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886 views27 pages

Topic 1

Uitm

Uploaded by

Cak Ijiey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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UNIVERSITI TEKNOLOGI MARA

CODE : CEM 502 / CEM 584


COURSE : ASSET MANAGEMENT/
INFRASTRUCTURE ASSET
MANAGEMENT
LEVEL : Bachelor of Engineering (Hons.) Civil
(Infrastructure)
CREDIT UNIT : 3.0
CONTACT HOUR : Lecture: 3.0 hrs/week
PART : 08
PREREQUISITE : Nil

Prepared by:
MOHAMAD ZAIN BIN HASHIM

Page 1 of 27
Chapter 1.0 - Introduction to Asset Management

LEARNING OUTCOMES:
The student should be able to:
 Definition of asset management;
 The types of industry to which asset management is particularly important;
 Definitions of assets, liabilities and related terms from an accounting viewpoint;
 An outline of the asset management life cycle;
 Relate the significance of studying asset management to work performance.
 Appreciate and understand the role and responsibility of an asset manager.
 Understand the asset management process.
 Begin developing skills necessary for holding management positions
 The broad types of assets which organizations have;
 The place of asset management within and throughout an organizational structure;

Page 2 of 27
Chapter 1.0 - Introduction to Asset Management

What is Asset Management?


THEIAM: Asset Management is the management of (primarily) physical assets (their selection,
maintenance, inspection and renewal) plays a key role in determining the operational performance and
profitability of industries that operate assets as part of their core business. Additional categories of assets
covered by the scope of this discipline include: information, finance, competence and other intangibles
insofar as they relate to asset management decisions. Asset Management is the art and science of making
the right decisions and optimising these processes. A common objective is to minimise the whole life
cost of assets but there may be other critical factors such as risk or business continuity to be considered
objectively in this decision making. This emerging professional discipline deals with the optimal
management of physical asset systems and their life cycles. It represents a cross-disciplinary
collaboration to achieve best net, sustained value-for-money in the selection, design/ acquisition,
operations, maintenance and renewal/ disposal of physical infrastructure and equipment.
http://theiam.org/what-asset-management 25-01-2013

Asset Management: Advancing the State of the Art Into the 21st Century Through Public-Private Dialogue. Federal Highway
Administration and the American Association of State Highway and Transportation Officials, 1996, page 3.
Asset management is a systematic process of maintaining, upgrading, and operating physical assets
cost-effectively. It combines engineering principles with sound business practices and economic theory,
and it provides tools to facilitate a more organized, logical approach to decision-making. Thus, asset
management provides a framework for handling both short- and long-range planning.1

ASSET MANAGEMENT GUIDING PRINCIPLES


An Asset Management system should be:
• Customer focused
• Mission driven
• System oriented
• Long-term in outlook
• Accessible and user friendly
• Flexible
An Asset Management system should include:
• Strategic goals
• Inventory of assets (physical and human resources)
• Valuation of assets
• Quantitative condition and performance measures
• Measures of how well strategic goals are being met
• Usage information
• Performance-prediction capabilities
• Relational databases to integrate individual management systems
• Consideration of qualitative issues
• Links to the budget process
• Engineering and economic analysis tools
• Useful outputs, effectively presented
• Continuous feedback procedures

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AASHTO: As defined by the AASHTO Standing Committee on Highways, Planning Subcommittee
on Asset Management,
Transportation Asset Management is a strategic and systematic process of operating, maintaining,
upgrading, and expanding physical assets effectively throughout their lifecycle. It focuses on business and
engineering practices for resource allocation and utilization, with the objective of better decision making
based upon quality information and well defined objectives.
http://www.transportation.org/sites/scoh/docs/Motion_ Trans_Asset_Management.doc

Wikipedia : Infrastructure asset management is the integrated, multi-disciplinary set of strategies in


sustaining public infrastructure assets such as water treatment facilities, sewer lines, roads, utility
grids, bridges, and railways. Generally, the process focuses on the later stages of a facility’s life
cycle specifically maintenance, rehabilitation, and replacement. Asset management specifically uses
software tools to organize and implement these strategies with the fundamental goal to preserve and
extend the service life of long-term infrastructure assets which are vital underlying components in
maintaining the quality of life in society and efficiency in the economy.[1]
From Wikipedia, the free encyclopedia
http://en.wikipedia.org/wiki/Infrastructure_asset_management 15-02-2013

