Performance monitoring is the process of monitoring and reviewing the performance of asset management and the performance and/or condition of assets.
The performance monitoring can be seen top down from organizational direction and goals to individual, day-to-day management activities. Similarly, the bottom-up monitoring of performance should provide the factual basis for adjusting and refining asset management strategies and plans through a process of continual improvement.
Therefore, an organization should establish, implement, and maintain processes and/or procedures for the following:
- To monitor and measure the performance
- To handle and investigate failure, incidents, and non-conformities
- To evaluate the organization’s compliance with legal and other regulatory requirements
- To conduct regularly audits
- To investigate corrective and/or preventive actions
- To assess, prioritize and implement actions
- To review the organization’s asset management systems
The main goal of monitoring the performance process is to assess the effectiveness and efficiency of asset management. The frequency of monitoring can be find at the right balance between the cost of collecting the monitoring data and information and the risks of not having the information available. Finding the right balance is particularly important when an organization is forced to comply with statutory obligations and demonstrating value for money.
It is also important that the benefits from implementing asset management are visualized and measured against those identified in the case for investment, or to support value-for-money initiatives or greater efficiency in delivery of the service. Recording and demonstrating the benefits may provide essential evidence for further investment. Demonstrating benefits is therefore a key success factor in the monitoring process.
Measuring performance allows an organization to measure actual and performance and identify existing gaps. Gap analysis, in conjunction with performance reviews and benchmarking, are used in determining actions if the current performance falls below expected requirements.