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.

What is Asset Management?

Reasons for Asset Management

There are two main reasons for asset management:

To fulfil legislative, reglatory, audit and reporting requirements;
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.