Introduction to Asset Management

Question: Discuss about the Introduction to Asset Management. Answer: Introduction Asset is the backbone for efficient and effective working of every business organization. Assets are regarded as that part of the organization through which it would be able to generate profits or incomes in the future (Davis, 2016). Some examples of assets are property, land and building, furniture and fixtures and other tangible and intangible assets. Assets itself cannot help the company in generating incomes or in achieving the organizational goals (OFR, 2013). It needs to be maintained in all the respects and on regular basis from the degree of its physical condition to the degree of the best possible utilization the company is making out of it. Through this exercise company would be able to know whether the asset is in a condition of replacement or in a condition of further using for few years. Thus, managing the asset is very important for any organization (Brinkman, 2010). With this consideration, the report has been prepared by having deep study of the article relating to it and standards laid down by the British Institution have been discussed in detail known as PAS 55. This is further discussed with reference to the engineering systems and finally laid down how this standard has become the foundation for obtaining the ISO 55000 certification. With this objective, the report has been prepared detailing how far the research paper has contributed to enhance the knowledge and to help organization in managing the assets. Target Academic Community In the research paper, the academic community which has been targeted includes the British Institution of Standards, Abu Dhabi Quality and Conformity Council, ISO authorities, the executives and the UAE personnel. Each of the academic community has been given importance in the paper and laid down the reasons as to why each of them is necessary in the process of the asset management. At first the British Institution of Standards is responsible for preparing the standards for asset management. It consists of the guidelines to be followed by the organization. Second Abu Dhabi Quality and Conformity Council is the body which is wholly responsible for making the application of standards mandatory and compulsory and where necessary exemptions were given. At third comes the ISO authority which clearly states that once the asset management policy comes into force, the organization may go for the ISO 55000 certification. Then comes the executives of the organization who are held with the resp onsibility for effective and efficient working of the organization and they should be informed of the asset management policy and working of the company and deviations if any (IBM, 2009). In the last, the academic community is UAE personnel. It is very well mentioned that the UAE personnel have skills and capabilities to monitor the policies and thus they should be employed in the organizations and deployed with the necessary responsibilities. Thus, the above the communities over which the research paper has been framed. As per the recent case, Riyal Womens Hospital in Melbourne, Australia has undergone through the process of implementation and application of Asset Management which is known as PDCA and found it very beneficial for the organization and patients. (UGL, 2016). Thus, in view of this work, the target community will be the organization and customers of that organization. Research Problem The research has been revolved over the different problems and has simultaneously provided the solutions. The first research problem is the application of the standards for asset management as notified by the British institutions of standards. These standards define the management of an asset throughout the life cycle of an asset and how the system of asset management can be controlled. These standards are cumbersome to apply and therefore, the research paper has laid down the procedures as to how the organization can incorporate the asset management as part of the organizational goals and how it can be achieved (IIMM, 2011). The second research problem which has been discussed is how the organizations working in different sectors and industry and having different objectives and strategies can apply the same standards and form their asset management policy. Also the goals get automatically changed when the organization is located in different parts of the country. The aforesaid probl em has been resolved later by clarifying that the each and every organization may have its own policy for asset management depending upon objectives, strategies and locations but that too should be in accordance with the PAS 55. In the recent research conducted in New Zealand and Australian Electric Industry, the main research problem is the definition of asset management. Majority of the people do not understands as to what is included in the term of asset management. In all the discussion it is emphasized that asset management is an activity consisting of set of events to be carried out to realize the value of asset by considering the risks, threats, opportunities and benefits of assets (Fuller, 2015). PAS 55 in line with ISO 55000 is the basic model for the effectiveness of the asset management policy installed in the organization. It is because PAS 55 has described the practices in detail which ensures the best working of the asset and gives the best useful life to every asset. Asset may be tangible or intangible or human asset. It has outlined the stages through which each and every organization has to undergone to develop