Asset Management Flashcards
defiinition of an asset
a item of economic value owned by an individual or coorporation
features of a physical asset
- recorded in companies balance sheet and register
- values depreciates over time
- condition deteriorates
- plays a role in the delivery of a service
- benefits from good stewardship
- often lots of similar items that can benefit from similar management
5 book showing the evolution of asset management
starts at restructuring of water sector in aus and uk
- comprehensive international guidance
- comprehensive us guidance
- risk based approach
- uk asset management specification
- new international standard for asset management
what is asset management not?
- maintenance of assets
- substitute for quality management
- management system
- just for engineers
- an accounting excersize
- just for academic
what is asset management
- a mind set that sees assets not as lumps of metal but things that change and deteriorate depending on their environment
- recognition of asset lifecylce
- important for finance
- approach that gets best out assets
- understanding and managing risks to do with assets
why do asset management
reduce costs of operating asset reduce capital increase performance increase saftey reduced health impacts minimise envornemnetl impact improve company reputation reduce legal risks improve regulatory performance
what is the key to good asset management? (definition)-
is that is optimises these benefits. takes everything into account and determines the best blend of activity to achieve the best balance for the whole organisation
asset management is explicitly focused on
helping organisations to achieve their defined objectives and finding the optimal blend of activities based on these objectives
total lifecycle asset management
procure comission operate maintain modify dispose strategy plan evaluate design
what does procurement cover
all the planing and shit that goes into it
what does commsision include
activities of creating and installing the asset and ensuring its functionality
operate phaseq
largest phase, requires maintenance, upgrade etc
dsiposal phase
often overlooked. if we overlook a phase its to our peril
definition of risk
exposure to possibility of adverse circumstance
why is it important to consider risk in asset management
- need to choose blend of activities to maximise outcomes, hence need to know how actions will effect assets, `
- so quantify both outcome and probability
