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Name: Monitoring
Acronym:
Type: Glossary Item


Definition:
Monitoring is a dynamic process that relies on the effective use of data and metrics (financial and non-financial) to continuously evaluate the value realization of assets and their management throughout their life cycle. The core of this monitoring process is data-driven analysis that enables decision-makers to make informed choices about asset utilization, investment, and optimization. By having a clear understanding of the value realized by assets, organizations can fine-tune their strategies, leading to an improvement in asset performance and overall effectiveness.

Statement:
Effective Asset Management provides assurance in the achievement of organizational objectives and realization of organizational sustainability. It does this through value realizing and sustaining value from the investment, use, maintenance, and disposal of assets. In doing so, it aims to balance cost, performance, and risk requirements, as well as the diverse needs of stakeholders and accomplish well-defined Asset Management objectives. It aims to achieve these in line with broader goals of the organization.
 
Defining the value indicators and assessing them against value realized enables continuous monitoring at different levels within an organization. This can be used to improve decision-making processes and support continuous value realization.
 
Monitoring value realization can be performed on a single asset or a portfolio of assets, with the latter providing a more systemic view when considering the organizational outcomes and impacts.
 
The metrics used to monitor value realization must be able to show the value realized at each stage of the life cycle, and clearly demonstrate the results achieved. This is then used to assess the outcomes and impacts realized against desired objectives. Adjustments are then made as part of the ongoing value realization process.
 



Resource:
  • Reference
    • The Asset Management Landscape ISBN 978-0-9871799-1-3

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