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The assets and facilities management description (most commonly referred as facilities management) has recognized by governments and business community as an essential component of today’s business world.

Facilities management is being elevated to a strategic level of importance and is therefore being given the task and opportunity to contribute to business success and to aid the delivery of competitive advantage[1].

If buildings and other facilities are not managed, they can begin to impact upon an organisation’s performance.

Conversely, buildings and facilities have the potential to enhance performance by contributing towards the provision of the optimal work and business environment.

Organisations are gradually beginning to realise the importance of asset management as a valuable tool for use in strategically managing infrastructure assets[2].

McGeorge and Palmer (1997) noted that buildings are durable assets, which could face technical or functional obsolescence long before they are structurally inadequate. As sustainability becomes an issue, and the cost of land acquisition and new construction rises, rehabilitation of existing infrastructure can become more attractive. The viability of this option can only be considered if the organisation is able to consider the particular asset as it relates to the entire portfolio[3].

Any country wishing to accomplish the status of a developed nation must invest substantially in its physical infrastructure and the government is very concern in not only developing these infrastructures but also in maintaining and managing them.

The initiative taken by Construction Industry Development Board (CIDB) introducing the Asset and Facility Management (AFM) Implementation Manual to guide asset owners in managing their assets for enhanced value can be considered as timely and will boost efficiency and productivity and enhance professionalism in the building sector.

Malaysia is adopting the Total Asset Management concept.

Total Asset Management (TAM) is a holistic, inclusive and coordinated approach to facility asset management. It promotes both a philosophy and a set of best practices intended to overcome limiting conditions by coordinating asset-related business processes across multiple business units, integrating asset-related information systems, and adopting best-in-class practices for maintaining and using the information resource[4].

In TAM a facility asset is any facility-related physical resource that is significantly important to the organization and requires management. These include property, buildings, infrastructure, building equipment, office equipment, vehicles, grounds and plant materials and people.

TAM involves a wide range of facility assets not usually controlled by a single business unit. In addition, subject matter business units such as Finance, Real Estate, Design, Engineering and Maintenance must interact with support units such as Personnel, Purchasing and Information Systems.

At the same time, each unit must provide for inventory, valuation, legal and physical maintenance and renewal in order to protect the asset and assure its availability to the organization.

These combinations of factors form the most significant risk to the TAM approach.

At its core, TAM seeks to manage the facility asset from before it is operationally activated until long after it has been deactivated.

This is because, in addition to managing the present and active asset, TAM also addresses planning and historical requirements.

Minister of Public Works, Dato Shaziman Abu Mansor quited as said when closing the 2nd National Asset and Facility Management (NAFAM) Convention (26-27 Oct 2009), the government will embark on an integrated planning system. The system requires that the PWD be involved in the planning stage of any development projects to be implemented by the respective agencies.

Projects can no longer be based solely on the most economical capital costs with little attention to the consequential operational and maintenance costs thus total costs over the life cycle of the asset at the early stage, from initial capital, operation and maintenance to disposal, including the cost of delivering services using these assets, there will be great opportunity for cost saving in the long run.

Source:  Alley, Greg (2005) “Working towards sustainability in existing infrastructure through strategic facilities management,” Public Infrastructure Bulletin: Vol. 1: Iss. 5, Article 4. Available at: http://epublications.bond.edu.au/pib/vol1/iss5/4; Atkin, B. and Brooks, A. (2009) Total Facilities Management. Third edition, Oxford: Blackwell Science; Barrett, P.S. and Baldry, D. (2003) Facilities Management: Towards Best Practice. 2nd edition. Oxford: Blackwell Science; Booty, F. (ed.) (2009) Facilities management handbook. 4th edition, Oxford: Elsevier Butterworth-Heinemann; Cryder, J. (2009, October). FM Issue: Life Cycle Cost Analysis. Toda’ys Facility Manager; Luker, M. & Williamson, T. (2006). Benefits realized through asset management practices at eastern municipal water district. Water Environment Foundation: Turning to Total Asset Management, the Star, 22 Aug 2009; Taking the Bull by the Horn in Assets and Facilities Management, utusan.com, 28 Oct 2009 and Facilities Management In Malaysia, Jurutera, May 2009

-SNASH-

(this article written for 1BINA.my)


[1] Facilities Society – UK

[2] Newton, L. A., & Christian, J. (2004). Challenges in Asset Management – A Case Study.

[3] McGeorge, D. and Palmer, A. 1997. Construction Management New Directions. Blackwell Science Ltd., Oxford.

[4] Edgar, A., & Teicholz, E. Accomplishing Total Asset Management.