Levels of service in asset management

Understanding the intricacies of asset management is crucial for maintaining and enhancing the value of your assets. A pivotal aspect of effective asset management is the concept of levels of service, which serve as a cornerstone for strategic planning and decision-making.

In this post, we explore the significance of levels of service within asset management planning, highlighting their critical role in ensuring organizational success, not only for optimizing fixed asset performance but also for aligning the expectations and needs of various stakeholders.

What are levels of service?

Levels of service (LoS) in asset management are defined as the standards and expectations set for the performance, quality and efficiency of assets and the services they deliver. They encompass various performance targets, such as quality, reliability, safety, comfort, capacity and compliance. These benchmarks are crucial for ensuring that assets and services not only meet but exceed the needs of customers and stakeholders, as well as avoiding common fixed asset mistakes.

Levels of service also play a vital role in asset planning and maintenance. By aligning service delivery with an organization’s vision, mission and values, LoS help integrate asset management strategies with broader organizational goals. This alignment is particularly relevant in the context of the ISO 55000 standard for Asset Management, which emphasizes the importance of setting and maintaining appropriate service levels to achieve effective asset management.

In essence, levels of service provide a framework for managing assets in a way that enhances performance and satisfies stakeholder expectations, making them an indispensable component of any robust asset management strategy.

Types of level of service?

Levels of service in asset management are typically grouped into three main areas: operational, service provision and implementation. Each area addresses different aspects of asset performance and management, ensuring that assets deliver their intended value efficiently and effectively.

Operational

Operational service level focuses on the day-to-day functioning and maintenance of assets, with key aspects including reliability, efficiency and routine upkeep. It ensures that assets perform optimally on a daily basis by addressing regular inspections, timely repairs and overall efficient management. Key features include:

• Day-to-day functioning: Centers on the reliability, efficiency and effectiveness of assets in their daily operations.
• Maintenance: Involves routine inspections and emergency repairs to ensure assets are always in optimal condition.
• Systems management: Ensures the smooth operation of IT systems, security systems and other essential building systems.
• Cleanliness and safety: Maintains high standards of cleanliness and security within the property.
• Administrative tasks: Efficient processing of lease applications, renewals and accurate billing with multiple payment options.

Examples of operational service level tasks include:

• Regular maintenance of common areas, such as hallways and lifts.
• Ensuring IT systems run smoothly with minimal downtime.
• Providing comprehensive surveillance and secure access to the property.
• Promptly responding to repair requests.

Service provision

Service provision focuses on the quality and standard of services delivered to customers, including tenants, residents and property owners. Key aspects include customer satisfaction, clear communication and comprehensive coverage of services. It ensures that the services provided meet or exceed customer expectations by addressing their needs and maintaining high standards in shared facilities, accessibility and overall service quality.

Service provision service level includes:

• Customer focus: Concentrates on the quality and standard of services delivered to customers (tenants, residents, property owners).
• Customer satisfaction: Ensures services meet or exceed tenant and resident expectations.
• Communication: Maintains clear and timely communication with tenants regarding various issues.
• Accessibility and coverage: Provides services that are easily accessible and comprehensive in scope.
• Facility management: Manages shared facilities like gyms, pools and communal areas to ensure they are well-maintained.

Examples of service provision service level tasks include:

• Clear communication with tenants about maintenance schedules and community events.
• Dedicated tenant support through portals or hotlines.
• Regular servicing and upkeep of shared facilities.
• Ensuring high levels of cleanliness in common areas.

Implementation

Implementation service level focuses on the strategic processes involved in developing, deploying and managing assets. Key aspects include project management, quality control, cost management and sustainability. It ensures that projects are completed on time, within budget and to high standards by adhering to timelines, maintaining rigorous quality checks and incorporating sustainable practices

Key features include:

• Project management: Oversees the planning, execution and completion of projects, ensuring they meet quality standards and are delivered on time and within budget.
• Quality control: Implements measures to ensure all aspects of the asset meet the required quality standards.
• Cost management: Controls costs throughout the project to avoid budget overruns.
• Sustainability: Incorporates sustainable practices in the development and implementation of assets.

