What are the requirements of an asset management plan?

Asset management refers to the systematic process of cost-effectively controlling the development, operation, maintenance, acquisition, and disposal of assets. Your business must keep track of its assets to know which should be utilised for optimal returns.
What are the requirements of an asset management plan?

Typically, organisational assets fall under two categories; current and fixed assets

Current assets can be converted into cash within a short period, while non-current or fixed assets are acquired for long-term use.

Asset life cycle

The asset life cycle can be described as the stages an asset goes through during its ownership period. The period ranges from the time of acquisition to the operation and disposal of the asset. A brilliant way to enhance value over an asset’s life cycle is by deploying proper processes, systems, and sufficient human resources.

Asset management plan (AMP)

An AMP is a plan developed for the management of one or multiple organisational assets or infrastructure. Since an AMP is one element of the asset management system, it requires a systematic approach. This is true, especially where it covers multiple codependent assets that work together to achieve an organisation’s asset management objectives and deliver a recommended standard of service.

Proper asset management is the cornerstone of any successful business. A strategic asset management plan covers the following areas:

  • Current performance
  • Cost and benefits
  • Standard of service
  • Planned actions
  • Potential future improvements

Asset management plan contents

There are minimum requirements for AMPs that state what should be included in the plan. This is in accordance with various international standards and guides. Below are items that are typically found in an asset management plan:

  • Scope
  • Levels of service
  • Physical description and classification of organisational assets
  • Asset management practices
  •  Asset lifecycle costing and evaluation
  • Links to any related strategies, policies and plans
  •  Asset management monitoring, measures and targets
  • Expenditure forecasts and cash flows

ISO 55001 certification

This standard and certification provides businesses with the requirements for establishing, implementing, and improving their asset management plans. The ISO 55001 certification standards apply to assets of any type. Although the certification is not an AMP by itself, it delivers a global standard that all businesses have to follow.

This standard stipulates that an organisation shall establish, document, and maintain feasible AMPs to achieve its asset management objectives. The AMP has to be aligned with the strategic asset evaluation plan and management policy.

The ISO 55001 asset management standard is designed by the International Organization for Standardization to complement any existing ISO certifications that a business may have. Generally, AMPs are created as word documents, but you can still find an asset management plan template in different wiki formats.

Wiki-based formats are more convenient since there is no need for hard copies of the AMP, and they offer superior search and indexing capabilities.

Benefits of asset management

Several benefits can be reaped from the adoption of an asset management strategy. These include improved asset acquisition and utilisation. By employing an effective asset management system, businesses can streamline their planning processes and improve their risk management.

Want to start managing your assets like a pro? Contact us now

An effective asset management system is essential for any organisation’s financial success. At Citation Certification, we are a JAS-ANZ accredited institution offering ISO 55001 certification to financial organisations throughout Australia.

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