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Asset Management Case Study

1984 Words8 Pages

1.1 INTRODUCTION TO THE STUDY

Asset Management involves the balancing of costs, opportunities and risks against the desired performance of assets, to achieve the organizational objectives. This balancing might need to be considered over different timeframes. Asset management also enables an organization to examine the need for, and performance of, assets and asset systems at different levels. Additionally, it enables the application of analytical approaches towards managing an asset over the different stages of its life cycle (which can start with the conception of the need for the asset, through to its disposal, and includes the managing of any potential post disposal liabilities).

Asset Management is the art and science …show more content…

To achieve this objective, asset management embraces all of the processes, tools, and data required to manage assets effectively (Nemmers2004). For this reason asset management is also defined as “a process of resource allocation and utilization” (AASHTO 2002).
Asset management decisions are based on policy goals and objectives. The agency establishes policy goals and objectives to reflect the desired system condition and target level of service. Performance measures are selected to express the desired system condition and target level of service in an objective manner, and to allow tracking of progress toward desired goals. Planning and programming are complex processes since the agency manages several types of physical infrastructure facilities.
According to the Federal Highway Administration (FHWA), to effectively support the asset management process, an asset management system should include (FHWA …show more content…

The payment includes the acquisition cost, freight and all other costs to put the asset. Acquisition cost of donated Asset Management is determined by its fair market value.
Identification: The asset is identified as an asset, tagged or otherwise identified and entered into the Asset Management inventory system. Assets are identified with a permanently attached identification tag, etching or by painting on the identification number.
Inventory: The longest step in the cycle. The asset is used over its useful life. Assets are inventoried and accounted for during this step until they are no longer needed. The agency’s policies and procedures determine the inventory interval.
Excess: The asset is declared as excess to the user’s needs. The asset may be transferred to another user where it will continue to be used, accounted for and inventoried. Assets may be declared as excess more than once until the asset is no longer needed.
Surplus: The last step in the Asset Management cycle. The asset is declared to be surplus property and to have no further value to the agency. The asset is disposed of by sale or discarding depending on the residual value. Sale can be by auction, sealed bid, spot sale, or through a sales store

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