AMS Implementation Principle: Balance Sheet Analysis

Asset Management System Implementation Miniseries

This AMP Newsletter highlights how the Balance Sheet Analysis Principle supports implementation of an ISO 55000/1 conforming Asset Management System (AMS) and its enabling Asset Management (AM) Framework.  The AM Framework, shown below, establishes a decision-making logic that coordinates different Management Activity Groups (MAGs) to operationalize an organization’s AMS.  The purpose of the AM Framework is to define value and apply this definition to drive organizational performance and value realization.

Asset Management Framework

The Balance Sheet Analysis Principle is defined in the US National Academies report Strategies to Renew Federal Facilities as follows:

Balance Sheet Analysis: Federal facility renewal strategies gain credibility based on their ability to reconcile a comprehensive and exhaustive set of facility requirements and capabilities against resources using a balance sheet analysis. In this context, a balance sheet involves a systematic reconciliation of needed and available capabilities enabled by facilities and its derivatives.

The balance of this article will establish context, ISO 55000/1 alignment, AM Framework reduction, AM Framework implementation, and derived benefits from the Balance Sheet Analysis Principle.