Professional Documents
Culture Documents
Asset Managemen
Managementt
Hey, you know what?
We have First World
Infrastructure, but
we also have a great
Third World life, lah !
A Guide
KC Leong
Published by
K C Leong
Published by
II
CONTENTS
Foreword
XII
Preface
XIII
XVI
Dr Penny Burns, Dr Graeme Frecker, Dr Gill Kay, Datuk Dr Dzulkarnain, Ms Ami Sudjiman,
Mr Ashay Prabhu, Mr Eric Cole, Dr Nurul Amin and Dr Vilas Nitivattananon
Chapter 1
Chapter 2
Chapter 3
1.
2.
3.
4.
5.
6.
7.
10
8.
12
9.
13
10.
15
17
1.
18
2.
19
3.
24
4.
25
5.
26
29
1.
30
2.
31
3.
33
III
Chapter 4
Chapter 5
IV
37
1.
38
2.
40
3.
41
4.
44
5.
45
6.
48
7.
49
8.
53
9.
54
10.
55
11.
60
12.
62
13.
63
14.
64
15.
65
16.
70
17.
72
Asset Maintenance
77
1.
78
2.
Timely maintenance
80
3.
83
4.
86
5.
89
6.
90
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
95
1.
96
2.
99
103
1.
104
2.
107
3.
111
4.
113
115
1.
116
2.
117
3.
118
4.
120
5.
AM knowledge empowerment
121
123
1.
Introduction
124
2.
125
3.
126
4.
127
5.
128
6.
130
7.
131
133
134
Chapter 11
Chapter 12
146
2.
147
3.
148
4.
156
A Maintenance Culture
1.
Chapter 13
VI
Chapter 15
Chapter 14
145
163
164
169
170
173
174
181
1.
Introduction
182
2.
183
3.
China
186
4.
Fiji
187
5.
India
188
6.
Indonesia
192
7.
Japan
194
8.
Korea
195
9.
Malaysia
197
10.
Philippines
199
11.
Thailand
202
Chapter 16
Chapter 17
Promoting AMEAROPH-APIGAM
205
1.
206
2.
APIGAMs founding
208
3.
210
4.
APIGAMs funding
211
5.
212
6.
213
215
1.
216
2.
217
18
218
19
Glossary
220
20
References
236
VII
LIST OF FIGURES
VIII
1.
11
2.
13
3.
14
4.
25
5.
Natural ecosystems
30
6.
34
7.
39
8.
40
9.
42
10.
47
11.
51
12.
52
13.
55
14.
74
15.
81
16.
Types of Maintenance
86
17.
89
18.
107
19.
110
20.
125
21.
126
22.
The Onsite Greenbelt Disposal system for plant support from septic tank
effluent
127
23.
129
24.
129
25.
147
26.
147
LIST OF TABLES
1.
11
2.
13
3.
14
4.
25
5.
30
6.
34
7.
39
8.
40
69
2.
119
3.
125
4.
126
5.
127
6.
128
7.
130
8.
131
IX
ESSENCE
FOREWORD
ASSET MANAGEMENT
ESSENCE
Richard Leete
Resident Representative
United Nations Development Programme
for Malaysia, Singapore & Brunei Darussalam
1 September 2004
XI
ASSET MANAGEMENT
ESSENCE
INTRODUCTION
By EAROPH President and APIGAM Chairman
ASSET MANAGEMENT
XII
ESSENCE
XIII
ASSET MANAGEMENT
PREFACE
ESSENCE
ASSET MANAGEMENT
ACKNOWLEDGEMENTS
In reference to good urban governance, I owe profound
gratitude to UNDP Kuala Lumpur for their keen interest in
asset management and their ardent support for EAROPH in
establishing APIGAM to provide AM services to the Asia
Pacific region. It was this support that finally led to the
writing of this book.
In thanking UNDP, I would particularly like to single out
Dato Anwar Fazal, Senior Regional Advisor of UNDP Kuala
Lumpur. Without his foresight, encouragement, wisdom,
guidance and never ending nudging, I would not have had
the courage nor the strength to take up the challenges he
threw at me. Secondly I must thank Ms Maxine Olson, the
Resident Representative of UNDP in 2003, for her final
approval in allowing me to enter into a Special Service
Agreement with UNDP to carry out all the AM assignments.
A third friend I must mention is Ms Sri Husnaini Sofjan,
Programme Manager. While she always expected effective
outcomes, she was also helpful in solving problems. And,
most importantly, without her being a great pathfinder,
APIGAM would not have been able to bring APIGAMs SAM
programmes to India and provide technical support and
technology transfer services. A big thank you to you, Sri.
Finally, Ms Sivananthi Thanenthiran, thank you for working
so hard with me till the endhelping me to deal with the
XIV
printer, using your keen eyes to edit this book and taking
care of all the little details to make sure it is finally
published.
I was first inspired to get involved in AM by Ivars Satins of
Melbourne way back in January 1997. Thank you for giving
me volumes of AM documents as well as introducing me to
AM celebrities in Melbourne.
One such celebrity is Dr Penny Burns of Adelaide who has
worked to bring AM to EAROPH and Malaysia since late
1997. She became a life member of EAROPH and assisted
me in forming EAROPHs AM Resource Group. What a
mentor you have been to me! Without your encouragement
and support I would not have focused my professional
practice on Forensic Asset Management since we started
working together on AM.
Through Pennys introduction, Ms Ami Sudjiman of
Canberra and Mr Ashay Prabhu of Melbourne became part
of the Resource Group. Their AM knowledge is certainly
matched by their enthusiasm and energy. They both helped
EAROPH and me to build up APIGAM and today they are
serving as its Directors. Whether it is giving lectures or
conducting AM workshops in many of the countries in the
EAROPH region, they are always there to do them with me.
Thank you for your personal support during these few
months in drawing my attention to many AM resources that I
needed to research for the book. Thank you Ashay, for also
supplying me with some of the graphics and latest technical
information on AM in Australia and New Zealand.
Without the Ministry of Housing and Local Government
Malaysia, there would not have been a strong EAROPH and
neither could APIGAM have been formed. In this regard, I
would like to thank Hon. Minister Datuk Sri ONG Kah Ting
and his senior executivestoo many to name them here.
I would also like to thank Hon. Datuk Peter Chin, who was
at the time Deputy Minister of Housing and Local
Government. As President of EAROPH and Chairman of
ESSENCE
XV
ASSET MANAGEMENT
ESSENCE
REVIEW THE PANEL
Dr Penny Burns, PhD (Adelaide); M.Ec (ANU); BA (Adelaide); LCC
Editor Strategic Asset Management
Chair, Virtual Asset Management Community Association
Convenor, Asset Management Resource Website at www.amqi.com
Managing Director, AMQ International
Chair, Advisory Panel, University of South Australia, Post Graduate
Program, Facilities and Asset Management
ASSET MANAGEMENT
s Chairman of the Virtual Asset Management Community, a nonprofit worldwide networking organization in asset management, I
welcome the release of this Essence of Asset Management: a
Guide by the UN Development Programme.
Members of the community, who contribute to the development of
what has been recognised as the best source of asset management
reference material on the web, will appreciate the new insights that
this volume brings. Whilst many of our members are from developed
countries and are well versed in asset management, we also have an
increasing number from developing parts of Asia, and many who,
regardless of their location, are approaching asset management for
the first time.
This excellent volume fills a need not previously recognisedthe
need to engage the general layman in understanding the benefits and
requirements of good asset management. Other books on the
subject to date have been highly technical and addressed to service
suppliers, mostly engineers. By the use of simple language and
setting the asset management story within the wider context of good
urban governance, the author engages his audience from the start.
All of the basic asset management concepts are developed and laid
open to the inquiring mind. Of particular importance is the
development of the relationship between asset management and
systems thinking. The author well explains and illustrates the nature
of interacting systems and how a breakdown in one system, for
example, poor design and maintenance of drains, can impact another
such as the road system, leading to worsening public transport
system and general reduction in the quality of life.
The section on the relationship of asset management to the UNs
Millenium goals is particularly useful. I can see these ideas being of
value to consultants and contractors from developed countries who
are required to assist in capability building in developing countries by
the United Nations, the World Bank and other aid organizations; it will
help them to see the relationship of what is done at a technical level
in the West to social and cultural issues in the East. They may even
start to think about these relationships in their own countries as well.
This book will inspire and motivate people to action. I would like to
see this volume provide guidance, by way of references, web links,
associations and resource persons, so that this inspiration and
motivation is not lost but becomes the first step on the path to better
asset management and urban governance.
XVI
Dr Graeme B. Frecker, AM JP
BCE PhD LGE Hon.MIMEA FIEAust. FAICD Dip. FAIM
A distinguished civil engineer and academic, former President of the
Australian Local Government Association and a representative to
various international planning and management organisations.
Dr. Frecker reflects on asset management through his extensive
experience as a director of public corporations such as the Australian
Road Research Board and as a City Mayor and community leader.
ESSENCE
REVIEW THE PANEL
Dr Gillian Kay DBA, SEMBA, AFAIM
XVII
ASSET MANAGEMENT
ESSENCE
REVIEW THE PANEL
Ms. Ami Sudjiman ARAIA, MESA
ASSET MANAGEMENT
XVIII
ESSENCE
REVIEW THE PANEL
Programme Coordinator, AfricaAsia EcoPartnership Programme,
UNDP a Programme in partnership with eleven municipalities
across Africa and Asia.
Experience over 15 yrs in civil, water and environment sectors.
Worked extensively in Asia, Africa and the Caribbean.
Dr Nurul Amin
Dr Vilas Nitivattanon
Dr. Amin and Dr. Nitivattananon are Professor and Assistant Professor
respectively in the Urban Environmental Management (UEM) Field of Study,
School of Environment, Resources and Development at Asian Institute of
Technology (AIT) in Thailand. As Project Director and Project Applications
Coordinator respectively, both are key management team members of the
on-going CIDA-AIT Partnership on Southeast Asia Urban Environmental
Management Applications (SEA-UEMA) Project. The UEM Field of Study
together with the Project seek to build up UEM pool of professionals and
capacity for research, implementation and sharing of sound urban
environmental management policies and practices in the region.
XIX
ASSET MANAGEMENT
XX
KC Leong
ASSET MANAGEMENT
ESSENCE
ESSENCE
Chinese proverb
Steven Howard 2003
ESSENCE
Chapter
ASSET MANAGEMENT
CHAPTER 1
1. Some Myths about Assets
2. What are Assets and Infrastructure?
3. No Physical Assets, No Services
4. Can Physical Assets be Liabilities?
5. Asset Life Span and Life Cycle
6. Multiple Life Cycles of Assets
7. Asset Deterioration Characteristics
8. The Quality of Life depends on Assets
9. Asset FailuresChain Reactions
10. We need Asset Management
ESSENCE
Chapter
Section 1
ASSET MANAGEMENT
Should every
citizen demand
asset care
responsibility?
Do we need
knowledge and
training in order to
take
responsibility?
Is there a science
or technology for
asset
responsibility?
ESSENCE
Chapter
Section 2
An asset is an item of
value. Not only is it
something worth having;
it goes beyond pure
possession, giving a
service to mankind.
In accounting terms,
physical assets under the
category of non-current
assets are defined as
those items of significant
value that:
We have become
dependent on them to earn
a comfortable living, to
educate our children, to
conduct and expand our
businesses.
ASSET MANAGEMENT
ESSENCE
Chapter
Section 3
ASSET MANAGEMENT
overnments at
ll the above public
x Sanitation services to
various levels provide
services require
the rural communities.
x Solid waste: Dump
various public services to
physical assets to be
sites, waste disposal
x
Waste
water
treatment
the people. For example:
appropriately set up to
plants, garbage trucks,
services in urban areas. meet service criteria and
truck depots must be
x Transport services in
x Solid waste collection objectives.
established before
the form of bus services,
services including waste
services can be
It is important to recognize
train services, ferry
recycling and disposal
provided.
the fact that public
services, shipping
systems.
services do not just appear x Education: We have to
services, airport
x Healthcare services in by themselves. For
services.
build schools, colleges,
the form of hospital
example:
and university campuses
x Communication
services, clinic services,
in order to provide the
services in the form of
public health protection
x Water: There must be a
educational services.
postal service, telephone
services and medical
water source, reservoir,
and fax services, internet
x Knowledge
research services.
treatment plant and
services, mobile phone
information: There must
delivery
system
in
order
services, radio and T.V. x Education services in
be library buildings and
to
provide
the
water
the form of primary,
services.
broadcasting facilities
supply.
secondary and higher
before the city can
x Energy supply services
education, special
x Bus: We need roads,
provide its citizens with
in the form of electricity
learning aid services for
bridges, culverts, signs,
opportunities to learn
supply and gas supply
those suffering various
buses, bus depot and
from books and
services.
type of learning
maintenance workshops
multimedia programmes
disabilities and adult
in order to have the bus
through radio and T.V.
x Water supply services
education
services.
service.
services.
for domestic
consumption and
irrigation in rural
communities.
ESSENCE
Chapter
Section 4
Physical or infrastructure
assets will deteriorate over
time due to wear and tear. tramway services, all
represent huge capital
investment. They must
These assets are
therefore be created based
government investments
constructed from public
only on clear objectives of
funds on behalf of the
service needs and
people. The main purpose service requirements.
for such investments is to
If an infrastructure asset is
use these infrastructure
created to satisfy only the
assets to provide public
personal whims of some
services which are
policy makers, or it does
essential for the
not fulfill the functional
enhancement of the
needs of the government
citizens quality of life.
and/or the people, then it
is wasteful expenditure.
All infrastructure, be they
highways or footpaths,
hospitals or local clinics, a If infrastructure is based
on ill conceived ideas or
city hall or a local
community hall, mass rail- designs, or so poorly
constructed and fitted out
transit services or inner
city monorail services or
ASSET MANAGEMENT
x It is no longer able to
function as a service
provider and public users
have to resort to
alternatives.
ESSENCE
Chapter
Section 5
ASSET MANAGEMENT
ESSENCE
Chapter
Section 6
ome consumer
products have a single
life span. Most noticeable
are the current mobile
phones. It is hard to see
any owner bothering to
repair such gadgets when
they break down. They are
not made for upgrading
either. As new
communication services
are provided, many of the
older models of mobile
phones cease to be
functional for the new
service, and the owners
are forced to discard them
and buy the latest models.
However, in a matter of a
few years, the same
predicament would recur
prompting further
replacement.
Such is the sad world of
high consumerism we are
living in, brainwashing us
into accepting single life
span assets.
The strange thing is,
people seem happy to
span assets.
accept it. The only
explanation one can think
of is that we are like
children playing with toys
hen it comes to
which are designed and
public physical
manufactured as single life assets, we expect them to
span assets.
last as long as possible
and have multiple life
Educational toys, and
spans or life cycles. We
perhaps the teddy bears
need good assets that will
and cute dolls for bedtime provide uninterrupted
company, are the
public service. Thus, we
exceptions. Hence these
need to recycle and
are made for longer life
revitalize all infrastructure
cycles with mums patient assets, so that the citizens
care and simple
who are the tax payers,
maintenance. Often these can enjoy reliable services
are still being treasured
at optimum level of
long into the childrens
performance at all times.
adult life. And, sometimes
they get passed down to
The well-being of a town or
the grandchildren. These
a city depends on
are the exceptions in this
continuing and unfailing
day and age of the fast life. public services from the
urban assets.
