Glossary of Asset Management Terms

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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.

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.

Scheduled Maintenance - Scheduled Maintenance is preventive maintenance carried out to a predetermined interval of time, number of operations, kilometres, etc.

Service Capacity - Service capacity is an asset's ability to deliver its service potential over time, expressed as a rate of service delivery.

Service Potential - Service potential is the total future service capacity of an asset. It is normally determined by reference to the operating capacity and economic life of an asset.

Soft Asset - A soft asset is (in the local government context) a a non infrastructure asset.

Strategic Asset Management Plan - A Strategic Asset Management Plan (SAMP) is a document (or series of documents) that acts as both an Asset Management Plan and an Asset Management Strategy.

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