About

ABOUT COURSE

The objective of effective asset management is to provide an efficient and active service to meet the assets service delivery requirements at the lowest long run cost. In addition, good asset management integrates with corporate strategy development and business planning to ensure non-asset solutions, life cycle costs and risks are considered through the key phases in asset life cycles.

This training course offers expert guidance for applying asset economic modelling to successfully manage life cycle cost of owning, managing, operating and maintaining assets. The course combines asset management principles with robust financial management tools and techniques, taking participants through the entire asset and business planning framework.

NEW SKILLS YOU WILL LEARN

• Improve asset management by understanding the financial objectives 
• Apply relevant budgeting and cost management processes to AM
• Identify efficiency improvements to reduce asset operation and management costs 
• Evaluate capital investment decisions in the context of asset economics 
• Build a robust pricing mechanism for asset outputs 
• Formulate business models for cost effective service delivery 
• Develop performance management frameworks 
• Manage assets within acceptable risk thresholds 

WHO SHOULD ATTEND

“Aubrey has the knack of presenting relevant information at the correct time. He knows his stuff and has excellent experience to share with the class.”
Colin Glass, Accountant, Department of Corrections

Outline

DAY ONE

Asset economics: Balancing financial and asset outcomes

• What is the concept of asset economics?
• Relating service strategies to asset capabilities
• Understanding the relationship between asset management and financial objectives
• Factoring risk into asset economics
• Achieving the optimal balance and minimum life-cycle cost

Linking asset management to organisational business planning

• Understanding an organisation’s strategic planning framework
• Establishing the ultimate goals and objectives of the organisation
• Establishing customer requirements and servicing strategies
• Evaluating asset capability to deliver the service outcomes and identifying gaps

Identifying and understanding the underlying cost base

• Analysing financial data to identify types of costs
• Capturing operational data that will assist with understanding costs
• Establishing a direct operating expenditure (DOE) base line
• Identifying the financial performance of the assets

Applying ABC/ABM principles to asset economics

• ABC/ABM and output budgeting
• Rolling forecasts - a continuous view of the organisation
• Identifying mandatory and discretionary spend
• Prioritisation of discretionary spend
• Using internal benchmarking as a de-facto budget methodology
• The role of technology in the decision to change

DAY TWO

Capital investment decisions

• Establishing a robust framework for investment planning management
• Evaluating options based on sound financial bases
• Applying traditional financial evaluation techniques
• Management accounting tools and techniques supporting investment decision making
• Management gateways to ensure robust decision making

Asset management strategies

• Definition of the asset management concept
• Developing a strategic framework for asset management
• The asset planning process
• Identifying and evaluating life-cycle management options
• Identifying and costing the risks in asset management strategies
• New business models for efficient and cost effective operations

Developing asset management plans

• The purpose of the asset management plan
• Contents of an asset management plan
• Data sources that contribute to the asset management plan
• Uses of the asset management plans
• Financial input into the asset management plans
• Keeping asset management plans current

Developing an organisational performance management framework

• What are the relevant performance indicators?
• Introducing non-financial measures to complement traditional budget and cost controls
• Mining data for effective asset management
• Developing reporting formats that make sense to the business
• The ultimate performance management framework
• Developing an asset scorecard

Facilitator

Aubrey Joachim

Aubrey Joachim (Australia) FCMA; MBA; GAICD is a Chartered Management Accountant – a Fellow of the Chartered Institute of Management Accountants UK, and MBA and a Graduate of the Australian Institute of Company Directors. He has over 30 years of strategic management accounting experience with global conglomerates (Anglo-Dutch conglomerate Unilever and US Energy giant McDermott International Inc.) in South Asia, the Middle East, South East Asia and UK.

Aubrey Joachim is also facilitating:

• Budgeting and Forecasting for the Public Sector
• Cash Flow and Working Capital Management
• Lean Finance & Finance Transformation
• Strategic Planning, Budgeting and Rolling Forecasts
• The Finance Professional as a Business Partner

In-house Training