Asset Management Information

System
Training Program

Jakarta 2009

This document is confidential and is intended solely for

the use and information of the party to whom it is
addressed.
Asset Management Why Asset Management?
Information System
 Asset Management is a  Tangibles that are used in
business discipline the operation of a drinking
 management of technical infrastructure water or wastewater utility
Where is the
documentation
of this device? Buildings
Who is
responsible
for this device? What is
the Machinery Tools
Who is the
utilization
owner
of
of this device?
this ASSETS
What is Is there
device?
the experience
status of with
this this device? Pipes Equipment
What is the total
device?
cost of this
device? Operator

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Asset Management
Information System
asset perspective
• Asset management deal with the left
side of the balance sheet.
• Famous quotation about balance sheet
“on the LEFT side there is nothing
RIGHT; on the RIGHT side there is
nothing LEFT”
• Asset management begins from
selection, their selection, maintenance,
inspection and renewal of the
particular asset.
• It plays a key role in determining the
operational performance and
profitability of industries that operate
assets as part of their core business.
• 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
Executive Summary
management information system
• MIS is the big picture of information
system flow, while asset management
is part of the system that monitor
corporate assets; covering several
areas
1. Policy Development
2. Strategy Development
3. Asset Management Planning
4. Implement Asset Management
Plans
5. Asset Management Capability
Development
6. Risk Management and Performance
Improvement
7. Asset Knowledge Management
• A well-defined Standard of service
(SoS) is the foundation of Infrastructure
Asset Management. The SoS states, in
objective and measurable terms, how
an asset will perform, including a
suitable minimum condition grade in
line with the impact of asset failure.
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Asset Management 5 core questions of Asset
Information System Management

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Asset Management The Damages
Information System

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Asset Management Executive Summary
Information System
understanding asset risks Asset Maintenance Options
Perfect World = Knowing
Asset Risks • Non-preventive
Predict when an asset will fail (i.e., (wait until it breaks)
likelihood) • Preventive
Fully understand consequences of (plan before it breaks)
failure (i.e., impact)

Best Practices
• List assets based on criticality – Repair
• Conduct a failure analysis
• Determine probability of failure
– Refurbish/rehabilitat
• Analyze failure risk and consequences e
– Replace
– Decommission

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 Asset Management Executive Summary
Information System
sset has to deliver standard of service illustration
• The key components of the sustain SoS
objective are:
a) a defined standard of service
b) measurable specification of how
the asset should perform
c) minimum condition grade
d) a whole-life cost approach
• With a performance-based asset
e) asset management plan
management approach, decisions are
flexible and depend predominantly on
• Example …………….. the current condition of the asset as
well as the age of the asset, and the
likely future deterioration profile.
• Example; a stormwater debris screen is
cleared after a rain event, when it is
partially blocked, rather than, say,
every two weeks. The minimum
condition grade provides a key
boundary condition for making
investment decisions.
• Over the life of a typical infrastructure
asset, a representation of the changes
in condition grade, might look as
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Asset Management Executive Summary
Information System
whole life cost approach illustration
• Over the life of an asset, there are
likely to be hundreds of individual
interventions, which together sustain
the agreed SoS. Undertaking a formal
investment appraisal to assess options
or the relative benefit for each
individual intervention or even an
annual programme of interventions
would be very complicated, and
• At its most simple, Asset Management
prohibitively expensive. It is the sum of
attempts to optimise the trade-off
the cost of all the individual
between maintenance and
interventions, and their effect on the
replacement. For a given standard of
whole-life cost of providing the SoS
service every asset in a system
that we are concerned about.
requires a decision about how best to
• By implementing a system that keeps manage the asset, and at which point
a historic record of past expenditure, replacement or refurbishment may
coupled with a forecast of expenditure represent the most cost effective
to sustain the SoS we can provide a approach. The graph shown represents
solid foundation from which to assess a summary of this, with three
the asset manager’s performance. alternative asset management
regimes, A, B & C.
• Example ……………..