However, when it comes to
infrastructure, it is obvious For a city to be
that, for sheer economic
sustainable, we need:
reasons and necessity of
x reliable electricity supply;
continual reliable public
services, we simply cannot x safe and uninterrupted
afford to have single life
water supply;
ASSET MANAGEMENT
ESSENCE
Chapter
Section 7
ASSET MANAGEMENT
10
However, regular
maintenance and repairs will
During the 2nd 1/3 of its life, it prolong an assets maximum
possible functional life span,
begins to show some signs
of wear and tear, it no longer though it will not be as good
as when it was new. Unless
looks new. If it has moving
parts such as a motor, it will appropriate proactive
maintenance is provided, the
run less smoothly and the
whole process of rapid
whole operation becomes
deterioration will be repeated
noisier. Although it is still
with similar characteristics.
operating, the rate of
deterioration is accelerating.
The curve is moving from the
functionality mark of 95 to 70
in the same space of time.
During the next and last 1/3
of its life span, if nothing is
being done in the form of
proper maintenance, this
ESSENCE
Chapter
Section 7
Max. Function
100
Signs of deterioration
Fast deterioration start showing in this
zone. Passing halfway
they become noticeable
90
80
x Maintenance and
asset performance
assessment must
start early in an
assets life span.
60
Slow deterioration
70
Very fast deterioration
50
40
30
20
st
1 1/3
nd
1/3
rd
3 1/3
Beginning
x Remember, no
functioning
asset, no service
delivery.
ASSET MANAGEMENT
Lowest
Function or
Total Failure
Ending
11
ESSENCE
Chapter
Section 8
ASSET MANAGEMENT
12
ESSENCE
Chapter
Section 9
Asset FailuresChain-Reactions X
Figure 2 Asset Failure ChainReactions within a single asset system
Rainwater catchment, aquifers, streams and rivers volume management
Water Treatment
Management
Water Delivery
System
Cost Recovery
Management
Quality of Life of
Consumers
Raw water
storage &
pumping
ASSET MANAGEMENT
Water Source
Management
13
ESSENCE
Chapter
Section 9
Asset FailuresChain-Reactions Y
ASSET MANAGEMENT
Figure 3 Asset Failure ChainReactions within multiple asset systems MULTIPLE ASSET SYSTEMS
Environmental
Management
Drain
System
Road
System
Roads develop
potholes,
ripples and
foundation
failures
causing road
to subside.
Roads in such a
condition will slow
down traffic, cause
accidents and damage
vehicles.
Bus Transport
System
Poor roads
slow traffic and
damage buses.
Quality of Life of
commuters
The POOR are affected most, they cant afford alternatives, & their livelihoods depend on the service.
14
ESSENCE
Chapter
expensive investments.
We seem to confuse
emergency repairs with
proper maintenance. In
reality, such actions are
similar to a fire-fighting
servicethe asset may
be saved but the damage
has already been done.
The assets performance is
no longer the same and
with further use, it will
deteriorate furtherand
more rapidly.
15
ASSET MANAGEMENT
Section 10
ESSENCE
ASSET MANAGEMENT
16
ESSENCE
Chapter
ASSET MANAGEMENT
CHAPTER 2
1. What is Asset Management (AM) ?
2. The Fundamentals of Asset Management
3. Other Factors concerning Asset
Management
4. Ultimate Outcomes of Asset Management
5. Whats in it for the Community?
17
ESSENCE
Chapter
Section 1
ASSET MANAGEMENT
hile Asset
Maintenance is a
vital process for
maintaining an asset in
good working condition, it
is only a part of Asset
Management.
18
Asset Management is a
process of guiding the
acquisition, use 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.
ESSENCE
Chapter
Section 2
FUNDAMENTAL
PRINCIPLES OF ASSET
MANAGEMENT
If an organisation is to
adopt Asset Management,
it is essential to embrace
the fundamental principles.
1. Who owns what and
who is responsible
and accountable
An organisation must
know what assets it owns;
what assets they use are
owned by others; who has
the custodianship; who is
responsible for the assets
operation and maintenance
and management.
Unless these are known,
there is no basis to start
planning and budgeting for
maintenance and overall
management.
Even within the agency
which is responsible for the
operation of the assets,
there must be a designated
department responsible for
the assets management.
This department must be
19
ASSET MANAGEMENT
The Fundamentals of AM X
ESSENCE
Chapter
Section 2
The Fundamentals of AM Y
ASSET MANAGEMENT
5.
Asset Conditions
and Performance
The condition and
performance of an asset
are never static. Over time,
these decline as the asset
ages. The speed and
severity of the decline will
depend on the intensity of
use and how well the asset
is cared for by proactive
maintenance across the
whole life span.
To ensure that a
standard level of asset
condition and performance
is achieved in order to fulfil
the service delivery
requirements, precise
information on the
condition and performance
of every asset must be
available at all times.
Asset condition and
performance audits or
assessments must be
carried out at prescribed
intervals. These are vital
tasks and must be carried
out diligently and
professionally.
The format and the
20
processes of an
assessment of an assets
condition and performance
are different and must be
drawn up differentlyboth
have to be comprehensive
and as scientific as
possible, i.e., not arbitrary.
All data and results
derived from an
assessment must be
recorded in the
organisations centralised
Asset Register. Reports
and follow-up analysis
must be carried out as a
basis for decision-making.
6. User Expectations
Assets are there for all
to use. How they are being
used will depend on the
service each provides. For
example:
x Roads are for the use of
commuters in both the
public and private
sectors. They include car
drivers and passengers,
public transport service
providers, their drivers
and passengers, foreign
ESSENCE
Chapter
Section 2
The Fundamentals of AM p
identifies the Asset
Stakeholders as follows:
x Local community/users
x Local councillor
x Financial agency
x Consultants
x Building contractor
x Suppliers
x Asset manager
x Tourist association
x Public health authority
x Transport operators
x Local hotel group
x Local shops/restaurants
ASSET MANAGEMENT
Graphic by Beattie
7. Asset Stakeholders
The creation and
management of assets is
part of Good Governance.
Such a framework ensures
assets are there for the
ultimate enhancement of
the citizens quality of life.
The whole process of
planning, acquisition,
development, operation
and maintenance, and
finally renewal or disposal
cannot be the responsibility
of a single entity. The
community must be
involved in the Asset
Management process, as it
is to serve them that the
assets are created in the
first place.
Furthermore, many
parties must work together
to establish an asset that
satisfies the Asset
Objectives. This may
involve other departments
or agencies, consultants,
contractors and other
organisations in the private
sector.
As a fundamental
21
ESSENCE
Chapter
Section 2
ASSET MANAGEMENT
The Fundamentals of AM q
8. Asset Life Cycles
Physical assets are
expensive investments.
Once set up and put into
service, they must provide
the intended quality
service for as long as
possible.
To achieve this, the
asset must be
appropriately cared for
with regular maintenance
and timely repairs, year in
and year out. However,
sub-assets or components
can wear out or break
down and they must be
replaced. Sometimes, the
whole asset system has to
be refurbished, upgraded
or renewed, until it is no
longer economical to
maintain it and it has to be
replaced by
redevelopment; or
disposed of when the
asset is no longer needed
to provide any service.
An asset therefore has
a life span. Since this can
be lengthened as far as
possible to its original
22
In planning for
acquisition or development
of a new physical asset, it
is common to see
organisations include the
initial capital cost in their
financial planning and
totally ignore future costs
of maintenance, repair and
refurbishment.
When the asset is
acquired or constructed,
realistic funding for
maintenance, repair, subasset or component
replacements and
refurbishment in their
medium and long-term
budgeting have not been
allowed for.
Even when there is an
annual budget for
maintenance, this is not
checked by the much
desired Accrual
Accounting System, and
very often the
maintenance budget is
spent on something else.
Asset deterioration is
often gradual and the
effect of poor asset
ESSENCE
Chapter
Section 2
9. Asset Management
Objectives
The main objective of
AM is to enable an
organisation to meet service
delivery objectives efficiently
and effectively. Effective AM
must cover the following:
x Ensuring the service
potential is fully realised;
x Ensuring assets are used
appropriately and are
maintained proactively
over many lifecycles;
x Ensuring greater value for
money on the assets
through economic
evaluation options with
lifecycle costing,
appropriate systemic
asset management
techniques and
involvement of
stakeholders ;
x Reducing demand for
unnecessary new assets,
saving public or
shareholder funds through
demand management
techniques and use of
alternatives such as non-
23
ASSET MANAGEMENT
The Fundamentals of AM r
ESSENCE
Chapter
Section 3
ASSET MANAGEMENT
24
ESSENCE
Chapter
Section 4
SUMMARY
Service Delivery
Operation &
Maintenance
whole-of-life
Asset Management
Process
Acquisition
ASSET MANAGEMENT
Service
Strategy
SAM Process
Service
Delivery
Agencys
Asset
or
Non-Asset
Strategy
Planning
StepPower Process
Government
Policy
Financial
Management
Proceed to
SAM Process
Agency
Corporate
Plan
Customer
Service
Environmental
Needs
Social
Needs
Economic
Needs
(Community)
(Political)
25
ESSENCE
Chapter
Section 5
ASSET MANAGEMENT
F O O T P AT H M AI N T E N AN C E S E R V I C E L E V E L S
SERVICE LEVEL
REASONS FOR
LEVEL OF
ACTIVITY
ACTIVITY
INTERVENTION
QUALITY
Inspection Regime
N/A
N/A
26
QUANTITY
N/A
N/A
Permanently
Executed
N/A
Repair
Make Safe
Temporarily N/A
RESPONSIVENESS
Resource
Pedestrian Volume
HIGH
MED
LOW
Level
Men No.
3 mths
12 mths
24 Hrs
6 mths
24 Hrs
24 Hrs
24 Hrs
24 Hrs
ESSENCE
Chapter
Section 5
Gravel Repair
Pothole or depression
Considered dangerous
to ped's or vehicles
24 Hrs
Make Safe
Temporarily
N/A
24 Hrs
10 work
days
N/A
N/A
Considered dangerous
to ped's or vehicles
24 Hrs
N/A
N/A
N/A
N/A
60 work
days
N/A
Localised faliures up to
a max. of 10 sqm; a
Permanently
potential hazard for
Executed
N/A
pedestrians
Repair
24 Hrs
ASSET MANAGEMENT
Table 1:
In areas of main shopping precincts, aged care centres, senior citizen centres, schools, hospitals, libraries, main community facilities, transport hubs, shared use paths in Parklands and carparks in shopping centres
MEDIUM
In areas along main roads, local roads, all paths in Parklands, other than shared use paths and all carparks other than
those in shopping centres
LOW
27
ESSENCE
ASSET MANAGEMENT
28
ESSENCE
Chapter
ASSET MANAGEMENT
CHAPTER 3
1. Natures Living World
2. Cities as Living Systems
3. Systems Thinking and Systemic Asset
Management (SAM)
29
ESSENCE
Chapter
Section 1
ASSET MANAGEMENT
he world is a finite
space, with organisms
living as interrelated and
interdependent members
of ecological communities.
Together they form
complex ecosystems.
CONSUMPTION
Herbivores
30
Carnivores
Decomposers
RECYCLING
PRODUCTION
Minerals
Figure 5
Green Plants
Energy (Sun)
Air, Water
Natural ecosystem
Source: William and Ruth Eblen, Experiencing the Total Environment. N.Y.:
Scholastic Book Services, 1977, in Ruth A. Eblen and William R. Eblen, Eds,
The Encyclopedia of the Environment, Houghton Mifflin Co., N.Y., 1994.
elements.
ESSENCE
Chapter
Section 2
sustainable development
of a city.
A citys sustainability in
development concerns
both its present and future
social, economic and
environmental well-being
as a result of
interrelationships,
interdependencies and
interactions amongst the
human communities; and,
ASSET MANAGEMENT
31
ESSENCE
Chapter
Section 2
KC Leong
ASSET MANAGEMENT
32
As human communities
evolve from simple
settlements to towns and
cities, they create their
own living spaces with
their own physical
assetsinfrastructure,
buildings and supporting
facilities. In order to
maintain these physical
assets in a living world,
humans must maintain the
cities in the form of living
systems networks.
ESSENCE
Chapter
Section 3
33
ASSET MANAGEMENT
ESSENCE
Chapter
Section 3
ASSET MANAGEMENT
A
Figure 6
34
ESSENCE
Chapter
Section 3
3. Systems Thinking is
always Process
Thinking
While all the systems concepts as discussed so far
have shaped the systems
thinking, which may be
called contextual thinking,
Capra also draws our attention to another strand
emerging during the latter
part of this century, and
this is process thinking.
35
ASSET MANAGEMENT
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/
ASSET MANAGEMENT
36
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Chapter
ASSET MANAGEMENT
CHAPTER 4
1. Systemic Urban Management Process
2. The Complete SAM Process
3. Step-Power Process for Complete SAM
4. Step-Power 1 Asset Objectives
5. Step-Power 2 Asset Knowledge: The Asset Register
6. Step-Power 2 Asset Knowledge: Asset Valuation
7. Step-Power 2 Asset Knowledge: Life Cycle Costing
8. Step-Power 2 Asset Knowledge: Asset Pricing
9. Step-Power 2 Asset Knowledge: Learning from the Past
10. Step-Power 3 Asset Skills: Four-Phase Life Cycle AM
11. Step-Power 3 Other Skills for Lifecycle AM
12. Step-Power 4 Asset Tools: ICT Hardware and Software
13. Step-Power 4 Asset Tools: ICT Networked Intelligence
14. Step-Power 4 Asset Tools: Checklist
15. Step-Power 4 Asset Tools: Sensitivity Tests
16. Step-Power 5 Asset Decision-Making: Network Analysis
17. Step-Power 5 Asset Decision-Making: Simulation Games
37
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Section 1
ASSET MANAGEMENT
38
ESSENCE
Chapter
Section 1
Gestation
1.
Planning
End / New
Birth
4. Revitalisation / Disposal
2.
ASSET MANAGEMENT
Acquisition
3.
Operation &
Adult Life
Figure 7
Systemic Asset
Management is a holistic
process of managing
assets and the interrelationships between the
assets and between the
assets and the community.
This occurs within a
framework for asset life
cycle optimisation in order
to ensure the resultant
services will continue to
provide enhancement of
the communitys quality of
life while maintaining urban
sustainability.
39
ESSENCE
Chapter
Section 2
ASSET MANAGEMENT
40
SUCCESS
-
Knowledge
Skills
Tools
Systemic Plan
Knowledge
Skills
Tools
Systemic Plan
Confusion
.
Skills
Tools
Systemic Plan
False Picture
.
Tools
Systemic Plan
/ Anxiety
Systemic Plan
/ Frustration
Objective
Objective
Knowledge
Objective
Knowledge
Skills
Objective
Knowledge
Skills
Tools
/ False Start
ESSENCE
Chapter
Section 3
x Again, if it is satisfactory to
his expectation, he will go
through the same process
of moving to the next step.
phenomenal process in
which time, space and the
human mind fuse into a
sequential step-by-step
progression of objectives
and goals, pausing at each
step to gather further data
and instructions while
recharging the system with
appropriate hardware and
software to move on to the
next step, until reaching the
final step to realise the
ultimate objectives that
were initially set.
