Asset Management
What is Total Asset Management?
Total Asset Management (TAM) is a holistic, integrated approach that will mature the process of facilities management while addressing cost, data challenges and environmental impact. – Singh,H.and Dunn,W.H. (2008)
Total Asset Management (TAM) planning requires agencies to align their asset planning and management with service delivery priorities and strategies, so that all assets support services in the most appropriate, effective, and efficient way. This includes, demand management, whole of life asset management and cross-agency coordination in service planning and delivery. – New South Wales Treasury (2006)
Asset Management vs Facilities Management
Asset Management
Asset Management is defined as a company or organization’s effort to measure and fulfill the value provided by all of its assets, both tangible and intangible.
Facilities Management
Facilities Management is defined as the tools and services that support the functionality, safety and sustainability of buildings, grounds, infrastructure and real estate in daily operations.
Why do Organizations Need to Manage Their Assets?
In general, managing assets helps organizations better achieve organizational objectives where organizations can realize greater value (financial & non-financial) from their assets.
For example: value for money, optimal space management, return on investment, effective operations and maintenance management, sustainability and best asset performance in support of the organization’s core business.
Our SMEs
Input to be advised
Roles in Asset Management
Input to be advised
Training and Certification in Asset Management
Link To TAB – Certification & Standard
Articles & publications
Government Asset Management Strategic Initiatives
Financial
The Control Officer must ensure adequate allocations to implement the Total Asset Management
Governace
The success of comprehensive governance in asset management depends on the effectiveness of the Control Officer in complying with the circular in force as well as ensuring mechanisms in the structuring of the asset management organization such as establishing an Asset Management Division, appointing an asset officer and establishing a Government Asset Management Committee (Jawatankuasa Pengurusan Aset Kerajaan (JKPAK)) at the Ministry/Department level respective agencies. This responsibility cuts across governance levels at the ministry, department and division level as well as the JKPAK function of the Ministry / Department at the level agency. The aspect of staffing management and the appointment of qualified asset officers is an important factor in the success of asset management governance.
a) Control Officer Leadership
The Controller should assess the effectiveness and improvement of governance in asset management. This role needs to be supported by close collaboration at the level of Head of Service (service schemes that are the custodian of certain assets), Head of Department and Human Resource Manager.
(b) Asset Governance Management Responsibilities
The Control Officer is responsible for complying with the circulars and directives in force and ensuring that the asset management mechanism runs in an orderly manner, covering the following matters:
- Governance effectiveness at the Asset Management Division / Unit level;
- Jawatankuasa Pengurusan Aset Kerajaan (JPAK) activities at the respective agency level;
- Staffing and appointment of qualified asset officers.
Human Resources
(a) Optimizing the use of human resources
Asset management needs to be implemented using existing staff based on circulars and directives in force.
(b) Providing qualified officers
Each agency must provide qualified officers in asset management according to the needs of their respective agencies.
(c) Develop competence in asset management
Each agency must prepare an effective human resource development plan and implement it to improve the competence of officers involved in government asset management.
(d) Regulating the capacity of service providers in asset management
The government must ensure that all external service providers (contractors and consultants) have the prescribed level of competence and capacity to provide services in government asset management. The government should establish guidelines to measure the level of competence and capacity of service providers.
(e) Cultivate a culture of maintenance
Each agency is responsible for fostering awareness of asset care, a culture of maintenance and valuing assets. For this purpose, agencies need to create awareness programs and implement them continuously.
Systems and Procedures
(a) Identify assets
Each agency must identify the assets under their responsibility and control according to the asset classification set so that the management of the assets can be carried out in an orderly and effective manner.
(b) Using the Total Asset Management (TAM) approach
Each agency must emphasize the concept, principles and practices of Total Asset Management (TAM) based on the value of the benefits of the entire Asset Life Cycle in implementing government asset management. Total Asset Management (TAM) practices should focus on the optimal use of assets with effective costs and include user-friendly, environment-friendly, energy efficiency, safety levels and security controls. The Total Asset Management (TAM) manual should be referred to as the main framework in the application of the Total Asset Management (TAM) method in every government agency.
(c) Create government asset management procedures
The government will establish specific asset management procedures according to their respective classifications to be adopted by each agency. Effective asset management procedures covering aspects of planning, acquisition, acceptance, registration, use, inspection, maintenance, disposal and write-off of assets must be fully complied with.
(d) Measure the level of asset service performance
Every agency that manages assets needs to measure and evaluate the service performance of assets being used based on Agreed Service Levels (ASL), Key Performance Indicators (KPI) and other appropriate performance indicators.
(e) Reporting asset management status
Each agency must prepare an asset management status report and present it in the Jawatankuasa Pengurusan Aset Kerajaan (JKPAK) Meeting of the Ministry / Department at the respective agency level in accordance with the established rules. The quarterly Jawatankuasa Pengurusan Aset Kerajaan (JKPAK) meeting report of the Ministry / Department should be submitted to the Treasury and Jawatankuasa Pengurusan Aset Kerajaan (JKPAK) secretariat.
(f) Monitor the quality of asset management
In order to ensure the effectiveness of public service delivery, the Jawatankuasa Pengurusan Aset Kerajaan (JPAK) Secretariat is responsible for monitoring the achievements of each agency that manages assets based on uniform KPI compliance in terms of Government Asset Management Policy (Dasar Pengurusan Aset Kerajaan (DPAK)) implementation. While the monitoring of the asset owner’s agency is on the implementation of asset management based on relevant Procedures and Supporting Documents.
(g) Manage asset risk
Each agency must implement risk management to address any risk at each phase in the asset’s life cycle.
Technology
(a) Empowerment of asset management and monitoring systems
The Central Agency and the responsible implementing agency must empower the asset management and monitoring application system based on the latest technology and must be used by each agency in managing and monitoring their respective assets.
(b) Encourage research and development
Research and development programs in the field of asset management should be implemented in a smart partnership between the government, higher education institutes and industry practitioners. The government will make asset management a priority area.
(c) Use of Smart Device Technology
Agencies are encouraged to use high-tech and up-to-date smart devices for the purpose of optimal use of resources by applying elements of artificial intelligence (Artificial Intelligence – AI), big data technology, data sensors, machines for communication and automation technology in asset management and monitoring.
Apply Elements of Quality Management
Asset management practices need to apply the latest international standards related to quality management for example standardization and document control to ensure practices are in line with international standards.
(Source: Dokumen Dasar Pengurusan Aset Kerajaan, DPAK)
(Source: Pekeliling Am Bil.3/2021 – Tatacara Pengurusan Aset Tak Alih Kerajaan (TPATA)
(Source: Pekeliling Am Bil.3/2021 – Tatacara Pengurusan Aset Tak Alih Kerajaan (TPATA)
Express Your Interest in Project Management Certification
Please complete the following form to express interest in attending one of our upcoming Training and Certification events. Based on demand, we will do our best to accommodate interested parties with the most convenient schedules possible.