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Asset Demand Management

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Asset Demand Management
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  • You know that the asset life cycle it consist of the following phases: Plsnning, Acquisition, Operations Maitenance, and Disposals.
  • So how are these phases broken down and aligned to Demand Management of Assets?
  • Strategic planning of an asset should be aligned with achieving the department's service delivery and incorporate the following:Acquisition Plan: to establish the source monetary value of funding for the new replacement assets.Operational Plan: this defines the use of existing assets, and should include matters such as access, security, accountability, performance monitering, staff training in the use of assets, estimates of operation cost. Maintenance Plan: this should include delivery of repairs and maitenance services.
  • Disposal Plan: at thi stage we should identify which assets to be disposed (looking at the life span requirements of an asset) and method of disposals.Funding Plan: this defines the options available for funding Capital Current assets cost.Risk Management Plan: plan should include control activities to be implemented to to mitigate risks.
  • So how to determine when to replace or acquire new assets?
  • The 1st instant is to assess the condition of an asset servicability prospect. There are also set policy standards for replacement of assets:IT Equipment - is set at 3yrs as per the replacement policy,Office Equipment - is set at 5 - 7 Yrs as per the replacement policy,Office Furniture - is also set at 5 - 7 Yrs as per the replacement policy,lEases - are based on replacement policy of 2 - 5 yrs for Finance Lease and 3 yrs for Operating Lease.
  • Thank you, that was very informative.
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