Tactical Procurement and Operational Service Planning

Guidelines for Strategic Integrated Asset Management Systems

by : AAMCoG

Asset Management is a way of regulating, planning, designing, and monitoring in the process of acquiring, maintaining, updating, and disposing of all forms of infrastructure and technical assets; to support the provision of public services. Management Assets are something systematic, structured processes that cover the entire life span of a physical asset (e.g 'physical Asets').

The purpose of asset management is to optimize the potential of providing services from the assets concerned, minimize risks and costs, and increase the positive value of natural and social capital in the life cycle of an asset. ‘Good Governance" or good governance and proper placement of business systems, appropriate processes, and placement of human resources that have appropriate capacities; are essential factors in achieving the above goals.

Tactical Procurement and Operational Service Planning

Tactical and operational planning in terms of procurement of services is one form of implementation of an asset management strategy in an organization.

Planning for acquisition and purchase, operational, maintenance and disposal activities underlines the discussion of strategies in asset management; and will influence how an organization will manage its assets efficiently and effectively during the life of the asset, to achieve a satisfactory level of service provision.

Certain activities include:Plan for Acquisition

the decision to acquire or buy an asset based on several elements, such as: other alternatives that do not require a specific asset (non-asset alternatives), risks, and costs during the life span of the asset; which elements are related to the requirements for satisfying service provision, budgeting, and work schedules in an organization.

Operational Plan

The conditions and performance of assets are actively monitored and managed, where operational costs are listed and counted in line with clear responsibilities and standards.

Maintenance Plan

Maintenance planned and that must be done spontaneously will optimize the performance of an asset. Procurement of public services and performance standards should be included in the asset maintenance plan.

Plans for Disposal

Strategic asset disposal plans need to be developed and implemented for assets whose amounts are excessive, based on considering other alternatives such as options that do not involve the disposal of an asset (non-disposal options). The disposal activity of an asset should focus on optimize return on capital for assets that are not functioning optimally and / or assets that are less used; including guaranteeing capital for subsequent investments.