ASSET MANAGEMENT	30/11/2005
	What is Asset Management? Asset Management is a systematic process with a view to cost effective maintenance, upgrading and operation of physical assets. Asset Management combines engineering disciplines with solid business practice and financial theories. In this way tools for the performance of an organised and more logical decision-making are achieved. Asset Management forms the frames for both short- and long-term planning processes. The new accounting systems allow booking of the values of the public assets including the infrastructure and the road capital. At the same time the economic effect of the daily efforts as regards operation and maintenance are found. In other words; how to utilize the funds in the best possible way. Long-term planning tool A long-term planning and simulation tool as Asset Management (AM) makes it possible to start out from the opening balance and make a feasibility study, prognosis and to plan an optimum future effort already during the phase of goal setting, strategy and budgeting. Opening balance The opening balance (the replacement value) is the total value of the assets and a detailed entry list is made, which can be applied for booking of all assets in connection with the annual operation and maintenance optimisations for the infrastructure. If a road administration tool e.g. RoSy is applied annually, it is possible to analyse, on the basis of the optimisations, where the best effect of maintenance would be. Furthermore, it is possible to forecast and later see the effect of the efforts made during the year.