For entities which manage large asset holdings, a well-structured, practical asset management framework can assist in providing clarity for stakeholders as to the linkages between asset levels and the outcomes expected of the entity, and thus aid decisions on asset management. Entities with smaller asset holdings will also benefit from understanding how they can better align these resources with expected outcomes. The main message is to ensure entities have a disciplined approach to match their investment in assets to program requirements, and to plan for asset replacement in a strategic way which accords with the Government's capital budgeting framework where applicable.
The aim of this Guide is to provide an update to the previous publication Better Practice Guide on Asset Management June 1996 and to provide a practical asset management framework that can be adopted by Australian Government entities to assist in the effective management, maintenance, and use of assets to achieve their goals and agreed program delivery outcomes.
In particular, the Guide draws together and illustrates the practical application and essential inter-dependencies of a strategic asset management framework–being asset management, planning and the strategic goals of an entity.
The concept of asset performance indicators is introduced to guide entities on how to establish the condition of major assets, and the necessary level and frequency of maintenance. These indicators represent the parameters required for optimum efficiency and management of an entity's asset portfolio.
For entities whose asset base is critical to program delivery, a Capital Management Plan is a key component of their strategic outlook that provides a snapshot of asset health and documents how to achieve better practice asset management. Such a document provides a clear blueprint, approved by the executive leadership group, to drive strategic asset management throughout the organisation.
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