Asset Management is the management of (primarily) physical assets (their selection, maintenance, inspection and renewal) plays a key role in determining the operational performance and profitability of industries that operate assets as part of their core business. Additional categories of assets covered by the scope of this discipline include: information, finance, competence and other intangibles insofar as they relate to asset management decisions.
Asset Management is the art and science of making the right decisions and optimising these processes. A common objective is to minimise the whole life cost of assets but there may be other critical factors such as risk or business continuity to be considered objectively in this decision making.
This emerging professional discipline deals with the optimal management of physical asset systems and their life cycles. It represents a cross-disciplinary collaboration to achieve best net, sustained value-for-money in the selection, design/ acquisition, operations, maintenance and renewal/ disposal of physical infrastructure and equipment.
The PAS55 standard, sponsored by the IAM, defines the requirements for such an integrated approach.
Asset Management Diagrams
Because asset management is such a broad, integrating view of business, it is often best understood by a number of illustrations. Click here for useful Asset Management Diagrams and explanation of their meaning.