Asset Management

Asset Management is the combination of management, financial, economic, engineering and other practices applied to physical assets with the objective of providing the required level of service in the most cost effective manner. It includes the management of the whole life cycle (design, construction, commissioning, operating, maintaining, repairing, modifying, replacing and decommissioning/disposal) of physical and infrastructure assets.

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What is Asset Management?

Reasons for Asset Management

There are two main reasons for asset management:

  1. To fulfil legislative, reglatory, audit and reporting requirements;
  2. To strive to ensure assets are managed in the most cost effective, safe & ratepayer acceptable way possible.

Notes

  • Councils look after a broad range of infrastructure assets, including roads & drainage, parks, buildings and property.
  • In some states Councils are also responsible for water & sewerage assets.
  • The main reason for Councils having assets is to deliver services to the community.
  • Councils need to ensure that their assets can deliver the services that the community requires now and into the future.
  • Councils are responsible for providing "sustainable" services and maintaining a life style for their communities.

Key Elements of Asset Management

The MAV have identified the following as key elements of Asset Management

  • A policy framework to support AM decisions
  • Knowing what assets are controlled / owned
  • An understanding asset condition & expected life
  • Knowing where money is spent – maintenance, renewal & operations
  • Knowing what ‘levels of service’ the community needs
  • A process to establish priorities & allocate funds
  • Knowing long-term funding requirements
  • Having documented Service Plans & Asset Management Plans.

Asset Management Activities

Asset management activities include:

  • Life cycle costing
  • Assessment of asset acquisition, replacement and rehabilitation
  • Development of maintenance policies and procedures
  • Assist with requirements analysis for the aquisition of asset management information systems
  • Develop asset condition assessment policies and procedures
  • Analyse asset condtion data to determine and schedule asset replacement and rehabiliation

Related Pages

The list below is generated automatically. To add a page to the list, add the tag "am" to the page.

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External Links & References

  1. International Infrastructure Management Manual
  2. Wikipedia
  3. LGAQ Circular - State and Commonwealth Asset Management and Reporting Requirements
  4. Vicnet Asset Management Glossary
  5. Asset Management Resources Articles relating to management of water and sewer assets
  6. ANAO Better Practice Guide on the Strategic and Operational Management of Assets by Public Sector Entities
  7. Victorian Department of Treasury and Finance Asset Management Policies & Practices
  8. Victorian Department of Treasury and Finance Asset Management Resource List
  9. Felix Schrodinger's Blog
  10. Google Search
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