Demand Analysis

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Name:	Demand Analysis
Acronym:
Type:	Competency Element

Parent Discipline

Demand Management

Child Sets

Child Sub Element

Definition:

Demand analysis consists of knowing and understanding the variables that make up the requirements of interested parties and the economic, social, and environmental scenarios where the organization operates, to establish a forecast for Asset Management that generates value for the organization. Demand analysis consists of the processes that an organization uses to evaluate, analyze, and influence demands and to perform the evaluation and analysis of the capability of assets to meet demand.

Statement:

Demand analysis typically includes assessing future demand for products or services. This demand will impact on the portfolio and asset availability.

When carrying out demand analysis the following should be considered (in no particular order):

Stakeholder expectations.
Climate change.
Sustainability.
Historical demand and the context that drives demand.
Current and future demand, as well as changes over time.
New products or services required by the organization.
Changes in the performance levels required to provide products and services.
Current and future asset utilization and capacity.
Impact on future performance, condition, and capability.
Technological issues and trends in new technologies.
The need for new skills.

Demand analysis involves identifying scenarios, understanding the factors that influence them, as well as their likelihood of occurring. Strategies should be developed that consider the capacity of the organization and its assets as well as in relation to the expected demand scenarios. The strategies should also consider the use of non-asset solutions where demand may exceed supply. Revised levels of performance should be reflected in the Asset Management Objectives.

The outcome of demand analysis should be considered in strategic objectives as it influences the expected economic, environmental, and social performance of an organisation's asset portfolios.

Demand analysis contributes to the decision-making criteria, which are used to calculate the cost of the life cycle of assets, complete risk analysis, determine environmental impacts of product disposal and impact on the supply chain value. These considerations should be included in a methodology to determine their criticality.