Strategic Asset Management Flashcards

A utility defers replacing aging transformers to meet this year's budget, raising failure risk in future years. Which trade-off is being made?

Answer: Short-term cost savings versus long-term risk and performance

Strategic asset management requires explicitly balancing short-term budget pressures against long-term risk and performance.

Which ISO standard specifies the requirements for an asset management system?

Answer: ISO 55001

ISO 55001 contains the certifiable requirements for an asset management system.

When an organization reviews whether an asset should be refurbished, replaced, or retired, it is performing:

Answer: Life cycle intervention or renewal decision analysis

Renewal decision analysis compares options such as refurbish, replace, or retire based on cost, risk, and performance over time.

Which of the following best describes the relationship between reliability and strategic asset management?

Answer: Reliability is an enabler that supports the delivery of asset management objectives

Reliability practices help assets deliver required performance, which supports the value goals of asset management.

An organization sets an objective to 'improve asset performance' with no target or measure. What is the main weakness?

Answer: It is not measurable, so progress cannot be evaluated

Asset management objectives should be measurable so performance can be monitored and evaluated.

Which activity is part of the 'Check' phase of the Plan-Do-Check-Act cycle in an asset management system?

Answer: Conducting internal audits and performance evaluation

Performance evaluation, monitoring, and internal audits make up the Check phase of PDCA.

Which factor is most important when defining the scope of an asset management system?

Answer: The asset portfolio, organizational context, and stakeholder needs

Scope is set by considering organizational context, stakeholder requirements, and which assets are included in the portfolio.