Performance monitoring is the process of monitoring and reviewing the performance of asset management and the performance and/or condition of assets.
The performance framework discussed in section 1.4 creates a top-down connective thread from organizational direction and goals down to individual, day-to-day management activities (PIARC 2004). Similarly, the bottom-up monitoring of performance (asset characteristics, management systems problems, risks and opportunities) should provide the factual basis for adjusting and refining realistic asset management strategies and plans, through a process of continual improvement.
Therefore, the organization should establish, implement, and maintain processes and/or procedure(s) for the following:
This process is not intended to replace audit processes that may already be in place.
Strategic monitoring: To verify that outcomes are being met and asset management has been implemented and documented.
Performance measures and targets: To assess the effectiveness and efficiency of asset management.
System audits: To review and evaluate the effectiveness of asset management retrospectively (e.g., on an annual basis).
Compliance monitoring – To evaluate the organization’s compliance with applicable legal and absolute or regulatory requirements.
Performance Monitoring is the process and procedure of monitoring and reviewing the asset management framework
Frequency of monitoring should find the right balance between the cost of collecting the monitoring data and information and the risks of not having the information available. Finding the right balance is particularly important when considering compliance with statutory obligations and demonstrating value for money.
It is also important that the benefits from implementing asset management are captured and measured against those identified in the case for investment, or to support value for money initiatives or greater efficiency in delivery of the service. Recording and demonstrating the benefits may provide essential evidence for further investment. Demonstrating benefits is therefore a key success factor in the implementation of asset management and should form part of the monitoring process.