41
ASSET MANAGEMENT
ESSENCE
Chapter
Section 3
ASSET MANAGEMENT
THE ENABLING
PROCESS
Decision
making
Strategic urban
managt plan
Sustainability
& innovation
THE GOALS
Ensuring continual
quality-of-life enhancement
Ensuring ecological
balance
SAM
Tools
Professionalism in
Change management
SAM
Skills
42
Responsibility
& control
Good urban
governance
Assets focus
in change
Asset
Knowledge
Asset
Objectives
ESSENCE
Chapter
Section 3
ASSET MANAGEMENT
43
ESSENCE
Chapter
4
Section 4
Asset Objectives
ASSET MANAGEMENT
44
amount of subsequent
management work will yield
good assets for quality services.
ESSENCE
Chapter
4
Section 5
45
ASSET MANAGEMENT
ESSENCE
Chapter
4
Section 5
ASSET MANAGEMENT
46
ESSENCE
Chapter
4
Section 5
ASSET MANAGEMENT
47
ESSENCE
Chapter
4
Section 6
ASSET MANAGEMENT
ASSET VALUATION
Asset Valuation must be
regularly carried out as part
of effective Asset
Management. Valuation
results are generally used to:
x establish the needed
information for internal
control, resource allocation
and performance
assessment of assets;
x establish the fundamental
basis for asset acquisition;
x determine risk exposure
and insurance coverage;
and
x meet statutory financial
report requirements.
x an aesthetic or social
value; and
HERITAGE AND
CULTURAL ASSETS
It is often difficult to establish
true valuation of assets that
are held for heritage or
conservation purposes.
x a market-related value.
48
ESSENCE
Chapter
4
Section 7
management:
49
ASSET MANAGEMENT
ESSENCE
Chapter
4
Section 7
ASSET MANAGEMENT
management, financing,
operation and maintenance
(such costs as water and
energy, and other incidental
expenditure), and
refurbishment.
3. Salvage and disposal
costs
50
1 to end of life
x Maintenance costs with
details of component costs
from year 1 to end of life
x Profiles of repairs and
component replacements
and refurbishments over
life
x Final disposal costs or
renewal costs
These profiles are vital to
asset management since
against these the
organisation can prepare
alternatives for owning and
developing similar new
assets.
ESSENCE
Chapter
4
Section 7
Li f e C y c l e C ost i ng - P u bl i c To i l e t Fa c i l i t y
M on t h- Ye a r B u i l t & C o m m i ssi on e d : J a nu a r y 2 0 0 3
B u i l di ng C o st :R M 6 0 , 0 0 0 . S e r v i c e Li f e : 4 0 Ye a r s
ASSET MANAGEMENT
RM60,000 (US$1 is
equiv. to RM3.80)
x Total full life cost comes to
RM1.037 mil. over 40
years
x Average life cycle cost per
year is RM25,925
x With depreciation added,
yearly cost is RM27,425.
x Average total life cycle
cost per month is
RM2,300
Annual Upkeep/House
Keeping
80000
Refurbishment 5-yearly
Capital cost
70000
Painting 4-yearly
60000
Signage Repair
50000
40000
30000
20000
Cleaning
10000
Ye a r s
51
ESSENCE
Chapter
4
Section 7
ASSET MANAGEMENT
52
costing is absolutely
essential for the task. With
good data collection in eAsset Registers that also
keep all financial analyses,
an organisation can
establish future
infrastructure costs
profiling quickly and
efficiently.
Figure 12 shows two longterm roadwork
maintenance costs
profiling for the States of
South Australia and
Victoria, as presented by
Chris Champion, Chief
Executive of the Institute of
Public Works Engineering
Australia (IPWEA).
(Champion, 2004)
In summary, life cycle
costing must be learned
and the knowledge put into
practice in good asset
management. It is one of
the most important parts of
Step 2 in the SAM StepPower Process.
There is a vast pool of life
cycle costing knowledge
awaiting us. Go for it, for
professional enrichment.
ESSENCE
Chapter
4
Section 8
x A government agency
can compare or
benchmark service
delivery in the private
Cost plus
In this model, a fixed or a
percentage amount is
added to the full cost of
asset service use.
Pricing with target-profit
In this model a fixed
amount of targeted profit,
or a fixed return of cash
amount on assets, is
added to the full cost of
asset service use.
Standard cost
53
ASSET MANAGEMENT
sector.
In establishing asset
pricing, the organisation
fully understand the
x The level of charges or must
total cost structure of the
pricing can either
asset and the service it
encourage or suppress
supports. This is important
demand for the assets
when it comes to crossservice.
subsidisation of services,
especially with respect to
x Realistic pricing can
helping the poor
encourage the
organizations search for community.
more efficient solutions
PRICING MODELS
to the form of service
delivery.
Market price
x An organisation can
Not all government assets
recover at least some if
or services have a market
not all asset costs for the
price. Where it is
service delivery
applicable, the pricing
depending on the pricing
must cover the full user
policy.
costs including capital
costs. This model has to
x An organisation can
conform to existing
compare costs and
pricing of other sources government statutory
policy.
of delivery.
There are a number of
beneficial objectives in
charging for asset use:
ESSENCE
Chapter
4
Section 9
ASSET MANAGEMENT
management?
No. Making use of past
experience is the exception
rather than the rule. When we
refer to the past we really
mean the written information
and data that have been
carefully kept in the records.
Many agencies and local
authorities in developing
54
ESSENCE
Chapter
4
Section 10
Criteria
Criteria
Planning
SOCIAL
4. Revitalisation / Disposal
2.
ECONOMIC
ASSET MANAGEMENT
POLITICAL
Acquisition
ENVIRONMENTAL
3.
Operation &
Maintenance
Criteria
Figure 13
Criteria
55
ESSENCE
Chapter
4
Section 10
ASSET MANAGEMENT
PHASE 1: PLANNING
56
Planning
Acquisition
Disposal
Operation
& Maintenance
ESSENCE
Chapter
4
Section 10
Planning
Acquisition
Disposal
Operation
& Maintenance
57
ASSET MANAGEMENT
ESSENCE
Chapter
4
Section 10
ASSET MANAGEMENT
PHASE 3: OPERATION
AND MAINTENANCE
describe an assets:
public users.
Utilisation:
Asset
utilisation is a measure of
x utilization,
how intensively an asset
has been used in providing
x functionality, and
the public service set for
x financial performance.
that asset. It tells the
Physical Condition: It organisation whether the
usage intensity has
is important to know the
passed the limit of the
physical condition of an
asset as it tells us whether assets working capacity.
The measurements also
the asset may be used
tell whether the value of
safely and effectively for
the service provided by an
the provision of a public
service. In order to ensure asset is more or less than
the value of the assets
an asset complies with
current value; or the
health and safety
values are matching. If the
standards, it has to be
measurement shows an
properly maintained and
regularly checked to see if asset is underutilised, it is
important to find out the
the asset condition is
reasons why. Quite often
acceptable. Often the
the underutilization is not
organisation has to
caused by the asset
forecast the future
condition itself but by other
condition of the asset so
factors. For example,
that they can plan ahead
people do not want to use
and
avoid
costly
repairs
or
Asset Performance: This
an underpass because it is
even disastrous events
is a general term used in
filthy, or the lighting is
that will endanger the
Asset Management to
In this phase an
organisation has to ensure
that it is in full control of
the assets, in respect to
reliable knowledge about
the assets, including
information about the
assets working conditions,
full records of their proper
maintenance and other upto-date details. In other
words, organisations must
conduct regular
assessments of asset
performance for all the
assets under their control.
The results of these
assessments must be
analysed and reported to
the management in order
that they can decide on the
appropriate actions. But
what exactly is asset
performance?
58
x Physical condition,
Planning
Acquisition
Disposal
Operation
& Maintenance
ESSENCE
Chapter
Section 10
STEP-POWER 3
PHASE 4: RENEWAL OR
DISPOSAL
When the lifecycle of an
asset comes to its end, the
asset may be renewed to
start a new lifecycle or be
disposed of.
However, as assets are
public investments,
decisions must be made
through proper examination
and sound economic
appraisal.
Infant
Old Age
Planning
Acquisition
Disposal
Operation
& Maintenance
59
ASSET MANAGEMENT
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Section 11
ASSET MANAGEMENT
FUNCTIONALITY
The functionality of an
asset is a measure of the
effectiveness of the asset
in providing the public
service. During the
operation phase, the
functional quality of the
assets will decline. This
can be caused by the
assets age, lack of
maintenance, damages to
the assets due to fire, flood
or accidents, or that the
nature of public services
be provided by these
assets has changed in
some way, or there may
be other external
circumstances. In order to
enable the organisation to
review at least annually,
they must monitor the
functionality of assets
regularly in order to
determine:
60
xDefine an assets
performance in terms of
provision of public
service;
ESSENCE
Chapter
4
Section 11
maintenance and
maintenance priorities for
all the assets under their
control and management.
MAINTENANCE PLAN
GOALS FOR
MAINTENANCE
OUTCOME
ASSESSMENT
Asset maintenance is
always costly and time
consuming and can also
be skilled-labour intensive,
hence it must be
effectively planned and
carried out under proper
management. Thus it is
essential to set goals and
bases on which to assess
the effectiveness of asset
maintenance as follows:
Long-term improvement in
lifecycle costs reduction;
x Maintaining effective
asset performance with
sustainable results of
reliable services
delivery;
61
ASSET MANAGEMENT
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Chapter
4
Section 12
ASSET MANAGEMENT
62
which is a computer-based
system, control and
monitoring can be carried
out on large networks of
systems component
operations.
However, before an
agency in a developing
country should get too
involved with these
advanced tools, it is vital
for them to have a, firstly,
clear understanding of
their organisations
integrated asset
management framework,
and secondly, to have
acquired the full
knowledge and skills in
systemic asset
management through
technical support and
technology transfer
services from an external
Institution of Systemic
Asset Management.
This will avoid rubbish in,
rubbish out!
ESSENCE
Chapter
4
Section 13
sset management of
infrastructure systems
involves huge amounts of
information of various
group types scattered over
large areas. Usually, there
are three main groups of
information needed:
x Physical attributes of
the network elements
x Economic information
of the infrastructure
system
x Spatial information
about the location of
physical and economic
data of assets
63
ASSET MANAGEMENT
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Chapter
4
Section 14
ASSET MANAGEMENT
64
xHave non-asset
alternatives been
thoroughly assessed
xIs asset performance
before adopting the
status regularly
asset-based approach to
reviewed?
service delivery?
xIs the process integrated Is the process supported
by responsibility and
with the organisations
accountability checking?
corporate and business
plans and strategies?
xAre all executives and
xAre these plans and
officers in the
strategies linked to life
management governed
cycle management and
by specific AM
costing processes?
performance agreements
entered into with the
xIs risk management part
organisation?
of the process?
xDoes the organisation
xAre costs monitored
follow AM rules on
against budgets and
responsibility and
reported at regular
accountability on asset
intervals?
ownership and control
How informed is the
and are these reflected
decision-making process?
in the performance
agreements with their
xIs capital expenditure
executives and officers?
based on thorough
Checklists should be
economic appraisals
governed by the 4-phase prepared in the form of
score sheets in order to
life cycle AM process?
gauge the level of AM
xAre assessments and
analyses based on data compliance under each
from a properly managed issue.
asset register?
ESSENCE
Chapter
4
Section 15
65
ASSET MANAGEMENT
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Chapter
4
Section 15
ASSET MANAGEMENT
66
Technical analysis
In major infrastructure
services, this heavily
involves engineering
practice whereby project
engineers shall come up
with a variety of technical
decisions. While the major
development policy may
be decided by the policy
makers, many engineering
In less developed
problems are relying on
countries, these activities
the hierarchy of project
are ad hoc if they do get
engineers carry out
introduced. As these are
technical analysis to solve
far from systemic, they are
correctly. The major
often lacking in legislative
technical framework
framework and therefore
analysis supporting
the much needed financial
various development
support. Their component
options must however be
activities may be less, but
submitted to the next level
they too need good asset
for final decision-making.
management to ensure
proper services delivery.
Economic analysis
While the community
expects the best
engineering designs, they
At this stage of the SAM
also expect nothing less
Step-Power processes
analyses are usually of the than the most economical
system. Hence, at this
following categories:
Types of Analysis
ESSENCE
Chapter
4
Section 15
Cost indexing
Construction costs change
from time to time; in large
countries, the national and
local changes are different.
Cost data must therefore
be checked against some
index. There are two
indices: a) that covering
heavy construction, such
as concrete, earth moving,
etc.; b) that covering
building fabric
construction. In more
developed countries,
indices are published
annually (in developed
countries, such as the
U.S., it is weekly, and they
67
ASSET MANAGEMENT
ESSENCE
Chapter
4
Section 15
ASSET MANAGEMENT
68
processes. It is highly
recommended that those
are involved in asset
management look at the
process in the said Act.
In a Nutshell
Step 4 of SAM Step-Power
process is the stage where
all the professionals
involved shall defined the
social, political, economic
and environmental factors
that will affect the
outcomes of all
development proposal
ESSENCE
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4
Section 15
ASSET MANAGEMENT
69
ESSENCE
Chapter
4
Section 16
ASSET MANAGEMENT
70
ESSENCE
Chapter
4
Section 16
According to Mohammad
Karamouz (Karamouz, M,
et al., 2003), the concept
of DSSs now developed is
the result of two
intersecting trends. The
first is the belief that
existing information
systems, despite their
success in automation of
operating tasks in
ASSET MANAGEMENT
71
ESSENCE
Chapter
4
Section 17
Leadership in SAM
ASSET MANAGEMENT
x
72
x
x
Multi-layer leaderships
In asset management, ranging from small single asset
development or management matters to highly complex
infrastructure systems, a series and hierarchy of decision
making is involved and not just at the CEO level.
Decision-making therefore is not a single layer process, but a
multi-layered one. A good CEO therefore must know and be
in control of how decisions have been made at each layer
until it finally comes to his turn to make the last and final
decision. Even at this highest level, a wise CEO will never
plunge in and make that final decision until all the
stakeholders including the community representatives have
been involved in the decision-making process.
He must see to it that at each level, the team leaders,
including the CEO, within that levels hierarchy are exercising
quality leadership. Basically, to ensure that systemic
approach is being practised by the entire organisation, the
CEO must develop leadership first, only then to be followed
by a management process; and not the other way round.
Sharing decision-making has been mistakenly viewed by
many as a sign of weakness, and the CEO is often accused
of being non-decisive, ruling by too much consensus without
any idea of what should be done, and lacking in control and
ESSENCE
Chapter
4
Section 17
73
ASSET MANAGEMENT
command.
ESSENCE
Chapter
4
Section 17
ASSET MANAGEMENT
Edge of Slum
Heritage
Fort
Mayors House
Public Housing
Old City
Precinct
Lake
Industrial Area
74
ESSENCE
Chapter
4
Section 17
ASSET MANAGEMENT
75
ESSENCE
ASSET MANAGEMENT
76
ESSENCE
Chapter
Asset Maintenance
ASSET MANAGEMENT
CHAPTER 5
1. What, Why, When of Maintenance
2. Timely Maintenance
3. Factors affecting Asset Maintenance
4. Types of Asset Maintenance
5. Planned versus Unplanned Maintenance
6. Technology, Research and Training
77
ESSENCE
Chapter
Section 1
ASSET MANAGEMENT
78
ESSENCE
Chapter
Section 1
continues to dominate
budgets, especially at
municipal level. Municipal
infrastructure debt has
increased from C$20 billion in
1985 to an estimated C$57
billion in 2002. Schepers
warns that if the trend
continues, in another 25
years, that debt could exceed
C$110 billion. Since municipal
infrastructure represents only
70 per cent of the total
national stock, this
predicament is indeed mind
boggling. Currently,
Canadian municipalities are
spending C$12-$15 billion per
annum on infrastructure and
out of this investment, 80% is
aimed at system repair,
renewal and operation. The
situation is grim59% of the
infrastructure is more than 50
years old while 30% is more
than 80 years old. In the face
of such a financial situation,
Canada is beginning to
realise the dire need to adopt
more sustainable practices in
asset management.
