“INFRASTRUCTURE ASSET MANAGEMENT (IAM)”

SYNOPSIS

Submitted by
SAMEER SHASHIKANT PHADTARE

In partial fulfilment for the award of degree of Master of Engineering

in
Civil- Environmental Engineering Of
Savitribai Phule Pune University

Guided By
Dr. S. B. Thakare

Department of Civil Engineering

AKHIL BHARTIYA MARATHA SHIKSHAN PARISHAD’S

Anantrao Pawar College of Engineering & Research, Parvati

Pune, 411009
2019-20
 “INFRASTRUCTURE ASSET MANAGEMENT (IAM)”

SYNOPSIS

Submitted by
SAMEER SHASHIKANT PHADTARE

Is approved for the partial fulfilment to award of degree of Master of engineering

Civil-Environmental Engineering

In

Savitribai Phule Pune University

Dr. S. B. Thakare

(GUIDE)
Department of Civil Engineering
AKHIL BHARTIYA MARATHA SHIKSHAN PARISHAD’S
Anantrao Pawar College of Engineering & Research, Parvati
Pune, 411009
2019-20
 GUIDE CERTIFICATE
This is to certify that the synopsis entitled Infrastructure Asset Management presented
by SAMEER SHASHIKANT PHADTARE in partial fulfilment of the requirement
for the award of Master of Engineering to the Savitribai Phule Pune University has
been carried out under my guidance.
To the best of my knowledge and belief the matter presented in this report has not
been submitted earlier.

Place: Pune Dr. S. B. Thakare

Date: (Guide)

Dr. S. B. Thakare
(Principal)
 DECLARATION
I, Mr. Sameer Shashikant Phadtare the undersigned, here by state that the synopsis,
entitled “INFRASTRUCTURE ASSET MANAGEMENT” a genuine and benefited
work presented by me under the guidance of Dr. S. B. Thakare. The findings in this
synopsis are based on the data collected by me. The matter presented in this report is
not copied from any source. I understand that any such copy is liable to punishment in
a way the university authority deems fit. The work has not been submitted for the
award of any degree or diploma earlier to Savitribai Phule Pune University or any
other universities. The synopsis submitted to “Savitribai Phule Pune University” in
the partial fulfilment of Degree of “Master of Engineering-Civil Environmental”

Date: Signature

Place: Pune (SAMEER SHASHIKANT PHADTARE)

 ACKNOWLEDGEMENT
It gives me great pleasure in presenting the synopsis. I would like to thank
Principal Dr. Sunil Bhimrao Thakare for providing all the facilities related to our
synopsis.
I would like to also thank Head of Department (CIVIL) - Prof. Sagar M.
Gawande for wholeheartedly helping and directing in my synopsis work. I would
also like acknowledge my wholehearted gratitude to my synopsis guide Dr. S. B.
Thakare for his inspiration and guidance without which it would have been
difficult for me to complete the synopsis.
Last but not the least; I would also like to thank the Civil Engineering Department
Staff Members, College Library Staff Members and College Staff.

Date: Signature

Place: Pune (SAMEER SHASHIKANT PHADTARE)

 ABSTRACT
Infrastructure systems like water, waste water and its service units will need to
implement new administrative systems and management tools to allow them to adapt
to the increased regulatory requirements and environmental complexities they face.
These new tools will allow the systems to operate on a “business model” for long
term sustainability to help address the issues of: new and stricter regulatory
requirements, growing populations, increased service demands, limited supplies, a
highly variable climate, aging infrastructure, and limited state and federal funding.
Cost estimates for system needs are several corers, while the existing state and federal
funding sources can only meet a fraction of this need. These sources of funding are
not expected to increase, and in many cases, are declining. Therefore, approaches to
reducing the gap between what is needed and what funds are available will need to be
adopted.
To address these significant challenges there is need to “develop criteria for planning,
performance and conservation as a condition of funding.”
Following aspects need to be evaluated
1. An asset management plan;
2. An accounting system with full metering;
3. a governance structure adequate for proper management and oversight; and
4. Participation in regional efforts to collaborate on long term solutions.
The current seminar considers the aspects of the asset management and highlights the
benefits, need and necessity of such management. In our country the asset is managed
by mostly the local authority with different departments involved in it. The
complexities are increasing due to ageing state of infrastructure with main reason
being non mapping of the utilities and regular check-ups, lack of technological
exposure or non-utilisation of the technology aggravating the situation.
Due to the globalisation of the information technology people are now aware about
the aspects of managing the systems and more research and developments are being
done. Tasks carried out by one corporation can now be studied and implemented by
others as the data is now available to general public. One such example is reviewed in
the seminar with lake as an asset and the steps that are being taken to improve the
health condition of the lake. On similar line there are new upcoming systems of
management via GIS application, that can enable to get the real-time information of
the infrastructure and reduce the life cycle cost of the respective utility. In the
conclusion part of this report, water supply system management has been highlighted
with steps that can be planned in the GIS based management system.
On similar line there are various assets that can be managed effectively and efficiently
by any organisation or alternatively, there are agencies that can take up such
management. However, in the coming future it is the be seen whether privatisation of
such management would be acceptable to the authorities or stakeholders?
 TABLE OF CONTENTS

