ASSET MANAGEMENT Flashcards
What is the definition of an asset?
Item of economic value owned by an individual or corporation.
What are physical assets?
Buildings, cables, pipes, rails etc
What is ‘NOT’ asset management?
- About maintenance
- A substitute for quality management
- A project management system
- Just for engineers
- An accounting exercise
- Purely an academic discipline
What ‘IS’ asset management?
- Objects/systems which respond to the environment
- Recognition that assets have a life cycle
- Finance and engineers equal importance for
- Understanding risks
- Benefit to organisation/stakeholders
Why is asset management important?
- Lower/improve operating costs/performance
- Reduce capital costs
- Reduce health impacts
- Reduce safety risks
- Minimise environmental impacts
- Improve reputation
- Reduce legal risks
- Improve regulatory performances
What is to ‘AQUIRE’?
- Planning, designing and procuring as asset.
What is ‘COMMISSION’?
- Creating, installing or building the assets.
Whats is ‘OPERATE’?
- The function which the asset was designed for.
- Monitoring, maintenance, refurbishment and potential upgrade.
- Very long
What is ‘DISPOSE’?
- Disposal of the asset.
- Overlooked
What is the definition of risk?
The possibility of loss, injury or other adverse or unwelcome circumstance; a chance or situation involving such a possibility.
What is risk management important?
Because asset managers are responsible for optimising outcomes for the good of the organisation.
What do risk managers need to do?
Predict how their actions will impact on the future performance of the assets.
How do you calculate risk?
Probability (of failure) x Consequence (of failure)
What do asset managers do?
- Develop policy
- Develop strategy
- Asset management planning
- Delivering plans
- Developing people
- Managing risk
- Managing asset information
What is the asset management policy?
Link between organisational plan and the asset management strategy. Principles to steer asset management activity.