Examples of implementation service level tasks include:

• Adhering to timelines and budgets in construction projects.
• Implementing quality control measures during infrastructure projects.
• Developing effective asset maintenance programs.
• Ensuring building renovations and upgrades meet current building codes and enhance tenant comfort.
• Focusing on sustainable design in new developments, such as integrating solar panels and water-efficient fixtures.

Why are they important?

Levels of service in asset management are vital for several reasons, fundamentally shaping how organisations plan, maintain and improve their assets. They serve as a framework for systematic management, ensuring that assets are effectively maintained, and that service delivery meets stakeholder expectations.

Monitor and measure performance

Levels of service provide benchmarks that help organisations assess whether assets are functioning as intended and meeting required standards. Regularly monitoring performance against these benchmarks not only identifies whether assets are performing well but also highlights areas needing improvement. This continuous evaluation fosters a culture of ongoing enhancement, allowing organizations to address any shortfalls and adapt to emerging trends.

Optimize and allocate resources

Levels of service also play a crucial role in optimizing and allocating resources. By understanding the performance and criticality of various assets, organizations can determine the most effective way to allocate resources for maintenance and improvements. This strategic approach ensures that resources are used efficiently, prioritising investments in areas that will deliver the most significant benefits or address critical needs.

Budget and plan financially

In addition to resource optimisation, levels of service are essential for accurate budgeting and financial planning. They help estimate the costs required to maintain and improve assets to meet desired standards, providing a basis for creating realistic budgets. Clear service levels also facilitate the justification of expenditures to stakeholders, ensuring that necessary funds are secured for asset management activities.

Manage risk

Managing risk is another critical aspect supported by levels of service. Understanding current service levels helps identify potential risks associated with asset performance and service delivery. By recognising these risks, organisations can develop and implement strategies to mitigate them, thereby ensuring the continuity and reliability of services.

Satisfy customer expectations

By establishing and maintaining appropriate service levels, organisations ensure that assets meet the needs and expectations of users, which enhances customer satisfaction and trust. Clear service levels also provide transparency about what stakeholders can expect from the assets and services, fostering better communication and trust.

How to get started with levels of service

Getting started with levels of service in asset management involves a systematic approach to ensure that your assets are managed effectively and meet stakeholder expectations. Key steps include:

1. Set clear objectives: Begin by defining what you aim to achieve with your levels of service. Your objectives might include improving customer satisfaction, increasing operational efficiency, reducing costs or ensuring regulatory compliance. Ensure these objectives align with your overall organisational goals to create a cohesive strategy.
2. Involve stakeholders: Engage with stakeholders to understand their expectations and priorities. It’s crucial to be clear about what each type of stakeholder expects from the assets, as this will inform your service level targets and ensure that their concerns and priorities are addressed.
3. Assess current asset performance: Evaluate the current performance of your assets to identify any gaps between existing performance levels and stakeholder expectations. This assessment will highlight areas for improvement and help you plan accordingly.
4. Set performance targets: Establish clear and measurable performance targets for each service area. Define relevant criteria for each level of service, such as response times for maintenance, uptime percentages and safety standards. These targets should be specific and aligned with your objectives.
5. Create and implement a strategic plan: Develop a strategic plan to achieve the defined levels of service. This plan should include identifying the resources required, setting timelines and assigning responsibilities. Execute the strategy through detailed action plans, which may involve upgrading infrastructure, improving processes or enhancing training programmes.
6. Monitor and evaluate performance: Continuously monitor asset performance against the established levels of service. Use key performance indicators (KPIs) to track progress and create regular reports to communicate performance to stakeholders. Regularly seek feedback from stakeholders to ensure that the levels of service remain aligned with their needs and expectations.

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