Without counsel plans go wrong,
but with many advisers they succeed.
Proverbs 15:22

Asset planning is fundamental to the
effective management of an entity's business,
being the first phase in the asset life cycle
(see Figure 2.4).

Matching the asset requirements of an entity
to its service delivery strategy should result in
assets with the necessary capacity and performance.
Asset planning also leads to specific actions to
acquire any new assets that may be needed,
to dispose of assets that are surplus and to operate
and maintain existing assets effectively.

This section describes a model asset planning
framework (illustrated in Figure 2.5) within which
entities are required to undertake planning
and budgeting for asset acquisition, operation
and disposal.

Figure 2.4
Asset life cycle: the planning stage