Home        About       News       Contact
1



Bounded Assets

Those assets that are highly regulated for safety, environmental protection or other reasons in the public interest. 


Attributes
Listed below are some of the key attributes of bounded assets:


Examples
Some of the primary examples of bounded assets are listed below:

  • Fire Protection Equipment
  • Elevators
  • Backflow Prevention Valves
  • Pressure Vessels (Boilers)

Management Principles
Listed below are some of the asset management principles that may be appropriate for bounded assets.
Some examples of bounded assets, such as boilers, elevators and swimming pools.
Fig. Some examples of bounded assets, such as boilers, elevators and swimming pools.


elements of a certificate
Fig. The key elements of a certificate associated with a bounded asset.


Boilers and other pressure vessels are a bounded asset  Fire extinguishers are a bounded asset.
Fig. Pressure vessels (boilers)    Fig. Fire extinguishers
Elevator equipment is an example of a bounded asset
Fig. Elevator equipment is an example of a bounded asset.


I. Care is trying to re-align his building’s magnetic north and thereby use his building as a sundial to cast a shadow to identify all the critical assets
Fig.  I. Care is trying to re-align his building’s magnetic north to geodetic true north and thereby use his building as a sundial to cast the right shadow and identify all the critical assets


See also:
Compare with:

1.            Elevators are a “bounded asset” governed by an authority having jurisdiction

2.            All assets that are “bounded” must conform to statutory maintenance requirements.

3.            Statutory maintenance is almost exclusively carried out on fixed intervals of time and is therefore addressed under time-based maintenance (TbM) program.

4.            Time-based maintenance lends itself perfectly to service agreements as the scope of the tasks and their intervals are clearly defined and can be appended to the agreement or referenced to applicable standards.

5.            All the “minor maintenance” tasks are covered under the terms of the service agreement and almost all the “major maintenance” tasks as well. We find that less than 5% of the elevator contractors in BC do not include some major maintenance tasks – such as the 3-year and 5-year safety inspections. If these are not included by the contractor their cost is typically under $1,000 and easily picked up in owners’ operating budget.

6.            Many elevator service agreements also include the replacement of certain capital items, such as compensating chains (hoist ropes). If these costs are included in the reserve study/depreciation report we could be double counting the capEx. We would typically set this up a “Placeholder event” – ie., we not that the ropes need to be replaced in a certain year but do not attach a cost.

7.            The typical asset register of a condo building contains about 100 assets of which less than 10% are governed by statutory maintenance (elevators, pools, pressure vessels, backflow valves, fire alarm, etc).

8.            Some  stochastic (unpredictable) events associated with bounded assets can potentially be addressed through the operating budget (as repairs) or through insurance (as losses). Depreciation reports are only intended to provide for predictable events not stochastic ones.

9.            Some critical components of bounded assets must be replaced on age-based intervals (not condition-based intervals), such as fire extinguishers at 12 year hydrostatic cycle. Chronological age, rather than effective age, will drive the age-based replacement cycles.

It is my position that bounded/regulated assets warrant a different approach to all other assets and minor maintenance can be eliminated.


(c) Copyright Asset Insights, 2000-2013, All Rights Reserved. - "Insight, Foresight & Oversight of assets" Google