Definition
Asset management is the process of guiding the acquisition,
use and disposal of assets to make the most of their service delivery
potential and manage the related risks and costs over their entire
life.
Objectives
The principal objective of asset management is to
enable an agency to meet its service delivery objectives efficiently
and effectively.
Effective asset management also:
- makes the most of the service potential
of assets by ensuring they are appropriately used and maintained;
- reduces the demand for new assets
and saves money through demand management techniques and non-asset
service delivery options;
- achieves greater value for money through
economic evaluation of options that take into account life cycle
and full costs, value management techniques and private sector
involvement;
- reduces unnecessary acquisition of
assets by making agencies aware of, and requiring them to pay
for, the full costs of holding and using assets; and
- focuses attention on results by clearly
assigning responsibility, accountability and reporting requirements.
| Figure 1.1
Key activities
Asset management is a continuous
process covering the whole life of
the asset. An agencyís asset management
program should encompass all the
activities illustrated above.
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