What are the components of asset management?

• A. Planning, selection, acquisition/development, utilization, care, disposal/renewal
• B. Planning and procurement only
• C. Maintenance and repair exclusively
• D. Disposal and retirement only

Answer: (A)

Asset management is a lifecycle, value-focused discipline that guides decisions from start to end of an asset’s life. It begins with planning, where requirements, risks, budgets, and performance targets are defined to align with organizational goals. Then selection evaluates options and picks assets or projects that deliver the best overall value. Acquisition or development turns those choices into reality, obtaining or building assets and ensuring they fit design, standards, and integration needs. Utilization concentrates on how the asset performs in operation, aiming to meet required outputs while maximizing uptime and efficiency. Care covers ongoing activities that preserve condition and performance, such as preventive maintenance, inspections, and condition monitoring. Disposal or renewal handles end-of-life decisions, decommissioning outdated assets, and planning replacements to maintain capability. Together these elements form asset management, ensuring value is realized across the asset’s entire life through appropriate planning, decision-making, operation, maintenance, and renewal.