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Asset Management
Information System
asset portfolio strategy
• An Asset portfolio strategy revolves
around meeting customer needs in the
most effective and efficient way.
• Key asset portfolio strategy questions
include:
a) Is the need for the service real?
b) What standard of service is required?
c) Are the long-term costs of the current
asset portfolio affordable?
d) Have non-asset solutions been
explored?
e) What standard of service should new
assets provide?
• Asset Management Toolbox
a) Asset register
b) Visual condition grade assessment
c) Asset valuation techniques
d) Asset creation and acquisition
decision-making
e) Asset disposal decision-making
f) Whole-life cost management
techniques
g) Auditing condition grade and
Executive Summary
little history
• The development of the Toyota
Production System between 1948 and
1975 led the way for Infrastructure Asset
Management, as an integrated approach
to reducing cost. This has then been
coupled with the principles of risk
management from highly regulated
nuclear, and petroleum industries.
• Asset Management effectively puts these
two parts together to deliver a defined
service for the least cost. An early
development in applying these ideas to
publicly owned and operated
infrastructure occurred in New Zealand
with the passage of the Local
Government Act 1974. This required each
local authority to:
a) Prepare an annual plan indicating
performance measures in consultation
with their community,
b) Prepare an annual report outlining
council performance against annual
plan objectives,
c) Adopt financial systems and policies
in accordance with generally 9
Asset Management
Information System
• Department of Justice/U.S. Immigration
and Naturalization Service
• (Note: Major Information System last
noted by legacy INS)
• ABSTRACT: AMIS is a centralized,
mainframe system that tracks the
movement of all the assets of the
Immigration and Naturalization Service
(INS) from acquisition to disposal. The
assets tracked include accountable
property, automated data processing
equipment, electronics, real property,
weapons, and vehicles. The system also
is used to assess and determine firearms
qualifications on an ongoing basis to
ensure that firearms are issued only to
qualified and authorized personnel.
• PURPOSE: AMIS simplifies the inventory
process and provides an efficient and
effective management tool for
administering, controlling, and reporting
INS inventory.
• USE CONSTRAINTS: Users of AMIS will be
Example of AIMS
• ACCESS CONSTRAINTS: All records in
AMIS are protected from unauthorized
access through appropriate
administrative, physical, and technical
safeguards. These safeguards include
restricting access to those with a need-to-
know to perform their official duties,
using locks and alarm devices, passwords
and/or encrypeted data communications.
• AGENCY PROGRAM: The INS is the arm of
the Department of Justice that is charged
with border enforcement, immigration
enforcement, and naturalization
activities. AMIS is one of the tools utilized
to accomplish this mission.
• SOURCES OF DATA: Records are
generated from property purchase
orders; from acquisitions, transfer and
disposal data; employee locator
documentation and the record subject.
RESPONSIBLE OFFICE FOR DISTRIBUTING
INFORMATION
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Asset Management
Information System
basic to AMIS
• Enterprise asset management (EAM)
means the whole life optimal
management of the physical assets of
an organization to maximize value. It
covers such things as the design,
construction, commissioning,
operations, maintenance and
decommissioning/replacement of plant,
equipment and facilities. "Enterprise"
refers to the management of the
assets across departments, locations,
facilities and, in some cases, business
units. By managing assets across the
facility, organizations can improve
utilization and performance, reduce
capital costs, reduce asset-related
operating costs, extend asset life and
subsequently improve ROA (return on
assets).
Enterprise Asset Management
basic to AMIS
• The functions of asset management
are taking a fundamental turn where
organizations are moving from
historical reactive (run-to-failure)
models and beginning to embrace
whole life planning, life cycle costing,
planned and proactive maintenance
and other industry best practices.
Some companies still regard physical
asset management as just a more
business-focused term for maintenance
management - until they begin to
realize the organization-wide impact
and interdependencies with operations,
design, asset performance, personnel
productivity and lifecycle costs.
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Asset Management
Information System
basic to AMIS
• In capital-intensive industries such as
utilities, process/discrete
manufacturing, healthcare as well as
real estate, physical assets (buildings,
infrastructure and equipment) form a
significant proportion of the total
assets of the organization. These
industries face the harsh realities of
operating in highly competitive
markets and dealing with high value
assets and equipment where each
failure is disruptive and costly. At the
same time, they must also adhere to
stringent occupational and
environmental safety regulations
• Given a physical asset, the objective of
LCAM is to extract maximum
productivity from the asset and
minimize the total costs involved in its
acquisition, operations as well as
maintenance.
Enterprise Asset Management
basic to AMIS
• Competitive pressures force
organizations to minimize asset total
cost of ownership and streamline their
asset management operations (these
typically involve myriad activities
ranging from inventory, parts and labor
management to contracts and vendor
management for new works). As
downtimes become increasingly
expensive, both in terms of lost
production capacity and unfavorable
publicity, organizations are compelled
to maximize their asset productive life
cycles via optimal maintenance
programs
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Asset Management
Information System
the definition
• IT asset management (ITAM) is the set
of business practices that join financial,
contractual and inventory functions to
support life cycle management and
strategic decision making for the IT
environment. Assets include all
elements of software and hardware
that are found in the business
environment
role of AMIS in organisation
• Included in this responsibility are
development and maintenance of
policies, standards, processes, systems
and measurements that enable the
organization to manage the IT Asset
Portfolio with respect to risk, cost,
control, IT Governance, compliance
and business performance objectives
as established by the business.
AMIS
software asset management
• Software Asset Management applies to
the business practices specific to
software management, including
software license management,
