Explore the rest of the asset management models, focusing on operational decision-making, continuous improvement, and utilizing assets for maximum value.
In the first part of this article, we explored the foundational models that serve as the cornerstone of asset management. We introduced the Concept Model, which sets the strategic direction, and the System Model, which structures the tactical approach to asset management. Now, we turn our focus to the Capability Delivery Model, which addresses operational decision-making. This model focuses on the day-to-day management of assets, ensuring that they deliver value and align with business goals.
As we dive deeper into asset management, it's important to recall the purpose of models and their role in helping us understand complex systems. How do you visualize new concepts and ideas? How does your thought process flow when trying to understand new knowledge? In many disciplines, models are the key tools that allow us to break down complex ideas into individual components and show the relationships between them. This simplification makes understanding easier.
The same principle applies to asset management, where three key models—the Concept Model, the Asset Management System Model, and the Capability Delivery Model—serve as frameworks for understanding the dynamics of asset management. These models help organizations strategically plan, manage, and operationalize their asset portfolios, ensuring that they can maximize value at every stage of the asset lifecycle.
In the first article, we discussed the Concept Model, which outlines the strategic approach to asset management, and the System Model, which deals with the structure and processes that guide tactical decision-making. Now, we turn our attention to the Capability Delivery Model, the most operational of the three, which focuses on how to ensure that assets deliver on their full potential in line with organizational goals.
![The Asset Management College. (2018). *The Asset Management Models* [Graph]. Retrieved March 1, 2025, from https://theamcollege.com.au/wp-content/uploads/2019/09/The-AM-Models.png](https://assetinsider.ai/hs-fs/hubfs/The%20Asset%20Management%20Models%20by%20The%20Asset%20Management%20College.png?width=500&height=346&name=The%20Asset%20Management%20Models%20by%20The%20Asset%20Management%20College.png)
The Capability Delivery Model is the operational framework of asset management. It is concerned with the practical, day-to-day use of assets to achieve business goals. This model translates the strategic objectives set in the Concept Model and the tactical plans developed in the System Model into actionable processes.
It outlines key processes such as demand management, systems engineering, configuration management, acquisition, operations and maintenance, and continuous improvement. By integrating the PDCA cycle (Plan-Do-Check-Act) and leveraging data-driven, risk-based analytics, the model ensures that asset management objectives align with organizational goals while fostering continuous improvement.
The first component of the Capability Delivery Model is Demand Management, which ensures that asset management efforts align with market demand, stakeholder needs, and organizational capabilities. This process creates sustainable relationships between internal and external stakeholders while proactively identifying future business needs.
Effective demand management forecasts what types of assets are required, when they are needed, and how they should be utilized. This step ensures that resources are allocated where they can generate the most value. The cycle concludes with demand forecasting, ensuring that resources are allocated to maximize value and achieve business objectives.
Next, Systems Engineering and Configuration Management play an essential role in ensuring that assets are correctly designed and integrated into the broader system. The first process follows the Systems Engineering ‘V’ model, a step-by-step framework for system development and verification.
The goal of Systems Engineering is to create solutions that achieve a balance between capital expenditures (CAPEX) and operational expenditures (OPEX), resulting in systems that operate at the lowest lifecycle cost while meeting organizational objectives.
Configuration Management complements Systems Engineering by ensuring all system components are accounted for, controlled, and maintained throughout their lifecycle. This process involves managing various data types, such as:
Configuration management ensures that the asset system operates as intended by maintaining accurate records and system configurations. Key elements include:
Together, Systems Engineering and Configuration Management ensure assets are effectively designed, integrated, and maintained, enabling informed decision-making and optimized asset performance over their lifecycle.
The Capability Acquisition process is where assets are acquired, whether through purchase, leasing, or development. It focuses on bringing in the right assets that will deliver value to the organization. The acquisition process emphasizes not just acquiring the right assets but also optimizing their long-term value and minimizing their lifecycle costs.
Taking a long-term perspective, Capability Acquisition focuses on reducing lifecycle costs associated with the acquisition phase while ensuring the assets deliver the required services, outputs, and, where applicable, financial returns. This includes evaluating asset requirements, ensuring assets are fit for purpose, and aligning procurement strategies with the organization’s overarching business goals.
By balancing upfront expenditures with long-term operational efficiency, Capability Acquisition contributes to sustainable and cost-effective asset management practices.
Once assets are acquired, their operations and maintenance become a key focus. Effective asset management ensures that assets perform as intended and are maintained to meet operational requirements. This stage includes preventive maintenance, corrective maintenance, and statutory/regulatory maintenance, ensuring that assets remain reliable and safe throughout their lifecycle. The activities are defined by the Capability Acquisition discipline according to business needs.
The Maintenance Management Model starts with business needs, which shape the engineering design and determine maintenance requirements, forming the Design Authority. This drives the creation of a Maintenance Plan, which defines:
The Equipment Register supports Corrective Maintenance – Planning and Control (P&C) by extracting task information, providing Performance Feedback to Engineering Design, and generating Work Orders.
The cycle includes Preventive, Corrective, and Statutory/Regulatory Maintenance:
The Resources Unit ensures:
This process fosters continuous improvement by addressing the full lifecycle of asset maintenance, ensuring sustainability and alignment with organizational goals.
Finally, Continuous Improvement is a central aspect of the Capability Delivery Model. This ongoing process ensures that asset management practices evolve over time, adapting to changing business needs and conditions. Continuous improvement involves regularly assessing performance, identifying areas for optimization, and implementing corrective actions to enhance efficiency and effectiveness.
In asset management, Continuous Improvement is not just a set of activities—it is a culture and mindset that drives long-term success. This cyclical process includes the following steps:
The Continuous Improvement Cycle enables organizations to optimize their assets continually, reduce downtime, improve reliability, and maximize overall value.
Continuous Improvement is structured around key methodologies and tools:
These techniques not only ensure effective maintenance but also reduce lifecycle costs by integrating predictive, preventive, and corrective measures.
By embedding Continuous Improvement across the Capability Delivery Model, organizations create a dynamic, adaptable framework that delivers sustained asset value while evolving with changing business needs.
To apply the Capability Delivery Model successfully, it is essential to integrate it with the Concept Model and System Model. This ensures that demand management, systems engineering, configuration management, operations, and maintenance practices are all aligned with the organization's strategic objectives.
By following the Capability Delivery Model, organizations can maximize the performance of their assets, improve resource utilization, and ensure that assets contribute to achieving business goals.
Effective asset management requires a range of key documents to guide the process. These documents help ensure that systems are designed, maintained, and operated in a way that delivers maximum value. Some essential documents in the Capability Delivery Model include:
The Capability Delivery Model is more extensive than the previous two models. It provides mechanisms for asset management to identify and achieve the desired balance of cost, risk, and performance.
The Capability Delivery Model provides the operational framework for asset management, focusing on how assets are used day-to-day to achieve organizational goals. When integrated with the Concept Model and System Model, it forms a comprehensive system that ensures assets are utilized efficiently, maintained effectively, and continuously optimized to meet business needs.
By applying the Capability Delivery Model and embracing Continuous Improvement, organizations can ensure their assets deliver long-term value, maximize resource utilization, and align asset performance with strategic business objectives.
Explore the three major asset management models—Concept, System, and Capability Delivery—and learn how they help organizations with asset management.
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