INTRODUCTION.......................................................................................................1

OBJECTIVES .............................................................................................................4

PROBLEM STATEMENT ........................................................................................5

LITERATURE REVIEW ..........................................................................................7

METHODOLOGY .....................................................................................................8

FUTURE SCOPE ......................................................................................................10

LIMITATIONS .........................................................................................................12

SCHEDULE OF EXECUTION ...............................................................................13

REFERENCES ..........................................................................................................14
A Study on Infrastructure Asset Management

CHAPTER 1

INTRODUCTION

Emerging economies are trying to identify the lowest cost / highest return investments
to achieve maximum immediate benefit. Rapidly developing countries are faced with
understanding the life cycle costs of their infrastructure. More mature economies are
trying to find ways of extending the life of their infrastructure and also meet major
global challenges like climate change. Asset management thinking can provide
structure to assist in all of these scenarios. It can improve the quality of life for
millions of people. Done well, it impacts positively on the well-being of the planet
and everything on it.

What is Asset Management?

Asset management is the practice of managing infrastructure capital assets (physical

asset) to minimize the total cost of owning and operating these assets while delivering
the desired service levels. It involves coordinated activities to create value from the
assets for the benefit of all the Stakeholders. Many utilities use asset management to
pursue and achieve sustainable infrastructure.

What do we mean by ’physical asset?

Items such as buildings, utility infrastructure such as electrical cables, water pipes,
rail lines and metro tunnels etc can come under the physical asset. This project would
consider utility infrastructure as an asset which includes the water & sewer as a main
asset.

Why Asset Management is important?

1. Reduce the total costs of operating their assets

2. Reduce the total costs of operating their assets

3. Reduce the capital costs of investing in the asset base

4. Improve the operating performance of their assets (reduce failure rates,

increase availability, etc)

5. Reduce the potential health impacts of operating the assets

6. Reduce the safety risks of operating the assets

7. Minimise the environmental impact of operating the assets

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8. Maintain and improve the reputation of the organisation

9. Improve the regulatory performance of the organisation

10. Reduce legal risks associated with operating assets

The key to good Asset Management is that it OPTIMISES these benefits. That means
that asset management takes all of the above into account and determines the best
blend of activity to achieve the best balance for all of the above for the benefit of the
organisation.

What are benefits of Asset Management

1. Risk-based, holistic and

well-informed decision
making
2. Improved emergency
response with timely alert/
notification

3. Systematic plan and action

for future repairs and
replacements

4. Increased knowledge of the

location of the assets (spatial
& non-spatial data)

5. Strategic planning and identifying critical assets

6. Integrated approach in operation, maintenance & management
7. Better visibility and communication to customers & stakeholders
8. Tariff/ Rates based on sound operational information and Capex/ Opex Plan
9. Increased acceptance of rates by Customers and community involvement

10. Capital improvement projects that meet the true needs of the system and extend
the life of assets as much as possible, thus delaying capital employed
In the real world, we tend to focus on one solution to manage risk: either manage the
probability or manage the consequences. These solutions often rest with different
departments, different budgets or even different organisations. The optimum
reduction in risk comes when we identify where the risk is coming from and invest in

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and manage both the probability and the consequences accordingly. Correctly
addressing this challenge is at the heart of asset management discipline.

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CHAPTER 2

OBJECTIVES

In India, growing demand of population, which is currently 130 corers and estimated
to touch 180 corers by 2051, would need systematic analytical technologies or
organisations that would handle the life cycle of infrastructure. There would be
increasing demand of Water, Power, Gas, Cleaner air etc along with deterioration of
the existing infrastructure. The reamplification of the existing infrastructure and need
to lay new utilities is also important to meet this growing demand. Along with this, it
is also essential to operate and maintain these utilities to keep them in good health to
serve the end users at required/desired service levels. Infrastructure Asset
Management can be one of answer to this and thus the following objective: -
1. To understand what asset management system is and the terms in it.
2. To examine the current practices followed in the study area for capital
maintenance.
3. Study the probable environmental effect of the asset over its life cycle.
4. Formulate and execute long and medium-term plans for improvement in asset
performance
5. Study and relate any analytical and optimisation models to support decision
making in the capital maintenance.
6. To provide a platform for a given area to manage, operate, maintain a particular
asset so that it can meet the desired end user’s requirement throughout its life
cycle.
The study shall make upmost intent to reach as close as possible to the above defined
objectives. However, in any case the attempt would be to bring out efficient way to
manage the asset.