(Schepers, N, 2004.)
In the Asia Pacific region,
many countries continue to
79
ASSET MANAGEMENT
ESSENCE
Chapter
Section 2
Timely Maintenance n
ASSET MANAGEMENT
against rusting.
80
ESSENCE
Chapter
Section 2
Timely Maintenance Y
Maximum level of functional condition when asset is new or after refurbishment or renewal
ASSET MANAGEMENT
Good Level
Just tolerable
Intolerable
REPAIR 1
REPAIR 2
REPAIR 1
REPAIR 2
New Life
Begins
81
ESSENCE
Chapter
Section 2
ASSET MANAGEMENT
Timely Maintenance p
considered as the Just
cointhe Non-Smart Way
Tolerable Level of Asset
or the Smart Way
Condition, represented by the
Figure 15 also presents two
medium dotted line.
contrasting situations with
When the condition drops
regard to asset maintenance.
further down to about 55%,
The left section of the graph
the asset will encounter
represents the Non-Smart
frequent breakdowns and
Way
of asset maintenance
even when it is still working, it
causing fast deterioration in
is working poorly and
an assets life span. The right
ineffectivelyconsuming
abnormal amounts of fuel and section represents the Smart
Way where timely
energy while producing very
maintenance has brought
poor output. This level of
about slower deterioration in
performance is considered
the Intolerable Level of Asset asset conditions within the life
Condition, represented by the span of the same asset.
heavy dotted line in Figure
The Non-Smart Way
15.
In this situation, asset
Dropping below this level, the conditions are allowed to drop
functional capacity of this
because of no or improper
asset is as good as gone as it maintenance. When the
breaks down far too often and conditions have dropped too
consumes too many
low, major repair and/or
resources while producing a
replacement is then carried
negligible output. The asset
out. After repair-1 is carried
performance is no longer
out, asset conditions can only
considered economically and be restored to just above the
operationally viable. Its
Good Level line.
functional life as well as its
economic life has come to an In the case of repair-2,
damage has already begun
end.
and asset conditions can only
Two sides of the same
be restored to just above the
82
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Chapter
Section 3
83
ASSET MANAGEMENT
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Chapter
Section 3
ASSET MANAGEMENT
84
ESSENCE
Chapter
Section 3
x Problems of alligatoring
and wrinkling:
Allegatoring and cracking is
caused by excessive
buildup of paint. Eventually,
multiple cracking of the
paint film occurs as
seasonal temperature
variations inhibit expansion x Problems of peeling: is
caused by poor surface
and contraction of the paint
preparation. The name
film and the substrate.
refers to the removal of
When new paint is applied
strips or sheets of paint due
to such a surface with
to loss of adhesion. This
improper removal and
In maintenance work all the
could be caused by:
surface preparation, this will
above problems again require
XPainting over a coating
invariably accelerate flaking
different solutions to rectify
containing wax;
of the total film down to the
them. Unless the
XAn excess buildup of
substrate.
moisture within the wood; maintenance personnel
Wrinkling is caused by
involved are properly trained
XPainting over an old,
applying paint in excess of
and qualified, they will only
smooth coating; or
the recommended wet film
XPainting over heavy chalk make matters worse.
thickness and by applying
surfaces;
paint containing strong
Case-3 Collateral Damage
XPainting over surfaces
solvents to already dry
in Maintenance Works
which are contaminated
paint films. These solvents
with oil, grease, various
cause the underlying paint
forms of pollution such as Without proper training in
film to dissolve and expand
dust, dirt and mildew; or maintenance work planning,
forming wrinkles under the
XApplying latex paint
coordination and execution,
newly applied paint. The
below its recommended
workers carrying out
result is a wrinkle finish.
application temperature. maintenance and repair work
x Problems of blistering-cum- x Problems of cracking over on one sub-asset often cause
peeling: This is usually
collateral damage to adjoining
caulk: When paint is
ASSET MANAGEMENT
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ASSET MANAGEMENT
The Concept
The concept of asset maintenance is founded on the premise
that all assets whether buildings or infrastructure systems
need maintenance throughout their asset lifecycles. Even
simple assets such as equipment and fittings need
maintenance. There are no assets that are maintenance-free,
although a well-designed asset, incorporating careful
considerations of lifecycle asset maintenance at the design
stage, will definitely do well in reducing subsequent
maintenance work.
Definition of Maintenance
Maintenance
Planned
Maintenance
Unplanned
Maintenance
Preventive
Maintenance
Scheduled
Maintenance
Corrective
(including
emergency
maintenance
Condition-based
Maintenance
Corrective
(including
emergency
maintenance
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must be immediately
carried out to restore
service or to prevent
serious repercussive
damage to occur.
Emergency maintenance is
often referred to as
breakdown maintenance or
repair jobs. It is also
nicknamed fire-fighting
maintenance, because of
the fact that though the
asset is repaired to function
again, residual damage
has already set-in with the
assets functional life being
prematurely shortened. In
view of this and based on
the above definitions, such
tasks are not maintenance
in the strict sense.
3. Preventive / proactive
asset maintenance: The
tasks of maintenance
carried out at pre-set
intervals, which are
normally corresponding to
prescribed asset criteria.
These are designed to
avoid unexpected failures,
which often occur at
5. Emergency asset
6. Scheduled asset
inconvenient times,
maintenance:
maintenance: This is
causing service interruption
Maintenance actions which
another type of preventive
87
ASSET MANAGEMENT
Definitions of Types of
Asset Maintenance
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about by inappropriate
design, incorrect
installation and/or the use
of inappropriate or faulty
materials.
ASSET MANAGEMENT
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The Myth
The notion that planned maintenance costs more than
unplanned maintenance is a myth based on facts that have
been misconstrued.
A maintenance system that is based on planned inspections
and maintenance will undoubtedly incur higher overhead
costs than one that is unplanned. However, time and time
again experience shows that good pre-planning leads to
much lower maintenance expenditure in the long run. In
addition, it also leads to lower incidence of service
89
ASSET MANAGEMENT
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90
Effective maintenance
needs direct support of
research institutions
The technologies involved in
maintenance planning,
execution of inspections and
monitoring, maintenance work
execution, maintenance
management and financial
management are not simple
and certainly different from the
technologies associated with
the procurement of new
assets.
Because of this complexity,
more and more developed
countries are setting up their
own research units for asset
maintenance.
significance of maintenance
and the actual performance of
materials and components
under varying conditions.
The British government also
established a dialogue
between research and
development workers on the
one hand and architects,
engineers, surveyors,
maintenance personnel and
contractors on the other, to
ensure that the outcomes of
research are relevant to
effective maintenance
practice.
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institutions to provide
appropriate education and
training for asset
management.
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ASSET MANAGEMENT
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CHAPTER 6
1. Capacity Building under TUGI
2. UNs Millennium Development Goals
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1. Sustainabilityurban
developments must be
balanced against social,
x Mobilising stakeholders;
x Issue and city profiling;
and
x Identifying key issues.
2. Issue Prioritisation and
Stakeholder Commitment
x Elaborating issues;
x Building collaboration and
forging consensus; and
x Formalising commitment
on ways forward.
3. Strategy Formulation and
Implementation
x Formulating priority
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The Millennium
primary and secondary
significant improvement
education, preferably by
in the lives of at least 100
Development Goals (MDGs)
2005, and to all levels of
million slum dwellers.
have 8 Goals and 18
education no later than
Targets. Out of these, 5
2015.
XGoal 8: Develop a global
Goals and 10 Targets, as
partnership for
reproduced below, should
XGoal 4: Reduce child
development
have direct involvement of
mortality
Strategic and Systemic
x Target 12: Develop
Asset Management for
x Target 5: Reduce by two
further an open, rulepositive outcomes: (For full
thirds, between 1990
based, predictable, nonand 2015, the under-five
details of the MDB, see List
discriminatory trading
mortality rate.
of References.)
and financial system.
XGoal 1: Eradicate extreme
poverty and hunger
XGoal 7: Ensure
environmental sustainability
technologies, especially
information and
communications.
SAMS DIRECTION
SUPPORT FOR THE MDG
99
ASSET MANAGEMENT
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MANAGEMENT IS
ESSENTIAL FOR
SUSTAINABLE GOOD
URBAN GOVERNANCE
Having considered the
framework and the structural
details of Good Urban
Governance under UNDPs
TUGI Programme, especially
with respect to capacity
building of urban local bodies
of cities municipalities and
community involvements,
and followed by looking into
the details of UNs
Millennium Development
Goals (MDGs), it is obvious
that the science and
technology of Systemic
Asset Management (SAM) is
essential for sustainable
Good Urban Governance.
ASSET MANAGEMENT
SYSTEMIC ASSET
101
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Chapter
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CHAPTER 7
1. Managing Cities Cycles of Change
2. Managing with SAM Step-Power
3. Municipal Ties and Collaboration
4. Continual Inner-City Revitalisation
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104
x Benchmarking.
x Best practice.
x Effective leadership with
QUALITY DEMANDS
INTRINSIC TO SAM
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WHY REVITALISATION?
As mentioned earlier, a city
as a living system is under
constant changes from the
pressure of variable political,
social, economic and
environmental forces. Failing
to keep pace with the
changes will result in a
decline in civic services,
which may have a
deleterious effect on the
citizens daily life.
However well planned the
city may have been, it only
conforms to the initial criteria
for planning and
management objectives, and
these can become obsolete
or even irrelevant over time.
Changes due to external
forces are inevitable but they
can cause serious disruption
to the urban living system.
Negligence in rectifying the
situation will result in heavy
social costs. In the worst
scenario, people are forced
105
ASSET MANAGEMENT
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106
democratic process, an
urban renewal programme
can then be formulated for
implementation.
In a nutshell, the city
administration needs
Systemic Asset
Management to manage the
asset lifecycles of urban
living systems, which must
be continuously revitalised to
maintain service to the
community.
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Step-1: Revitalisation
Objectives
x
Minimisation of
community and social
costs.
& innovation
balance in change
Technical
resources
Responsibility
& control
Good urban
governance
SAM
Skills
Asset
Knowledge
Revitalisation
Objectives
Professionalism in
Change management
Assets focus
in the change
Changing needs
of the community
107
ASSET MANAGEMENT
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xasset properties;
xasset features;
xasset conditions and
performance;
xhistory of maintenance,
repairs and refurbishments
carried out; and
xlevels of user/community
satisfactions;
xCommunity complaints, if
any; and
xLessons learned.
xasset use.
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Summary
THE ACTIONS
Decision
making
Sustainability
& innovation
Technical
resources
Responsibility
& control
Good urban
governance
Strategic urban
Renewal Plan
SAM
Tools
SAM
Skills
Asset
Knowledge
Revitalisation
Objectives
THE GOALS
Sustaining desirable
Quality of life
Ensure ecological
balance
Professionalism in
Change management
Assets focus
to change
Figure 19 The SAM Step-power Process in action for Urban Renewal Sustainable Results
110
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Chapter
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processes of Asset
Management, they can then
have a common
comprehensive and dynamic
management framework and
systems to enhance their
municipal capacity through
close collaboration with
neighbours.
infrastructure, to realise a
nations Vision (e.g.
Malaysias Vision 2020);
x Achieving sound
governance with
measurable outputs as
revealed in public assets
service delivery
performance.
Collaboration benefits
x
x
transfer on Asset
Management technology at
less cost;
Advancing in skill
application of Systemic
Asset Management at a
faster pace through sharing
of experiences and staff
exchange programme;
Developing best practice in
Asset Management in a
more conducive
111
ASSET MANAGEMENT
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112
x Hospital sanitisation
x Public toilet operation and
maintenance
x Project management
x Budgeting and accounting
x
x
x
x
x
x
x
x
systems
Sharing software platform
Sharing asset register
system
Sharing asset survey and
condition assessment
Sharing innovative
processes for special
maintenance
Sharing best practice for
emergency maintenance
response
Sharing of world class
maintenance techniques
Sharing framework for
Asset Management
Manual
Pooling Trainers for Asset
Management Training and
sharing of skills.
ESSENCE
Chapter
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Organise design
competitions for restoring, adapting,
converting and
re-using older inner
neighbourhoods and streets
Re-engage community
activists, support voluntary activity,
neighbourhood wardens
113
ASSET MANAGEMENT
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CHAPTER 8
1. Reliable Public Services for the Poor
2. AM to Address the Brown Agenda
3. Improving Community Health
4. Better Funding Strategies
5. AM Knowledge Empowerment
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have enjoyed better and more Not only is the original debt far
from being paid off, the
reliable public services.
amount is compounding. The
Municipalities and Urban Local community suffers the
consequences and becomes
Bodies in developing
even poorer.
countries are often provided
with financial assistance from
Thus, the poor need good and
In most developing countries, donor agencies to put the
much needed infrastructure in reliable assets to provide
the poor condition of public
optimal public services and
place.
assets is often the result of
Good Asset Management is
lack of asset management
knowledgenot just a lack of Unfortunately, in most cases, vital for poverty reduction.
skills in asset maintenance. If the infrastructure is
there is no maintenance
implemented without
What do the poor need?
culture, public assets, whether transferring the essential
They need:
infrastructure or buildings, or
knowledge to operate and
x Land tenure.
Poor public services are often sub-assets in the form of
maintain the infrastructure
x Basic shelters.
caused by the poor condition facilities, plant and equipment, system with proper asset
x Roads to reach out.
of public assets. All assets will are mostly over-worked to the management. Within a short
point of failure. In such a
deteriorate over time and
time, they face maintenance
x Affordable but reliable transunless proactive maintenance situation the demand for
problems that they are not
port systems.
maintenance or emergency
is being carried out under
capable of dealing with, and
x Safe drinking water and sanirepair is at much higher cost
good asset management
soon the assets fail to provide
tation.
than the municipality can really the service intended.
processes, frequent
x
Knowing where to dig a well to
afford.
breakdown of services will
irrigate the farm.
recur and no amount of
Before long, the assets are
x
Public health services.
emergency repair works can
Had such assets been
completely run down with
prolong the life span of assets . properly cared for with
x Schools.
frequent breakdowns and
proactive maintenance, the
replacement needshence
x Organic fertiliser.
With assets ageing fast, asset overall lifecycle maintenance more loans are called for just
x Opportunity to sell produce.
costs would have been much to keep the public service
operation and maintenance
x Simple financing system.
less, while the poor would
costs also increase steeply.
going.
hen the poor are
denied access to public
services, such as affordable
transportation, education,
health services, clean water
and sanitation services, etc.,
they suffer immensely in every
respect, as they do not have
the financial means to seek
alternatives. When the quality
of public service declines, it
puts severe strain on their
meagre earning capacity, and
very often it will also endanger
their health.
