An asset management system is a plan of action an organization undertakes to ensure that its infrastructure and other allied assets deliver the desired standard of service. Asset management systems are usually used where the available assets are co-dependent in nature and are, therefore, meant to work cohesively for the achievement of optimal results.
Purpose of Asset Management Programs
The main purpose of an asset management system is to clarify for a certain standard of service will be given using designated assets in a way that is justifiable and optimal. The term “optimal” is a way to describe a situation where a superior standard of service can be best achieved at a minimal overall cost. On the other hand, justifiability has something to do with the complete presentation of all the benefits and costs for scrutiny purposes in order to gauge the efficiency and effectiveness of the activity.
Basics of Asset Management Programs
An organization uses an asset management system in order to have a workable system that looks into the three major facets of physical assets management, which are operation, upgrading and maintenance. When the frames for these three tasks are established in the asset management system, it becomes easier for an organization to completely understand the nature of its assets and their respective values. An organization also becomes better placed to create good investment decisions.
Planning of Asset Management Programs
Perhaps one of the most relevant purposes of an asset management system is to help an organization make informed planning decisions. A sound asset management system gives a very useful framework that will help measure overall performance and give vital information to aid in internet short and long term planning.
Framework of Asset Management Programs
For the intended purpose of an asset management system to be fully realized, the program should have a few fundamental elements, including internal strategic investment analysis, engineering optimization tools, asset evaluation and monitoring and integrated asset databases. All these components are important to inform required risk management practices, allocate resources, gauge expected impacts and cost estimates, provide a means of trend indicators and predictors, clarify available asset inventories with their respective valuations, and provide compatibility and integrity.