GLOSSARY
Business & Management
Asset (scope) – Anything owned by a person or company, regarded as
having value and available to meet debts, commitments, or legacies
(Property, Machines, Material, People)
Asset Management – The systematic planning and control of a
physical resource throughout its economic life
Asset Management Plan - documented information that specifies the
activities, resources and timescales required for an individual asset, or
a grouping of assets, to achieve the organization’s asset management
objectives
Asset Management System – coordinated activities and practices
through which an organization optimally manages its assets over their
lifecycle.
Asset Performance – the state of asset operation which adds value to
the organization.
Benchmark – A measurable standard for high performance based on a
survey or study of comparable businesses or business process having
similar key performance drivers
Benchmarking – A formal study aimed at determining benchmarks and
practices used to attain high levels of performance
Key Performance Indicator (KPI) – Measures that indicates the degree
to which a specific function is being performed
Internal Rate of Return (IRR) – is a metric used in capital budgeting
measuring the profitability of potential investments. Internal rate of
return is a discount rate that makes the net present value (NPV) of all
cash flows from a particular project equal to zero.
Lagging Indicator – An indicator that measures performance after the
business or process result starts to follow a particular pattern or trend.
Lagging indicators confirm long-term trends, but do not predict them.
Leading Indicator – An indicator that measures performance before
the business or process result starts to follow a particular pattern or
trend. Leading indicators can sometimes be used to predict changes
and trends.
Metric – Is a measure that indicates the degree to which a specific
function is being performed.
Mission - An organization's purpose.
Mission Statement - A broad declaration of the basic, unique purpose,
and scope of operations that distinguishes the organization from
others of its type.
Net Present Value (NPV) – Is the difference between the present
value of cash inflows and the present value of cash outflows. NPV is
used in capital budgeting to analyze the profitability of a projected
investment or project.
Payback Period – The payback period is the length of time required to
recover the cost of an investment.
Policy – Intentions and direction of an organization as formally
expressed by its top management
Return on Investment (ROI) – Financial performance of an investment
