AbstractsBusiness Management & Administration

Evaluating the impact of asset management in the water industry : a case study of East Rand Water Care Company (ERWAT)

by Thabani Mhlongo

Institution: Stellenbosch University
Degree: MPA
Year: 2014
Keywords: Public management and planning
Record ID: 1475544
Full text PDF: http://hdl.handle.net/10019.1/86711


The asset management process and strategy has been adopted and implemented within the public sector. Although the National Treasury developed the Capital Asset Management Guidelines to assist with the development and implementation of the asset management system the guidelines have received very little attention over the years. The Auditor General’s findings indicate a lack of proper implementation of the asset management process. The study provides a clear indication of the implementation of the asset management process by most government entities, local government municipalities and the public sector. The outcome is that while most entities have made progress with regards to the implementation, much remains to be done. Most entities implement the asset management process selectively. This does not yield positive and sustainable results and they end up abandoning the whole asset management system. The report provides the process of successful development and implementation of asset management, it also indicate that if there are element that are missed or not properly done the process will not yield constant results or performance and the impact on the organization performance will not be positive. The management of the organization must ensure that asset management is aligned with strategic objectives of the organization and performance measurement must be directly linked with asset management, performance measurement should be used to determine progress and implementation. Service level agreements must be established between all relevant departments including the finance department and there must be agreement on the objectives between all stakeholders. The key to proper implementation is the alignment of the asset management process with the strategic objectives of the organization.