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Section 2
he rich in developed
countries pollute both
globally and locally but they
usually have the resources to
mitigate some of the local
impacts of pollution. Their main
concerns are therefore the
Green Agenda of
deforestation, global warming,
resource depletion and
biodiversity.
lack of clean
habits and the
maintenance
culture of a
caring
society.
With the
Source: Cities & Citizens The AP2000 Experience Inter Press
Service, Asia-Pacific
systemic
provide programmes to train
processes of Good Asset
the trainers.
Management, public
awareness campaigns can be
carried out to inculcate
The poor in developing
By addressing the Brown
Fundamentally, local Brown
common practices of
countries, on the other hand,
Agenda, the poor will maintain
pollution is caused by the
cleanliness and maintenance themselves in good health,
mostly pollute only locally and
people of a settlement, be it in
culture for a civil society, while which is a very basic necessity
they often do not have the
the urban core, the urban
providing technology transfer in order for them to pursue a
knowledge nor the resources
fringe or in a rural settlement.
to municipal officers with
to minimise the local impacts
livelihood. Disease and
Such pollution is most severe
regard to public cleanliness
of their pollution. Their main
sickness make the poor
in the public areas, less so in
and public space
concerns are therefore the
poorer. They need basic
the semi-public areas and
management.
Brown Agenda which
infrastructure and services and
seldom found in the private
focuses on impacts such as:
they also need a clean living
spaces. It is the direct result of
rubbish strewn everywhere,
environment.
Asset
Management
lack of knowledge and civicchoked drains, polluted
institutions,
community
mindednessin short, it is an
waterways, untreated sewage
organisations and the urban
The poor get only limited basic
attitude problem caused not
and poor water quality.
local
bodies
can
jointly
develop
services from assets. They
only by the people in the
community
asset
need them to be optimised
community but also those
The Brown Agenda has thus responsible for governance. In management kits for such
more than do the better-offs
purposes. They can also
deleterious effects on the poor this respect, Brown pollution
citizens.
conduct
workshops
to
train
AM
communities in developing
can also be found in the rich
champions to work with NGOs They need Good Asset
countries. The World Bank
communities of many
and CBOs. AM institutions can Management .
warns most forcefully that:
developing countries due to
117
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118
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Section 3
poor community.
In the case of private homes,
Good Asset Management can
provide the home owners with
knowledge about common
building defects and how to
carry out proactive building
maintenance to prolong the
lifecycles of their valuable
family homes, which represent
their real life savings. (Refer to
Chapter 11 for more details.)
It is important to note that poor
standards of public health can
increase poverty! It is equally
essential to know that poor
assets resulting in
unsatisfactory public services
delivery will aggravate health
problems among the poor.
Again, the poor have only
limited basic services from
public assets. They need
them optimised more than
others.
They need Good Asset
Management for good health.
Legionnaires disease:
The case of Melbourne Aquarium in 2000
Tuesday, February 3, 2004 THE AGE
Hilda Hilton sobbed with relief yesterday after hearing that she and 143
others exposed to legionnaires disease at the Melbourne Aquarium
four years ago had won their fight for compensation.
The civil trial was due to start in the Supreme Court yesterday but Justice Bill Gillard was told that the defendants had decided in principles
to admit liability in favour of the victims.
Mrs Hilton said that she was upset over the death of the former lead
plaintiff in the action, Phyllis Paterson, 70, in 2001...
Solicitor Steve Walsh, who represented the plaintiffs, said that the settlement would be worth millions of dollars, but the compensation process
had not been finalized.
Mrs Hilton claimed that she was in intensive care for three weeks after
being infected with legionnaires disease. She had visited the aquarium
in April 2000 with nine family members, many on holiday from England...
Defendants in the case included a builder, architect, engineer, contractors and insurers...
The damages action was brought in May 2000, after two people died
and more than 60 were affected...
Maurice Blackburn Cashman said in a prepared statement yesterday
that the outbreak affected more than 170 people, and four died directly
from the disease.
Another 12 class action members had since died from conditions allegedly related to the disease. Their estates were included in the claim.
The firm said the outbreak was sourced to the aquariums water cooling
towers. It said the aquariums air-conditioning system was changed
after the incident.
All victims of the outbreak had visited or were near the aquarium between April 11 and 27, 2000.
119
ASSET MANAGEMENT
fatalincreasing infant
mortality in the poor
community.
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Children
, dont a
sk them
stop. Ju
to
st like f
u
nding, y
never ge
ou
t it. We
cross th
street.
e
With me
,
its alwa
safe !
ys
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Section 5
AM Knowledge Empowerment
nclusiveness is a vital
element of Good
Governance. But it is feasible
only when partners from the
community have the
knowledge and skills to
participate effectively in
decision-making. If they dont,
the objective of Inclusiveness
causes frustration, disillusion
and disappointmentmistrust
between partners may be the
result.
Source: TUGI
121
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CHAPTER 9
1. Introduction
2. Solar Aquatics Septage System
3. Land Filter Recycling Sewage Effluent
4. Onsite Greenbelt Effluent Disposal
System
5. Sawdust Toilet Compost System
6. Solid Waste to Compost Earning for the
Poor
7. Rotomillings for Sealing Rural Roads
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Introduction
ASSET MANAGEMENT
124
Remember, in the
ecosystem, there are no
such things as wastes.
They are all essential
assets of micro-lifecycles
to form the bigger
network of lifecycles.
Only through neglect,
indifference, ignorance
and irresponsibility do
wastes appear and
destroy our ecosystem.
ESSENCE
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Figure 20
125
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Section 3
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126
Figure 21
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Section 4
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xThis will use 3 gals. Of semi-dry, deciduous, rotting sawdust per week as
cover material in the toilet bucket.
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Waste Concerns Solid Waste Recycling Community Schemes for the production of compost for farmers are
providing positive employment to the poor in Bangladesh
(Waste Concerns projects on capacity for bio-energy and bio-fuel production from solid wastes are now on-going)
it has created income-generating activities for the slums poor
community.
Organic wastes were put in the Green Barrels supplied. After
four months of composting, the slum dwellers harvest the compost
and deliver to the compost collection depot which pays for the
product. In turn, the depot will sell the compost to the farming
community at a price much lower than commercial fertilizers.
Community Based Urban Solid Waste Management in
Dhaka
This is a much larger project for higher volume of compost
production including blended compost to suit crops. In addition, the
project is also involved in an urban total waste management
programme starting from baseline survey to collect data, to
x Barrel Type Composting for Slums in Dhaka (1998-2000)
capacity building, research and training, marketing and job
x Community Based Urban Solid Waste Management in Dhaka
opportunity creation, especially for women.
(1998-2003)
Specially designed waste collection tricycles are provided by
x Demonstration of Enriched Compost under the Tangail
Waste Concern for community staff to make house-to-house
Infrastructure Development Project, as part of ecological villages collection. The composting process involves separating and
development in Tangail funded by GTZ (2002-2003)
sorting into organic and inorganic wastes piling of organic waste
turning of pile watering of pile temperature and moisture
x Capacity Development for Clean Development Mechanism in
monitoring and control recording data and quality control
Bangladesh (2002-2003)
maturing of compost screening of compost. Through a formal
One of its ongoing projects is the Pilot Schemes on Solid
marketing process, compost is sold to the agriculture industry.
Waste Management and Composting in Bangladesh, due to be
Benefits: Cleaner and healthier urban areas only 15% of
completed in 2005.
inorganic wastes go to landfill site saving landfill land by 75%
Barrel Type Composting for Slums in Dhaka
reducing municipal waste management cost at US$11,760 per
Waste Concern, with support from UNDPs LIFE programme ton creating 16,000 new jobs for Dhaka Citys poor, and 90,000
has introduced a pilot barrel type composting project in two slums nation wide.
of Dhaka City. Specially designed barrels were supplied by Waste Source: A.H.Md. Maqsood Sinha, Community Based Urban Solid Waste Management in
Dhaka: A Decentralized Approach of Waste Concern, a paper presented at the First
Concern to slum dwellers for composting. This service was
UEM Sub-Sector Networks Meeting, at AIT Bangkok, organized by CIDA-AIT, 21-22
designed to reduce waste disposal at source but at the same time
June 2004.
t the First Urban Environmental Management (UEM) SubSector Networks Meeting held at Asian Institute of Technology
(AIT) in Bangkok on 21-22 June 2004 under a Canadian
International Development Agency (CIDA)-AIT Partnership
Programme for the Southeast Asia region, delegates were awed
by the success storey of Waste Concern, as it was being
presented by its Executive Director A. H. Md. Maqsood Sinha.
Waste Concern is a national research based NGO in
Bangladesh, established in 1995. Its main objective is to promote
the idea of converting waste into resources. Since then, the
organisation has won many international awards.
Its completed projects are:
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CHAPTER 10
1. Approach of the Victorian Government
133
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ince the end of World War II, road network building has
been recognised as one of the key infrastructures for
national development in the Asia Pacific region.
Notwithstanding this fact, road management has not been
an integrated effort. Agencies tend to focus on road network
development programmes with insignificant attention to
management of existing roads, culverts and bridges.
experience.
134
x Asset management.
Within this framework, asset management is the key process
by which external stakeholders can and will assess and judge
the competitive performance of local government.
In order to ensure the municipal councils will be able to
demonstrate an acceptable level of proficiency and duty of
care in relation to their asset management practices, the
Municipal Association of Victoria (MAV) launched the STEP
Asset Management Improvement Program in late 2002. This
Program is to provide Councils in Victoria with a whole of
organisation perspective and a Framework by which to imbed
continuous improvement into their asset management
practices, and to produce acceptable sector-wide outcomes
over the period 2002/3 to 2004/5.
Under the Road Management Bill, the road asset
management is earmarked to be evolved into a model for
deployment across all other assetsas road assets form the
biggest asset category in the State Government.
In 2004, VicRoads completed the Road Management Plan
and issued it to the Councils. It is a comprehensive and
systemic asset management plan and used as a model, it will
establish consistency and standards in asset management by
Councils across the State. Although the plan is specifically
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Fundamental Inputs
Fundamentals
x Government policies;
x Relevant legislation;
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1. Definitions
136
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Description
Possible causes
Remedy
Description
Possible causes
Remedy
Description
Possible causes
Remedy
Description
Possible causes
Remedy
ASSET MANAGEMENT
Road Defects
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Response
Code
Control Mechanism
Response Time
Within 4 hours of
Inspection or notification.
Within 24 hours of
Inspection or notification.
Where it is not possible to rectify within the time shown in the above Table, because of the nature of the repair
required, level of resources required or workload, VicRoads requires that appropriate warning of the hazard is to be
provided until the repair work is completed.
Appropriate warning may include the following:
x Provision of warning signs,
x Traffic control action,
x Diverting traffic around the site,
x Installation of a temporary speed limit,
x Lane closure,
x Closure of the road to use by certain vehicle (e.g. a load limit), or
x Road closure.
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Day-Time
Daily
Twice per
week
Weekly
Every 2nd
week
Monthly
Twice per
year
Night-Time
6 monthly
6 monthly
6 monthly
Yearly
Yearly
Yearly
ASSET MANAGEMENT
Inspection
Type
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A: PAVEMENTS (Contd)
Description of Hazard
(na)
A3: Drainage
Damaged or missing drainage pit lids,
surrounds, grates, in pedestrian areas or
traffic lanes
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Description of Hazard
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B: ROADSIDE (Contd)
Description of Hazard
(NA)
C: STRUCTURE
Description of Hazard
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(NA)
A critical location is a location where the road alignment and/or pavement width and/or geometry are identified
by additional markings or furniture to guide the travelling public (cars, trucks, motor cycles and pedestrians).
A safety sign is a road sign that provides the driver with advice on the safe use of the road.
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ASSET MANAGEMENT
CHAPTER 11
1. Essentials of a Quality House
2. Life Cycles of Home Buildings
3. Home AM for Maximising Asset Values
4. Homes Free from Health-Risks
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Fig. 25
ASSET MANAGEMENT
147
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b.
148
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Since a roof does get hot during in the day, enormous heat
will build up and be transferred into the building interior. It is
therefore common to have the roof insulated with a layer of
heavy-duty aluminium foil beneath the roofing tiles. If
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2.
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By Whom
Owner
Clean workbench tops, sink and cooking top in kitchen with detergent and warm (preferably) water dont
forget all water-taps over the sink and cooking range control knobs. Rub dry with clean cloth.
Owner
Clean toilet bowls and seats, basins and bathroom, vanity tops and toilet floors with detergent and warm
water dont forget all water-taps over the basins, cistern flush-handles and doorknobs of bathroom and
toilets. Rub dry with clean cloth.
Owner
Owner
Owner
Brush clean wall tiles of kitchen cooking range and exhaust hood with a brush and detergent and warm water.
Owner
Mop all tile-floors of lounge, dining rooms, storerooms, halls and stairs with detergent and hot water and
thereafter rub dry with clean cloth.
Owner
Wipe clean all kitchen cupboard doors with detergent and warm water and rub dry with clean cloth
Owner
Brush clean bathroom wall tiles and shower screens with detergent and warm water. Rub dry with clean cloth.
Owner
Clean all mirrors, window and door glass panels with glass cleaner
Owner
Clean all door handles and stair handrails with detergent and warm water. Rub dry with clean cloth.
Owner
Clean all drain outlets of kitchen sink, basins, shower closets, bathroom floors, kitchen floor and laundry floor
with chlorine bleach solution. Mix 1 quart (2 pints or 0.95 litre) of water with 1 teaspoon of Clorox bleach
solution and pour down the drain outlets to kill germs.
Owner
Clean ceiling fan blades with detergent and warm water. Rub dry with clean cloth.
Owner
Open windows and clean the sills with detergent and warm water. If there are signs of fungus because of
dampness due to window sash being mostly closed, brush clean with Clorox bleach solution at strength of
1 /2 cups of Clorox to 1 gal. of water then rub dry with clean cloth. Wear rubber gloves for the job. Do not shut
the window until the sill has been thoroughly dried. Thereafter, open the window a few times a week.
Owner
Clean oven, microwave oven, electric kettle with warm water and detergent and rub dry with clean cloth.
Disconnect electrical connection to power point before cleaning.
Owner
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Launder the mattress protector on a sunny day. Leave mattress to air with windows open then vacuum it and
replace the protector over the mattress when it is thoroughly dried under the sun.
Owner
Take carpets outside to air with undersides facing sunlight. After at least 4 hours esposure, vacuum both sides
thoroughly before replacing them in the rooms.
Owner
Clean all aluminium window and doorframes with mild detergent and warm water. Rub dry with clean cloth.
Owner
Repeat above for all painted timber window and doorframes and doors.
Owner
Switch off refrigerator connection at the power point, remove all food items and clean inside and outside of
refrigerator including shelves and drawers with detergent and warm water. Take care in cleaning the rubber
door seal to remove any mildew formation. If you can see mildew, use a toothbrush to clean it with soap then
rinse and rub dry with clean cloth. If mildew continues to form despite monthly cleaning, there is a likelihood
that the refrigerator door is not closing tight. Contact fridge company to inspect and carry out maintenance
service, which may involve replacing the rubber door seal. After cleaning put back all foodstuffs and switch on
the electric connection. Put a thermometer in the fridge compartment to measure the operation temperature.