configuration management,
standardization of images and
compliance to regulatory and legal
restrictions—such as copyright law,
Sarbanes Oxley and software publisher
contractual compliance. Legal software
use in an organization is enforced by
such compliance companies as
hardware
Business asset
Software management
Alliance, SIIA and
FAST.
• Hardware asset management entails
the management of the physical
components of computers and
computer networks, from acquisition
through disposal. Common business
practices include request and approval
process, procurement management,
life cycle management, redeployment
and disposal management.
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Asset Management
Information System
the goals
 The goals of a comprehensive ITAM
solution are:
a) To acquire appropriate IT assets for
an organization with minimum costs
and maximum benefits
b) To optimize the use of each IT asset
during its life
c) To dispose of IT assets when they no
longer provide a benefit compared
to the cost to maintain them
d) To support IT asset compliance
e) To provide the information needed
for internal and external
requirements, such as:
• planning for mergers or acquisitions
• regulatory compliance
• license renewal
• vendor negotiations
• contract negotiation and renewal
• Illustrates the asset life cycle
The Goals of AIMS
strategy
• Asset and Configuration Management.
When an IT organization knows what
infrastructure
• They have and where it resides, they
can provide service continuity and
service availability and
• Can properly manage the costs of IT
services. ITAM processes capture an
organization’s asset
• Portfolio details, such as asset
configurations, contractual terms and
conditions, ownership and Financial
attributes. A comprehensive,
centralized ITAM program can make
accurate, up-todate
• Information available as needed for
harvesting and reusing assets, and
asset allocation,
• Budgeting and chargeback of IT
services to meet business goals.
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Asset Management
Information System
• Increases Labor Efficiency
Helps improve labor efficiency by
helping the maintenance manager or
supervisor plan the work. The system
can originate a request via a repair
order or by simply scanning the bar
code on the unit. The system looks to
see if any preventive maintenance is
due or is coming due soon. It further
checks for campaigns such as
manufacturers' recalls. It even checks
for any pending work – work previously
needed but not severe enough to take
the unit out of service.
• Reduces Cost of Preventive
Maintenance and Downtime
• Optimum PM intervals and lower cost
PM’s produce major savings.
• Maximizes Warranty Claims
• Cuts Inventory and Shrinkage
• The technology helps to lower costs
and increase performance
Benefit of AMIS
• Reduces Labor Costs While Improving
Maintenance Quality
Most programs uses bar codes and
scanners to eliminate most paperwork
and keying of data into a computer
system.
• Saves Administrative Costs while
Increasing Accuracy
• Cuts Parts Costs
Purchasing the right parts at the best
prices is an objective of every
organization.
• Reduces Asset Investment
Less downtime, longer life, and better
specifications reduce investment.
• Increases Resale Value
A properly maintained unit lasts longer
and is worth more when you sell it.
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Asset Management
Information System
the system
• AMIS features make it possible to have
the right part, in the right place, at the
right time, with the right maintenance
people doing the right preventive
maintenance, at the lowest possible
cost.
• Current, low cost data storage devices
now make it economically feasible to
store, access, and use the vast amount
of data for the thousands of parts
which make up a single unit of
equipment.
• With the entry of an equipment ID,
AMIS creates a work order for that unit.
The system tells the mechanic every
preventive maintenance operation that
needs to be performed.
• Bar coding technology makes it
possible to record data accurately.
Mechanics scan the bar code of the
employee ID, the work order, parts and
the system.
How AMIS Works
example
• When a specific system is identified;
for example, a transmission, AMIS will;
2.Provide a full maintenance history.
3.Identify each part currently on the
unit.
4.Identify preventive maintenance items
that should be performed while the
unit is in the shop.
• Then, when the mechanic takes parts
from inventory and scans them, the
system charges the parts to the work
order, updates inventory, and provides
the data for proper inventory
accounting.
• It can even checks for errors. An
exception report shows such errors as,
"He was working on a transmission and
checked out a fan belt." Draw your
own conclusions about savings
here.
• MORE UPTIME = LOWER COST!
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Asset Management
Information System
basic to AMIS
• The asset register – the repository of
data that identifies and physically
describes the assets. The asset
management functionality - that
operates against assets defined in the
register. The Asset Register is the
heart of AMIS. It provides for the
identification and description of all
assets to the level deemed
appropriate. The Asset Management
Functionality includes the major
functions of asset valuation, asset life
cycle, and performance assessment of
assets.
• Asset Valuation/Depreciation –
AMIS will provide for the recording of
various valuations of an asset and
account for their associated
appreciation or depreciation. For
constructed assets, particular
emphasis will be given to replacement
cost, which will be calculated on the
basis of unit rates which are widely
accepted in the construction industry.
System Functionality
software asset management
• Life Cycle Costing – AMIS will provide
access to actual and forecast costs
(and revenues) over the useful life of
assets. Data on significant capital and
recurrent costs will include, acquisition,
maintenance, operations,
refurbishment and disposal activities.
The source of much of this data will be
data sets established / maintained by
other business processes (eg. works
management, resource / energy
utilisation).
• Performance Assessment – To
provide the ability to predict when an
asset is likely to fail to meet its
required levels of service. Examples of
such factors are as follows: (1) Physical
condition of the asset, (2) Level of
asset utilisation, (3) Environmental
factors (eg. health and safety,
disability access, fire safety), (4)
Currency of the asset’s technology, (5)
Level of investment required to keep
the asset operational, (6) Performance 17
Asset Management Program Coverage
Information System
Process Name Functions Dept Roles
Request • Request to provision a service or an • IT • Asset Manager
asset approval of request • Finance • Department Budget
• Determine fulfilment type (from Manager
inventory or new purchase) • Service Desk

