AMS Implementation Principle: Whole Life-Cycle Analysis

Principles for Asset Management System Implementation Miniseries

This AMP Newsletter highlights how the Whole Life Cycle Cost Analysis Principle supports implementation of an ISO 55000/1 conforming Asset Management System (AMS) and an 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 Whole Life-Cycle Cost Analysis Principle is defined in the US National Academies report Strategies to Renew Federal Facilities as follows:

“Whole Life-Cycle Cost Analysis: Federal facility renewal strategies must cover whole life-cycle costs of the assets in their scope.”

The balance of this article will establish context, ISO 55000/1 alignment, AM Framework reduction, AM Framework implementation, and derived benefits from the Whole Life-Cycle Cost Analysis principle.