After 24 hours and the fridge temperature is above 41 degrees F (or 5 degrees C), then it is not safe. Adjust
the thermostat until the fridge is operating at just below 5 degrees C. If you cant achieve that, contact the
fridge company for maintenance service.
Owner / Fridge
Service Agent
ASSET MANAGEMENT
3-Monthly Maintenance
1
Service all air-conditioning system units to all roomscombined window units or split-systems units. Filters
should be thoroughly cleaned and if disposal type, replaced with new. Registers or air-distribution covers must
be thoroughly cleaned to prevent fungus growth. Refrigerant must be checked and topped up when necessary.
Condensing coils must be checked and cleaned with approved chemical solutions. Other components must
also be checked to ensure proper working order. Systems performance level must be measured to ensure
optimal working condition. Request contractor to prepare a checklist to show what has or has not been done at
each service. In urban areas where the pollution level is high, maintenance may have to be at 2-monthly
intervals. With good proactive maintenance, a unit can last 10 years or more, otherwise it will suffer frequent
breakdowns after 3 years of use. In buildings that use central air-conditioning systems, more complex
maintenance services have to be carried out. In these systems, large cooling towers are often not properly
maintained resulting in severe fungus growth. This can lead to outbreaks of legionnaires disease. This
central system needs to be dealt with carefully and in greater detail, which is outside the scope of this book.
Air-con Service
Contractor
Service range-hood exhaust system unit. The procedure is similar to air-conditioning unit maintenance
described above though without a compressor and the cooling system.
Range-hood
Exhaust Service
Contractor
Service exhaust-fans. Clean the fan blades and check the bearings and the wear and tear of moving parts.
Air-con Service
Contractor
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Check water tank for sediment built-up. If water quality is poor, consider installing water filter system
(preferably auto backwash without electrical connection typeinsist on a 10-year guarantee on maintenance
free without any manual backwashing.
Plumbing Contractor
Water Filtration
System Supplier
Contractor
Yearly Maintenance
1
Check building structure condition for building settlement, structural cracks, condition of tanalised or
untreated structural timber members.
Building
professionals.
Check external conditions, especially earth slope and external drains. Ensure drains are not broken, or
weeds growing through the drains, or are choked with rubbish, or overgrown with fungus, and that there are
no signs of earth settlement below drain. Make good all defects.
Building
professionals.
Check external concrete paving slabs for cracks, ponding, settlement, flaking, change in surface texture,
weeds growing through. Investigate and make good all defects.
3-Yearly Maintenance
Building
professionals.
Electrical contractor
Check electrical wiring system and lightning conductor system. Check functioning of circuit breakers. Check
signs of overloading and check condition of wiring. Check switches and socket-outlet connections. Check
cable and conduit casing for signs of damage by rodents. Check lightning conductor rod resistance. In
homes, wiring is usually concealed in walls; if cable failure is suspected, the wall must be broken open for
inspection and replacement.
Bear in mind that wiring and circuits normally last only 30 years and should be renewed. For new buildings,
the owner must insist on getting the detailed wiring and location diagrams from the architect / engineer or the
developer.
Check the plumbing system. This is one of the most costly maintenance items as plumbing system
components do not last long. In some areas, water can corrode piping faster than in other areas. Galvanised
steel pipes laid in the ground can suffer premature failures from anaerobic bacterial attack unless properly
protected with reinforced bitumen coating. If copper from hot water in copper pipes gets deposited in
galvanised steel tank or pipes, it can dissolve the zinc in the galvanizing thus corroding the steel tank or
pipes. Cast-iron pipes corrode easily and need proper maintenance. Ball-valves in cisterns and water tanks
can fail easily due to a number of causes and must be checked and maintained or replaced. Leaking pipes
and fittings not only cause a nuisance but will also damage other building components.
Plumbing contractor
The above descriptions are only some examples. Home maintenance is very complex and it is beyond the
scope of this book to go beyond a general outline. Owner should get a full maintenance list on the entire
plumbing and sanitary systems to monitor checking and maintenance works being carried out.
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Plumbing
contractor
Check water tank. If it is a steel tank, check for corrosion and rectify. Check ball-valve.
Plumbing
contractor
In typhoon / earthquake zone, check structural strength and structural joints which should have been designed
for the purpose
Building
professionals
And Project
Engineer or
Architect
ASSET MANAGEMENT
5-Yearly
1
Check external concrete wall conditionscracks (hair-cracks or structural cracks), concrete spalling, flaking,
change in texture, etc. Investigate and make good.
Building
professionals.
Painting
contractor
Electrical wiring and installations deteriorate as a result of ageing of the insulation sheathing material and
cumulative mechanical damage, hence the whole system should be tested in accordance with local or
international Wiring Regulations at least every 5 years.
Electrical
contractor
Check on the structural system for latent defects especially if the local statutory limitation is 6 years.
Building
professionals
If the local statutory system is 6 years, the first 5-yearly check after building completion is especially important.
Source:
Leong, KC (2003), Maintenance Culture Begins at Every Citizens Home, presented at EAROPH-APIGAM Asset Management
Workshop held at ASCI, Hyderabad on 2-3 December 2003 and at Mumbai Municipal Corporation of Great Mumbai, India on 7-8
December 2003.
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Aspergillus fumigatus
Cladosporium herbarum
Penicillium Chrysogenum
Penicillium expansum
Stachybotrys chartarium
Source:
Where found
Moist windowsills, walls
Damp wood, wallpaper
glue
House dust, potting soil
Moist windowsills, wood
Damp wallpaper, behind
paint
Damp wallpaper
Wet Carpeting, gypsum
board
What it produces
Allergens
Mycotoxins
Volatile organic
compounds (VOCs)
Allergens
Allergens
Mycotoxins
Pneumonitis
Asthma, allergy
Unknown
Mycotoxins
Mycotoxins
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6.4
Hazards
Remedies
Electrical appliances
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Refrigerators
Formaldehyde
ASSET MANAGEMENT
Source: Compiled by KC Leong from David Pearson, The Natural House Book, Angus & Robertson, Australia, 1992.
161
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A Maintenance Culture
ASSET MANAGEMENT
CHAPTER 12
1. A Caring Society and Maintenance
Culture
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Section 1
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A Maintenance Culture
Section 1
Ideal Planning
Dustbins should be far away
from houses. Industries should
far from health clinics. House
surroundings should be clean.
Sewage lines should be made
in the proper manner. The
playground should be larger.
By Kishor Mestri, age 13, Mumbai,
India
Source:
The Habitat of the Chile, We Live
Here Too!, PLAN International
We live here too! was
underwritten by Childreach, the
United States member of PLAN
International and by PLAN
International Australia with funding
from the Australian Agency for
International Development.
167
ASSET MANAGEMENT
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ASSET MANAGEMENT
In matters of conscience,
the law of majority has no place.
Mohandas Karamchand Gandhi
Steven Howard 2003
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ASSET MANAGEMENT
CHAPTER 13
1. The investigation of AM failures
169
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Asset management
practitioners in developed
countries are made up of
economists, scientists,
planners, architects, engineers,
quantity surveyors, land
surveyors, ICT programmers
and analysts, anthropologists,
social psychologists, and any
professionals who have an
interest in improving the quality
of human settlements and
When one has submit evidence improving the citizens quality of
life through sustainable asset
affidavits and then appear in
performance.
court as an expert witness, to
face cross-examination by the
opposing counsel supported by These same professionals are
other expert witnesses, that to readily available in many
may mind is the ultimate test of developing countries in this
ones life-long learning. Such a region. With political will and
test, again to my own
under the impetus of UNDPs
experience, is far more
campaign of Good Urban
challenging than any academic Governance and the UNs
tests I have ever taken.
Millennium Development
Programme, it would not be
Thus, as developing countries difficult to train them to be asset
management practitioners as
in the Asia and Pacific region
well as forensic asset
are beginning to adopt the
management consultants.
knowledge and skills of asset
management, it would be
171
ASSET MANAGEMENT
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CHAPTER 14
1. Australian and New Zealand Models
173
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ASSET MANAGEMENT
Resource Management
Act 1991.
174
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14
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x Financial Management
Act 1994 This is an
important Act as it is a
175
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176
asset management is a
living, on-going task and
no government or public
body is expected to set up
documents which can be
considered complete.
Asset management
involves changing attitudes
and approaches in
management, setting up
new management
technologies and tools,
establishing new
relationships between
service providers and
users. The task of
introducing asset
management has to be an
evolving one. It must start
with simple policy and be
improved with more
advanced and
comprehensive policy
along the process over a
targeted period.
A wise and practical way
to start is to use the
process of budget strategy
and review it to introduce
asset management
principles and policies in
xEnsure setting up
baseline survey of
existing assets owned
and/or operated by an
organisation to collect
inventories of all assets.
xEnsure setting up a
process for improving
asset and related
financial information
collection and recording
same to establish
comprehensive asset
registers.
ESSENCE
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14
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included in an
organisations annual
budget report.
xEnsure setting up a
process for improving an
organisations
management capacity
which includes interorganisational transfer of
under-performing or
under-utilised assets and
methods of disposing
such assets.
Liability in negligence
the Australian
experience
xEnsure setting up of a
177
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178
BC
B
DB
DCB
C
CD
C
D
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179
ASSET MANAGEMENT
understanding of local
government and to who is
benefiting from decisions
and actions. Access to
In Chapter 6, I mentioned 9 information is fundamental
Norms of Good Urban
to this understanding and to
Governance under the
good governance. Laws
UNDP TUGI Programme.
and public policies should
Out of these, Norm No. 5
be applied in a transparent
refers to Transparency
and predictable manner.
and accountabilityto be Elected and appointed
upheld in all process of
officials and other civil
urban administration,
servant leaders need to set
development,
an example of high
implementation and
standards of professional
management with the direct and personal integrity.
support of stakeholders.
Citizen participation is a
key element in promoting
This is further elaborated
transparency and
by TUGI that the
accountability.
accountability of local
authorities to their citizens
The document then cites
is a fundamental tenet of
practical means of realizing
good governance. Similarly,
this norm, and I will quote
there should be no place
one particularly relevant
for corruption in cities.
point which suggests:
Corruption can undermine
local government credibility Creating public feedback
mechanisms such as an
and can deepen urban
poverty. Transparency and ombudsman, hotlines,
accountability are essential complaint offices and
procedures, citizen report
to stakeholder
rather than public
authorities being protect by
immunity law.
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Ren J. Dubos
1972
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15
ASSET MANAGEMENT
CHAPTER 15
1. Introduction
2. Australia and New Zealand
3. China
4. Fiji
5. India
6. Indonesia
7. Japan
8. Korea
9. Malaysia
10. Philippines
11. Thailand
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Introduction
182
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15
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183
ASSET MANAGEMENT
New Zealand
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184
Australia
AM Adoption:
Practised at all levels of
governments with enthusiasm
and relatively speaking, very
committed.
Legal framework:
Australia has very strong and
autonomous State and
Territory Governments, hence
each has its own legal
framework within which to
carry out the adoption of AM.
They all have their own Acts
on Land, Infrastructure,
Building, Transport, etc.
(Refer to Chapter 16 for
example of the State of
Victoria.)
Drivers:
x A continental size island
country with a relatively
small population of 18
million, endowed with vast
natural resources and free
from many of the microbes
and diseases commonly
found in other parts of the
world.
The people are proud of
their quality life style and
their love of nature and
would like to keep that level
of enjoyment. However, the
diverse and harsh
geographical and climatic
conditions over the huge
landmass have caused the
people to bear the highest
infrastructure costs per
capita in the world.
In order to maintain their
quality lifestyle, the
relatively small population
is facing enormous
problems with respect to
the sustainable
management of water
supply systems, energy
systems, transport systems,
road network systems,
waste disposal systems.
etc., unless they reform and
develop their own asset
management system to
meet the great challenge.
x The 1995 Australian
Accounting Standards,
AAS27 which requires all
infrastructure assets to be
reported, statement of all
ESSENCE
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ASSET MANAGEMENT
China
determination to pick it up
across the country. They
fast.
have been practising
preservation of these national
x From ancient times, China
treasures and they are
has experienced many
increasingly doing well, with
mammoth sized infrastructure
good local and foreign
development programmes,
technical and funding
such as: the Great Wall, canal
supports. They understand
systems, de-desertification,
Legal framework: There are as
the importance of maintaining
national road networks,
yet no legislations focusing on
assets.
national railway systems,
asset management. However,
x Given such a background and
flood control systems,
there is important legislation
irrigation, agricultural systems
the countrys centuries of
pertaining to infrastructure,
reform; and recently, they
experiencing all kinds of
construction, housing,
have built a new Shanghai
natural disasters which are
environmental management,
and Beijing in less than a
often huge in scale, China
etc., that can be upgraded and
decade, not to mention
has many good research
consolidated for firstly
hundreds of other cities and
organisations including those
introducing the AM approach for
thousands of other townships.
in many universities and
urban governance and urban
China has the power and
colleges. They are beginning
sustainability, and then
capacity to motivate a
to draw up their own
developing and implementing it.
mindset for achievement.
environmental and asset
standards. These are good
x The amount of new assets
Drivers:
ground works for developing
China has added to the
x China has a huge landmass
AM systems.
existing vast asset stock is
and long coastline with the
x Chinas scenic sites across
mind-boggling. The national
worlds largest population of
stock is still expanding with
the country, coupled with 56
1.3 billion. Its recent
lightning speed. They will
nationalities offering a rich
impressive urbanisation and
soon realise they need AM
expos of ethnic cultures and
modernisation outcomes
and need it fast to maintain an
the recent success stories in
show the government and the
acceptable level of
all aspects of urbanisation,
people understand the
performance for reliable
has attracted millions of
importance of effective
service delivery.
foreign and local tourists who
development planning and
are criss-crossing the country.
x China has an enormous
management. Once they get
The tourist industry knows it
number of historical and
to know AM, they will have
must support AM when it
heritage sites and buildings
the capacity and
AM Adoption: Although a
number of academics and
government officials have been
exposed to asset management
conferences, seminars and
workshops, there are as yet no
signs of AM adoption.
186
comes.
Obstacles:
x The diversity of languages
slow them down, hence more
efforts are needed.
x Legal framework not in
keeping with pace of
urbanisation and
modernisation.
x Local governments and
councils need resources
support. Officials and
communities lack external
linkage, relying on state and
central government leads.
x China sees itself as a
technological economy.
Nearly all 24 members of the
Poliburo are technocrats, with
many engineers. (S. Schafer,
2004) They love mammoth
sized asset constructions and
do not see the need for AM.
The future:
China is a member of EAROPH
and APIGAM will be working
with EAROPH members in
China on AM awareness. In this
respect, APIGAM is working in
collaboration with a number of
international organisations for
funding support.
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ASSET MANAGEMENT
Fiji
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15
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India n
community co-operatively,
or be those assets made
Asset management was
available by individuals for
introduced to India since
community use, or those
around 1997. The two key
held in some form of
organisations that have
trustfor the pursuit of the
been involved in AM
communitys economic,
projects are the
social, cultural, spiritual
Administrative Staff
and psychological wellCurrent AM processes:
College of India (ASCI) in
being. This livelihood
Hyderabad, and the
The source of continuous approach under CAM is
Housing and Urban
support on AM for India
considered holistic and is
Development Corporation has been coming mainly
aimed at maintaining a
(HUDCO) in New Delhi.
from the Department For
balance between
There is support from the
International Development economic security and
national government and
(DFID), UK, under whose development, and other
some State Governments. resources support HUDCO
quality-of-life related aims.
