The term Asset Management applies in some industries as “life cycle management of tangible physical assets” and to others as “management of intangible assets” such as financial assets. In this article, and all other NAPES Solutions articles, the relevant application of Asset Management is for tangible physical assets.
Asset Management is:
The life cycle management of physical assets to achieve the stated outputs of the enterprise
Asset Management Council (AMC), Australia
Breaking this definition down gives:
- Life Cycle Management. Management over the entire life cycle of the physical asset, from concept to retirement.
- Physical Asset. A physical asset by definition is a tangible physical item which has value.
- Enterprise Stated Outputs. These are state requirements placed by the enterprise (organisation) which the services or products need to output. Typically for financial goals but also include outputs related to social responsibilities such as environmental goals.
Would you like to know more?
Useful Asset Management resources:
- URL: AMC article: http://www.amcouncil.com.au/knowledge/what-is-asset-management.html
- URL: ISO.org ISO 55000
- URL: AMC resources
- Reference Textbook: Living Asset Management by J. R. Lafraia, J. Hardwick