Asset management is defined as the systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan where an organizational strategic plan is defined as the overall long-term plan for the organization that is derived from, and embodies, its vision, mission, values, business policies, stakeholder requirements, objectives and the management of its risks.
Effective implementation of asset management requires a disciplined approach which enables an organization to maximize value and deliver its strategic objectives through managing its assets over their whole life cycles. This includes determination of appropriate assets to acquire or create in the first place, how best to operate and maintain them, and the adoption of optimal renewal, decommissioning and/or disposal options.
Asset management provides a set of principles that guide an agency in improving how it conducts business, how it reaches decisions, and how it processes, uses, and communicates information related to the management of its infrastructure. At its core, asset management focuses on an agency's allocation and utilization of resources — funding, people and skills, and information. It provides an integrated framework that establishes common approaches across asset classes in planning, program development, and program delivery.
It encourages a number of best practices in these processes: e.g., consideration of the full range of alternatives at each stage of decision, adoption of a long-term view in economic analysis of projects, evaluation of tradeoffs across programs, monitoring of program delivery and system performance, and effective use of management and information systems throughout the infrastructure management cycle. Asset management is results oriented, driven by policy goals and objectives with clear measures of system performance and accountability (Marcow&Racosky, 2001).
To effectively manage asset, there are specialized software systems that keep proper record of relevant information pertaining the different assets owned by the company. Database applications are designed to capture relevant information pertaining the assets such as: type of asset, value of asset, maintenance cost, date of last maintenance, state of asset, etc and this information can be updated whenever any activity is performed with a given asset. This has made the concept of asset management systems a reality.
1.1 Background of the Study
With the ever increasing applications of computer programmers, organizations are now able to acquire systems to enable them manage their assets. An integrated asset management system is vital for organizations that are heavily dependent upon physical assets in the creation or delivery of their services or products. Large numbers of assets, or diversity characteristics of assets and asset systems, particularly in an environment of conflicting stakeholder expectations, further increase the importance of having a systematic approach to managing the asset portfolio. There are different levels at which asset units can be identified and managed — ranging from discrete equipment items or components to complex functional systems, networks, sites or diverse portfolios.
Many organizations identify assets as equipment units (sometimes referred to as “maintenance significant items” — the unit at which maintenance tasks or work orders are directed), whereas others use the term to describe functional systems or even integrated business units. It does not matter at what such level an asset unit is identified, provided that:
The organization's goals and strategic priorities are directly reflected in the asset management plan(s);The asset life cycle costs, risks and performance are considered and optimized. (This will usually require definition of clear asset boundaries for measuring performance, life cycle expenditures and attributing associated risks.);
The aggregations of assets (through integrated asset systems) and contributions of value (as part of the organization's portfolio) are managed in a coordinated and consistent manner;
All parts of the organization understand and use the same terminology in relation to the assets, their components and their asset system groupings or aggregations.
1.2 Statement of the Problem
Many organizations are not properly able to review the appropriateness of their asset management strategy in the light of changes in the operating, regulatory and financial environment. They lack the necessary asset management policy, strategy and plan to ensure that they manage their assets in a sustainable way. More importantly, they do not know what (existing) assets they have, where they are, what condition they are in, what function they perform and their contribution to value. The absence of an asset management system is the reason why the management of most organizations are unable to properly account for their assets.
1.3 Aim and Objectives of the Study
The aim of the study is to develop an asset management system. The objectives of the study are:
- To create a database application that can be used to keep record of assets information.
- To design a system that can be used to update information pertaining to any asset that has been registered.
- To capture relevant information that will help in monitoring the condition of assets.
1.4 Significance of the Study
The significance of the study is that it will enable the management of Saj Foods Nigto properly manage information pertaining to their assets. It will enable them to present needed reports pertaining to assets which is a very vital aspect of accountability in every organization. The study will also serve as a useful reference material for other researchers seeking information on the subject.
1.5 Scope of the Study
This study covers design and implementation of assets management system and it is limited to physical assets in Saj Foods Nig.
1.6 Organization of the Research
This research work is organized into five chapters. Chapter one is concerned with the introduction of the research study and it presents the preliminaries, theoretical background, statement of the problem, aim and objectives of the study, significance of the study, scope of the study, organization of the research and definition of terms.
Chapter two focuses on the literature review, the contributions of other scholars on the subject matter is discussed.
Chapter three is concerned with the system analysis and design. It analyzes the present system to identify the problems and provides information on the advantages and disadvantages of the proposed system. The system design is also presented in this chapter.
Chapter four presents the system implementation and documentation. The choice of programming language, analysis of modules, choice of programming language and system requirements for implementation.
Chapter five focuses on the summary, conclusion and recommendations are provided in this chapter based on the study carried out.
1.7 Definition of Terms
Plant, machinery, property, buildings, vehicles and other items that have a distinct value to the organization
Systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan
Asset management information:
Meaningful data relating to assets and asset management
Asset management information system: system for the storage, processing and transmission of asset management information
Asset management plan:
Document specifying activities and resources, responsibilities and timescales for implementing the asset management strategy and delivering the asset management objectives
Asset management policy:
Principles and mandated requirements derived from, and consistent with, the organizational strategic plan, providing a framework for the development and implementation of the asset management strategy and the setting of the asset management objectives
Asset management strategy:
Long-term optimized approach to management of the assets, derived from, and consistent with, the organizational strategic plan and the asset management policy.