Asset Financial Requirements (AFR) – Sub Category 8.0
DISCOVER – What financial data is necessary?
Determine the financial data required to manage assets within budget and financial constraints, including cost, depreciation, insurance, and return-on-investment metrics aligned with corporate financial strategies.
DEFINE – How will financial data be structured?
Create financial models and data structures that categorise and track asset costs, value, depreciation, replacement value, and potential returns over the full asset lifecycle.
DESIGN – What tools manage financial data?
Develop and integrate financial management tools with the AMS and ERP to provide real-time tracking of asset costs, capital and operating expenditure, and lifecycle value realisation.
DEPLOY – How will financial insights be used?
Implement routine financial analysis, dashboards, and review cycles so financial insights directly inform asset strategies, investment planning, maintenance prioritisation, and risk management.
6W1H Analysis
Financial Analysts and Asset Managers own AFR data. Costs, values, returns, and projections are stored in integrated finance and asset systems and updated in real time with formal fiscal-cycle reviews. The purpose is to align asset decisions with financial performance targets and capital plans. Tools include ERP, EAM, and forecasting models. Costs relate to financial systems, analysis effort, and ongoing optimisation of models.
DISCOVER
Review current asset management and financial processes to identify cost, waste, and performance issues that constrain value delivery.
DEFINE
Set continuous improvement goals linked to financial outcomes such as cost reduction, improved ROI, margin protection, and asset value retention.
DESIGN
Develop feedback loops, CI registers, and financial performance metrics that measure the impact of changes in asset strategies, processes, and controls.
DEPLOY
Implement improvement initiatives, monitor results, and refine actions based on measured financial and operational benefits.
6W1H Analysis
CI Teams and Financial Analysts drive improvement initiatives. Activities and metrics are captured in CI registers, BI dashboards, and AMS/ERP reports. Reviews occur continuously with annual formal evaluations. The purpose is to enhance financial outcomes and asset value. Methods use lean, problem-solving, and performance management tools. Costs include training, facilitation, and change management effort.
DISCOVER
Identify and confirm acquisition dates for all assets to support depreciation, valuation, and lifecycle planning.
DEFINE
Establish standard procedures for recording, validating, and updating acquisition dates across finance and asset systems.
DESIGN
Configure digital asset registers and financial ledgers so acquisition dates are mandatory fields and synchronised between AMS and accounting systems.
DEPLOY
Enforce accurate data entry at purchase and perform periodic data quality checks so acquisition dates remain correct for reporting and analysis.
6W1H Analysis
Financial Accountants and Asset Managers maintain acquisition dates. Data is stored in integrated asset and finance systems and updated at purchase with annual validation. The purpose is accurate depreciation, valuation, and planning. Tools are ERP, fixed-asset registers, and AMS. Costs are minimal, largely involving system maintenance and data quality effort.
DISCOVER
Capture actual and planned disposal dates for assets to manage end-of-life decisions and financial impacts.
DEFINE
Define protocols for recording disposal dates, reasons, methods, and final values to ensure compliance and optimise recovery.
DESIGN
Implement alerts and workflows in AMS/ERP to notify finance and operations of upcoming disposals and required actions.
DEPLOY
Update disposal records promptly at decision and completion, and analyse disposal data to improve future lifecycle and investment strategies.
6W1H Analysis
Disposal Teams and Finance Departments record disposal data. Information is held in integrated asset and financial systems and updated at the point of disposal. The purpose is accurate write-offs, compliance, and informed replacement planning. Tools include AMS, ERP, and disposal workflows. Costs relate to process configuration, training, and audit controls.
DISCOVER
Determine current replacement costs for assets using market pricing, supplier quotes, and technology benchmarks.
DEFINE
Define how replacement values are calculated, including market indices, escalation factors, and technology step-changes for accurate planning and insurance.
DESIGN
Build processes and tools to maintain and update replacement values within asset and financial planning systems.
DEPLOY
Conduct periodic reviews of replacement values and adjust insurance cover, CAPEX plans, and risk models accordingly.
6W1H Analysis
Finance Officers and Asset Managers maintain replacement values. Data is stored in AMS and financial planning tools and updated annually or after major market changes. The purpose is robust insurance coverage and realistic capital planning. Inputs include market data, vendor quotes, and internal valuations. Costs include analysis effort, data subscriptions, and system updates.
DISCOVER
Review existing depreciation methods and schedules to ensure alignment with accounting standards and real asset usage.
DEFINE
Specify depreciation methods and useful lives by asset class (e.g. straight-line, reducing balance), reflecting economic life and operating context.
DESIGN
Create policies, procedures, and master data rules so depreciation criteria are applied consistently across all assets.
DEPLOY
Review schedules periodically and adjust for changes in asset use, revaluations, impairments, or regulatory updates.
6W1H Analysis
Accountants and Financial Planners manage depreciation. Schedules and methods are stored in finance systems and asset ledgers and reviewed annually or when large asset changes occur. The purpose is accurate valuation and compliant reporting. Tools include ERP and fixed-asset modules. Costs are mainly system configuration and staff training.
DISCOVER
Compile warranty information for all assets, including coverage, exclusions, duration, and claims processes.
DEFINE
Standardise how warranty details are captured, stored, and used so claims and recovery are consistent and efficient.
DESIGN
Implement digital tracking and alerting so teams are notified before warranty expiry and can access warranty terms during maintenance planning.
DEPLOY
Use warranty coverage proactively for repairs and replacements, minimising cost and downtime while maintaining evidence for claims.
6W1H Analysis
Asset Managers and Procurement Officers manage warranty data. Records live in procurement and AMS databases and are used continuously until expiry. The purpose is cost avoidance and maximised OEM support. Tools are contract repositories, AMS, and alerts. Costs are limited to system integration and data upkeep.
DISCOVER
Analyse how CPI movements, interest rates, and market conditions influence asset costs, funding, and investment timing.
DEFINE
Establish guidelines for adjusting financial strategies, escalation factors, and capital plans in response to economic fluctuations.
DESIGN
Build financial models that incorporate economic scenarios and sensitivities to forecast budgets, lifecycle costs, and investment needs.
DEPLOY
Update models with current CPI and market data on a routine basis and use outputs to inform pricing, budgeting, and investment decisions.
6W1H Analysis
Financial Analysts and Strategic Planners interpret CPI and market trends. Data is sourced from economic reports and integrated into planning tools and budget reviews on a quarterly or annual cycle. The purpose is adaptive financial and asset planning. Tools include economic data feeds and scenario models. Costs are associated with analytics tools, subscriptions, and analyst time.