Asset Management 1 Flashcards
What is an asset?
An item of property owned by a person or company, regarded as having value and available to meet debts, commitments or legacies
Objective of Sustainable Management of Infrastructure
To provide the desired level of service in the most cost effective manner for present and future customers
Infrastructure in NZ
$110 b in infrastructure assets owned by the NZ government
Infrastructure is pressured by
- dependance on foreign oil
- climate change
- sustainability challenges
- disasters
Hierachy of urban needs
(top to bottom)
- Openness to influence
- Cultural Offerings
- Education, Research and Development
- Effective Infrastructure
- Basic Services
Why is Asset Management important?
- economic growth
- preserve investments
- congestion
- aging infrastructure
Benefits of Asset Management - why do it?
- Performance and cost effectiveness
- Communication, accountability and credibility
Performance and cost effectiveness
- deliver policy goals and objectives
- lower longterm costs for infrastructure preservation
- improved performance and service to customers
- improved use of available resources
- flexibility to make decisions based on performance
Benefits of Sustainable Management of Infrastructure
- improved understanding of service level options, costs and risks
- improve decision making based on benefits and costs of alternatives
- communicate and justify funding requrements to internal and external parties
- demonstrate responsible stewardship of assets
SMI
Sustainable Management of Infrastructure
focus of asset management
resource allocation
short term mindset
- natural tendency
- instant delivery environment
- political preference
- self interest prevalent
long term thinking
- requires discipline
- considers next generation
- requires participation internally and externally
- leaders initiate by example
- must be incorporated into society
- political pressure should set example for society to follow
SMARTER
S - pecific M - easurable A - chievable R - elevant T - ime bound E - valuation R - a sses
LOS
Level of Service - the outputs a customer receives from the organisation
