What is Asset Management?

Asset management is any system or approach that manages and controls things of value (assets). This means a systematic process of operating, maintaining, upgrading, and disposing of assets cost-effectively. 

What is an Asset Management Plan?

An Asset Management Plan (AMP) is a plan for managing the assets of an organization.

Generally, asset management takes a systemic approach to managing assets that are codependent.

What are the Components of an Asset Management Plan?

An AMP typically covers the following areas:

• Asset System Description
• Standard of Service Definition
• Current Asset Performance
• Planned Actions
• Costs
• Benefits
• Potential Improvements

What is an Asset System Description?

This is a description of the assets managed and the problem or risk the assets are employed to address. It identifies the assets (the sub-grouping and dependencies), why the assets exist, what they are expected to achieve (objectives).

What is a Standard of Service Definition? 

This is a statement of how the assets used in the plan or system are expected to perform. It should include: 

• a measurable performance specification, and 
• a minimum condition grade (CG), (a grade of the consequences of failure). 

What is Current Asset Performance? 

This is a list of all of the assets in the system, their unique identifiers, their condition (age, remaining life, etc.), and how they are performing. List/Inventory & 

What are Planned Actions and Lifecycle Management? 

This is a narrative explaining the actions to be taken to achieve the near-term objectives or goals (those in the Statement of Service) with regard to the assets. 

What is a Costs Statement? 

This is a breakdown of the short, medium, and longer-term costs for the asset system? It provides a projected cost-profile for operating, maintaining, refurbishing and replacing assets to sustain the Standard of Service. 

The cost profile should cover the entire life of all assets in the system to allow for calculation of the average-annual and whole-life costs of the assets. 

This allows for an understanding of the cost of the planned actions and ongoing management costs directly related to the asset system. 

What is a Benefits Statement? 

This is a statement of the benefits that are expected from the assets (based upon meeting the standards of service). The statement should explain the benefits and provide a method of measuring them. 

Benefits may be financial, social, environmental, operational. 

What is an Improvements Statement? 

An improvements statement explains how the Standard of Service may be improved, such as by acquisition or disposition of assets. 

An improvement may also include a change to the standard of service. Such as change is generally managed as a formal project,