TERM : Infrastructure asset management is a specific term of asset management focusing


on physical, rather than financial assets. Sometimes the term infrastructure management is used to
mean the same thing, most notably in title of The International Infrastructure Management Manual (2000,
first edition). Where there is no problem of confusion, the term asset management is more widely used,
as in the professional societies: the Asset Management Council in Australia, and the Institute of Asset
Management in the UK. In this context, infrastructure is a wide term denoting road and rail, water, power,
etc. assets.
The first published use of the term asset management to refer to physical assets is not known for sure.
The earliest adopter known for certain is Dr Penny Burns in 1984 (see the Asset Management History
Project [1]). The New Zealand Infrastructure Asset Management Manual published in 1996 is an early use
of the specific term infrastructure asset management [2].
From Wikipedia, the free encyclopedia
http://en.wikipedia.org/wiki/Infrastructure_asset_management 15-02-2013

PAS 55 defines asset management as “systematic and coordinated activities and practices through
which an organization optimally and sustainably manages its assets and asset systems, their
associated performance, risks and expenditures over their life cycles for the purpose of achieving its
organizational strategic plan.” Other wordings and definitions are in use in various industries, but the
most robust ones all include the key elements of this PAS 55 definition: They identify the coordination
and systematic approach, the need for optimization, and the combined consideration of expenditures, asset
performance, and risk exposures. They recognize the need for a whole lifecycle or sustainability view
(i.e., the long term) and for asset management to be directed toward a clear corporate goal. For many
organizations, such aspirations represent a significant challenge, yet the prize for getting it right is
substantial.

ASSET MANAGEMENT DEFINITIONS


The term Asset Management may be used in the context of strategic management or tactical (day-
to-day) management. Because this Primer maintains a strategic orientation, the following selected

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definitions are provided, which describe a comprehensive, strategic, and integrated system of Asset
Management.

“…a methodology needed by those who are responsible for efficiently allocating generally insufficient
funds amongst valid and competing needs.”
— The American Public Works Association Asset Management Task Force

“…a comprehensive and structured approach to the long-term management of assets as tools for the
efficient and effective delivery of community benefits.”
— Strategy for Improving Asset Management Practice, AUSTROADS, 1997

“Asset Management…goes beyond the traditional management practice of examining singular systems
within the road networks, i.e., pavements, bridges, etc., and looks at the universal system of a network of
roads and all of its components to allow comprehensive management of limited resources. Through
proper asset management, governments can improve program and infrastructure quality, increase
information accessibility and use, enhance and sharpen decision-making, make more effective
investments and decrease overall costs, including the social and economic impacts of road crashes.”
— Organization for European Cooperation and Development Working Group, Asset Management
Systems, Project Description, 1999

“In the transportation world, asset management is defined as a systematic process of operating,
maintaining, and upgrading transportation assets cost-effectively. It combines engineering and
mathematical analyses with sound business practice and economic theory. The total asset management
concept expands the scope of conventional infrastructure management systems by addressing the human
element and other support assets as well as the physical plant (e.g., highway, transit systems, airports,
etc.). Asset management systems are goal driven and, like the traditional planning process, include
components for data collection, strategy evaluation, program development, and feedback. The asset
management model explicitly addresses integration of decisions made across all program areas. Its
purpose is simple—to maximize benefits of a transportation program to its customers and users, based on
well-defined goals and with available resources.”
— Blueprint for Developing and Implementing an Asset Management System, Asset Management
Task Force, New York State Department of Transportation, April 22, 1998

What is “infrastructure”?
IPWEA: The Institute of Public Works Engineering Australia (IPWEA) represents a significant
number of stakeholders responsible for the management of infrastructure assets across the public works
and local government sector - essential infrastructure on which our communities rely.
Hence, in our context, we are dealing with the local road network, stormwater drainage systems, water
and sewerage systems and community buildings that comprise the essential foundation of the fabric of our
community. This local community infrastructure underpins the nation’s economy and provides significant
support for State and National infrastructure.
It is noteworthy that local government owns and manages some 85% of the total road network in
Australia - and accordingly is a vital player in the management of infrastructure and the overall economy.
Too little regard is given to the importance of existing local community infrastructure.

