Week 1 - Introduction to Asset Management

Question 1

Define an asset.

Answer 1

An item, thing or entity with potential or actual value to an organisation.

Question 2

What are the 5 categories of ‘assets’?

Answer 2

• Physical (active or passive)
• Financial
• Human
• Information
• Intangible

Question 3

Define asset management.

(5 points)

Answer 3

The activities associated with efficiently and effectively:
- Identifying assets needed to fulfil an organisations objectives and their resource requirements.
- Procuring said assets.
- Operating and maintaining the assets.
- Disposing and renewing the assets.

Question 4

What is the aim of Asset Management (AM)?

Answer 4

To enable an organisation to have assets appropriate to its business, and to provide the supporting services which allow the assets to operate efficiently and effectively. With the goal of maximising benefits and minimising the costs and risks.

Question 5

What are the 4 areas of ‘Vital context’ for asset management?

Answer 5

• Business objectives
• Policies
• Risk management
• Performance requirements

Question 6

What are the important interfaces for ‘human assets’ in AM? (5)

Answer 6

• Motivation
• Communication
• Roles & responsibilities
• Leadership
• Teamwork

Question 7

What are the important interfaces for ‘financial assets’ in AM? (3)

Answer 7

• Lifecycle costs
• Capital investments
• Operating costs

Question 8

What are the important interfaces for ‘information assets’ in AM? (4)

Answer 8

• Condition
• Performance
• Activities
• Cost

Question 9

What are the important interfaces for ‘intangible assets’ in AM?

Answer 9

• Reputation
• Image
• Morale
• Social impact

Question 10

What are the four stages to the ‘Deming cycle’ of continual improvement?

Answer 10

Top left: Plan
Top right: Do
Bottom right: Check
Bottom left: Act

Question 11

Describe the ‘Plan’ stage of the Deming cycle?

Answer 11

Identify problem(s)

Question 12

Describe the ‘Do’ stage of the Deming cycle?

Answer 12

Testing potential solutions

Question 13

Describe the ‘Check’ stage of the Deming cycle?

Answer 13

Study results

Question 14

Describe the ‘Act’ stage of the Deming cycle?

Answer 14

Implement the best solution

Question 15

What does good asset management provide?

(6 key topics)

Answer 15

• Safety
• Efficient & economic use of funds
• Quality
• Required availability
• Optimised expenditure
• Stakeholder assurance

Question 16

What does poor asset management lead to?

Answer 16

The ‘asset death cycle’ and premature end of an ‘ageing cash cow’.

Question 17

What is an ageing cash cow?

Answer 17

A business as usual asset which produces steady reliable income over a reasonable period of time.

Question 18

What are the key elements of Infrastructure Asset Management (IAM)?

(7 key elements)

Answer 18

• Lifecycle approach
• Developing cost-effective maintenance strategies
• Provide defined level of service
• Monitor asset performance
• Manage risk
• Sustainable use of physical resources
• Continuous improvement

Question 19

What are the characteristics of Infrastructure Assets?

(8 points)

Answer 19

• Long design/service lives
• Extensive infrastructure corridors
• Difficult or limited accessibility to asset
• Importance to business/asset owner
• Limited flexibility for change within changing legislation
• High renewal/replacement costs
• Direct public involvement in operation and use of assets
• Lengthy maintenance schemes