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CHAPTER 3
PROBLEM STATEMENT

Adhoc and ‘run to failure’ or reactive maintenance practices has left unhappy
customers and unhealthy assets, thereby replacing them much before potential end of
their life and increasing capex and opex costs.” Non-attendance to the asset of various
utilities has always led to quadruple maintenance and on certain occasions rebuilt the
asset. Timely intervention to verify the physical condition and the performance of an
asset is paramount to bring down the expense to admissible level. In today’s world it
important to standardise the operational activities through artificial systems with
minimum human interventions to avoid errors in system operation and maintenance.
Developing country like India needs to have a check on the procedures and the
policies defined to cater the asset maintenance and its right time to do so as the vision
envisaged by the current Government of Rs 5 trillion economy would bring in
immense infrastructure to be carefully handled.

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CHAPTER 4
HYPOTHESIS
Considering the problem statement there are many questions that come to mind which
needs careful study on the subject. Few of these are as below along with its probable
answer.
H01: - Currently is there any integrated approach towards Infrastructure asset
management?
H1: - The study would identify and examine the existing system of asset management
and level of satisfaction of the end users. It shall provide a high-level approach
towards the asset management.
H02: - Is there a common platform on which all the services are integrated which
would enable to operate, monitor and maintain an asset?
H2: -The study would make an attempt to provide a baseline to carry out the
management of services for assets and improve the life cycle cost of it.
H03: - Are there policy framework, guidelines, methodology in place in the authority
to assess the asset management?
H3: -Broad level guidelines would be set out on the basis of the ISO guidelines to
define the steps to be taken for effective control of managing the asset management
system.

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CHAPTER 5

LITERATURE REVIEW

Asset Management Standards

1. ISO 55000 (2014); Overview, Principles & Terminology: -

This International Standard is intended to be used for managing physical assets in
particular, but it can also be applied to other asset types. It spells out the target
audience benefits of asset management and fundamentals of AMS along with the
benefits of management. It provides an overview of asset management, its
principles and terminology
2. ISO 55001 (2014); Asset Management System Requirements
This International Standard specifies requirements for an asset management
system within the context of an organisation. It can be applied to all types of
assets and by all types and sizes of organizations and is intended to be used for
managing physical assets in particular. It does not specify financial, accounting or
technical requirements for managing specific asset types.
3. ISO 55002 (2014); Guidelines for the Application of ISO 55001
This International Standard provides guidance for the application of an asset
management system, in accordance with the requirements of ISO 55001.
4. International Infrastructure Management Manual (2015)
5. EN16646 (2014) Maintenance within Physical Asset Management
6. EPA (Environmental Protection Agency) Guidelines
7. WHO (World Health Organisation) Guidelines
8. Case Studies (National & International)

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CHAPTER 6

METHODOLOGY

Asset management needs highest priority in the coming years and more specifically in
Indian scenario this is an upcoming field. There are consultants and experts who work
constantly in this field and bring out more techno aspects and analytical tools in it to
address the various issues of the assets. For the purpose of this project, the study
would commence by defining and explaining what exactly the meaning of the IAM is
and what are the assets that can be considered for the study purpose. The various
studies carried out by the experts in this field along with the system adopted
internationally would be examined under literature review. After understanding the
definition and the learning from the literature review, a site would be selected wherein
the IAM can be applied to see the benefits it bring out to society. To accurately assess
the need of IAM, the existing system of management would be examined and the grey
areas in the aspects of the system would be evaluated and analysed so as to bring it in
the main stream of the IAM system. Thereafter study would move into the next stage
of development of tools or benchmark tools adopted elsewhere to tackle the overall
infrastructure issues. Thereafter, the benefits it provides to the organisation, end users,
environment and asset itself shall be highlighted. Finally, the entire work shall be
documented into a report which shall contain the conclusion on the IAM system. The
graphical presentation of the workflow is presented below for better understanding.

