An asset management program is a plan of action undertaken by an organization to ensure that its infrastructure and other allied assets

are employed to deliver a desired standard of service. Such systems are normally employed where the available assets are co-dependent in nature and are as such meant to work cohesively for the achievement of optimal results.

Purpose
1. The main purpose of an asset management program is to clarify how a given standard of service will be provided using designated assets in a manner that is both optimal and justifiable. The term "optimal" attempts to describe a scenario where a superior standard of service can be best achieved at a minimal overall cost. Justifiability, on the other hand, has to do with a full presentation of all the costs and benefits for scrutiny purposes so as to gauge the activity's effectiveness and efficiency.

Basics
2. An organization undertakes an asset management program to have a workable system that looks into the three major facets of physical assets management: maintenance, upgrading and operation. Once the framework for these three tasks is set, it becomes easier for an organization to fully understand the nature of its capital assets and respective values. An organization also becomes better placed to make sound investment decisions.

Planning
3. One of the most relevant purposes of an asset management program is to help an organization make informed planning decisions. A sound asset management program provides a useful framework that helps measure overall performance and provides vital information to help in internal short- and long-term planning.

Framework
4. For the intended purpose of an asset management program to be realized, the program must contain a few fundamental elements. These include integrated asset databases, asset monitoring and evaluation, economic/engineering optimization tools and internal strategic investment analysis. These components are relevant in establishing organizational data accessibility, providing compatibility and integrity, clarifying the available asset inventories and their valuations, providing a means for trend predictors and indicators, gauging cost estimates and expected impacts, allocating resources and informing required risk management practices.

Benefits

5. An asset management program is successful when the desired standard of service translates into measurable benefits that can be monetary, environmental or social. While it may be difficult to quantify some of these benefits, it is essential to provide some kind of assessment that will indicate if the asset management program is worth the ongoing costs with respect to the benefits accrued.

Asset Management Principles 1. Service delivery needs are to guide asset practices and decisions. Organisations are to undertake asset management activities within a strategic framework that is driven by program and service delivery needs. 2. Asset planning and management are to be integrated with corporate and business plans, budgetary and reporting processes. Planning, budgeting for, and reporting on assets are to be integrated with broader planning processes. 3. Asset management decisions are to be based on evaluations of alternatives that take into account full life cycle costs, benefits and risks of assets. Capital expenditure decisions are to be based on rigorous and documented economic appraisals of options that include financial as well as non-financial parameters. 4. Ownership, control, accountability and reporting requirements for assets are to be established, clearly communicated and implemented. Ownership and control of all assets are to be fully defined. Accountability and reporting requirements for both ownership and control are to be determined and clearly communicated. 5. Asset management activities are to be undertaken within an integrated Government asset management policy framework. Asset management is to be based on best practice principles and standards.

Asset Management Complex assets and facilities management must be professionally performed incorporating standard good practice in maintenance, acquisition plans and disposal plans Contracts Arrangements for leasing, buying or selling facilities and assets by the VET provider require clear, agreed, and achievable contracts Outsourcing Outsourcing may provide increased flexibility and reduced costs Control Control of facilities and assets is a shared activity involving new players Coordination Facilities and asset management can benefit through sharing of experiences across wider sectors Funding/ Finance Funding and financing for facilities and assets must be strategic, flexible and evolving to meet the changing circumstances in the environment Ownership Facilities and assets may be acquired through a variety of options Partnerships Partnerships in facilities can extend and improve the use of investments and distribute the responsibilities over a wider range of organizations Staffing Proper staff selection and professional development support can lead to better program outcomes, including facilities and asset management Utilisation Maximum utilisation of existing facilities and assets reduces the need for additional investment

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