Asset Management
Content
Asset management
Asset management, broadly defined, refers to any system that monitors and maintains things of value to an entity or group. It may apply to both tangible assets such as buildings and to intangible concepts such as intellectual property and goodwill. Asset management is a systematic process of operating, maintaining, upgrading, and disposing of assets cost-effectively, (American Association of State Highway and Transportation Officials). Alternative views of asset management in the engineering environment are: The practice of managing assets to achieve the greatest return (particularly useful for productive assets such as plant and equipment), and the process of monitoring and maintaining facilities systems, with the objective of providing the best possible service to users (appropriate for public infrastructure assets).
Infrastructure asset management
Infrastructure 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 costeffective 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.[1] Operating and sustainment of assets in a constrained budget environment require some sort of prioritization scheme.
Historical background of asset management
Civilization has always relied on its technological assets to support key functions like transport, public health, business, and commerce. There is a clear link between the provision and sophistication of technological assets and our modern lifestyle. Romans built a strong empire through their construction of roads, aqueducts and other assets. Similar stories are found when examining Asia, Africa, Europe and the Americas.
Financial asset management
Investment management: the sector of the financial services industry that manages collective investment schemes and segregated client accounts. Global assets under management List of asset management firms
Enterprise asset management
Enterprise asset management is the business processes and enabling information systems that support management of an organization's assets, both physical (such as buildings, equipment, infrastructure etc.)
Physical asset management: the practice of managing the entire life cycle (design, construction, commissioning, operating, maintaining, repairing, modifying, replacing and decommissioning/disposal) of physical and infrastructure assets such as structures, production and service plant, power, water and waste treatment facilities, distribution networks, transport systems, buildings and other physical assets. Infrastructure asset management expands on this theme in relation primarily to public sector, utilities, property and transport systems. Additionally, Asset Management can refer to shaping the future interfaces amongst the human, built, and natural environments through collaborative and evidence-based decision processes. Fixed assets management: an accounting process that seeks to track fixed assets for the purposes of financial accounting. IT asset management: the set of business practices that join financial, contractual and inventory functions to support life cycle management and strategic decision making for the IT environment. This is also one of the processes defined within IT service management. Digital asset management: a form of electronic media content management that includes digital assets.
Public asset management or corporate asset management (CAM)
Public asset management (also referred to as corporate asset management) expands the definition of enterprise asset management (EAM) by incorporating the management of all things of value to a municipal jurisdiction and its citizens' expectations. An EAM requires an asset registry (inventory of assets and their attributes) combined with a computerized maintenance management system (CMMS). All public assets are interconnected and share proximity, and this connectivity is possible through the use of GIS. GIS-centric public asset management standardizes data and allows interoperability, providing users the capability to reuse, coordinate, and share information in an efficient and effective manner by making the GIS geo-database the asset registry. A GIS-centric public asset management that standardizes data and allows interoperability, providing users the capability to reuse, coordinate, and share information in an efficient and effective manner. In the United States the de facto GIS standard is the Esri GIS for utilities and municipalities. An Esri GIS platform combined with the overall public asset management umbrella of both physical "hard" assets and "soft" assets helps remove the traditional silos of structured municipal functions. While the hard assets are the typical physical assets or infrastructure assets, the soft assets of a municipality includes permits, license, code enforcement, right-of-ways and other land-focused work activities. This definition of "public asset management" was coined and defined by Brian L. Haslam, President and CEO of an international GIS-centric Computerized Maintenance Management System (CMMS) company that produces software certified by the National Association of GIS-Centric Solutions (NAGCS). GIS-centric public asset management is a system design approach for managing public assets that leverages the investment local governments continue to make in GIS and provides a common framework for sharing useful data from disparate systems. Permits, licenses, code enforcement, right-of-way, and other land-focused work activities are examples of land-focused public assets managed by local government. These public assets occupy location just as in-the-ground or above-ground public assets do. GIS is not a panacea; effective asset managers of physical assets such as buildings make informed-decisions about what to do and when to their assets in-order to maximize resource-return on their organizational goals. Sometimes, information displayed geospatially can help those decisions. Moreoften, however, deep understanding of markets, engineering systems, and human interaction enabled by analysis and synthesis of information lead to these effective decisions. The geospatial context may not be the most important one to make understand these facets. Land-use development and planning is interconnected to other local government assets and work activities. Public asset management is the term that encompasses this subset of land-focused asset management, considering the importance that public assets affect other public assets and work activities and are important sources of revenue and are various points of citizen interaction.
What is Asset Management?
Asset Management is the management of (primarily) physical assets (their selection, maintenance, inspection and renewal) plays a key role in determining the operational performance and profitability of industries that operate assets as part of their core business. Additional categories of assets covered by the scope of this discipline include: information, finance, competence and other intangibles insofar as they relate to asset management decisions. Asset Management is the art and science of making the right decisions and optimising these processes. A common objective is to minimise the whole life cost of assets but there may be other critical factors such as risk or business continuity to be considered objectively in this decision making. This emerging professional discipline deals with the optimal management of physical asset systems and their life cycles. It represents a cross-disciplinary collaboration to achieve best net, sustained value-for-money in the selection, design/ acquisition, operations, maintenance and renewal/ disposal of physical infrastructure and equipment.
The PAS55 standard, sponsored by the IAM, defines the requirements for such an integrated approach.
Asset Management Diagrams
Because asset management is such a broad, integrating view of business, it is often best understood by a number of illustrations. Click here for useful Asset Management Diagrams and explanation of their meaning.
