11.0 Asset Management

Question 1

What is asset management?

Answer 1

A systematic process of maintaining, upgrading, and operating physical assets cost-effectively

Question 2

why do we need asset management?

Answer 2

Service, Asset and financial sustainability

Sustainable service delivery ensures that current community service needs and how those services are delivered (in a socially, economically and environmentally responsible manner), do not compromise the ability of future generations to meet their own needs

Question 3

Core elements of asset management

Answer 3

1. finances
2. people
3. assets
4. information

Question 4

Assess

Answer 4

AM practices, capacity (finance, people, assets, and information), inventory, conditions, level of service (LOS) risks in each group

Question 5

Plan

Answer 5

Policy: mandate AM across the organization - consistent with corporate objectives and plans

Strategy: high-level, long term approach to implementing AM plans.

AM Plans: outlines assets, inventory, conditions, level of service, service risks, activities, programs for asset groups to deliver a defined LOS in the most cost effective way. They are integrated into corporate long-term financial plan (addressing gaps between costs and funding)

Question 6

Implement

Answer 6

Implement AM practices guided by the strategy and actions from AMPs Measure performance through annual reporting (objectives, outcomes, measurable progress in sustainable service delivery)

Question 7

The framework for an asset management plan can be described in terms of 7 questions

Answer 7

1. What do you have and where is it? (inventory)
   
   2. What is it worth? (cost/replacement rates)
   3. What is its condition and expected remaining service life? (condition and capability analysis)
   4. What is the level of service expectation, and what needs to be done? (capital and operating plans)
   5. When do you need to do it? (capital and operating plans)
   6. How much will it cost and what is the acceptable level of risks? (short and long term financial plan)
   7. How do you ensure long-term affordability?