Asset Management System Design for Electric Utilities in Developing Economies; A case of Pakistan
Abstract/Description
Reliable access to electricity is crucial for economic development and social progress, and inefficient asset management practices can exacerbate the challenge of providing reliable electricity, particularly in developing countries. With an inherent notion of sustainability, this study aims to develop a comprehensive asset management system (AMS) design for electric utilities, as asset management in developing economies is a largely unexplored topic in the literature. Following a thorough literature review and a survey and case study of a selected utility in Pakistan, the study finds that implementing an effective AMS can benefit electric utilities in terms of improved asset reliability, increased operational efficiency, and better decision-making. The recommended end-to-end framework for developing an AMS involves asset condition assessment, maintenance scheduling, scalable technology, data-driven analytics, organizational alignments, and performance monitoring and feedback. The study also suggests that electric utilities should adopt a proactive and systematic asset management approach, involving regular monitoring & evaluation, risk-based maintenance, and effective asset replacement strategies. However, the study identifies several challenges to the implementation of an effective AMS in developing economies, including limited financial resources, inadequate data, and information systems, and a lack of skilled personnel. Therefore, the study recommends a piecemeal approach to implementing asset management in developing electric utilities while considering organizational interdependence and challenges. The study's limitations include small sample sizes for the survey and case study, which may limit the generalizability of the results. Aligning with the theme of ‘Sustainability & Developing Countries’, the study's framework can be useful for electric utilities to design and implement an effective AMS, which can ultimately improve service quality and enhance the quality of life for people in developing economies.
Keywords
Asset Management, Sustainable System Design, Developing Economies, Preventive Maintenance, Implementation Barriers, Case Study, Change Management
Track
Management
Session Number/Theme
3C: Management
Session Chair
Dr. Muhammad Shafique ; Dr. Sahar Awan
Start Date/Time
27-5-2023 2:30 PM
End Date/Time
27-5-2023 4:30 PM
Location
MCS-3, AMAN-CED, Ground Floor
Presentation for SBS Conference
Recommended Citation
Yar, M., & Mumtaz, M. (2023). Asset Management System Design for Electric Utilities in Developing Economies; A case of Pakistan. 3rd IBA SBS International Conference 2024. Retrieved from https://ir.iba.edu.pk/sbsic/2023/program/49
Asset Management System Design for Electric Utilities in Developing Economies; A case of Pakistan
MCS-3, AMAN-CED, Ground Floor
Reliable access to electricity is crucial for economic development and social progress, and inefficient asset management practices can exacerbate the challenge of providing reliable electricity, particularly in developing countries. With an inherent notion of sustainability, this study aims to develop a comprehensive asset management system (AMS) design for electric utilities, as asset management in developing economies is a largely unexplored topic in the literature. Following a thorough literature review and a survey and case study of a selected utility in Pakistan, the study finds that implementing an effective AMS can benefit electric utilities in terms of improved asset reliability, increased operational efficiency, and better decision-making. The recommended end-to-end framework for developing an AMS involves asset condition assessment, maintenance scheduling, scalable technology, data-driven analytics, organizational alignments, and performance monitoring and feedback. The study also suggests that electric utilities should adopt a proactive and systematic asset management approach, involving regular monitoring & evaluation, risk-based maintenance, and effective asset replacement strategies. However, the study identifies several challenges to the implementation of an effective AMS in developing economies, including limited financial resources, inadequate data, and information systems, and a lack of skilled personnel. Therefore, the study recommends a piecemeal approach to implementing asset management in developing electric utilities while considering organizational interdependence and challenges. The study's limitations include small sample sizes for the survey and case study, which may limit the generalizability of the results. Aligning with the theme of ‘Sustainability & Developing Countries’, the study's framework can be useful for electric utilities to design and implement an effective AMS, which can ultimately improve service quality and enhance the quality of life for people in developing economies.
Comments
The study is inherently related to the notion of sustainability and the Sustainable Development Goals (SDGs) because it involves the efficient and effective management of assets in the electric utilities sector, which is crucial for achieving sustainable development. The SDGs aim to promote economic, social, and environmental sustainability, and the efficient management of assets in the electric utilities sector is a critical component of achieving these goals. Electricity is a fundamental component of economic development and social progress, and reliable access to electricity is essential for sustainable development. However, the provision of reliable electricity is a significant challenge in many developing economies, and the inefficient management of assets in the electric utilities sector can exacerbate this challenge. Asset management is a critical tool for ensuring that electric utilities can provide reliable and sustainable electricity services cost-effectively and efficiently. Efficient asset management practices can help electric utilities to achieve sustainability by improving the reliability and availability of their assets, reducing maintenance costs, increasing the lifespan of assets, and minimizing the environmental impact of asset management activities. This, in turn, can help to promote economic development by improving the efficiency and competitiveness of the electric utilities sector, while also reducing the environmental impact of electricity generation.
The study resonates most with the theme "Sustainability and Developing Countries." This is because the study aims to develop a comprehensive asset management system (AMS) design for electric utilities in developing economies, with a particular emphasis on Pakistan. The study recognizes the importance of adopting a proactive and systematic asset management approach for electric utilities in developing economies to improve their operational efficiency, reduce costs, and enhance their service quality, which are all critical for sustainable development in these countries. Moreover, the study also identifies challenges to the implementation of an effective AMS in developing economies, including limited financial resources, inadequate data, and information systems, and a lack of skilled personnel, which all impact sustainability. Therefore, the proposed end-to-end framework for developing an AMS in developing economies, involving asset inventory and condition assessment, risk analysis, life cycle cost analysis, investment prioritization, and performance monitoring and feedback, can be seen as a contribution to promoting sustainability in developing countries.