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PROCESS FLOW CHART

Defining Infrastructure Asset management system and assets

Literature Review

Selection of study area

Selection of Assets

Study the current IAM practices

Inventory of activities for IAM

Showcasing the probable system of IAM

Benefits of asset management - capex and opex costs , environmental and

to end users

Conclusion

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A Study on Infrastructure Asset Management

CHAPTER 7

FUTURE SCOPE

Despite its rapid development in the last decade, infrastructure asset management
today suffers from an identity crisis as the definition and scope of infrastructure asset
management remains a contentious issue. Notwithstanding the systematic approach
that many organisations adopt to manage their infrastructure assets, it is necessary that
we argue for the need to adopt a more integrated and strategic perspective in the light
of the dynamic contemporary operating environment.
The practice of infrastructure asset management has to broad in scope and
complexity. Due to the lack of an integrated framework, it has led to an
unsatisfactory state of confusion in practice and research.
The discussion thus far has illustrated the development of IAM from a narrow
functional perspective to a broadening role in enhancing business goals. The
expansive scope of IAM was summarised through a proposed IAM model. It is cogent
and timely to end this paper by considering the future challenges to IAM.
In recent years, the challenges that most industrialised economies face relates to those
of building and managing infrastructure assets. On the one hand, infrastructure is vital
for supporting economic growth, meeting basic needs, facilitating mobility and social
interaction, on the other, environmental pressures in the form of changing climatic
conditions, congestion and so on are likely to increase, turning the spotlight firmly on
the inherent tensions between the imperative for further infrastructure development
and the quest for sustainability. Accountability has emerged as a requirement for any
organisational structure, public or private. Those in charge of economic resources,
such as infrastructure must give account of their stewardship, irrespective of whether
the transactions and resources in question are those of a government or a private
sector entity.
There are four main groups of stakeholders involved in the provision of infrastructure:
users, service providers, government, and the general public. Each of this group has
conflicting demands from one another. Users are constantly looking for better service
level in terms of speed, capacity, security and reliability. Their main objective
remains one of identifying the most cost-efficient way of securing a high-quality
service. Service providers are constantly looking at how they can cater to the demand

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of these users efficiently so as to maximise the return to their shareholders. They will
always look at how operation cost can be minimised, and how to increase capacity
and reliability of the infrastructure assets. Government is concerned with how to
regulate the infrastructure asset so that it can support the economic development and
yet is accessible to all population. Accountability on the use of public fund to build,
maintain and regulate the infrastructure assets is also a top priority. The nexus
between use of infrastructure assets and the physical environment is the area of
concern for the general public. This relates to noise, air pollution and a host of other
environmental issues. With so many stakeholders involved, infrastructure asset
provision becomes a matter of prioritising these demands and deciding how these
demands can best be met with the least compromise on organisational goals.
Consequently, there is a need to adopt a more integrated approach to IAM through the
incorporation of all the dimensions.

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CHAPTER 8
LIMITATIONS

As defined in the objective and the methodology the aim of getting an insight of the
asset management is mostly related to the efficient and effective way of resolving an
issue /problem to achieve the satisfaction levels of the end user rather than pin
pointing the grey areas in the existing system. The study would make an attempt to
look into all aspects of a particular asset and analyse alternatives to plan, manage,
operate and maintain the asset.
IAM is a very diverse and vast subject and has many angles to it viz, policy
framework, financial, organisational etc. It would be wiser to limit the study aspect to
any one parameter of these to have more focused analysis that is oriented towards
identifying the probable methods of addressing and managing problem areas.
It is proposed in the project to take up the operational and maintenance,
environmental benefits of IAM which in turn would also address the financial
implication of adopting the Systems. The organisational and policy framework would
only provide broad guidelines without going into the details of the subject as it would
be unfair to not give sufficient time to look into, understand and provide this vital
aspect within the period of project.

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CHAPTER 9
SCHEDULE OF EXECUTION

Month

May-20
Mar-20
Aug-19

Nov-19

Apr-20
Feb-20
Dec-19
Sep-19

Jan-20
Oct-19
Jul-19
Task

Literature
review and
project
formulation
Selection of the
study area &
infrastructure
asset
Current IAM
management
practices
adopted
Inventory of
activities for
asset
management
Developing
IAM tool and
analysis
therein for
selected asset
Analysis of
results and its
representation
Writing of
Report

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CHAPTER 10
REFERENCES

1. IPWEA, International Infrastructure Management Manual. 2006, Institute of

Public Works Engineering of Australia.

2. Government of South Australia. Strategic Asset Management Framework. 2006

[cited 2006 10 May 2006]; Available from:
http://www.buildingmanagement.sa.gov.au/Frames/systemframe1200.asp.

3. Stevens, B., P. Schieb, and M. Andrieu, A Cross-sectoral Perspective on the

Development of Global Infrastructures to 2030, in Infrastructure to 2030:
Telecom, Land Transport, Water & Electricity. 2006, OECD Publishing: Paris.
4. Government of South Australia, Strategic Asset Management. 1999, Government
of South Australia: Adelaide.

5. Kessides, I.N., Reforming infrastructure: privatization, regulation and

competition, in A World Bank Policy Research Report. 2004, The World Bank:
Washington, D.C.

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