Due to lack of clear
and ASCI have
Livelihood assets are
understanding of AM, and implemented many AM
based on DFID
lacking full commitment,
programmes.
frameworks five elements:
governments at all levels
physical, natural, human,
HUDCO:
and agencies have not
social and financial.
been able to enjoy the full Through HUDCO,
benefits as they should.
Community Asset
CAM was first tested in the
Nevertheless, citizens of
Management was
Andhra Pradesh Primary
Ludhiana have in the last
established (CAM).
Education Project
few years benefited from
Community assets are
(APPEP) in 1998-99, as
an AM project.
defined as assets that are part of the repair
in collective use by
programme of those
Legal framework:
communitiesthey may
education assets. By
There is no legislation with be owned by the
involving the community,
ASSET MANAGEMENT
AM Adoption:
188
a focus on asset
management. However,
many legislations pertain
to urban development,
housing, infrastructure and
poverty alleviation
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ASSET MANAGEMENT
India Y
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India p
ASSET MANAGEMENT
economical and
environmental factors and
final processes for
decision-making to ensure
urban sustainability.
Since the launch of the
manual, municipal mayors
and commissioners are
taking a keen interest in
ensuring they have no
idling assets. They are
extremely enthusiastic in
ensuring all assets are
yielding the expected
returns to justify public
investment.
190
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Chapter
15
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Programme as the
nations new policy
agenda, with, inter alia,
emphasis on improving
education and
employment
opportunities as well as
infrastructure
development in rural
areas.
development and
implementation across
the country.
Obstacles:
191
ASSET MANAGEMENT
India q
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15
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Indonesia n
At the same time, Central
Government also required state
and municipal governments to
prepare double ledger
accounting systems, whereby
each of them had to show
Legal framework: Government income and expenditure
policy No.22 introduced by the
budgets on one ledger, and
Gus Dur administration in 1999 prove their real performance in
led to the introduction of basic
the other ledger, showing they
AM. There are many legislations were able to keep their fiscal
which are rather fragmented.
accounts in the black through
Some of these laws could be
good management.
consolidated in order to give
more effective AM for urban
Following this the asset register
governance and development
system was introduced to record
sustainability.
all assets market values. Under
the new policy, the state and
Current AM processes:
municipal governments were
empowered to seek foreign
Policy No.22 was enforced in
1999 to give more power to the investments to support their
budgets, work programmes and
states and municipal
expenditure. It was for this
governments thus enabling
reason that in recent years there
them to develop, manage and
control their respective areas of has been a frenzy in the setting
jurisdiction. Resulting from this, up of asset registers across the
country, as they were anxious to
state and municipal
use the asset values in the
governments had to develop
their own budgets and plans for registers as collateral for
loanslocal and foreign.
their own portfolios of work,
instead of waiting for the Central In the year 2000, the municipal
Government for grants or fund
government in Padang (West
allocations before any works
Sumatra), and in Samarinda
could be done.
(East Kalimantan) succeeded in
ASSET MANAGEMENT
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in developing infrastructure. It
has low GDP per capita.
Considering all these difficult
circumstances, it is clear they
The officers in JPG are keen to
need AM to help them
know how to properly maintain
overcome many social,
and manage public assets for
economic, technical and
service delivery. They are keen
environmental difficulties in
to find out how to maintain the
order to achieve good
functional life of assets at the
governance and sustainable
least cost. They want to know
urban development .
how to carry out lifecycle costing
x Indonesia has many cultural
instead of setting up accounting
and heritage sites and assets
systems for assets. They have
and the people who are proud
been in touch with EAROPHof their cultures are keen to
APIGAM with regard to the
acquire the knowledge and
process of Systemic Asset
skills to maintain and manage
Management and are making
their valuable assets.
arrangements with APIGAMs
x Indonesians have long
resource team concerning AM
traditions of fine
technology transfer.
craftsmanship for their arts
and crafts, their music and
JPG appears to be light years
dance. Given the opportunity,
ahead of the other state and
they can develop the art and
municipal governments with
science of AM.
regard to AM.
x Because of social, economic
Drivers:
and political diversity,
Indonesia has difficulties in
x Indonesia is a country of
establishing and maintaining
islands (some 16,000 islands
an acceptable quality of life.
at high-tide) with dense
Despite their ardent support
populations. It has huge
for UNDPs good governance
differences in geographical
initiative and UNs Millennium
conditions, ethnic groups and
Development Goals, they
languages. It has to
know they need AM to help
overcome physical problems
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ASSET MANAGEMENT
Indonesia Y
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Japan
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195
ASSET MANAGEMENT
Korea n
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15
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Korea Y
ASSET MANAGEMENT
Current AM processes:
Although there are no examples of AM being
carried out for infrastructure and other manmade assets, with Koreas continuing
ambitious industrialisation programme to
compete in the local and international
markets, and their work ethics and pride, it is
my observation that Koreans are beginning
to realise the need to match their frenzied
asset procurements with asset management.
technological innovation
for efficient use of
resource
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Malaysia n
1. Develop a strong science
ensure they remain reliable and
AM familiarization seminars
and technology base to
continue to provide quality
and workshops in Kuala
enhance industrial
service delivery.
Lumpur. All senior
competence and
executives of relevant
x
Malaysias economic growth
Legal framework: Malaysia has
competitiveness.
ministries and agencies
was
to
a
great
extent
spurred
a good legal framework for urban
2. Develop indigenous
have participated in these
by
the
countrys
Vision
2020,
development, industrialisation and
technology by increasing
events. Officials of some
under
which
it
is
aspired
to
be
a
asset construction, but nothing
the nations capability to
state governments and
fully
developed
country
by
the
specific towards good asset
adopt, adapt and improve
local councils in both East
year
2020.
But
some
of
its
maintenance, let alone asset
technology through
and West Malaysia have
assets
in
the
nations
huge
management.
research and
also been exposed to AM.
asset stock are ageing, and
development.
The country is ready for
some are showing signs of
Drivers:
3. Develop a pool of skilled
AM.
deterioration. They have no
x Malaysias strong economic
manpower capable of
x Datuk Seri Abdullah Ahmad
problems in getting resources
growth, especially since the
handling new and
Badawi, just before he took
for new asset procurements,
1990s, has brought about
emerging technologies;
office as Malaysias Prime
but few funds have been set
intensive urbanisation. The
4. Ensure that environment
Minister was briefed by
aside for proper maintenance;
Klang Valley, where Kuala
conservation and
representatives from
and neither has the population
Lumpur and the capital Putra
protection are built into
EAROPH, UNDP and IULA
been trained in asset
Jaya are situated, has enjoyed
the overall economic
(Asia Pacific) and gave his
maintenance, which has often
the greatest urban growth,
development process.
full support for the setting
been confused with real estate
causing continuing in-migration.
5. Develop a positive
up of an international
management. AM urgently
But all states in both East and
culture based on
organisation for asset
needed to take care of the
West Malaysia enjoy high
integrity, discipline and
management in Kuala
nations valuable assets.
economic growth and
diligence to equip
Lumpur.
x Under the governments policy
urbanisation expansion. Thus,
Malaysia
for
high
x
EAROPHs international
of Malaysia Incorporated, the
this little country has become a
productivity and
secretariat is situated in the
public and private sectors are
vibrant nation of only 23 million
commitment to quality.
Malaysian Ministry of
working in close collaboration
people. One of its growth
In
short,
Malaysia
is
set
to
Housing and Local
with the nations strong
drivers is the countrys strong
embrace AM in order to
Government in Kuala
leadership backing right from
investment in infrastructure
achieve the objectives.
Lumpur. In June 2003, the
the top of the government.
development across the whole
x Since 2001, EAROPHs
Asia Pacific Institute For
Entrepreneurs are aspiring to
country. This compact nation
international Asset
Good Asset Management
bring the nations growths to
depends on the reliability of
Management Resource
(APIGAM) was formed by
new heights. The main thrusts
public assets. They need AM to
Team has been conducting
EAROPH with support from
are to:
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Malaysia Y
the government of
Malaysia, UNDP and other
international organisations.
APIGAM was launched by
Minister Datuk Seri Ong
Ka-Ting of the same
Ministry at the National
Conference on
Development of a
Maintenance Culture held
in Putrajaya. Malaysia will
benefit from the objectives
and activities of APIGAM.
Malaysia is ready for AM.
Obstacles:
x Malaysians are confused
with asset maintenance,
vis--vis asset
management with real
estate management, a
service provided by real
estate agents licensed
under the Surveyors Act.
Thus, many are under the
misimpression that those
house keeping and
cleaning works carried out
by unskilled workers, and
some building repair works
and occasional painting
jobs by workers hired by
the real estate agents
constitute asset
management.
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ASSET MANAGEMENT
Philippines Y
services throughout the
mountains, attracting
country. The
many tourists, including
governments know that
many celebrities from
and the communities
around the world. But
expect that. They need
their transport systems
AM urgently.
are far from desirable.
Their major transport for x Many EAROPH
inter-island travels are
members and
the ferry boats, which
government officials
are ageing and often
including local
overloaded causing
government officials in
frequent mishaps, even
the Philippines attended
many fatal accidents
the EAROPH 1996
involving capsizing or
World Planning
fire. The country needs
Congress in Auckland,
to improve its transport
new Zealand. They had
systems, in particular
their first exposure to AM
better AM for its ferry
there. At the 64th Annual
services.
Philippines Institute of
x Philippines community
Architects (PIA) 1997
service organisations are
Annual National
doing an admirable job in
Convention under the
helping the government
theme, Tomorrows
in bringing basic services
Architecture Today held
to the communities in
in Manila on March 20efforts to reduce urban
22, 1997, as one of the
poverty. The government
keynote speaker, I
must match these NGOs
introduced the concept
efforts by improving
of AM for architects and
asset performance to
engineers (KC Leong,
provide reliable public
1997). The local
200
on asset maintenance.
architects and
Since then EAROPH
government officials at
members in the
that convention accepted
Philippines, including
the importance of AM
officials of various levels
and agreed to do two
of governments and local
things: The first was to
organisations and NGOs
assist in organising a
have been attending
regional seminar on AM,
EAROPH conferences,
and the second was to
seminars and workshops
explore how architects
on AM. The Filipino
could develop a building
professionals are keen to
maintenance manual for
adopt AM.
clients after they had
completed the building
x At the CITYNET/UNDP
projects. On 20-23
International Seminar,
November 1997 in
Inner City Revitalization
Manila, the EAROPH
and Poverty Reduction in
Philippines with support
the Asia Pacific Region:
from PIA, organised the
Challenges and
EAROPH Regional
Opportunities, held in
Seminar on Asset
Muntinlupa City on 20-21
Management. I delivered
October 2003, I was
a keynote address on
invited by CITYNET and
AM for Asia, while many
UNDP to present a
experts from Australia
paper to introduce and
and New Zealand
demonstrate how AM
discussed various
could help carry out
aspects of AM. Other
Inner City Revitalization
experts from Asian
and Poverty Reduction in
countries discussed
the Asia Pacific Region
various technical topics
(KC Leong, October
ESSENCE
Chapter
15
Section 10
communities,
government officials,
especially in the central
government must match
them with the same level
of diligence and
commitment. These
officers must be willing to
embrace accountability
and transparency with
public assets. The
politicians must develop
strong political will to
adopt AM and establish
Obstacles:
effective legislation to
support its
x Local governments and
development and
organisations are short
implementation.
of funds. They need to
obtain funding to attend x Political instability is
highly disruptive to AM
training workshops
process implementation.
overseas or even to
However, once they can
bring the resource
see the benefits in
people to the Philippines
having the ability to
for locally organised AM
optimise their valuable
workshops. It is not
assetsmany of which
impossible but it slows
are ageing badlyand to
the process down.
maintain their functional
x While local organisations
lives to provide reliable
and NGOs are sparing
service delivery at the
no effort to help the
2003). At the end of the
seminar, local and
foreign delegates were
keen to attend EAROPHAPIGAM AM training
workshops and adopt the
concept in their cities. In
particular, many Filipino
local governments would
like to work with
APIGAM on AM. Thus,
Philippines is ready for
AM.
Yeah,
right
on !
Source: Our Cities Our HomesA to Z Guide on Human Settlements Issues, UNDP Kuala Lumpur, Asia-Pacific 2000 and
Southbound, Penang
201
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Thailand n
AM Adoption: There are none.
However, many community
organisations are collaborating
with the government to improve all
aspects of human settlement in
Thailand.
Legal framework: There is
legislation pertaining to
urbanisation, infrastructure
development, housing and
construction, with, however,
heavy emphasis on urban poverty
alleviation.
Drivers:
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The future:
With so many international
organisations set up in
Bangkok, they can all be
linked up and consolidated to
provide information and
knowledge for good urban
management and sustainable
203
ASSET MANAGEMENT
Thailand Y
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16
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CHAPTER 16
1. A brief history of EAROPH
2. APIGAMs Founding
3. APIGAMs Vision, Mission and
Programmes
4. APIGAMs Funding
5. What is APIGAM to countries in Asia?
6. How will APIGAM benefit Asia?
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Section 1
The long Vietnam War conflict between 1954 and 1975 and the
Indonesian Confrontation regional conflict, hampered the
development of EAROPH. It only managed to hold some regional
seminars notably in New Delhi and some cities in Japan. It was not
until 1968 that the 3rd EAROPH Congress was finally held in
Canberra, Australia. At the EAROPH Council Meeting, it was
decided that biennial EAROPH Congresses would be held by
rotation in member countries. As it was almost at the end of the
1960s, delegates at the Canberra Meeting felt that the decade of
national development had been fairly ad hoc and lack systems
approach on a national scale. It was then resolved that
governments in the EAROPH Region should work together for
new strategies in Planning for the new decade of the 1970s. As the
Hon. Tan Sri Khaw Kai-Bo, Malaysias Minister for Housing and
Local Government was elected President of EAROPH, he agreed
with other Ministers present at the Canberra Meeting to hold an
EAROPH Ministerial Meeting on Housing and Planning to meet
new challenges in the coming decade of 1970s. This Ministerial
Meeting was scheduled for 1970.
207
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APIGAMs Founding n
As a result of members enquiries, the September/December
1999 edition of the EAROPH Bulletin focused on the theme,
EAROPH officials were first exposed to asset management at Strategic Asset Management for Urban Sustainability. Dr
Penny Burns, a life member of EAROPH, accepted the post
the 15th EAROPH World Congress held in conjunction with
the Annual Conference of the New Zealand Planning Institute of Associate Editor to assist KC in its production.
in Auckland on 3-7 September 1996.
On 7-10 October 2002, the 18th EAROPH World Planning
Following that Congress, an EAROPH Council Member from Congress was held in Kuala Lumpur on the theme,
Innovative Technologies for Good Urban Governance. Using
the Victorian Government, Mr Ivars Satins, provided the
a series of sub-themes, EAROPH demonstrated how the
opportunities to EAROPH Honorary President and EAROPH
principles of Good Asset Management could support Good
Bulletin Co-editor, KC Leong to study asset management
Urban Governance.
policy and guideline documents in Melbourne. He also
introduced many local asset management expertsin
particular, Dr Penny Burns, of Adelaide who is well-known for GOOD URBAN GOVERNANCE WITH GOOD ASSET
her work in asset management.
