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What is good practice to be included in an asset management policy?
A. A statement of commitment to comply with regulations, a commitment to continuous improvement, and the asset management strategy.
B. A statement of commitment to comply with regulations, budget for the next five years, a commitment to continuous improvement, principles guiding the development of the asset management strategy and objectives.
C. A statement of commitment to comply with regulations, a commitment to continuous improvement, and principles guiding the development of the asset management strategy and objectives.
D. A statement of commitment to comply with regulations, a commitment to continuous improvement, a detailed plan of the work for the following year.
E. A statement of commitment to comply with regulations, a list of the top risks to the organisation, principles guiding the development of the asset management strategy and objectives.
Answer: C
Explanation:
An effectiveAsset Management Policyoutlines the organization's high-level intent and principles regarding asset management. It doesnot include specific budgetary or operational detailslike annual plans.
Exact Extract from ISO 55001:2014, Clause 5.2 - Asset Management Policy:
"Shall include a commitment to satisfy applicable legal requirements, continual improvement, and provide a framework for setting asset management objectives and strategy."
NEW QUESTION # 62
What is the Asset Life Cycle?
A. A substitute for quality management
B. All False
C. A project management system
D. A strategic and analytical approach to the management of a business's assets
Answer: D
Explanation:
TheAsset Life Cyclerefers to the complete sequence of phases an asset undergoes from its creation to final disposal. It includes stages such as planning, acquisition, commissioning, operation, maintenance, and disposal. It is not just a linear timeline but a framework for making optimized, value-driven decisions throughout the asset's existence.
* Option Ais correct: Asset management involves the strategic and analytical control of assets over their lifecycle.
* Option Bis incorrect: Project management is a tool used within specific lifecycle phases.
* Option Cis false: Asset management complements but does not replace quality management.
* Option Dis not applicable, as the premise of Option A is accurate.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 3.4 - The Asset Lifecycle:
"The asset lifecycle is a concept used to describe the phases of activity over the life of an asset...
Organizations need to understand how asset decisions and activities interrelate across these phases and manage them in an integrated manner."
NEW QUESTION # 63
When undertaking whole-life cost analysis it is important to remember that:
A. As many costs as possible should be included in the analysis ensuring these are consistently derived between analyses
B. The analysis should be completed without reference to other organisational functions to ensure independence
C. It is impossible to get the right answer unless all the data and information are understood
Answer: C
NEW QUESTION # 64
The comparison between Lean and Asset Management, are ......
A. All about Asset, People, System
B. All about Purpose, Process, People
C. All about Security System
D. All about Value, Risk, Maintenance
Answer: B
Explanation:
The philosophical alignment betweenLean ThinkingandAsset Managementis grounded in their mutual emphasis onpurpose, process, and people.
* Purpose: Both aim to achieve strategic goals and deliver value.
* Process: They emphasize efficient, repeatable, value-driven processes.
* People: Success in both depends on cultural engagement and workforce empowerment.
This concept is reinforced in IAM guidance where asset management is described as a holistic discipline that integrates strategy, execution, and people involvement.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 5.2 - Organisational Context and Culture:
"Asset management is not only about systems and procedures but requires the active engagement of people at all levels. It shares with Lean a focus on aligning Purpose, Process, and People."
NEW QUESTION # 65
Which of the following statements is true?
A. Strategic planning explicitly considers the life cycle of the assets and the interdependencies between each of the life cycle stages
B. Strategic planning is describes how the organisation will develop and improve its asset management capabilities
C. Strategic planning is usually undertaken as part of the overall organisational management
D. Strategic planning is the process for establishing asset management objectives and developing the asset management strategy
Answer: D
Explanation:
Strategic asset management planningis the process of translating the organization's high-level objectives intotangible asset management strategiesand performance targets.
* Option Arefers to capability development (partially true but incomplete).
* Option Bis correct as per ISO 55001 and IAM guidance.
* Option Cis general and non-specific.
* Option Dis relevant, but more operational in scope.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 4.3.2 - Strategic Planning:
"Strategic planning links the organization's objectives to asset management objectives, setting out how the organization intends to manage its assets in alignment with these broader goals."
NEW QUESTION # 66
......
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