The ABCs of Water Utility Asset Management from MentorAPM

Core Asset Management Terms

MentorAPM is a CMMS/EAM that understands water utility AM like no other ALM system. The MentorAPM platform includes APM and AIP capabilities as well as GIS and supports RCM. MentorAPM helps you optimize your PMs, complete a CA, and create your AMP and CIP… Wait, what?

The field of asset management uses lots of acronyms which quickly gets really confusing. Here is a helpful list of common acronyms and definitions used for solutions, tools and approaches applied in utility management.

AM - Asset Management

Asset Management (AM) is a systematic process focused on the development, operation, maintenance, upgrading, and disposal of physical assets in the most cost-effective manner. A common definition of asset management is “the coordinated activity of an organization to realize value from its assets.”

In water utilities and process industry operations, AM involves tracking the performance, condition, and lifecycle of assets such as pipes, pumps, and treatment facilities. The benefits of implementing AM include improved operational efficiency, as assets are maintained and utilized optimally. This systematic approach reduces operational costs by preventing asset failures and extending their lifespan. Additionally, AM enhances service delivery by ensuring that critical infrastructure is reliable and functioning at peak performance.

View MentorAPM’s Asset Management Playbook.

AMP - Asset Management Policy

An Asset Management Policy (AMP) outlines the principles and guidelines for managing assets within an organization. In water utilities and process industries, an AMP provides a framework for asset management practices and decision-making. The benefits of an AMP include consistent asset management practices across the organization, strategic alignment with business goals, and improved regulatory compliance. By establishing clear guidelines, an AMP ensures that all stakeholders understand and adhere to best practices in asset management.

AMP - Asset Management Plan

An Asset Management Plan (AMP) details the specific actions and strategies for managing assets to achieve the organization’s objectives. In water utilities and process industries, AMPs include plans for asset maintenance, renewal, and upgrades. The benefits of an AMP include a clear roadmap for asset management, which facilitates better resource allocation and prioritization of maintenance activities. This planning leads to improved asset performance, reduced downtime, and optimized use of financial and human resources.

SAMP - Strategic Asset Management Plan

A Strategic Asset Management Plan (SAMP) aligns the asset management strategy with the overall business strategy. In water utilities and process industries, SAMP guides long-term asset management planning and investment decisions. The benefits of SAMP include strategic alignment of asset management with business objectives, improved long-term planning, and better resource utilization. By integrating asset management with the organization’s strategic goals, SAMP ensures that assets contribute to achieving business success.

Read about Mojave Water Agency’s strategic asset management plan.

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Related Asset Management and Maintenance Terms in Alphabetical Order

AIP - Asset Investment Planning

Asset Investment Planning (AIP) is the process of planning and prioritizing investments in assets to meet organizational goals. In the context of water utilities and process industries, AIP involves budgeting, forecasting, and resource allocation for asset acquisition and upgrades. The primary benefits of AIP include improved financial planning, as organizations can better predict and manage capital expenditures. Optimized capital expenditure ensures that funds are allocated to the most critical projects, aligning investments with strategic business objectives, and enhancing overall operational efficiency. See also CIP.

Read about MentorAPM’s AIP and capital planning tools.

ALM - Asset Lifecycle Management

Asset Lifecycle Management (ALM) refers to the process of managing an asset's entire lifecycle from acquisition to disposal. In water utilities and process industries, ALM includes planning, procurement, installation, operation, maintenance, and decommissioning of assets. The benefits of ALM include better investment decisions through comprehensive lifecycle planning, which reduces the total cost of ownership by optimizing asset utilization. Additionally, ALM ensures that assets are maintained and replaced at the appropriate times, thereby avoiding unnecessary expenses and disruptions. MentorAPM delivers end-to-end asset lifecycle management in a single unified platform.

ACM - Asset Condition Management

Asset Condition Management (ACM) involves monitoring and assessing the condition of assets to inform maintenance and replacement decisions. In water utilities and process industries, ACM includes condition monitoring techniques such as inspections, testing, and diagnostics. The benefits of ACM include early detection of issues, which prevents major failures and reduces downtime. Optimized maintenance schedules based on asset condition ensure that resources are used efficiently, extending the lifespan of assets and reducing overall maintenance costs.

MentorAPM includes mobile tools for completing asset condition assessments in the field and asset libraries for condition scoring, delivered in curated pull down menus.

‍APM - Asset Performance Management

Asset Performance Management is the “APM” in the MentorAPM name. APM encompasses strategies, practices, and technologies aimed at maximizing the performance and value of physical assets. In water utilities and process industries, APM involves monitoring, predictive maintenance, and data analytics to optimize asset performance. The benefits of APM are significant: increased reliability of assets leads to fewer unplanned outages, while predictive maintenance reduces downtime and maintenance costs. Moreover, APM improves safety by identifying potential issues before they lead to failures, ensuring a safer working environment for personnel and communities.

