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Strategic Asset Management Framework
Asset management is defined in the Australian Standard (AS ISO 55000) as the 'coordinated activity of an organisation to realise value from assets'. Whilst a simple definition, it does demonstrate that asset management activities are carried out by many parts of an organisation and that these activities should facilitate the delivery of the organisation's objectives. In asset management, this is referred to as 'value realisation'. Effective asset management is integrated and cross functional. As a result, it involves many other management systems such as: planning, financial management, human resource management, strategy, risk management, service delivery, governance, maintenance and operations. All of these functions need to be coordinated and aligned with the strategic objectives of the organisation.
Assets are defined in the Standard as an 'item or thing that has potential or actual value to an organisation'. This definition goes beyond the standard accounting definition of an asset by recognising that assets exist to provide more than just financial value to the organisation and its stakeholders. From this perspective, assets are not considered valuable in their own right, but rather derive their value from the outcome(s) they deliver to an agency. These values align with existing government policy that requires agencies to continually assess their assets and ensure that only those that support the delivery of their objectives are retained.
AS ISO 55000 identifies the following set of fundamentals upon which asset management is based:
- Value: assets exist to provide value to the organisation and its stakeholders;
- Alignment: asset management translates organisational objectives into technical and financial decisions, plans and activities;
- Leadership: leadership and workplace culture are critical to developing and maintaining an effective asset management system; and
- Assurance: asset management gives assurance that assets will fulfil their required purpose.
The Strategic Asset Management Framework (SAMF) is intended to act as a guide for managing South Australian government buildings. It has been updated to align with recognised best practice, including the AS ISO 55000-55001 suite of standards for Asset Management Systems. The SAMF can be used as a reference document for agencies who wish to develop asset management practices to support them in managing assets appropriately, efficiently and effectively. Section 1 and Section 2 of the SAMF provide an overview of the benefits of effective asset management and provide links to existing government policies that are relevant to all agencies. It also provides a general overview of the Across Government Facility Management Arrangements (AGFMA) which delivers some of the activities included in each agency's asset management system.
The SAMF was developed to align with AS ISO 55001 and the Global Forum on Maintenance & Asset Management's body of knowledge comprised in 'The Asset Management Landscape', as shown below. The framework identifies the boundary of the Asset Management System (the dotted outline), including an overview of the main functions and activities that comprise asset management. It also shows the interrelationship with the agency's overall management system. Section 4 and the Appendices of the SAMF provide further reference material, including links to best practice exemplars and typical documents that may be developed for asset management. The extent and range of documents produced will depend on the complexity, risk profile and extent of the asset portfolio for each individual agency.
Agencies should be aware of the Premier & Cabinet Circular 114, which details the asset information to be maintained in the across government SAMIS system, together with the processes in the Treasurer's Financial Management Toolkit and the Treasurer's Instructions that guide the management of government building assets and systems. It is also important that they are conscious of any additional processes required for agencies, including the decision making process to be followed for capital investment.
Click on any of the functions shown below to find out more about the main functions and activities of an Asset Management System (AMS):
Asset Management System (AMS):
Useful Links and Reading Material
This DIT produced document provides an overview of what asset management objectives are and how they are developed for the purpose of effective asset management.
The Asset Management Landscape (Second Edition)
The Institute of Asset Management (IAM) has a range of publications on their website, including this Global Forum on Maintenance & Asset Management publication. The GFMAM Asset Management Landscape is a free publication that promotes a common global approach to asset management.
This DIT produced document outlines what demand analysis is, when is is used, how it is used, its benefits and the associated risks with respect to asset management.
The Institute of Asset Management (the IAM) is the international professional body for asset management professionals. The IAM develops asset management knowledge and best practice, and generates awareness of the benefits of the asset management discipline for the individual, organisations and wider society.
This circular describes Cabinet policy on the utilisation, purchase and disposal of government real property (including Crown lands). It details the asset information to be maintained in the across government SAMIS system, together with the processes in the Treasurer's Financial Management Toolkit and the Treasurer's Instructions that guide the management of government building assets and systems. The user guide is available here.
Information on the SAMIS system developed by the State Government to provide agencies with an Strategic Asset Management Information System to assist with planning, monitoring and reporting on the performance of its building assets.
The Technical Data Sheets (TDSs) developed by the AGFMA Section which document the technical standards and legislative requirements for building plant, fabric and equipment maintenance as a guide for agencies and Facility Management service providers.
A set of instructions that have been issued by the Treasurer under the authority of Section 41 of the Public Finance & Audit Act 1987. They include Treasurer's Instruction 2 and the Financial Management Toolkit which provide an overview of each agency's responsibilities for ensuring appropriate policies and processes are established to manage and maintain their assets; and Treasurer's Instruction 17 which provides a process to guide agencies when evaluating and approving capital investment proposals.