Asset management, broadly defined, refers to any system that monitors and maintains things of value to an entity or group. It may apply to both tangible assets such as buildings and to intangible concepts such as intellectual property and goodwill. Asset management is a systematic process of operating, maintaining, upgrading, and disposing of assets cost-effectively, (American Association of State Highway and Transportation Officials). Alternative views of asset management in the engineering environment are: The practice of managing assets to achieve the greatest return (particularly useful for productive assets such as plant and equipment), and the process of monitoring and maintaining facilities systems, with the objective of providing the best possible service to users (appropriate for public infrastructure assets).
Infrastructure asset management
Infrastructure 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 costeffective 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.[1] Operating and sustainment of assets in a constrained budget environment require some sort of prioritization scheme.
Historical background of asset management
Civilization has always relied on its technological assets to support key functions like transport, public health, business, and commerce. There is a clear link between the provision and sophistication of technological assets and our modern lifestyle. Romans built a strong empire through their construction of roads, aqueducts and other assets. Similar stories are found when examining Asia, Africa, Europe and the Americas.
Financial asset management
Investment management: the sector of the financial services industry that manages collective investment schemes and segregated client accounts. Global assets under management List of asset management firms
Enterprise asset management
Enterprise asset management is the business processes and enabling information systems that support management of an organization's assets, both physical (such as buildings, equipment, infrastructure etc.)
Physical asset management: the practice of managing the entire life cycle (design, construction, commissioning, operating, maintaining, repairing, modifying, replacing and decommissioning/disposal) of physical and infrastructure assets such as structures, production and service plant, power, water and waste treatment facilities, distribution networks, transport systems, buildings and other physical assets. Infrastructure asset management expands on this theme in relation primarily to public sector, utilities, property and transport systems. Additionally, Asset Management can refer to shaping the future interfaces amongst the human, built, and natural environments through collaborative and evidence-based decision processes. Fixed assets management: an accounting process that seeks to track fixed assets for the purposes of financial accounting. IT asset management: the set of business practices that join financial, contractual and inventory functions to support life cycle management and strategic decision making for the IT environment. This is also one of the processes defined within IT service management. Digital asset management: a form of electronic media content management that includes digital assets.
Public asset management or corporate asset management (CAM)
Public asset management (also referred to as corporate asset management) expands the definition of enterprise asset management (EAM) by incorporating the management of all things of value to a municipal jurisdiction and its citizens' expectations. An EAM requires an asset registry (inventory of assets and their attributes) combined with a computerized maintenance management system (CMMS). All public assets are interconnected and share proximity, and this connectivity is possible through the use of GIS. GIS-centric public asset management standardizes data and allows interoperability, providing users the capability to reuse, coordinate, and share information in an efficient and effective manner by making the GIS geo-database the asset registry. A GIS-centric public asset management that standardizes data and allows interoperability, providing users the capability to reuse, coordinate, and share information in an efficient and effective manner. In the United States the de facto GIS standard is the Esri GIS for utilities and municipalities. An Esri GIS platform combined with the overall public asset management umbrella of both physical "hard" assets and "soft" assets helps remove the traditional silos of structured municipal functions. While the hard assets are the typical physical assets or infrastructure assets, the soft assets of a municipality includes permits, license, code enforcement, right-of-ways and other land-focused work activities. This definition of "public asset management" was coined and defined by Brian L. Haslam, President and CEO of an international GIS-centric Computerized Maintenance Management System (CMMS) company that produces software certified by the National Association of GIS-Centric Solutions (NAGCS). GIS-centric public asset management is a system design approach for managing public assets that leverages the investment local governments continue to make in GIS and provides a common framework for sharing useful data from disparate systems. Permits, licenses, code enforcement, right-of-way, and other land-focused work activities are examples of land-focused public assets managed by local government. These public assets occupy location just as in-the-ground or above-ground public assets do. GIS is not a panacea; effective asset managers of physical assets such as buildings make informed-decisions about what to do and when to their assets in-order to maximize resource-return on their organizational goals. Sometimes, information displayed geospatially can help those decisions. Moreoften, however, deep understanding of markets, engineering systems, and human interaction enabled by analysis and synthesis of information lead to these effective decisions. The geospatial context may not be the most important one to make understand these facets. Land-use development and planning is interconnected to other local government assets and work activities. Public asset management is the term that encompasses this subset of land-focused asset management, considering the importance that public assets affect other public assets and work activities and are important sources of revenue and are various points of citizen interaction.
What is Asset Management?
Asset Management is the management of (primarily) physical assets (their selection, maintenance, inspection and renewal) plays a key role in determining the operational performance and profitability of industries that operate assets as part of their core business. Additional categories of assets covered by the scope of this discipline include: information, finance, competence and other intangibles insofar as they relate to asset management decisions. Asset Management is the art and science of making the right decisions and optimising these processes. A common objective is to minimise the whole life cost of assets but there may be other critical factors such as risk or business continuity to be considered objectively in this decision making. This emerging professional discipline deals with the optimal management of physical asset systems and their life cycles. It represents a cross-disciplinary collaboration to achieve best net, sustained value-for-money in the selection, design/ acquisition, operations, maintenance and renewal/ disposal of physical infrastructure and equipment.
The PAS55 standard, sponsored by the IAM, defines the requirements for such an integrated approach.
Asset Management Diagrams
Because asset management is such a broad, integrating view of business, it is often best understood by a number of illustrations. Click here for useful Asset Management Diagrams and explanation of their meaning.