Procure • Procure new assets or services • Finance • Procurement Manager

when not in inventory
• Negotiate and establish contracts
with suppliers
• Link contracts to catalogue line
items
Receive • Receive new assets or services • Finance • Asset Manager
from Suppliers • Facilities • Finance manager
• Validate shipment (match received (or IT)
goods to order)
Manage • Execute IMAC processes • IT • Service Desk

Retire • Retire obsolete assets from • IT • Asset Manager

operational use • Finance • Finance Manager
• Acquire legal indemnification for
disposed assets
• Update asset status

Plan • Provide enough stable consistent • IT • Asset Manager

information for accurate budgeting • Finance • Department Budget
and forecasting manager
• Finance Manager

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Asset Management
Information System
basic to AMIS
Asset Management Plans
• Assets that better match agencies’
business service requirements
• Optimised intervention actions
• Extension of asset life
• Managed deferral of expenditure
• More informed and better disclosure in
decision-making at both agency and
whole – of government levels.
Integrated Asset Planning
Environment
• The definitional standards and
conventions of the AMIS Asset Register
and its asset management
functionality will allow aggregation of
data and establishment of the
environment to permit consistency and
hence comparative analysis of asset
performance
Key Outcomes
software asset management
Life Cycle Costing
• AMIS will provide access to actual and
forecast costs (and revenues) over the
useful life of assets. Data on significant
capital and recurrent costs will include,
acquisition, maintenance, operations,
refurbishment and disposal activities.
• The source of much of this data will be
data sets established / maintained by
other business processes (eg. works
management, resource / energy
utilisation).
Performance Assessment
• Provide the ability to predict when an
asset is likely to fail to meet its
required levels of service – and hence
when intervention action is needed so
that service levels can continue to be
met.
• Performance should be measured for
any critical stress factors that are likely
to lead to asset failure
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Asset Management AMIS Project Schedule
Information System
Production system

System System Pilot system Data import &

Test
specification evaluation implementation migration

software license management

procurement of standard resources

common central repository for IT devices

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Asset Management Logical Architecture
Information System

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Asset Management Physical Architecture
Information System

Data Sources Core AMS Data Consumption

e-procurement
management

repository
Scanner to determine

central
license
hardware &
software information
Core AMS IT Experts
client

Intranet Transaction server Intranet

Web
Administrators
interface

Repository

Report Management
s

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Asset Management Physical Architecture
Information System

Prototype for accelerator infrastructure

management
 component of an
integrated
information
management
 contribute to full life
cycle support
Engineering Asset Facility
Data Management Management Management

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Asset Management General Purpose Data Model
Information System

Enables common management of entire

technical infrastructure
 IT devices, magnets, power supplies, vacuum
pumps,...
documentation documentation
Asset Document Asset Document
Name Name
ID components ID components
connected with Install Date is a connected with Install Date is a
Responsible Responsible

is a is a
has has

Monitor Computer Manual Coil Magnet Drawing

Hard Disk Yoke

Keyboard Support
RAM Maximum Current
CPU Maximum Gradient
Serial Number Serial Number

Switch Power Supply

connected with connected with

Example for a general purpose data model containing both IT devices (left) and accelerator components (right).

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Asset Management General Purpose Data Model
Information System

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Asset Management PDMS Integration using IPP
Information System Program

Document
from PDMS

AMS-PDMS
Integrator

AMS
Native Client

26
End of Document