MentorAPM was the first asset management solution to equip organizations with APM capabilities that are directly connected to work execution within a single source of truth.

‍CIP - Capital Investment Planning

Capital Investment Planning (CIP) involves planning and managing long-term investments in physical assets. In water utilities and process industries, CIP includes budgeting, forecasting, and prioritizing capital projects. The benefits of CIP include strategic investment decisions that align with organizational goals, optimized capital expenditure, and improved financial planning. By effectively managing capital investments, organizations can ensure that they have the necessary infrastructure to support current and future operations. See also AIP.

CA - Criticality Analysis & (ACR) Asset Criticality Rating

A Criticality Analysis (CA) is a process used to assess the importance and impact of assets based on their role in operations, safety, and cost implications. In water utilities and process industries, CA helps prioritize maintenance and investment decisions by identifying assets that are critical to the system's performance. An Asset Criticality Rating (ACR) is the criticality number assigned to an asset as an output of the CA.

The benefits of a CA include optimized resource allocation, as maintenance efforts can be focused on the most critical assets. This approach reduces the risk of significant operational disruptions and enhances overall system reliability. By understanding the criticality of each asset, organizations can make informed decisions that enhance reliability, improve operational efficiency and reduce costs.

MentorAPM includes the industry-leading Criticality Analyzer, a solution for multi-variable criticality analysis that can assess an entire asset portfolio in a fraction of the time required by other tools.

CMMS - Computerized Maintenance Management System

A Computerized Maintenance Management System (CMMS) is software that centralizes maintenance information and facilitates maintenance operations processes. In water utilities and process industries, CMMS schedules, tracks, and reports on maintenance activities. The benefits of CMMS include reduced downtime due to proactive maintenance scheduling, improved maintenance efficiency through streamlined processes, and extended asset lifespan by ensuring timely repairs and preventive maintenance. This system also helps in maintaining compliance with safety and regulatory standards.

A CMMS can be a standalone solution for just work order management, but CMMS capabilities are often part of a bigger EAM or ALM system like MentorAPM.

CIS - Customer Information System

A Customer Information System (CIS) is a software application designed to manage customer data, billing, and service requests. In water utilities and process industries, CIS handles customer account management, billing, and interactions with customer service. The benefits of implementing a CIS include improved customer service through accurate and timely billing, efficient handling of customer inquiries and complaints, and enhanced customer satisfaction. This system also provides valuable insights into customer behavior and preferences, enabling more targeted service offerings.  

Integration with your CIS is part of the MentorAPM implementation.

EAM - Enterprise Asset Management

Enterprise Asset Management (EAM) involves the comprehensive management of an organization's physical assets across various departments and locations. In water utilities and process industries, EAM includes asset tracking, maintenance management, and compliance reporting.  

The benefits of EAM are manifold: enhanced asset visibility allows for better decision-making and resource allocation. Improved maintenance processes lead to increased asset reliability and reduced downtime. In addition to enhanced asset visibility, MentorAPM’s EAM features deliver necessary clarity to establish priorities across the organization from daily work through to capital plans.

ERP - Enterprise Resource Planning

Enterprise Resource Planning (ERP) is an integrated management system that consolidates all the processes needed to run a company into a single unified system. In water utilities and process industries, ERP integrates functions such as finance, human resources, procurement, and asset management. The benefits of ERP include streamlined operations, as data is easily accessible across the organization in real time. This integration improves resource planning and utilization, leading to better decision-making and overall operational efficiency.  

An ERP sometimes includes limited basic asset management functions but is primarily an accounting system. Most ERPs do not include sufficient capabilities for managing the performance of assets and organizations benefit from having at least a CMMS and preferably a full EAM or ALM solution.

FM - Facilities Management

Facilities Management (FM) involves the maintenance and management of physical facilities, including buildings and infrastructure. In water utilities and process industries, FM includes facility maintenance, space management, and asset tracking. The benefits of FM include efficient facility operations, reduced operational costs, and improved occupant satisfaction. By effectively managing facilities, organizations can ensure a safe and comfortable environment for employees and customers.

Like ERPs, FM solutions do not generally have the necessary capabilities for managing the performance and maintenance of complex process assets.

FMEA or FMECA - Failure Mode and Effects (and Criticality) Analysis

Failure Mode and Effects Analysis (FMEA) or Failure Mode, Effects, and Criticality Analysis (FMECA) is a systematic methodology for identifying potential failure modes of assets and analyzing their effects on operations. In water utilities and process industries, FMEA/FMECA involves evaluating assets like pumps, valves, and treatment facilities to understand how they might fail and the consequences of those failures. The benefits of FMEA/FMECA include improved reliability and safety, as potential failure modes are identified and mitigated before they occur. This proactive approach reduces the likelihood of asset failures, minimizes downtime, and enhances the safety of personnel and equipment. Additionally, FMEA/FMECA supports better maintenance planning and decision-making by providing insights into the critical aspects of asset performance.

