Asset Management Flashcards
7 cards from real UMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Asset Management flashcards as text
Which element is NOT typically included in a utility's Asset Management Plan (AMP)?
Answer: Employee performance evaluation criteria
An AMP focuses on infrastructure assets, levels of service, financial planning, and risk management—not on HR or personnel evaluation processes.
What term describes the annual loss in asset value due to aging and use, used to estimate the funding needed for future replacement?
Answer: Depreciation
Depreciation allocates the cost of a long-lived asset over its useful life, providing a financial signal of the value being consumed each year.
A utility identifies $50M in deferred maintenance. What is the most significant long-term risk of not addressing this backlog?
Answer: Accelerated asset deterioration leading to higher future replacement costs and failure risk
Deferred maintenance allows assets to deteriorate faster, shortening useful life and increasing the probability of failure, which ultimately raises total lifecycle costs.
Which condition assessment method involves deploying a sensor or camera inside a pipe to evaluate its internal state?
Answer: Closed-circuit television (CCTV) inspection
CCTV inspection uses a camera moved through a pipe to directly observe internal deterioration, cracks, joint displacement, and other defects.
In asset management, 'whole-of-life costing' requires consideration of which cost categories?
Answer: Capital, operations, maintenance, and end-of-life disposal costs
Whole-of-life costing sums all costs incurred from asset acquisition through disposal, providing a complete picture for comparing alternatives.
A utility adopts a Computerized Maintenance Management System (CMMS). What is the primary asset management benefit?
Answer: Centralizes work order, maintenance history, and asset data to support data-driven decisions
A CMMS consolidates maintenance history and asset data, enabling utilities to analyze failure patterns, optimize maintenance schedules, and make evidence-based decisions.
Which of the following best describes 'demand management' as an asset management strategy?
Answer: Reducing peak demand through conservation programs to defer capital expenditures
Demand management uses measures like conservation programs and rate structures to reduce or shift demand, delaying or eliminating the need for costly capacity expansions.