Asset Management Lecture 8 What is Asset Management

Asset Management Lecture 8

What is Asset Management? • Asset: “item, thing or entity that has potential or actual value to an organization” • Asset Management: “coordinated activity of an organization to realize value from assets”

What is an Asset ? • Value on a balance sheet • Listed in a register (asset repository) • Value depreciation • Condition deteriorates • Benefits from stewardship • …………. Data & Information

Asset Management Terms

Core Concepts • Risk • Optimisation • Condition • Outcomes

Alignment Business Alignment

What is ISO/PC 251? Tasked with developing 3 International Standards ISO 55000 • Asset management – Overview, principles and terminology ISO 55001 • Asset management – Management systems Requirements ISO 55002 • Asset management – Management systems Guidelines on the application of ISO 55001

AM Challenges Importance of Asset function Management of asset systems Focus on the outcome and business context (i. e. CML/CI; sustainability) Asset Health Index Age, condition and risk Data and information Decision support “Real Time” AM - Static and dynamic data Growing demand for Knowledge and guidance Demographics and development of competence

The Competence Challenge Maintain current levels of competence Develop the next generation of asset managers Assuring the competence of suppliers Achieving asset management excellence Capability of an organisation depends on knowledge & competence of employees 4

The Asset Manager Primary Work Responsibility Timescale Long Term 2 to 10+ yrs Medium Term 1 mth to 3 yrs Short Term NOW to 3 mths Asset Manager Business Managers Leaders strategic Engineers & Technical Specialists Wide range of specialisms - Mix of strategic & tactical Operators and Maintainers Highly skilled teams and individualstactical Why What When How 5

Framework’s seven roles 7