Integrating life cycle asset management in the public sector

Abstract

Paying attention to asset management can be one of the main ways to increase productivity and create more added value from the assets, considering the type of industry and asset-oriented economy of the country in the oil and gas, power, transportation and service infrastructure sectors. But in this way, paying special attention to the expansion of the culture of taking care of valuable assets and the development of capabilities and competences of human resources are key elements of success in this way. Asset life cycle management is essential for cost-effective maintenance and long-term economic viability. Proper maintenance infrastructure provides significant economic benefits. Neglecting the maintenance of assets leads to a decrease in productivity and imposes costs on users. Delayed maintenance also significantly increases the total costs associated with repair or replacement. Life cycle asset management should be used in the public sector to manage large-scale assets such as transport infrastructure in a cost-effective manner. However, governments have had little incentive to take preventive measures. To address the backlog of investment in infrastructure, especially transportation, government priorities must be coupled with long-term economic responsibility. In addition, financial and financial reporting mechanisms must be established to ensure effective and efficient lifecycle asset management decisions. Public-private partnerships should also be strengthened to help address regional infrastructure deficits.

Keywords

• lifecycle asset management
• public sector infrastructure
• transportation infrastructure
• public-private partnerships