Asset management is the application of strategies, which ensure that the land, buildings, plant and equipment enhance the delivery of services provided by an organisation.
Now more than ever Assets need to be managed in such a way that the Service Delivery of Enterprises and Agencies is enhanced. Tougher competition, shrinking budgets and a tendency to concentrate on Core business activities mean that options to buy services and lease or hire rather than buy assets are being more closely explored.
Wherever assets are used to support the delivery of services, a Plan is necessary to ensure those assets are maintained to an agreed Standard. An assessment of the assets is required to ensure that their performance continues to match the needs of the Business.
A comprehensive Strategic Asset Management plan, or any component/s can be prepared.
The Strategic Asset Management Plan includes the following elements:
These and other terms used in the Asset Management process are defined below.
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Addition |
Any construction or change to a building, facility or asset which increases its external dimensions and cubic capacity. |
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Asset
Acquisition |
The process of obtaining assets to meet identified Needs, including purchase, lease, build |
| Asset Register |
An
Asset Register is a list of the physical assets under the control of
the |
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Condition Ratings |
The Condition Rating of an asset enables a numerical value to be assigned to the condition of an Asset. |
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Condition Survey |
A Condition Survey is a technical appraisal of an asset based on a physical inspection |
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Disposal |
The process of removing an asset, including sale, demolition, non-renewal of lease |
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Level of Service |
The Resources and Effort required to retain an asset in its agreed Maintenance Standard is called the Level of Service. Resources include staff time, finance, energy, materials, etc. and Effort includes the response to faults (time & action). |
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Maintenance |
All actions necessary to retain an asset in, or restore it to its specified condition. Categories of maintenance are: Corrective Maintenance Actions performed as a result of failure, to restore an asset to its specified condition as far as practicable. Preventive Maintenance Actions performed to retain an asset in its specified condition as far as practicable by providing systematic inspection, detection and prevention of incipient failure. Preventive maintenance may be programmed or condition based. Backlog Maintenance Maintenance that is necessary to restore an asset to its specified condition but which has not been carried out. Backlog maintenance may be identified by condition surveys. Deferred Maintenance Maintenance which is due to be carried out in the current program but which will not be carried out. Reasons include shortage of funds, unavailability of parts, or inability to gain access to an asset. Deferred maintenance should be added to the Backlog of maintenance awaiting attention. |
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Maintenance Standards |
The Standards necessary to retain an asset in in an appropriate state to support its Service Delivery requirements. |
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Operation |
Includes the provision of Light, Power, Environment control, utilities, cleaning |
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Replacement |
The removal of an item and the use of another item in its place to perform the same function. |
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Service Delivery Requirements |
Each Business Enterprise or Agency - Public or Private, exists to meet a Need. Service Delivery is measured in terms of Desirable Outcomes. |
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Upgrading |
Extensive work intended to bring an asset up to a new standard or alter it to a new use. |
