Client Projects
Client Projects
Client Projects
Client Projects
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Asset Management Framework Development and Implementation



MRSK-1 of Russia is one of the largest electrical distribution companies in the world, providing service to nearly 65 million customers. MRSK was formed in the recent Russian restructuring; it and consist of 21 semi-independent regional distribution companies. This has resulted in the need for consistent approaches in asset management planning across all regions, including justification and prioritization of spending programs.


BIS and Russian partner Strategica developed an asset management program with MRSK and directed implementation at one of the regional distribution companies.

The project examined 28 of the utility’s most important asset groups, and built asset management models for each. These models take into consideration condition through health indices, estimated failure probabilities, and conse-quences of failure and risks. Each model uses the same approach to assessing the asset populations’ condition and criticality, then quantifies the costs and benefits of replacement, included the benefit of avoided customer outages. The results of the models are short and long-range spending plans as well as benefit/cost ratios for prioritizing spending across asset groups.

Not only were the asset groups examined individually but also in terms of systems, such as substations, lines, and feeders. BIS built models that utilized the same methodology to determine the option of overall replacements or rebuild of an asset system rather than replacing the individual asset components.

Important part of the project was suggestion for enhancing the current processes that were in place (such as condition assessment and criticality analysis) as well as designing new processes so that the asset management methodology could be implemented. This involved aligning current IT systems, such as SAP, to the needs of the new processes and developing a strategic plan for an implementation.


The key result of project is a justification for spending on replacement or rehabilitation of existing assets. MRSK is now in the position of implementing this methodology at all their regional companies for consistent decision making across asset types and regionals.

Date Completed: 2007

Development and implementation of overall Asset Management process. Investment planning support based on condition and risk. Suggestions for process, IT and organizational changes for successful implementation of program.
Key Results
Consistent method of assessing condition and criticality of assets and asset systems Readjustment of organization and processes to fit new model. Development of models that take into consideration number of assets as a system, e.g. feeders (poles, insulators, crossbars, conductors, etc.)
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