Water Services Infrastructure Asset Management, Municipal Indaba:


September 2008 :
The common definition of an ASSET is:

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A person or thing possessing valuable qualities that is useful and contributes to the success of
a specific purpose.
The common definition of ASSET MANAGEMENT is:
The management of assets to ensure valuable qualities are maintained, extended and used for
successful outcome.
The international definition of INFRASTRUCTURE ASSET MANAGEMENT (IAM) is:
Infrastructure asset management (IAM) is an integrated process of decisionmaking, planning
and control over the acquisition, use, safeguarding and disposal of assets to maximise their
service delivery potential and benefits, and to minimise their related risks and costs over their
entire life.
This definition indicates that IAM:
a) Takes an organisation‐wide perspective and draws upon applicable principles and techniques
in the management, engineering, accounting and social sciences (including human resources).
b) Has an outcomes focus (i.e. a focus on outcomes such as maximisation of service delivery
potential, protection of the ability of the infrastructure network(s) to deliver services, cost
effectiveness and efficiency).
c) Confers a custodianship role on the managers of infrastructure and their political leaders – i.e.
that they are the “custodians”, responsible for the lifelong sustainable operation of the
infrastructure, and for service delivery not only to the current users of the infrastructure, but
to future users as well.
d) Must take into account both consumer expectations (including levels of service, and cost of
the service) and the legislative environment (e.g. financial and environmental legislation,
including any regulatory regime (e.g. regulation of drinking water quality).

Brookfield Asset Management:


What is Infrastructure?
Infrastructure is often described as the backbone of the global economy. Infrastructure assets incorporate
long-life, physical assets that provide essential products or services for the global economy.

Infrastructure assets include:


Transportation
 Toll Roads
 Bridges
 Tunnels
 Ports
 Airports
 Rail
Energy and Utilities
 Electricity transmission and distribution networks, generation
 Oil and gas pipelines and storage
 Water and waste water
Communications
 Wireless communication towers
 Broadcast satellites
 Cable networks
Social
 Education facilities

Page 6 of 27
 Healthcare projects
Other
 Timber
 Industrial infrastructure
 Parking garages / car parks
www.brookfield.com 15/2/2013

Adopted from: Prospects of Mind Maps for Better Visualization of Infrastructure Literature; Tarek Hegazy,
M.ASCE1; Abdelbaset Ali2; and Mohamed Abdel-Monem3, JOURNAL OF PROFESSIONAL ISSUES IN
ENGINEERING EDUCATION & PRACTICE © ASCE / OCTOBER 2011

Page 7 of 27
Adopted from: Prospects of Mind Maps for Better Visualization of Infrastructure Literature; Tarek Hegazy,
M.ASCE1; Abdelbaset Ali2; and Mohamed Abdel-Monem3, JOURNAL OF PROFESSIONAL ISSUES IN
ENGINEERING EDUCATION & PRACTICE © ASCE / OCTOBER 2011

Page 8 of 27
WHAT IS ASSET MANAGEMENT? D. J. ‘‘Dana’’ Vanier
The asset managers' technical challenges, as identified in the first three sections, are indeed
complex, but they are not intractable in the author's view. In an attempt to classify and to
describe examples of existing decision-support tools for asset management as well as to
juxtapose them opposite discrete stages for asset management implementation, the author
presents his six “Whats” of asset management:
 What do you own?
 What is it worth?
 What is the deferred maintenance?
 What is its condition?
 What is the remaining service life?
 What do you fix first?
Anecdotal information from a number of typical organizations maintaining municipal
infrastructure indicate that many of these organizations fare well with the first two questions,
then may fail miserably on the remaining four. Discussions with asset management professionals
also indicate that there is a scattering of responses depending on the discipline domain (i.e.
roadways, bridges, parks, buried utilities, buildings).
D. J. ‘‘Dana’’ Vanier, J. Comput. Civ. Eng. 2001.15:35-43.

What Is Engineering Asset Management?


J.E. Amadi-Echendu et al., Definitions, Concepts and Scope of Engineering Asset Management, © Springer 2010
ABSTRACT: Definitions of asset management tend to be broad in scope, covering a wide
variety of areas including general management, operations and production arenas and, financial
and human capital aspects. While the broader conceptualization allows a multifaceted
investigation of physical assets, the arenas constitute a multiplicity of spheres of activity. We
define engineering asset management in this paper as the total management of physical, as
opposed to financial, assets. However, engineering assets have a financial dimension that reflects
their economic value and the management of this value is an important part of overall
engineering asset management. We also define more specifically what we mean by an
“engineering asset” and what the management of such an asset entails. Our approach takes as its
starting point the conceptualisation of asset management that posits it as an interdisciplinary field
of endeavour and we include notions from commerce and business as well as engineering. The
framework is also broad, emphasising the life-cycle of the asset. The paper provides a basis for
analyzing the general problem of physical asset management, relating engineering capability to
economic cost and value in a highly integrated way.

