Heathrow Airport - Transformation of the Asset Replacement Programme

Faithful+Gould led on an exercise that has transformed Heathrow’s approach to the management of the asset replacement programme. The airport needed a better understanding of its assets and we were instrumental in helping our client to accurately define a portfolio view and specific asset view of the estate.

The following activities were undertaken as part of this:

  • Simplified how the airport defined their asset base (moving people, baggage and planes)

  • Defined how the business wants their assets to perform in whole life cost, performance and risk

  • Drove whole life costing into project design

  • Aligned the option evaluation with asset management goals

  • Identified and reduced business / opportunity risks

  • Minimised the total costs of operating assets

  • Cultural shift – to better outcomes / less costs

Whole life modelling successfully reduced the capital outlay enabling Heathrow to more effectively plan for replacement of assets. Decisions could then be based on lifecycle costs. This more creative thinking led to better solutions for long-term performance, looking ahead across the next 20 years.

The methodology and whole life value evaluation criteria worked every time, driving asset management and whole life value thinking into all project options studies. The exercise achieved a 40 per cent reduction in forecast outlay for asset replacement to meet the masterplan requirements. The outcomes have helped Heathrow make better informed decisions, whilst driving down allocated costs for asset replacement – as well as realising other benefits and reducing business / operational risks. 

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