MentorAPM’s risk and criticality analysis tools support FMEAs.

FSM - Field Service Management

Field Service Management (FSM) involves coordinating field operations, including dispatching technicians, managing service requests, and tracking field activities. In water utilities and process industries, FSM includes mobile workforce management, real-time tracking, and service optimization. The benefits of FSM include improved field service efficiency, reduced response times, and enhanced customer satisfaction. By optimizing field operations, organizations can provide timely and efficient services to their customers.

Often FSM solutions are independent apps that support a CMMS. Sometimes FSM is more closely tied to the CIS. MentorAPM’s mobile work management capabilities are native to our unified platform and can be used on any iOS or Android device, both connected and disconnected. ‍

GIS - Geographic Information Systems

‍Geographic Information Systems (GIS) capture, store, manipulate, analyze, manage, and present spatial or geographic data. In water utilities and process industries, GIS is used to map and analyze infrastructure assets, track asset locations, and plan maintenance activities. The benefits of GIS are extensive: enhanced spatial analysis capabilities lead to better decision-making and strategic planning. Improved asset tracking ensures that resources are utilized effectively, and maintenance activities are optimized. GIS also provides a visual representation of asset conditions and locations, aiding in efficient management and emergency response planning.MentorAPM has extensive GIS map-based views and tools. We integrate and display your GIS records. In addition, we have native MapView tools that allow you to visualize any asset data in a map view without being held up by your GIS department’s backlog. Read more here.

MRO - Maintenance, Repair, and Operations

Maintenance, Repair, and Operations (MRO) encompass the activities and supplies used in the upkeep of physical assets. In water utilities and process industries, MRO includes maintenance activities, repair services, and procurement of spare parts. The benefits of MRO include improved asset reliability through regular maintenance and timely repairs, reduced downtime by ensuring availability of necessary parts and services, and efficient maintenance operations. By managing MRO activities effectively, organizations can maintain high levels of operational efficiency and asset performance.

PM - Preventative Maintenance

Preventative Maintenance (PM) is a proactive approach focused on the regular and systematic inspection, detection, and correction of potential failures before they occur. Preventative maintenance activities are commonly referred to as the PM program or PMs. In water utilities and process industries, PMs involve scheduled maintenance tasks on assets such as pumps, valves, and pipelines to ensure their optimal functioning. The benefits of PMs include increased asset reliability, as regular maintenance prevents unexpected breakdowns and extends asset lifespan. This approach also reduces operational downtime, minimizes repair costs, and enhances safety by addressing issues before they lead to significant failures.  

MentorAPM coordinates PM optimization based on our library of physics and first principles-based asset models combined with collected data about ongoing asset performance.

RCM - Reliability Centered Maintenance

Reliability Centered Maintenance (RCM) is a process to ensure that assets continue to perform their required functions in their present operating context. In water utilities and process industries, RCM identifies preventive maintenance tasks and optimizes maintenance strategies. The benefits of RCM include increased asset reliability, resulting in fewer breakdowns and operational disruptions. By focusing on preventive maintenance, RCM reduces maintenance costs and improves safety by preventing failures that could lead to hazardous situations. RCM also extends the lifespan of assets by maintaining them in optimal condition. RCM is the gold-standard of maintenance management and many MentorAPM features, like our asset hierarchy tools, are designed to support the rigors of RCM.

WM - Work Management

Work Management (WM) encompasses the processes and systems used to plan, schedule, and execute work activities. In water utilities and process industries, WM includes work order management, resource scheduling, and job tracking. The benefits of WM include improved operational efficiency through effective planning and scheduling of work activities, better resource utilization, and enhanced productivity. By managing work processes effectively, organizations can ensure timely completion of tasks and optimal use of resources.

The MentorAPM suites includes a full work and resources planning module that automatically prioritizes work based on asset risk and criticality and supports capacity planning.

WO - Work Order

A Work Order (WO) is a document that provides detailed information and instructions for performing maintenance, repair, or other work-related tasks. Historically, work orders were issued on paper but today are more commonly digital documents managed in a system like a CMMS or EAM.

In water utilities and process industries, WOs are used to track and manage the maintenance activities of various assets. The benefits of utilizing WOs include improved organization and accountability, as each task is documented and assigned to specific personnel. This leads to better resource allocation, streamlined workflows, and increased efficiency in completing maintenance tasks. Additionally, WOs facilitate better communication and coordination among maintenance teams, ensuring timely and effective execution of work.

Mentor APM provides comprehensive solutions for managing physical assets in water utilities and process industries. Our systematic approach ensures optimal asset performance, reduced costs, and enhanced service delivery. From asset lifecycle management to strategic investment planning, Mentor APM offers a suite of tools designed to balance cost, risk and performance; extend asset reliability and availability; align and empower your people; and optimize your operation.