What Is an ‘Engineering’ Asset?


The definition of an asset given in the Oxford English Dictionary (OED) is:

“All the property of a person or company which may be made liable for his or their debts.”
(OED, 2007)

Page 9 of 27
The importance of considering this ordinary meaning of the word ‘asset’ is that we want our
concept of an engineering asset to be consistent with basic, everyday ideas. The main points to
note about the dictionary definition are that there is (a) an object (‘property’) to which (b) a legal
entity (‘person or company’) attributes (c) a value (‘debt’). Thus an asset is more than just a
physical thing. It is part of a relationship between an object and an entity and a value is attached
to the object by the entity.

Engineering Asset Management


Management is defined in the OED as follows:

“Organization, supervision, or direction; the application of skill or care in the manipulation,


use, treatment, or control (of a thing or person), or in the conduct of something.”
(OED, 2007)
The OED more specifically defines asset management, perhaps significantly citing quotation
from quite recent US sources, as:

“… the active management of the financial and other assets of a company, etc., esp. in
order to optimize the return on investment.” (OED, 2007)

Page 10 of 27
Table 1. Brief Definition of Important Asset Management Concepts
Concept Definition
Asset Physical entity describing the whole (e.g., building) or its
components (e.g., roof assets, road assets, and boiler
assets); assets are owned by public or private organizations
Infrastructure asset Systematic process of planning, operating, maintaining,
management upgrading, and replacing assets cost effectively to meet the
performance criteria described subsequently, over the
asset’s life cycle
Primary asset management programs
Maintenance Two types: Preventive (i.e., planned) for daily scheduled
maintenance; and reactive (i.e., unplanned) for resolving
unforeseen damage or failure

Page 11 of 27
Concept Definition
Capital Planned program for replacing an asset to improve its asset
renewal/replacement performance in any number of the criteria described
subsequently; it involves various functions (see subsequent
cells) to determine which asset, when, how much, and what
action is best to do in a multiyear multiasset plan under
budget limits
Repair/rehabilitation Planned program for improving the performance of an old
asset by repairing or restoring it to its previous condition; it
involves various functions (see subsequent cells) to
determine which asset, when, how much, and what action
is best to do in a multiyear multiasset plan under budget
limits
Financing/privatization/PPP Joint venture between the public and private sectors to
appropriately share the resources, risks, and rewards of
financing the development and the operation and
maintenance of assets
Performance criteria for capital renewal/repair and rehabilitation programs
Sustainability Environmental, social, and economic developments from
the asset that meet the present needs without compromising
the ability of future generations to meet their own needs
Key performance indicators Set of metrics measuring the performance of assets against
(KPI) the organizational objectives, including sustainability, level
of service, safety, and security
Level of service Index indicating the quality of service provided by an asset
to various stakeholders; for example, a road serving
vehicles, trucks, pedestrians, and cyclists
Green buildings/LEED Recognized standards measuring the environmental (i.e.,
green) sustainability aspects for new and existing
buildings, including measures of energy and waste savings
Risk Sum of (i.e., probability of x consequences) potential risk
events often assessed for the critical and costly equipment
in a building to avoid interruption to asset operation
Reliability Probability that asset will perform specified functions
within a specified period under specified conditions
Capacity/future demand Assessment of whether a particular asset still provides the
service for which it was designed used to predict future
demand
Remaining useful life Estimated number of years until an asset reaches the

Page 12 of 27
Concept Definition
minimum acceptable condition, performance, or level of
service
Functions involved in capital renewal/repair and rehabilitation programs
Condition Process of inspecting assets and assessing their condition
assessment/inspection/ indexes, extent of various defects, and performance,
performance assessment according to any desired performance criteria described
previously
Deterioration behavior Graph showing asset deterioration with time; simple
models assume linear deterioration with age; more detailed
Markov chain models use condition data to estimate future
deterioration
Repair options and costs Optional methods of repair (e.g., light, medium, and
extensive), each with estimates of cost as a percentage of
asset replacement cost and performance improvement
result
Life cycle cost analysis Study of asset costs throughout its life cycle to determine
(LCCA) best short-term and long-term actions, extending the asset’s
life span
Prioritization Techniques for ranking assets according to their
performance index/condition/importance to facilitate
decisions related to repair type and fund allocation
Fund allocation Allocation of funds to assets on the basis of repair type and
repair year decisions; a simple approach is according to the
asset priority rank; a better approach is the use of an
optimization model
Optimization model A framework linking decisions (i.e., repair types and repair
timings) to costs, performance, deterioration, and
constraints; optimization tools can then help determine
optimal decisions maximizing performance with minimum
cost
Execution planning Planning the delivery of capital renewal/repair and
rehabilitation programs of multiassets within time, cost,
and resource constraints by using in-house resources and
outsourcing
Adopted from: Prospects of Mind Maps for Better Visualization of Infrastructure Literature; Tarek Hegazy, M.ASCE1; Abdelbaset Ali2; and
Mohamed Abdel-Monem3, JOURNAL OF PROFESSIONAL ISSUES IN ENGINEERING EDUCATION & PRACTICE © ASCE / OCTOBER
2011