MANAGEMENT SUPPORT
ASSET MANAGEMENT
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WHY MALAYSIA?
209
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APIGAMs Founding Y
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ASSET MANAGEMENT
Raising Awareness
The Foundation is being incorporated in Malaysia as a
Company limited by guarantee and not having a share capital.
Vision:
Improved quality of life for all communities in the Asia Pacific
region, rich and poor, through sound urban governance
supported by understanding and application of good asset
management.
Mission:
To build capacity by increased awareness and knowledge
and the implementation of good asset management by
working with governments and communities, publications,
presentations, research and innovation, creating a knowledge
repository, training and technology transfer, technical and
technological support,
Role:
To develop and promote Malaysia as a showcase in the Asia
Pacific Region for excellence in asset management
1.
2.
3.
4.
6.
7.
8.
Implementation
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APIGAMs Funding
x As an Asia Pacific Regional Institute with its
Headquarters in Kuala Lumpur, aimed at improving
governance through capacity building in asset
management, it will be eligible for international grant
funding, organised through EAROPH, the Malaysian
Government (which hosts EAROPH), UNDP-TUGI, who
are advisors, and various other partners including the
various other UN and other multilateral agencies and
other partners.
x Through membership subscriptions.
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Section 5
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212
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16
Section 6
213
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17
ASSET MANAGEMENT
CHAPTER 17
1. Asset Management is for EVERYONE
2. Where do we go from here?
215
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216
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17
Section 2
x
217
ASSET MANAGEMENT
Now that our readers are fired up they must hit the iron while
it is hot. You must start looking at public services as
outcomes of public assets; and conversely, you must also
look at public assets as the generators of good or poor public
services. In addition you must practise asset management
within your own home.
ESSENCE
ASSET MANAGEMENT
18
ACHR
ACIAR
ADB
ADSS
AIDCOM
AIT
AM
Asset Management
AMS
APIGAM
AP2000
CIDA
CURE
DPA
DSS
EA
Environmental Assessment/
Environment Agency
EAROPH
EEA
ASCI
EIA
AUSAID
EIS
AWAS
EPA
AWPNUC
BCT
ES
Environmental Statement
BP
British Petroleum
ESCAP
BRE
GIS
BS
GTZ
BSRIA
HBC
CBOs
HIC
218
ESSENCE
ICLEI
IDSS
IHS
IIMM
IPWEA
IULA
JASOPH
SDSS
SPAB
SSRC
TRISHNET
UN
United Nations
UNCHS
UNCRD
UNCSD
UNEP
UNICEF
UNDP
UNOPS
ASSET MANAGEMENT
18
JICA
KRIHS
LIFE
LFG
Landfill gas
NBA
NEPA
UMP
NGOs
USAID
NHBC
OECD
WACLA
RHUDO
WEDC
WHO
RMA
SAM
219
ESSENCE
ASSET MANAGEMENT
19
Glossary
accrual accounting
aerobic
Able to live, grow, or take place only where free oxygen is present, such as
aerobic bacteria.
air change
A quantity of fresh air equal to the volume of the room being ventilated.
The ventilation rate is the number of air changes per hour. Under the
British standards, offices need about 30 changes, laundries 10 to 20,
classrooms 6, reading rooms 2 and storerooms 1.5. Kitchens often have
high air-change rates, although if heat and smoke are withdrawn through
hoods, excessive rates can be avoided.
aquifer
asbestos
A mineral crystal consisting of thin, tough fibres like textile, which can
withstand high temperatures when pure. Asbestos was much used in
building in the past for high-temperature insulation, often sprayed for the
encasement of steelwork, or as reinforcement in asbestos cement building
board, corrugated roofing, and wallboard. However since the risk to health
from breathing in asbestos fibres (and dust or any fine fibres) has been
realized, asbestos-free materials have taken their place.
Aspergillus
A genus of fungi that includes several species that cause human illness.
Subspecies include aspergillus flavus, aspergillus fumigatus, and
aspergillus versicolor. They cause infections of the lungs and bronchi,
usually in debilitated patients.
asset
asset acquisition
220
ESSENCE
Glossary
asset disposal
The life of an asset, from when a need for it is first established, through its acquisition, operation and any maintenance or upgrading, to its disposal.
asset management
It is the process of guiding the acquisition, use 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.
asset register
A data source that records information on individual assets, usually only those
over a certain value. Information may include the assets location, condition,
utilization and ownership details, as well as the value (and depreciation) of the
asset and its major components.
asset strategy
The means by which an entity proposes to manage its assets across all
phases of their life cycle to meet service delivery needs in a most costeffective way.
avoidable maintenance
business plan
A document of a plan that details how the strategies defined in the Corporate
Plan are to be implemented, as well as the financial implications of these action.
bacteria
benefit/cost
biodegradable
C/N ratio
capital
capital cost
221
ASSET MANAGEMENT
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19
Glossary
carcinogenic
Cladosporium herbarum
compost
Combined sewers
condition assessment
condition-based asset
maintenance
control of an asset
x has the capacity to benefit from the asset in pursuing its objectives;
x is able to deny or regulate the access of others to that benefit; and
x has the ability to secure the service potential or the future economic
benefit.
core asset
core services
corporate plan
A document or statement setting out the strategies that the entity intends to
follow in the medium term in order to achieve the Governments policy
objectives.
corrective asset
maintenance
The tasks of maintenance carried out to correct or rectify the poor condition of
the asset damaged by wear and tear, or after a failure has occurred, and
restoring it to a state in which it can perform its required function.
cost
The money outlayed to procure the resources used for a particular purpose.
cost analysis
costing
222
ESSENCE
Glossary
A method whereby the price charged is based on the full cost of providing the
product or service, plus a mark-up on the cost.
dampness
Dampness in buildings is usually first seen on walls and has many causes,
including leaking roofs or pipe joints, overflowing rainwater gutters, entry of
driving rain through cracks in walls or windows, rising damp, rain penetration
of solid walls, condensation, hygroscopic salts in brickwork, and dry rot in
timber. It is often associated with lack of ventilation and incorrectly installed
damp-proof courses, flashing, or vapour barriers.
damp-proof membrance
(dpm)
Defects
depreciation
direct costs
dioxin
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Glossary
disposal
dispute
downpipe
A vertical or steep pipe which brings rainwater from roof gutters to the ground
and into a drain or soakwell.
eaves
The lowest part of a sloping roof, or the area beneath if it overhangs, although
eaves may be flush against the external wall below. Eaves may have a
horizontal fascia board, on which to fix the gutter.
ecology
ecosystem
The plants, animals and microbes that live in a defined zone (it can range from
a desert to an ocean) and the physical environment in which they live together
comprise an ecosystem.
effectiveness
The evaluation of whether resources have been deployed in the best possible
way to achieve objectives.
efficiency
The evaluation of how well the resources have been used, irrespective of the
purpose for which they have been deployed.
effluent
Any liquid which flows out of a containing space, but more particularly the
sewage or trade waste, partially or completely treated, which flows out of a
treatment plant. For example, sewage effluent is the liquid finally discharged
from a sewage treatment works.
emergency asset
maintenance
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ESSENCE
Glossary
Escherichia coli
forensic asset management This is the process by which FAM Consultants investigate the failure of an
asset, an asset system or their entire asset management system, which
includes procurement (planning, design, tendering process, construction
contract administration and supervision), operation and maintenance, and
disposal. Depending on the nature of failures in the asset management
system, such as those caused by construction design, construction execution,
bad construction contract administration, or bad planning, operation,
maintenance and decision making in the asset management system, forensic
asset management could involve forensic engineers, forensic architects, and/
or forensic environmental engineers.
FAM Consultants must be well-versed in ethical professional practice and
are generally knowledgeable about the dispute resolution processes, and
where required find the solutions to the problems. They must be able to use
results of full and detailed investigation and make application to question of
law, especially in arbitration or court proceedings as expert witnesses; or
public discussions or debates.
full cost pricing
A method whereby the price charged is based on the actual full costs of
holding and using the asset. No profit is allowed.
fungus
gram-negative
gram-positive
ground floor
The floor which is nearest ground level. A concrete ground floor can be a
ground slab or suspended slab. Timber ground floors are always suspended,
at least 300 mm above the ground, over an underfloor space.
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ASSET MANAGEMENT
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19
Glossary
ground slab
(USA slab-on-grade)
groundwater
The water beneath the surface of the earth that occupies the pore spaces in
soil or the fissures in rock.
Guillain-Barr syndrome
heavy metal
Metals such as gold, platinum, lead, mercury, cadmium, etc., having more
than five times the density of water. Some heavy metals, when unnaturally
concentrated in the environment, pose a significant health risk to humans
humanure
hygiene
landfill
An engineered method of solid waste disposal by compaction and then enclosed by a cover made from impermeable material either on or in the land.
leachate
A highly contaminated liquid that comes out of landfills with high concentrations of organic and inorganic materials.
The full cost of an asset over its life. This includes all costs associated with
acquiring, controlling, operating and disposing of the asset.
maintenance
malaria
methane
226
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Glossary
misfeasance
1. The negligent or otherwise improper performance of a lawful act. 2. (in company law) An act by an officer of a company in the nature of a breach of trust
or breach of duty, particularly relating to the companys assets. (Oxford Dictionary of Law, 1997) Compare NONFEASANCE.
mulch
Organic material such as leaves or straw spread on the ground around plants
to hold in moisture, smother weeds, and feed the soil.
mycotoxin
needs analysis
non-core assets
nitrates
Salts or esters of nitric acid, such a potassium nitrate or sodium nitrate, both
used as fertilizers, which show up in water supplies as pollution.
non-current assets
oocyst
The encysted stage of the reproductive cycle in which the formation of sporozoites, the infectious stage of sporozoans, occurs.
opportunity cost
The income or benefit foregone by not using resources for the best other alternative.
organic
overhead costs
Costs that cannot be directly associated with the organisations total asset
base or with one particular asset, but which are incurred by the entity in delivering the services involved.
pathogen
A disease-causing microorganism.
Penicillium chrysogenum
Penicillium expansum
A species of penicillium that causes fruit decay and produces the carcinogenic
mycotoxin patulin.
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ASSET MANAGEMENT
19
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19
Glossary
performance indicator
pitched roof
The commonest roof, usually one with two slopes at more than 20 to the
horizontal, meeting at a central ridge. It may have gables or hips and the
space inside can be used as an attic or ventilated roof space, which is called
cold roof.
The tasks of maintenance carried out at pre-set intervals, which are normally
corresponding to prescribe asset criteria. These tasks include inspections,
cleaning , servicing and replacement of general consumables.
pricing
The process of developing the rates for charging an entitys products and
services. Prices can be based on market rates, full cost or partial cost.
Products and services can also be supplied at no cost, reflecting community
service obligations.
quality of life
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19
Glossary
recurrent costs
All costs, including the cost of finance, incurred in holding and operating the
asset.
reductionist thinking
revaluation
refurbishment
refuse
risk management
runoff
The water from rain or snowmelt that flows overland into lakes, rivers, and
streams.
scheduled asset
maintenance
This is another type of preventive maintenance carried out according to a preset time-interval, a set number of operations, or set area, or set distance.
sensitivity analysis
septic
service potential
service strategy
A plan of action for the supply of appropriate services to the community, which
is consistent with the entitys corporate goals.
229
ASSET MANAGEMENT
ESSENCE
19
Glossary
A genus of gram-negative bacteria that causes dysentery. Includes four
groups, all of which cause infections of varying degrees of severity. These
are very closely related to E. coli.
sick building
ASSET MANAGEMENT
Shigella
Salmonella
230
ESSENCE
Glossary
solid waste
sporozoite
A stage in the life cycle of sporozoan organisms. In Malaria, it is this stage that
causes illness.
Stachybotrys chartarum
A method whereby the price charged is based on actual full cost, adjusted to
remove inefficiencies.
surface water
sustainable development
A method whereby the price charged is based on a target profit, which can be
either a specific monetary amount or another variable such as return on assets.
thermophilic
transaction
231
ASSET MANAGEMENT
19
ESSENCE
ASSET MANAGEMENT
19
Glossary
transpiration
The process by which the water absorbed by plants, usually through the
roots, is dissipated into the atmosphere.
unplanned asset
maintenance
urban sustainability
user charge
valuation
value management
virus
waste
232
ESSENCE
Glossary
5. Materials contaminated or soiled as a result of planned
actions (eg residues from cleaning operations, packaging
materials, containers, etc.);
6. Unusable parts (eg reject batteries, exhausted catalysts,
etc.);
7. Substances that no longer perform satisfactorily (eg contaminated solvents, exhausted tempering salts, etc.);
8. Residues of industrial processes (eg slags, still bottoms,
etc.);
9. Residues from pollution abatement processes (eg scrubber sludges, baghouse dust, spent filters, etc.);
10. Machining/finishing residues (eg lathe turnings, mill scales,
etc.);
11. Residues from raw materials extraction and processing
(eg mining operations, oil field slops, etc.);
12. Adulterated materials (eg oils contaminated with PCBs,
etc.);
13. Any materials, substances or products whose use has
been banned by law;
14. Products for which the holder has no further use (eg agricultural, household, office, commercial and shop discards,
etc.);
15. Contaminated materials, substances or products resulting
from remedial action with respect to land;
16. Any materials, substances or products which are not contained in the above categories.
Notes: In is important to know how each country defines
Waste within its legal framework. Many developing countries
have poor definition of waste, hence it is difficult for many of
these countries to stop foreign companies from generating
waste products and pollute the local environment.
233
ASSET MANAGEMENT
19
ESSENCE
19
Glossary
Water discarded as waste, often polluted with human excrements or other
human pollutants, and discharged into any of various wastewater treatment
systems, if not directly into the environment.
watershed
work-to-demise assets
When an assets functional life enters its twilight time, or because of other
new assets have taken over the main function of this asset, which is then
relegated to only minor use and pending asset replacement, such an asset
will receive only minimum maintenance to maintain public safety only. As the
end of such kinds of assets is expected, they are called work-to-demise
assets with respect to their maintenance.
ASSET MANAGEMENT
wastewater
234
ESSENCE
235
ASSET MANAGEMENT
References
ESSENCE
ASSET MANAGEMENT
20
References
236
ESSENCE
References
237
ASSET MANAGEMENT
20
ESSENCE
20
References
ASSET MANAGEMENT
238
his resource guide provides a doorway into the art, science and technology of how to maintain and manage our valuable
assets, from our own homes to public infrastructure, so that they provide reliable services to sustain an acceptable lifestyle. The book gives an insight into the principles, philosophy and methodology of systemic asset management in simple,
clear language, illustrated by relevant applications. Even laypersons have the right, as citizens, to be informed about asset
management so that they can participate as constructive stakeholders. This book gives them the information.
For the officers and decision-makers at every level in public office, as well as asset management professionals, this guide gives
the bigger picture of systemic asset management as it concerns building the relationships between complementary assets and
between assets and the community. It adheres to the doctrine that public assets, from buildings to infrastructure, are there to
provide reliable public service at the least cost to the community. Any deviation from that is unsustainable under the principles of
Good Governance. This book will be an invaluable resource for leaders and officers in local authorities and local governments,
municipal engineers, asset managers and consultants involved with urban management in the Asia and Pacific Region.
x A maintenance culture
x Forensic asset management
x Legislative framework for asset
management
x Asset management in the Asia
Pacific Region
apIGAM