The aging of assets and therefore the increasing cost of maintenance are the main reason why asset management has become an essential part of organizations’ activities during the last decades. In addition there are also benefits, which can be achieved with asset management. More accurate long-term life cycle decisions related to the maintenance function, an integrated approach (assets, operation and maintenance) and an increased assessment of performance and control. Further benefits are being found through improved credibility in the eyes of stakeholders (regulators, customers and other). Asset Management can also results in more sustainable, continual improvement of processes.
Asset management is therefore defined as the life cycle management of assets to achieve the stated business objectives. Asset management focuses on the value that assets can provide to the organization. Value is organization specific and depends on the organizational context. That context has also a strong bearing on the type of assets that the organization operates and the management capabilities. The organizational strategic plan must sets clear short and long-term objectives and an approach for achieving these. Asset management objectives must be derived from these business objectives by taking into account the dynamics and speed of technological change that affect their activities.