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Name: Decision-Making
Acronym:
Type: Glossary Item


Definition:
Decisions are choices made under conditions of uncertainty, complexity, and constraint. Decisions are the primary means of allocating and reallocating the organisation’s finite resources consistent with its value framework to achieve its strategic objectives. Investment decision-making comprises the policy, principles and criteria, decision-support techniques, information, and processes to address risks or opportunities through the development of alternatives and the selection of priority solutions across the full life cycle to deliver value to stakeholders.

Statement:
Decision-Making includes an evaluation approach of alternative investments with a medium to long-term vision of the asset life cycle cost benefits horizon based on investment (CAPEX and OPEX) from available funding sources, people, processes, and technology resources. This includes the business case development steps used for problem definition, as well as characterization, robust solution evaluation that drives sufficient quality alternatives allowing decision-makers to make the best life cycle choices across all time horizons.
 
Decision-making criteria should be aligned with Asset Management strategy, objectives and policy and value framework. Asset Management decisions should consider the trade-offs between risk, performance, and cost, while understanding competition for resources and other constraints. Decisions should be made by a capable multi-disciplinary team with appropriate experience and authority supported by technology. Decisions associated with action plans, and results should be tracked to assure the value delivered meets expectations.
Decision types in Asset Management include but are not limited to:
 
  • Greenfield (new) or brownfield (existing) asset acquisition or build.
  • Asset end-of-life, life extension, repurposing, and reclamation.
  • Capacity increases, avoiding capacity constraints, quality efficiency and emissions improvements.
  • Infrastructure system or network reconfiguration or optimization.
  • New, expanded, or obsolete digital technology infrastructure enhancement.
  • Environmental, Social and Corporate Governance & Sustainability investments.
  • Sustaining asset life cycle operate, repair or replacement investments.
  • Operating and maintenance strategies and actions.
  • Improvements and innovations to processes and supporting technology systems.



Resource:
  • Reference
    • The Asset Management Landscape ISBN 978-0-9871799-1-3

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