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Asset Health Indicator (Guide)

2019

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Asset health indicators provide an objective means of weighing the timing implications of renewal activities on long life capital intensive infrastructure assets. They enable well informed strategic discussions around the adequacy and sustainability of forecast capital expenditure scenarios.

The guide provides a framework for classifying and presenting field collected condition information in combination with other office based evaluation processes to create indices for strategic purposes. It represents a collective view of the causes of asset replacement from different sectors of the electricity supply industry.

The guide provides a common way for the industry to approach the preparation of asset health indicators, which are intended as a strategic tool for asset management governance discussions. As such the guide steers away from providing detailed asset inspection guidance, rather its focus is to enable informed strategic discussions around asset replacement such as:

- What is the life-cycle distribution of our current assets?
- What is the health of the assets under our organisation’s stewardship as of today?
- How will a specific investment profile affect the assets’ health?

The guide is an important part of supporting the development of consistent, maturing asset management capability across the industry.

For the past three years the Asset Management Group (AMG) has regarded asset health indicators as a priority topic. For some time the AMG has been working towards the publication of this guide with a particular focus being applied the first half of 2014.

The Guide was developed using professional expertise and with extensive feedback from the members. Recognising the significance of the guide and the strong industry interest in its application, the AMG welcome feedback on this guide.

Please email us at admin@eea.co.nz subject "AHI Guide Feedback".


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