Asset Management Business & Financial Modeling

The ability to leverage analytics against asset data to support capital investment planning and long-term funding/budget decisions with real-world evidence is an important benefit of any asset management program. KCI provides clients with the keys to unlock the full business potential of asset management through the following analytic and planning-related services:

Capital Planning

A Capital improvement plan (CIP) for asset renewal/replacement is critical for the long-term sustainability of any asset system (water/wastewater network, transportation system, etc.) or facility. Our team offers the following analytic and consultative services to enhance and support clients’ capital planning processes and decisions:

Client Strategic Objectives	How KCI Can Help
Prioritize the most critical assets for inclusion in capital improvement plans Optimize plans for short and long-range capital improvement projects	Risk-based CIP project prioritization Development of rigorous business cases for optimizing CIP projects and schedules

Budget Scenarios

When it comes to setting annual budgets, changing rates, or budgeting for longer-term capital improvements, plans backed by data and evidence are more impactful and defensible. Our experienced staff will analyze and present budget alternatives based on a thorough understanding of the client’s asset inventory, asset lifecycle costs, organizational capabilities, and goals.  Leveraging all available data, our team will also assist with prioritizing projects and translating those priorities into defensible budget recommendations and long-term funding plans.

KCI can also assist clients in evaluating proposed rate changes, or rate setting alternatives in the context of balancing asset management goals and service delivery commitments against asset risks, costs, and available budgets.

Client Strategic Objectives	How KCI Can Help
Develop defensible short and long-term asset management budgets that are backed by data and analysis Support rate adjustment proposals with evidence based on analysis of projected asset lifecycle costs and service level demands	Evaluate the risks and consequences of alternative investment/budget decisions Analyze the costs/benefits of rate adjustment options

Lifecycle Analysis

The life cycle cost (LCC) of an asset is the total cost of owning, operating, maintaining and disposing of the asset over its entire service life. The purpose of lifecycle cost analysis is to evaluate and project all the costs associated with each phase of an asset’s lifecycle in the context of alternative asset maintenance and renewal/replacement strategies. The overall goal of any lifecycle cost analysis is to choose an asset management strategy that reduces the overall cost of an asset over its service lifetime. Lifecycle cost analysis enables planners and asset managers to make evidence-based management decisions about when it is more appropriate to maintain an asset and when it is more appropriate to replace the asset as part of a capital investment program.  As such, lifecycle cost analysis is critically important for “smart” capital planning and budgeting.

KCI offers full lifecycle cost analysis for any asset.  Our experienced staff works with clients to identify the lowest-lifecycle-cost management alternatives given the client’s unique capabilities, goals, and budget.

Client Strategic Objectives	How KCI Can Help
Minimize the total lifetime cost of acquiring, owning, operating, maintaining, and replacing an asset or group of assets	Comprehensive Life cycle cost analysis of asset management alternatives Recommendations for the most cost-effective and feasible lifecycle asset management strategies

Smart Dashboard

Part of monitoring an asset management program is developing performance metrics and displaying them on a dashboard. Detailed reports can be developed to provide the background behind the items displayed on a dashboard.

KCI offers services to build intelligence into client dashboards to be able to monitor asset status and program progress. Our team works with clients to identify which metrics are most valuable to display on a dashboard and implement the dashboard.

Client Strategic Objectives	How KCI Can Help
Monitor progress via a business intelligence dashboard	Ensure your CMMS is able to capture and report to feed the dashboard Determine the most beneficial metrics for your dashboard for each management level in your organization Business Intelligence Dashboard

Long-Term Funding Plan

Asset management is a strategic approach to managing physical assets to deliver a desired level of service at the most appropriate cost and with an acceptable level of risk. To ensure the financial resources are available to meet your organization’s goals, a long-term needs forecast can help prepare you financially. Understanding the long-term needs of the system can help determine an affordable balance between operating and capital expenditures. KCI can help you generate short, medium, and long-term funding requirements that are sustainable and predictable.

Client Strategic Objectives	How KCI Can Help
Develop analysis-driven capital improvement plans Quantify the total cost of asset ownership	Lifecycle cost analysis Investment optimization scenarios considerate of O&M, repair, rehabilitation, and replacement