The Asset Management Council defines asset management as, “The life cycle management of physical assets to achieve the stated outputs of the enterprise”. This definition specifies a focus upon the delivery of a stated capability in which assets play a key role, and in which the business must manage its physical assets commensurate with the business need for that capability. Thus, the definition is concerned with short, medium and long-term considerations from the conception of the asset's need, through its complete operating life, all the way until its disposal phase. This definition also defines the boundaries of asset management and differentiates it from other key management processes.
Benefits of Asset Management
The benefits of asset management are numerous: more predictable and sustainable cash flows; the final outcome of the profit and loss; the value of the assets on the balance sheet; and the ability to both support an expected share price and achieve market share. These benefits are being increasingly recognised by business and government alike, and are supported by a number of factors, including the publication of numerous state and national government reports into the management of critical community and public assets; and the development and publication of an international standard on asset management (the ISO 55000X suite was published in January 2014).
The realisation that asset management contributes directly and indirectly to a number of important factors means that a common asset management language for better communication within organisations and across industries is increasingly considered by top management to be more important than ever.
The Asset Management Council is committed to advancing the asset management knowledge and capability of both its members and stakeholders, and as such, it has brought together some of the best technical asset management professionals within Australia in the form of the Asset Management Body of Knowledge (AMBoK).
The AMBoK Team makes asset management knowledge accessible to, and useable by, members and stakeholders of the Asset Management Council. They are a forward-thinking technical team consisting of numerous volunteers in senior positions in asset-intensive industries that supports the Asset Management Council in enabling value from effective asset management. For more information on AMBoK and how its knowledge base can help you learn more on asset management, please refer to the "AMBoK" tab at the top of the page.
Framework for Asset Management
For more information on asset management, please download our Framework for Asset Management, Second Edition. This publictaion provides an intellectual framework and context through which information about asset management can be developed and universally understood. The publication discusses key asset management elements including demand management, systems engineering, configuration management, acquisition, operations and maintenance, continuous improvement, business management, and culture and leadership, and is a primary resource provided by our AMBoK team.