What is 'good' Asset Management?

Asset Management is the management of physical assets (their selection, maintenance, inspection and renewal). Asset Management is the art and science of making the right decisions and optimizing these processes.

The different asset classes are stocks, bonds, real-estate and commodities.

Infrastructure owners have used ‘Asset Management’ to describe the caring for, making best use of, physical plant, infrastructure and facilities. (Interpretation of British Standard Specification PAS-55)

PAS-55 highlights the need for performance-accountable asset-business focus. Asset Management system is how an organization delivers its business goals with a clear picture of how and why business intentions are converted to ground reality.

PAS 55 defines Asset Management as “Systematic & coordinated activities and practices through which an organization optimally manages its physical assets and their associated performance, risks and expenditures over their lifecycles for the purpose of achieving its organizational strategic plan.”

How does a company get there? How do we know, and demonstrate, what is ‘optimal’? How can responsibility be established? How do we develop the skills, tools and processes to establish and sustain such an environment in the first place?

Industrial process, utilities and service companies have, over the last 5 decades developed greater specialization in niche functions. The effect of this has been to create more and narrower silos of contribution – design, construction, operations, maintenance, human resources, finance etc.

At senior management levels, the adoption of an “Asset Management” model has been interpreted to mean a new mix of functional responsibilities (new silos?):

- Asset ‘Owners’ – dealing with regulators and other stakeholders - Asset Managers – decisions on direction and strategy - Service Deliverers – work resources & methods

This emphasizes the need for directional thinking (what is worth doing, where, when and why), not just delivery efficiency (doing the same thing quicker, cheaper). ASAP Systems has 20 years of experience in Inventory Control Software and Asset Management Solutions.

Inventory Software & Asset Management

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