and efficient asset management plan. It includes four stages namely stage of planning, the stage of deploying, the stage of operating and maintaining and the stage of performance appraising to check whether the asset has reached the stage of retirement. For the companies having different objectives, different industries, different sectors and different locations have to follow four stages to achieve asset management namely mobilization, designing, development and the implementation of the policy and the sustainment of the policy and the assets. In this way mod el laid down by PAS 55 has been followed throughout the study. Thereafter, ISO 55000 has laid down that after having the defined asset management policy the company shall apply for ISO certification (Official Website, 2009). Therefore, these two models are relevant for the study. Data Collection and Analysis The research paper is the qualitative in its characteristic. In the research paper, the data has been collected from reliable sources. At first the reference has been given to the PAS 55 which has been obtained through the article on Asset management published in the year 2008. On the similar lines other data has been obtained on its guidelines, steps for formation for asset management policy and implementation thereof. Thus, for completing the research paper the data has been collected from secondary sources. It means that data has been collected from the books, journals and papers in which the asset management has been discussed. Data has not been collected through any of the primary source (IAM, 2009). The analysis of the data so collected and informed in the paper has been analyzed through the thematic approach. It is used where the analysis have to formed from the work and interpretations of other researchers. No quantitative data has been incorporated in the report and thus the analyses so made have been the qualitative one. Contibution of the Paper and Relevance to the Knowledge The research paper has contributed widely in the field of asset management both theoretically and practically. Theoretically, all the four stages of the asset management policy has been laid down describing each and every stage and described the asset management policy as the Plan Do Check Act (PGDCA) Cycle. The stage includes the planning, execution, operation and maintenance and evaluation. These are the predefined steps and along with these steps the asset management guidelines have been mentioned which includes the incorporation of legal framework in the policy and providing the status of asset and the asset management policy to the different stakeholders (Keller W,2009). On the practical aspects, the paper has also contributed to the wider extent. As these standards cannot be applied universally on uniform basis to each and every organization and has described the relaxation in the asset management policy provided the policy so formed shall be within the limits of the defined provisions of standards and the guidelines. In connection with the contribution, the paper has also imparted knowledge on the importance of the asset management. Many companies are still not aware of the guidelines and standards and adopt it as obligation. Through this paper the companies would be able to know the importance and will adopt it whole heartedly. Conclusion Having an asset management policy as the part of the main objective of an organization will always help the organization in making best use of its assets and also the generate profits or income for many years to come. PAS 55 standards has laid down the guidelines along with the steps of formation of asset management policy and its implementation. PAS 55 along with ISO 55000 has been detailed which will help the companies in adopting the same in easy and understandable manner. In order to conclude, asset management shall be pursued and followed by each and every company. References IBM (2009), Enabling the Benefits of PAS 55: The new standard for asset management in the Industry, available on https://www- 935.ibm.com/services/uk/bcs/pdf/090622_pas_55_white_paper_6815_tiw14035usen00_final.pdf accessed on 3/4/2017. Official Website, (2017), Asset Management Standards available on https://www.assetmanagementstandards.com/pas-55/ accessed on 3/4/2017 Keller W, (2009), PAS 55 Asset Management, available on https://www.mop.ir/portal/File/ShowFile.aspx?ID=840ee27f-1f65-4f15-a7df-2f25dfc83d51 accessed on 3/4/2017 IAM, (2009), PAS 55 Assessment Methodology available on https://theiam.org/system/files/privatedownloads/1/iampas55assessmethodologylr.pdf accessed on 3/4/2017. Davis R, (2016), An Introduction to Asset Management available on https://www.hvds.co.nz/files/docs/10695_iam_beginners_guide_low_9.pdfaccessed on 4/4/2017 IIMM, (2011), Asset Management Getting Started Guide available on https://assetmanagementsk.ca/+pub/document/pdfs/Asset%20Mgmt%20Getting%20Start ed%20Guide_web.pdf accessed on 4/4/2017. Brinkman R, (2010), Strategic Asset Management Framework, available on https://dpti.sa.gov.au/__data/assets/pdf_file/0007/51676/sam_framework.pdf accessed on 4/4/2017. OFR, (2013), Asset Management and Financial Stability, available on https://www.financialresearch.gov/reports/files/ofr_asset_management_and_financial_st Ability.pdf accessed on 4/4/2017, Fuller G, (2015), Benefits from the Application of Asset Management Standards in the Electric Industry, Engineers Australia. UGL,(2016),Applying the guidelines of BSI PAS 55 to Facility Management, available on https://reliabilityweb.com/articles/entry/applying_the_guidelines_of_bsi_pas_55_to_fac accessed on 07/04/2017