sigrist, Jörg
Proceedings: Proceedings of the 10th World Congress on Engineering Asset Management (WCEAM 2015)
Pages : 259
Pages to: 268
Conference details: WCEAM 2015, Tampere, Finland, 28-30 September 2015
Publisher / Ed. Institution : Springer
Publisher / Ed. Institution: Cham
Issue Date: 2016
License (according to publishing contract) : Licence according to publishing contract
Series : Lecture Notes in Mechanical Engineering
Type of review: Editorial review
Language : English
Subject (DDC) : 658.1: Organization and finance
Abstract: 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 20 % without spending more money, or the costs can be decreased by 16 % without sacrificing quality, by optimized asset policy decisions with our model.
Departement: School of Engineering
Organisational Unit: Institute of Data Analysis and Process Design (IDP)
Publication type: Conference paper
DOI : 10.1007/978-3-319-27064-7_25
ISBN: 978-3-319-27062-3
978-3-319-27064-7
ISSN: 2195-4356
2195-4364
URI: https://digitalcollection.zhaw.ch/handle/11475/15825
Published as part of the ZHAW project : Optimiertes Asset Management von Infrastrukturnetzen
Appears in Collections:Publikationen School of Engineering

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