FAQs - Asset Management
Asset management is a term that’s often used—but not always correctly. It is frequently confused with asset integrity and maintenance, but in reality, it’s a much broader discipline.
At its core, asset management is the system-level management of assets across their entire lifecycle, from concept to disposal. The typical stages of an asset lifecycle are:
Concept → Procurement → Commissioning → Operations → Maintenance → Renewal/Disposal
When assets are purposefully and practically managed throughout these stages, their safety, performance, and longevity can be maximised—while the associated costs and effort can be minimised. In doing so, asset management helps an organisation achieve its business objectives. After all, assets only generate value when they operate as intended, not when they’re broken.
1. What’s the purpose of asset management?
The purpose of asset management is to maximise the useful life of an asset while reducing total lifecycle costs, without compromising safety.
In simple terms: asset management is the strategic balancing of safety, performance, and cost, enabling assets to support business goals.
For example, you can’t achieve X tonnes/day if the assets are underperforming, unreliable, or unsafe.
2. Do I need asset management if I have a good maintenance regime?
Yes. Maintenance is only one part of the asset lifecycle—and a relatively late-stage one.
Asset management covers everything from initial specification and procurement through to end-of-life decisions. A well-designed maintenance regime cannot compensate for poor asset specification, installation, or operation.
If an asset is:
poorly defined,
incorrectly installed, or
operated outside of its intended purpose,
…then even the best maintenance regime will struggle to keep it functional or cost-effective. This leads to higher unplanned downtime, increased maintenance costs, and reduced operational efficiency.
3. What is asset management made up of?
Asset management has two key components:
1. Strategic Asset Management
Defines the overarching strategy for how assets will be managed to support business goals.
Examples:
Set objectives for asset performance
Define risk appetite
Plan capital expenditures
Guide procurement approaches
2. Tactical Asset Management
Defines the practical activities to achieve the strategy.
Examples:
Selecting specific equipment (make/model)
Implementing maintenance schedules
Managing resources and work orders
Together, these ensure assets are aligned with business needs and managed efficiently across their entire lifecycle.
4. What is the best stage of asset life to consider asset management?
The ideal time to implement asset management is during the concept phase, before assets are even procured. This provides the greatest opportunity to influence safety, performance, and long-term costs.
That said, asset management can be introduced at any stage of an asset’s lifecycle. Even midlife or aging assets can benefit significantly from a structured asset management approach.
5. How does a good asset management system help me if I already have an operational asset?
It’s never too late to implement asset management.
Many organisations introduce asset management after commissioning, particularly when:
Maintenance costs are rising
Asset performance is declining
Failures are increasing
By managing operational assets across the lifecycle stages that are still active—procurement, operations, maintenance, and renewal/disposal, you can:
Optimise asset performance
Reduce unplanned downtime
Improve safety outcomes
Lower lifecycle costs
A good asset management system also shifts the focus from individual assets to the system level performance driving smarter decisions and more effective resource allocation.
6. How do asset management, asset integrity and maintenance differ?
Here’s how they relate:
Asset Management = System-level management to optimise asset safety, performance, and value across the lifecycle.
Asset Integrity = Asset-level focus on the health and functionality of individual assets.
Maintenance = A subset of asset integrity activities focused on preserving asset functionality.
Think of asset management as the umbrella, under which both integrity and maintenance fall.
7. Does an asset management system have to comply with ISO 55001 to get maximum benefits from it?
No at all. While ISO 55001 provides a strong framework for asset management, it is not mandatory to achieve the benefits. The best asset management systems are those that are:
Tailored to how your organisation works, and
Practical to implement without becoming a burden.
A skilled asset management professional can help design a fit-for-purpose system that integrates with existing operations, delivers measurable value, and, if needed, can be adapted for compliance with ISO 55001 in the future.
8. How are reliability engineering and asset management related?
Reliability engineering is a critical component within an asset management system and when applied correctly with the right tools, models, and metrics, it provides valuable insights into:
How an asset has performed historically
How it is likely to perform in the future
Which aspects of the asset’s design, environment, or operation are influencing its behaviour
This insight supports evidence-based decisions that can be used to:
Optimise procurement strategies
Refine operational parameters
Improve maintenance regimes
Importantly, reliability engineering informs asset management—it doesn’t define it.
Asset management is a broader, system-level discipline that balances cost, risk, and performance across the entire asset lifecycle. While reliability metrics such as failure rates, and degradation trends are highly useful, they should not drive the entire structure or strategy of the asset management system.
Over reliance on reliability data, without considering commercial objectives, lifecycle context, or strategic alignment, can actually undermine the broader benefits that a well-designed asset management system offers.