Asset Management Flashcards
What is the definition of an asset?
Any item of economic value owned by an individual or corporation
Examples of physical assets
buildings, utility infrastructure, industrial assets
Features of a physical asset:
- on balance sheet
- registered
- depreciates/ deteriorates with time
- plays some role in service
- benefits from good management
Asset management is not…
- just about maintenance
- a sub for quality management
- a project management system
- just for engineers
- just an accounting exercise
- a purely academic discipline
Asset management is…
- a mind set. See life cycle of an object or system
- approach to get best out of assets
- about understanding and managing the risk associated with owning assets
Asset management is important because it can help organisation to:
- reduce operating and capital costs
- reduce potential health impacts and safety risks
- reduce legal risks
- improve operating and regulatory performance
- minimise env. impact
What is the key to good asset managment?
- optimise benefits. Best blend of activity to benefit organisation
Asset managment is explicitly focussed on:
helping organisations to achieve their defined objectives and to determine the optimal blend of activities based on these objectives.
Asset Management total lifecycle:
- strategy
- plan
- evaluate / design
- create/ procure
- operate
- maintain
- modify
- dispose
Explain what acquire is in lifecycle
Everything that goes into planning, designing, and procuring an asset.
Ensures it is fit for purpose.
Explain what commission is in lifecycle
Covers activities of installing, creating or building the asset and ensuring it is fully functional
Explain what operate is in lifecycle
Assets provides function. Subject to monitoring, maintenance, refurbishment and potential upgrade.
Explain what dispose is in lifecycle
Often overlooked, needs to be considered.
What is the definition of risk?
Expose to the possibility of loss, injury or other adverse or unwelcome circumstance
What is the management of risk witin AM critical?
To make judgement need to understand how action will impact future performance
risk = probability x consequence
The optimum reduction in risk comes when
we identify where the risk is coming from and invest in and manage both the probability and the consequences accordingly.
What does an asset manager do?
- Developing policy
- Developing Strategy
- Asset Management Planning
- Delivering the Plans
- Developing the People
- Managing Risk
- Managing Asset Information
The Asset Management Policy is the link between
the Organisational Plan and the Asset Management Strategy.
The AM Policy is
a set of principles or guidelines to steer the activity to achieve the objectives.
The AM Strategy
directs the organisations AM activity. Determines the AM objectives to deliver the organisations objectives
AM Planning
consider options and put together a set of plans
Delivering the plans
monitoring, maintaining, repairing, etc.
Ensure work is done efficiently and that information gathered is fed back into the strategy and planning activities
Developing People:
improve skills and competences of people to deliver activites, culture & change within the organisation
Managing risk
asess the risk of action or inaction on the performance of assets in the context of the organisations corporate objectives
Managing Asset Information:
Collecting and collating the right info to inform AM descisions. Ensuring right people have the right info.
Good asset management practice advises what in terms of AM maturity?
Only be as sophisticates as needed.
High level of maturity for low complexity attracts unnecessary cost.
Low level of maturity for high complexity introduces high risk to organisation
Consider Asset Complexity and Asset Criticality
