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.
- 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
The list below is generated automatically. To add a page to the list, add the tag "am" to the page.
- Renewal Funding Gap
- Renewal Planning
- Renewal Program
- Renewal Service Level
- Renewal/Replacement Plan
- Replacement Cost
- Residual Value
- RFID Tag
- Risk in Asset Management
- Road and Bridge Asset Management Kit
- Road Asset Management System
- Road Management Plan
- Road Register
- Road Segment
- Routine Maintenance
- Routine Maintenance Plan
- Scheduled Maintenance
- Service Capacity
- Service Level Costing
- Service Potential
- Soft Asset
- South East Metro Councils Asset Management Group
- State of the Assets Report
- STEP Asset Management Program
- Strategic Asset Management Plan
- Strategic Planning
- Strategic Service Level
- Target Level of Service
- Technical Service Level
- The Case for Infrastructure Asset Management
- Total Asset Management Manual
- Total Management Plan
- Underground Asset
- Unplanned Maintenance
- Useful Life
- Victorian LG Asset Management Landscape
- Video Condition Assessment
- Visual Condition Inspection
- Web-Based Asset Management Plan
- Wide Bay Burnett Asset Management Group
- Written Down Replacement Cost
Special Interest Groups
There are a number of special interest groups relating to asset management, including.
- Asset Mates (IPWEA)
- LGPro Building Assets Special Interest Group
- Northern Council's Asset Management Forum (Melbourne)
- SA Local Government Asset Management Network (South Australia)
- South East Metro Councils Asset Management Group (Melbourne)
- Wide Bay Burnett Asset Management Group (Queensland)
External Links & References
- International Infrastructure Management Manual
- LGAQ Circular - State and Commonwealth Asset Management and Reporting Requirements
- Vicnet Asset Management Glossary
- Asset Management Resources Articles relating to management of water and sewer assets
- ANAO Better Practice Guide on the Strategic and Operational Management of Assets by Public Sector Entities
- Victorian Department of Treasury and Finance Asset Management Policies & Practices
- Victorian Department of Treasury and Finance Asset Management Resource List
- Felix Schrodinger's Blog
- Google Search