ASSET MANAGEMENT

Question 1

What is the definition of an asset?

Answer 1

Item of economic value owned by an individual or corporation.

Question 2

What are physical assets?

Answer 2

Buildings, cables, pipes, rails etc

Question 3

What is ‘NOT’ asset management?

Answer 3

• About maintenance
• A substitute for quality management
• A project management system
• Just for engineers
• An accounting exercise
• Purely an academic discipline

Question 4

What ‘IS’ asset management?

Answer 4

• 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

Question 5

Why is asset management important?

Answer 5

• 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

Question 6

What is to ‘AQUIRE’?

Answer 6

• Planning, designing and procuring as asset.

Question 7

What is ‘COMMISSION’?

Answer 7

• Creating, installing or building the assets.

Question 8

Whats is ‘OPERATE’?

Answer 8

• The function which the asset was designed for.
• Monitoring, maintenance, refurbishment and potential upgrade.
• Very long

Question 9

What is ‘DISPOSE’?

Answer 9

• Disposal of the asset.

- Overlooked

Question 10

What is the definition of risk?

Answer 10

The possibility of loss, injury or other adverse or unwelcome circumstance; a chance or situation involving such a possibility.

Question 11

What is risk management important?

Answer 11

Because asset managers are responsible for optimising outcomes for the good of the organisation.

Question 12

What do risk managers need to do?

Answer 12

Predict how their actions will impact on the future performance of the assets.

Question 13

How do you calculate risk?

Answer 13

Probability (of failure) x Consequence (of failure)

Question 14

What do asset managers do?

Answer 14

• Develop policy
• Develop strategy
• Asset management planning
• Delivering plans
• Developing people
• Managing risk
• Managing asset information

Question 15

What is the asset management policy?

Answer 15

Link between organisational plan and the asset management strategy. Principles to steer asset management activity.

Question 16

What is asset management strategy?

Answer 16

Directs the organisations asset management activity.

Question 17

What is asset management planning?

Answer 17

Considers all the options for activities and investments going forward then putting together plans to describe what will be done and by whom.

Question 18

What is delivering the plans?

Answer 18

Where work is done on the assets (monitoring, repairing, replacing and refurbishing).

Question 19

What is developing people?

Answer 19

Developing skills and competence of people to better deliver asset management activities.
Also looks at culture within an organisation and how change can be managed to achieve optimal results.