Build an Effective Asset Management Plan

How to Build an Effective Asset Management Plan: Practical Guide and Lessons from a Real Project

A structure based on ISO 55001, FMECA and workshops to enhance performance and cross-team alignment

In the mining sector, developing a robust Asset Management Plan (AMP) is critical for boosting asset performance, reducing costs, and aligning operational teams. But how do you turn raw data into practical decisions and scalable strategies?

In this article, we’ll explore the key components of an effective AMP aligned with ISO 55001, and share insights from a real-world case study where we applied this methodology to support a Tier 1 mining client in Western Australia.

The Challenge: Complex Portfolio, No Standardised Approach

The client’s Infrastructure & Services team faced a familiar yet high-impact scenario:

  • A complex and diverse portfolio of assets
  • Limited visibility of risks and failure modes
  • No standard AMP process across the site
  • Pressure to reduce maintenance costs without compromising operations

With a focus on asset management mining industry in Perth, we were engaged to help design a structured, repeatable framework tailored to the site’s needs.

Key Steps to Build an Effective AMP

Based on our field experience, we recommend structuring your AMP using six core steps that can be adapted across industries and asset classes:

  1. Asset identification and categorisation
    Start by understanding what you own. Classify assets by criticality, function, and lifecycle stage.
  2. Failure and risk analysis (e.g. FMECA)
    Use structured tools like FMECA to uncover failure modes and prioritise actions by severity and likelihood.
  3. Define goals and performance metrics
    Establish clear targets for reliability, availability, cost, and safety.
  4. Develop standard templates and action plans
    Create consistent documentation for data collection, risk assessment, and reporting.
  5. Engage key stakeholders
    Involve Reliability, Maintenance, Operations and Projects early to ensure buy-in and alignment.
  6. Integrate with asset systems (e.g. CMMS)
    Ensure the AMP is practical by embedding it within your operational systems and processes.

Our Approach: FMECA, ISO 55001, and Scalable Solutions

We started with a pilot project focused on a medium-sized village, selected for its manageable scale and representativeness.

Using FMECA (Failure Modes, Effects and Criticality Analysis), we helped the client identify risks and develop a priority-based asset strategy.

Key activities included:

  • Applying FMECA to critical infrastructure systems
  • Identifying over 75 failure modes, prioritising the top 5 based on risk
  • Designing AMP templates for consistent application
  • Facilitating workshops with Reliability, Maintenance and Operations teams
  • Ensuring alignment with ISO 55001 principles

This pilot created the foundation to scale the approach to other infrastructure categories including aerodromes, HV systems, warehousing and water assets.

Outcomes to Date: Better Decisions, Aligned Teams

While still in early stages, the impact is already measurable:

  • A clear risk matrix and prioritisation framework established
  • Strong engagement across operational teams, with positive feedback on process clarity
  • Reusable templates prepared for broader rollout
  • CMMS integration underway, linking AMP outcomes to day-to-day management
  • Expansion of the model to additional asset categories already in progress

Rather than just deliver a plan, we helped the organisation create a repeatable framework for transforming asset data into risk-informed decisions that support performance and cost optimisation.

Connecting to Broader Asset Strategies

Projects like this also lay the groundwork for higher-impact initiatives, including:

  • Operational Readiness for upcoming projects and site expansions
  • Maintenance Strategies Optimisation to reduce reactive work and extend asset life
  • Coaching & Training to uplift internal asset management capability

A well-structured AMP provides the visibility and control needed to support long-term business continuity and sustainable operations.

Why This Matters

Organisations in the mining, energy and oil & gas sectors face increasing pressure to maximise asset performance and reduce costs, all while maintaining safety and continuity. A robust Asset Management Plan, supported by tools like FMECA and aligned to ISO 55001, is a key enabler for achieving those goals.

This case reflects how Lead Asset Management, a consultancy specialised in Asset Management for mining in Perth and across Western Australia, partners with clients to turn operational data into clear, risk-informed decisions that drive value.

 

LEAD Asset Management is a Mining Asset Management business in Perth: We provide consultation services for Mining, Utilities, Gas & Oil Industry in WA, Australia. Asset Management Services Perth: delivering tailored asset management solutions for mining in WA. Asset management strategies, projects, operational readiness, careers in asset management in Perth, Australia and more…Contact Lead Asset Management today.