Asset Management

Question 1

What is the definition of an asset?

Answer 1

Any item of economic value owned by an individual or corporation

Question 2

Examples of physical assets

Answer 2

buildings, utility infrastructure, industrial assets

Question 3

Features of a physical asset:

Answer 3

• on balance sheet
• registered
• depreciates/ deteriorates with time
• plays some role in service
• benefits from good management

Question 4

Asset management is not…

Answer 4

• just about maintenance
• a sub for quality management
• a project management system
• just for engineers
• just an accounting exercise
• a purely academic discipline

Question 5

Asset management is…

Answer 5

• 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

Question 6

Asset management is important because it can help organisation to:

Answer 6

• reduce operating and capital costs
• reduce potential health impacts and safety risks
• reduce legal risks
• improve operating and regulatory performance
• minimise env. impact

Question 7

What is the key to good asset managment?

Answer 7

• optimise benefits. Best blend of activity to benefit organisation

Question 8

Asset managment is explicitly focussed on:

Answer 8

helping organisations to achieve their defined objectives and to determine the optimal blend of activities based on these objectives.

Question 9

Asset Management total lifecycle:

Answer 9

• strategy
• plan
• evaluate / design
• create/ procure
• operate
• maintain
• modify
• dispose

Question 10

Explain what acquire is in lifecycle

Answer 10

Everything that goes into planning, designing, and procuring an asset.

Ensures it is fit for purpose.

Question 11

Explain what commission is in lifecycle

Answer 11

Covers activities of installing, creating or building the asset and ensuring it is fully functional

Question 12

Explain what operate is in lifecycle

Answer 12

Assets provides function. Subject to monitoring, maintenance, refurbishment and potential upgrade.

Question 13

Explain what dispose is in lifecycle

Answer 13

Often overlooked, needs to be considered.

Question 14

What is the definition of risk?

Answer 14

Expose to the possibility of loss, injury or other adverse or unwelcome circumstance

Question 15

What is the management of risk witin AM critical?

Answer 15

To make judgement need to understand how action will impact future performance

risk = probability x consequence

Question 16

The optimum reduction in risk comes when

Answer 16

we identify where the risk is coming from and invest in and manage both the probability and the consequences accordingly.

Question 17

What does an asset manager do?

Answer 17

1. Developing policy
2. Developing Strategy
3. Asset Management Planning
4. Delivering the Plans
5. Developing the People
6. Managing Risk
7. Managing Asset Information

Question 18

The Asset Management Policy is the link between

Answer 18

the Organisational Plan and the Asset Management Strategy.

Question 19

The AM Policy is

Answer 19

a set of principles or guidelines to steer the activity to achieve the objectives.

Question 20

The AM Strategy

Answer 20

directs the organisations AM activity. Determines the AM objectives to deliver the organisations objectives

Question 21

AM Planning

Answer 21

consider options and put together a set of plans

Question 22

Delivering the plans

Answer 22

monitoring, maintaining, repairing, etc.

Ensure work is done efficiently and that information gathered is fed back into the strategy and planning activities

Question 23

Developing People:

Answer 23

improve skills and competences of people to deliver activites, culture & change within the organisation

Question 24

Managing risk

Answer 24

asess the risk of action or inaction on the performance of assets in the context of the organisations corporate objectives

Question 25

Managing Asset Information:

Answer 25

Collecting and collating the right info to inform AM descisions. Ensuring right people have the right info.

Question 26

Good asset management practice advises what in terms of AM maturity?

Answer 26

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