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AP771 Msc URBAN INFRASTRUCTURE AND MANAGEMENT

FACULTY OF ARCHITECTURE, PLANNING, & SURVEYING


UNIVERSITI TEKNOLOGI MARA SHAH ALAM
UDM 716 URBAN INFRASTRUCTURE & ASSET MANAGEMENT

ASSET MANAGEMENT PLAN (AMP)


PREPARED BY:
MOHD AMIRUL HAKIM BIN ZAMRI
2015341645
PREPARED FOR:
ASSOC. PROF. HJ ZAKARIA BIN AHMAD
SESSION : Sept 2016 Jan 2017

1.0 Introduction
This report in for an assignment of UDM 716 Urban Infrastructure and Management.
It prepared to review the Asset Management Plan (AMP).
Basically asset can be defined as the property ownership or owned or organized by
individual, corporation, organization and government built or purchased or rented or
rented purchased or leased or received through donation or gift or legal process or
obtained through a source or reproductive development or research or heritage. There
are of classification of asset such as mobile asset, immovable asset, living asset and
intellectual asset.
2.0 Definition of AMP
Assets management plan (AMP) basically is a plan of systematic activities to
optimally management assets throughout the lifecycle and sustainability that combine
multi-disciplinary management techniques ( technical and financial ) to meet the
strategic plan and level of services (LOS) delivery. It is an integrated strategic and
holistic process to achieve high efficiency of lifecycle, consumption and high return of
physical assets.

Other definition of AMP is as below :

a) Asset Management is a systematic approach of maintaining, upgrading, and


operating physical assets cost effectively. It combines engineering principles with
sound business practices and economic theory, and it provides tools to facilitate a
more organized, logical approach to decision-making. Thus, asset management 2
provides a framework for handling both short- and long-range planning
(Pentadbiran Lebuhraya Persekutuan, FHWA 1999)
b) Asset Management is a comprehensive business strategy employing people,
information and technology to effectively and efficiently allocate available funds
amongst valued and competing asset needs (Transportation Association of
Canada, TAC 1999)

c) Asset Management is a methodology to efficiently and equitably allocate resources


amongst valid and competing goals and objectives (Danylo and Lemer 1998).

3.0 AMP objectives


There are two objectives of AMP :

Justification

To give visibility of the cost and benefit


associated with providing the standard of service

AMP objectives

Optimization

To minimize the whole life cost such as the operation


cost, maintenance and replacement or disposal cost
of the particular asset in the management system.

4.0 AMP approaches


AMP requires a comprehensive and strategic approaches by taking into account the
following factors : -

a) Lifecycle asset and principle of asset management


b) The demand of asset or industrial market
c) The related policies, regulation and laws
d) The corporate management and planning framework for the agency
e) Technical capacity, commercial potential and the implication to the environment
f)

Competition of demand in service improvement or sot effectiveness

5.0 AMP areas


Basically AMP cover the following area :

AMP

Asset system
description

is the description of the asset information including the asset


basic information and the objective/ purpose of the existing of
the asset.

Standard of
service

Is the description of how the system to perform in


measureable way. It consist of 2 part which are measureable
performance specification and a minimum condition grade

Current asset
performance

Is the list or inventory that describe the condition of the


particular asset. It is including the information of the owner,
age of item and the estimate of remaining life

Planned
action

It including the lifecycle management. This section explain


how the work to be implemented for the least cost

Cost

It describe the cost of the operation, maintenance,


refurbishment and the replacement to sustain the standard of
service. This section may need to be revisited and updated
annually, and may form the basis for an annual bid for
funding.

Benefit

The assets should provide some measurement of benefit that


can be measured or explained. It including the monetary
figure and also the benefit to the social and environment.

Potential
improvement

The standard of service currently delivered may be improved


by acquisition, enhancement or other means.

6.0 The characteristic of efficient AMP


There are five characteristic of efficient AMP :

i)

optimize the service potential of assets to ensure that the assets are used and
maintained as well as possible

ii)

reducing the demand for new assets and financial savings through demand
management techniques and choice of non asset service delivery

iii)

achieving the best returns through economic assessment

iv) reducing unnecessary asset creation by informing the agency about the impact of
high operating costs of assets
v)

focuses on decisions, clarify the responsibilities and accountability, as well as


providing performance reports

5.0 Method to develop strategic AMP


Having a comprehensive strategic asset management plan in place will allow the
individu/ owner/ operator/ agency/ to manage the assets and deliver services as
efficiently as possible. There are 3 basic methods to develop strategic AMP which are
preparing strategic assets management plans, creating a strategy for asset and using
the ISO 55000
The first method is to prepare the strategic asset management plans which can help
the organization provide services as effectively as it can. It also allow us to understand
how effective the assets are being utilized. The value over the entire lifecycle of an
asset can be determined and planned for. The information of the assets must be
collected and to confirm the records with a physical audit of the tangible assets. Take
into account projected costs for any asset to implementation determination. Then,
create strategies for the particular asset which basically include acquisition, operation,
maintenance, disposal, funding and risk assessment and management.
The second method is creating a strategy for assets which study the necessary
acquisition. The asset will be determined

to be purchased or otherwise made

available. Cost to benefit analysis should be calculated before acquiring or leasing an


asset. Then determine a plan for asset operations and maintenance of assets. Any
operational costs should be considered and it Including projected costs of maintenance
over time.
The third method is using the ISO 55000. The ISO 55000 is a standardized document
that details an effective system for creating a strategic asset management plan. It can
help the organization to develop a management plan that fit to the organization need.
The ISO 55000 also offers a comprehensive plan that you can follow to build your own
strategic asset management plan and offers some overall guidelines that your strategic
asset management plan should have in its final form

References

Definition of Asset management plan . Retrieved 8th October 2016 from


https://en.wikipedia.org/wiki/Asset_Management_Plan
Typical

AMP

areas.

Retrieved

8th

October

2016

from

https://en.wikipedia.org/wiki/Asset_Management_Plan
Asset management plan. Retrieved 8th October 2016 from http://pengurusanaset.blogspot.my/2009/04/melaksana-pengurusan-aset-dalam.html

Asset management program diagram .

Retrieved 8th October 2016 from

http://simple.werf.org/Books/Contents/Getting-Started-(2)/What-is-AssetManagement How to develop a strategic management plan. Retrieved 8th October 2016 from
http://www.wikihow.com/Develop-a-Strategic-Asset-Management-Plan