Asset Management Terminology

There are many acronyms and specialised terms used in the Asset Management arena. Some terms are well defined and others are not.

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Proactive Maintenance - Proactive Maintenance is targeted maintenance programmed in response to measurements indicating a heightened possibility of failure.

Reactive Maintenance - Reactive Maintenance is a form of maintenance in which equipment and facilities are repaired only in response to a breakdown, fault or defect.

Redundancy - Redundancy in engineering is about designing a system in which critical components are duplicated, so that if one fails the other component can take over the function of the failed component.

Refurbishment - Refurbishment is the process of restoring an asset to near new condition.

Rehabilitation - Rehabilitation is "works carried out to rebuild or replace parts or components of an asset, to restore it to a required functional condition and extend its life, which may incorporate some modification.

Reliability Centred Maintenance - Reliability Centred Maintenance, often known as RCM, is an industrial improvement approach focused on identifying and establishing the operational, maintenance, and capital improvement policies that will manage the risks of equipment failure most effectively.

Remaining Useful Life - The Remaining Useful Life (RUL) of an asset is the estimated length of time remaining before it will need to be replaced.

Renewal - Renewal or more formally Asset Renewal is the replacement or refurbishment of an existing asset (or component) with a new asset (or component) capable of delivering the same level of service as the existing asset.

Renewal Funding Gap - A renewal funding gap (also asset renewal gap) is the difference between;

Renewal Planning - Renewal Planning is the process of deciding in advance the make up and timing of renewal works.

Renewal/Replacement Plan - A Renewal/Replacement Plan is a document that defines how an organisation decides when assets need to be renewed, the projected cost of renewals and the standards applicable to them. Renewal/Replacement Plans are often a section within an Asset Management Plan.

Replacement - Replacement is the complete replacement of an asset that has reached the end of its life. so as to provide a similar or agreed alternative level of service.

Replacement Cost - The Replacement Cost of an asset (also Asset Replacement Cost & Current Replacement Cost) is the cost of replacing an existing asset with a substantially identical new asset or a modern equivalent.

Residual Value - The residual value (salvage value) of an asset is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Risk in Asset Management - In the sphere of asset management risk is a product of criticality and probability of failure.

Road Asset Management System - A Road Asset Management System is an Asset Management System created specifically for managing roads and road related assets.

Road Management Plan - A Road Management Plan (RMP) is a document that:

  • establishes a management system for the road management functions of a road authority which is based on policy and operational objectives and available resources; and
  • sets the relevant standard in relation to the discharge of duties in the performance of those road management functions.

Road Register - A road register is an Asset Register set up specifically for roads.

Road Segment - A road segment is a uniform section of road that is identified separately in an asset register.

Routine Maintenance - Routine Maintenance is the regular ongoing day-to-day work that is necessary to keep assets operating, including instances where portions of the asset fail and need immediate repair to make the asset operational again.

External Links & References

  1. DERM
  2. Queensland Department of Local Government, Sport & Recreation Glossary of Terms
  3. Wingecarribee Shire Asset Management Terminology
  4. Institute of Asset Management Definitions Page
  5. City of Joondalup Works Category Definitions
  6. Asset Management Series Glossary
  7. South Australian Road Traffic Act Definitions
  8. Wealth of Opportunities Glossary
  9. Google Search
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