Asset Management
Introduction
This part of the Asset Management Series describes the purpose and fundamental principles of effective asset management and provides a strategic framework through which agencies can achieve its benefits. The principles outlined in this part must be reflected in agencies’ corporate and business planning and form the basis of asset management performance.
Who should read this part?
This part is intended for:
•
Chief Executive Officers and senior managers who are ultimately responsible for asset management in their agencies; and all staff in agencies who make decisions about assets.
•
In this part, 'agency' is used to mean all departments, service agencies and statutory authorities in the Victorian public sector.
What is asset management about?
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.
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Figure 1.1 Key activities Asset management is a continuous process covering the whole life of the asset. An
This part of the Asset Management Series describes the purpose and fundamental principles of effective asset management and provides a strategic framework through which agencies can achieve its benefits. The principles outlined in this part must be reflected in agencies’ corporate and business planning and form the basis of asset management performance.
Who should read this part?
This part is intended for:
•
Chief Executive Officers and senior managers who are ultimately responsible for asset management in their agencies; and all staff in agencies who make decisions about assets.
•
In this part, 'agency' is used to mean all departments, service agencies and statutory authorities in the Victorian public sector.
What is asset management about?
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