Asset Management Framework & Strategy Flashcards

Under ISO 55000, which statement best defines an 'asset'?

Answer: An item, thing or entity that has potential or actual value to an organization

ISO 55000 defines an asset broadly as anything with potential or actual value to the organization, tangible or intangible.

Which document translates organizational objectives into asset management objectives and describes the role of the asset management system?

Answer: Strategic Asset Management Plan (SAMP)

The SAMP bridges organizational objectives and asset management objectives and documents the AM system's role in achieving them.

An asset management policy is best described as:

Answer: The principles and mandated requirements, approved by top management, for applying asset management

The policy states the intentions and direction of the organization for asset management, formally expressed by top management.

In the 'line of sight' concept, what is being aligned?

Answer: Day-to-day asset activities with organizational objectives

Line of sight ensures that frontline work clearly contributes to and traces back to organizational objectives.

Which ISO standard provides guidance on applying ISO 55001 requirements?

Answer: ISO 55002

ISO 55002 gives guidelines for the application of the ISO 55001 management system requirements.

Which of the following is NOT one of the four fundamentals of asset management stated in ISO 55000?

Answer: Lowest initial cost

The four fundamentals are value, alignment, leadership and assurance; lowest initial cost contradicts the whole-life value approach.

An organization decides which asset classes fall within its asset management system. This decision defines the system's:

Answer: Scope

ISO 55001 clause 4.3 requires the organization to determine the boundaries and applicability, i.e., the scope, of its AM system.