Asset Management Fundamentals: Assignment 2

Asset Management Fundamentals: Assignment 2

Asset Management Fundamentals: Assignment 2

Due date: 23 September 2018 Marks: 100

Question 1 (25 marks)

From the information presented in Topic 5, ‘Asset Knowledge – Data Collection and


a) Discuss the issues to be considered when determining the level of data detail required

for various asset management functions and comment on how a continuous

improvement approach can be employed.

b) Describe the main factors that should be considered when establishing a data

collection plan and comment on the benefits of implementing a pilot program.

c) Explain how asset hierarchies can be used in asset registers and comment on data

validity and maintenance.

Question 2 (25 marks)

Topic 6, ‘Condition Assessment’, introduces the importance of condition monitoring and its

relationship to risk management.

a) Discuss criticality of assets and comment on how risk management relates to condition

assessment and the frequency of inspections.

b) Describe how componentisation of assets is used in condition assessment and comment

on how it relates to whole-of-life analysis.

c) Explain the concept of remaining useful life of an asset and describe how it can be

determined using condition assessment.

Question 3 (25 marks)

Topic 7 presents the importance of ‘Risk Assessment and Management’ in the AM context.

a) Discuss the key concepts of asset-based risk management and comment on the

organisational framework required for a successful implementation of a risk

management program.

b) Describe how probability and consequence is used in risk analysis and comment on the

use of a qualitative matrix approach for risk assessment.

c) Explain why monitoring risk management is important and comment on how

continuous improvement relates to risk management.

Asset Management Fundamentals: Assignment 2

Question 4 (25 marks)

Topic 8 introduces Optimised Decision Making Techniques.

a) Discuss the factors that should be considered when prioritizing assets for evaluation

and comment on the reasons for undertaking a benefit cost analysis (BCA).

b) Discuss why it is important to focus on the service provided by the asset and

comment on non-asset treatment solutions that may be available.

c) Explain the benefits of using a Multi Criteria Analysis approach and comment on the

reasons for undertaking a sensitivity analysis.

Note: this assignment has a 3,000 word limit.


1. Do not exceed the word limit (3000 words). Give concise descriptions and avoid

irrelevant technical detail. In marking the assignment, attention will be paid to clear

concise expression of ideas. Do not include extensive attachments. They will not be


2. Include appendices only if required to provide a clearer understanding of relevant


3. A bibliography (list of references you have quoted or referred to in completing the

assignment) must be submitted. The bibliography should be properly referenced

using the Harvard system.


The assessment task contributes 30% towards your final grade in this Unit. The assignment

will be graded according to the following criteria.

 Clarity of presentation (grammar, syntax, paragraph structure),

 Appropriate referencing using the Harvard Referencing System,

 The evidenced comments provided to support your answers,

 The logic and clarity of the assumptions made when formulating your solution,

 The quality of the numerical analysis undertaken.