Page 13 of 27
Why infrastructure?
Investor interest in infrastructure has increased dramatically in recent years. The combination of
global population and economic growth, much-needed spending on infrastructure and a
deficiency in government budgets around the world has provided an opportunity for private
sector involvement.
Current estimates indicate global infrastructure spending will average $2 trillion annually through 2015 —
presenting incredible potential for private sector involvement.
Brookfield believes investment in infrastructure is set to flourish due to a number of critical factors:
1. On a global scale, population and economic growth is increasing, therefore creating demand for
new infrastructure;
2. Existing infrastructure around the world, much of it built over 50 years ago, needs to be replaced;
and
3. Government budgets, the traditional source of funding, are shrinking, requiring other sources of
funding from the private sector

Adopted from Brookfield Asset Management at www.brookfield.com on 21/2/2013

Why need Asset Management tools?


D. J. ‘‘Dana’’ Vanier, J. Comput. Civ. Eng. 2001.15:35-43.

ABSTRACT: This paper provides a retrospective overview of asset management in the


construction industry. Emphasis is placed on assessing decision-support tools for municipal
infrastructure planning. The study identifies the extent of the asset management market in North
America, addresses the need for decision-support tools for municipal-type organizations, and
identifies the challenges for maintenance, repair, and renewal planning faced by asset owners
and managers. Integration with existing systems such as computerized maintenance
management, geographic information, and corporate legacy systems is seen as the largest
challenge for developing and using decision-support tools in the area of asset management. The
present study classifies various stages of implementation for asset management using the six
‘‘whats’’—questions that an asset manager should ask about the status of his portfolio. Finally,
the activities of a consortium in the area strategic asset management are introduced. The
investigation leading to this paper located a limited number of decision-support applications,
none of which provides a comprehensive solution to address the current needs for planning the
municipal infrastructure.

Demand Forecasting based Infrastructure Asset Management


By Sang-Youb Lee*, Seung-Hyun Chung*% and Jung-Keun Oh***
Abstract
Infrastructure asset management provides a framework to handle both short-and long-term planning for the maintenance and
rehabilitation ofinfi-ash-ucture. In tiffs study, as major den:and forecasting methodologies, artificial neural networks (ANNs) and
nmltiple regression methodologies have been reviewed. Fox- sewer denlalld forecab~lg, two forecastillg models, artificial neural
networks and nluldple regression models, were developed mid their results were compared. Research findings indicated that the
muldple regression .model has the ability to explain the relationship between the predictor variables, while the ANN model
better represents the nonlinear

Page 14 of 27
trend in the data without worrying about the correlation problems associated with regression models. Sewer demand forecasting
allows asset managers to predict the future sewer demand, thus asset rna-uagers can identify "critical" sewers (i.e., current
hydraulic capacity not meeting the future demand) by comparing the current hydraulic capacity with the future demand.
dentifying and
rehabilitating "criti(~tl" sewers before any major failure occur can prevent health and environmental hazards and lead to cost
savings.
Keywords: arti~eial neural networ~ infrastructure asset management sewer demand forecasting

Adopted ppt entitle “TOTAL ASSET MANAGEMENT IN THE PUBLIC SECTOR” By Ir. Hj. Abu Bakar Bin Hj. Azit
,Asia Pacific Institute of Good Asset Management (APIGAM), SEMINAR ON PROFESSIONALISATION OF ASSET AND
PROJECT MANAGEMENT; -Organized by The Malaysian Asset and Project Management Association (MAPMA), 6thand
7thAugust 2009, PWTC, Kuala Lumpur

1. Why are Infrastructures & Buildings called Assets?


a) Because they are created for the sole purpose of providing the needed services to
people & enhancing people’s quality of life
b) If they are not properly planned, acquired or developed and maintained, they will
become
c) liabilities to ALL

