Week 10 - Asset Management Flashcards
Long-term thinking
Requires discipline
considers next generation
requires internal and external participation
What is Asset Management?
Systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively.
Limitation of Asset Management Definition
Only quantifies by cost
Does not look at broader impacts that are harder to quantify.
Why do we do Asset Management?
performance
cost effectiveness
communication
accountability and credibility
Benefits of sustainable management of infrastructure (SMI)
Improved understanding of service level options, costs and risks.
Improved decision making
Easier to communicate and justify funding requirements to other parties.
Demonstrate responsible stewardship of assets
Triple Bottom Line
Accounting method that accounts for social and environmental performance as well as financial performance.
Components of an asset management plan
Understand and Define Requirements
Develop lifecycle strategies
Asset management enablers
Main focus of Asset Management
Resource Allocation
Level of Service (LOS)
Outputs a customer receives from an organisation.
Quality, reliability, responsiveness, sustainability, accessibility, and cost
SMARTER
S - specific
M - Measurable
A - Achievable
R - Relevant
T - Timebound
E - Evaluation
R - Reassess
Deterioration Modelling
Models and predicts the physical state of equipment, structures, infrastructure, or tangible asset.
Bathtub curve hazard function
combination of:
- decreasing hazard of early failure
- increasing hazard of wear-out failure
- constant line of random failure
Key Principles of Asset Management
- Policy Driven
- Performance Based
- Options Evaluated
- Decisions Based on Quality Information
- Clear Accountability
Options Evaluated Principle
Comprehensive choices and tradeoffs are examined at each level of decision making.
Clear accountability Principle
Performance results are monitored and reported
