A strategy for asset management is the foundation of a successful asset management system. These plans help organizations understand their objectives and long-term asset management strategy by providing a roadmap. Let us take an overview on what is asset management plan definition along with objectives, strategy, framework and template of it.
An asset management plan is a tactical strategy for controlling an organization’s infrastructure and other assets in order to provide a specific level of service (AMP). Particularly if they are interdependent and need to work together to provide a certain level of service, a typical asset management strategies will take a system approach and cover multiple assets.
Asset Management Plan Definition
A tactical plan rendered for managing firm’s infrastructure along with other financial assets to ensure delivery of agreed standard of services is refer as an asset management plan (AMP). Typically, more than one asset is cover under an asset management plan and it follows a system approach. Especially where a number of assets are reliant and are obligatory to work mutually to deliver an agreed standard of service.
The International Infrastructure Management Manual has defined an asset management plan as, “A plan developed for the management of one, two or any number of infrastructure assets that combines multi-disciplinary management techniques (including technical & financial) over the life cycle of the asset in the most cost effective way to ensure a specific level of service.”
Key Goals and Objectives of Asset Management Plan
Normally there are two major asset management objectives of an asset management plan.
1. Justification – To provide visibility of the costs and advantages linked with providing the agreed standard of service.
2. Optimization – To reduce the whole-life cost, that involves the operation, replacement and maintenance or disposal of each asset in the system.
What we must understand here, is that for either of the above to work, the Standard of Service needs to be defined clearly for each and every asset in an asset system and in a measure-able way.
The achievement of first objective is essential before the decentralization of decision-making around maintenance and replacement can really happen, and it is relatively quicker. However, accomplishing optimization demands ongoing work in local teams, together with enhanced supervision from the center.
An asset management plans (AMPs) ought to take a “horses for courses” approach – not a one size fits all, but needs based – considering the fundamental information required. Beyond this, it should be fabricated upon by the local asset manager taking under account the local requirements.
An effusively developed Asset Management approach typically requires a number of iterations of the asset management plan, and needs to be reviewed more often. This is for relatively more complex systems, especially asset systems where the average annual cost needed to proffer the agreed standard of service is high.
Asset Management Strategy
One of the phase important in asset management planning is to build asset management strategy. This is a high level strategic document that provides guidelines for the overall asset management activities of the company or an organization. Asset management strategy will be link to different plans to deliver the goals and objectives of management planning like:
- Asset Management Plans.
- Asset Management Policy.
- Long Term Financial Plan.
- Asset Management Improvement Plan.
- Risk Management Plan.
- Social & Community Plan.
- Community Engagement Plan.
- Environmental Management Plan.
Asset Management Plan Framework
To manage assets effectively and sustainably, it’s mandatory to follow the asset management plan framework structure. Let us briefly understand the phases involved of asset management framework:
Develop an effective Asset Management Policy.
Develop an Asset Management Strategy which covers following points:
- Prepare an Asset Management Plans for different asset classes.
- Prepare the various processes that are linked to Asset Management Plans with Long Term Financial Plans.
- Defined service-level and affordability to the best of the industry.
- Set governance processes and management arrangements.
- Set the process for data and systems which need to be integrated to provide support to asset management.
- Build a process for improvement of skills and various other processes.
Develop an evaluating process with respect to asset management plans, processes, skills, governance and asset sustainability.
- Link asset management with annual report of the company / organization.
Asset Management Plan Framework is been developed in such a way that it does not prescribe a single methodology, or restrict the processes that are currently followed to achieve these asset management goals and objectives. Best practices, processes, goals and objectives can be enhance through various range of improvement towards asset management strategy.
Asset Management Plan Template in PDF Format
Correct measures taken by any management is the key towards growth of a company or an organization. Here is the sample format template as well as example of asset management plan. You can download the file for the link: Asset Management Plan.pdf
Asset Management Plan Template in Doc Format
You can also download asset management plan template in doc format for the link given below. You can reuse this format template for your company project.
Simply said, asset management is a system that helps firms keep track of all of their assets. Including their investments, equipment, and vehicles. Operations can be made more efficient by keeping track of assets, especially when it comes to selling or disposing of them. Because all available assets are accounted for during the process, the likelihood of recording ghost assets is likewise decreased.
An asset management plan can help you manage your assets to increase their value, provided you have the money to replace them as needed. It takes a lot of time for many small water systems to plan their budgets and collect the funds required to rebuild their assets. Drinking water that is secure, dependable, and safe can be provided by using efficient asset management to schedule timely replacements and avert untimely failures.
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Basics of Asset Management for Beginners
- Chapter 1: What is Asset Management? Definition, Role and Purpose
- Chapter 2: Importance of Asset Management
- Currently Reading: Asset Management Plan - Definition, Strategy, Framework, Template
- Chapter 4: Asset Management Process Flow Chart
- Chapter 5: Investment Risk Management - Definition, Types, Strategies and Methods
- Chapter 6: What is Private Wealth Management? Definition, Types, Examples
- Chapter 7: Who is Fund Manager? Definition, Roles, Functions
- Chapter 8: What is a Portfolio Manager? Definition, Responsibilities
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