ASSET <<<<< >>>>>LIABILITY

2. Terminology –Let’s get it right“Assets”, and “Asset Management”


a) Terminology Confusion
a. Urban Development & Management
i. Assets refer to Physical Assets
• Non-Current Assets
• Such as Infrastructure & Buildings

b) They don’t cover computer software & intellectual property


a. These are Intangible Asset

3. Why Infrastructure Asset Management? Infrastructure assets related public services


Good quality infrastructure networks are the basis of :
a) providing strong platform for economic and social development
b) the cornerstone of public health and safety
c) mitigates potential adverse environmental impacts of society
d) good governance in AM

4. What are Infrastructure Assets?


a) transportation networks ( roads, rail, ports, airports)
b) energy supply systems ( gas/electricity/oil production, transmission and distribution)
c) parks and recreational facilities
d) water utilities (water supply, wastewater, and storm water systems )

Page 15 of 27
e) flood protection and land drainage systems
f) solid waste facilities
g) educational and health sector facilities
h) libraries, administration and other community facilities
i) telecommunication networks

5. What is Asset Management (AM)?


“Asset Management is a process of guiding the initiation, acquisition, use and
maintenance, and disposal of assets, to make the most of their service delivery potential
and manage the related risks and costs over the full life of the assets.”
Source: KC Leong, 2004, The Essence of Asset Management —A Guide, a.k.a. the Green Book, published by UNDP
Malaysia & EAROPH-APIGAM

6. What is Goal of Infrastructure Asset Management?


To meet a required level of service, in the most cost effective manner, through the
management of assets for present and future customers.

7. Why do Government needs AM? Infrastructure assets <> related public services
• Though closely linked, 2 different management systems
• Infrastructure & buildings = tangible assets
—managed by one lot of agencies
• Services stemming from these assets are intangible
—need a different lot of agencies to manage
• Network relationship of Infrastructure assets related public services is complex
—need AM to assist in coordinating, developing & managing them for
sustainability

Page 16 of 27
8. ASSET DETERIORATION CHARACTERISTICS WITH AND WITHOUT MAINTENANCE

PROPERLY PLANNED & ADMINISTERED ACCRUAL ACCOUNTING


SYSTEM CAN REVEAL HOW AN ASSET HAS BEEN MANAGED

Source: KC Leong, 2004, The Essence of Asset Management —A Guide, a.k.a. the Green Book, published by UNDP
Malaysia & EAROPH-APIGAM

9. Myth: Asset Management is for the Rich!


A misconception.
• The poorer the community, the more they need public assets to provide the
essential & reliable public services.
• If the buses have broken down, or the roads have collapsed due to frequent
flooding, the poor will suffer most, as they have no other means of getting to the
place of work to earn their livelihood, or to a public hospital to seek treatment.

10. Where & when did Asset Management start?


• AM started in Australia and New Zealand.
• At the beginning of 1990s, State Governments in Australia put AM into practice
• Thanks to Australia, Canada adopted AM in 1997; in the USA, they became
interested only in the early 2000s.

Page 17 of 27
The US has attitude problems; they believe Uncle Sam is super rich, hence can
enjoy the luxury of “Build and Replace”!
• Here’s a warped planning policy:
The pedestrian remains the largest single obstacle to free traffic
movement.
Los Angeles Planning Report, David Engwicht 1992

11. Should Developing Countries just copy AM from Australia?


NO,AM framework and AM terminologies used in Australia & NZ are to suit their culture and
governance structure.
• They are too complex for developing countries.
• Terminologies used are difficult to translate from English into local languages.
• E.g., ASSET is translated as BARANG in Indonesia.
• Hence, APIGAM needs to develop simplified AM manual for use in the Asia
Pacific region.

12. The AM Resource Book, a.k.a. The Green Book

Page 18 of 27
13. ASSET FAILURES &CHAIN REACTIONS -WITHIN A SINGLE ASSET SYSTEM

Page 19 of 27
14. ASSET FAILURES & CHAIN REACTIONS-WITHIN MULTIPLE ASSETS SYSTEMS

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Infrastructure assets include:
Transportation
 Toll Roads, Bridges, Tunnels, Ports, Airports, Rail,
Energy and Utilities
 Electricity transmission and distribution networks, generation; Oil and gas pipelines
and storage; Water and waste water
Communications
 Wireless communication towers; Broadcast satellites; Cable networks
Social
 Education facilities; Healthcare projects
Other
 Timber; Industrial infrastructure; Parking garages / car parks

END

Page 27 of 27

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