CHAPTER ONE

INTRODUCTION

1.0 Introduction

This chapter presents the introduction to asset information system for construction company. It presents the introduction, theoretical background, statement of the problem, aim and objectives of the study, significance of the study, scope of the study, organization of the research, definition of terms.

Asset information management is a mind-set which sees physical assets not as inanimate and unchanging lumps of metal / plastic / concrete, but as objects and systems which respond to their environment, change and normally deteriorate with use, and progressively grow old then fail / stop working. It is a recognition of the fact that assets have a life cycle and it is as important for those working in finance as it is for engineers. It is an approach that looks to get the best out of the assets for the benefit of the organization and/or its stakeholders. Also, it is about understanding and managing the risk associated with owning assets. One of the challenges with managing an asset is that it is not sentient. It does not keep management edicts. It does not respond to the economy or politics. But it does respond to how it is treated and used. This creates a challenge for management. How do you get the right behaviour from an entity that won’t listen?

1.1 Theoretical Background

In the past agencies were able to manage their assets with modest levels of information that was centrally recorded and historic costs were recorded only for accounting purposes. Local asset managers were familiar with each of their assets and less pressured to ensure their cost effectiveness. The environment in which public assets operate has changed and consequently the information necessary for agencies to manage their assets has also changed. The increased demands for government services without a similar increase in government resources have led to a focus on service, and whole of life asset management approach. Consequently, the need for asset information has increased significantly. Total Asset Management (TAM) uses asset registers to provide an invaluable source of information of the agency’s asset usage and on-going capacity as an efficient and effective service provider. Asset registers also provide the information base for further management improvement techniques such as benchmarking. The asset register should be seen as the core of an agency’s information management system. The potential to integrate all the different functional registers and plans to create more efficient information linkages is growing as technology advances. Developing and improving asset registers is a key element of the Total Asset Management process.

1.2 Statement of the Problem

The following problems were identified:

1. Inability to manage the life cycle information of assets.
2. Lack of efficient recording system for asset information.
3. Accumulation of paper files pertaining to assets.
4. Inability to obtain reports pertaining to assets.

1.3 Aim and Objectives of the Study

The aim of the study is to design and implement an asset information system for construction company. The objectives of the study are:

1. To design a computerized system to take care of assets information.
2. To design a system that will aid storing of captured asset information to database.
3. To design a system that will enable management of Seyang Construction company to get reports of information pertaining to registered assets.

1.4 Significance of the Study

The significance of the study is that it will provide a system that will enable the management of Seyang construction company to better manage their asset information. To develop a system that will facilitate the presentation of reports of registered assets. The study will also serve as a useful reference material for other researchers seeking information on the subject.

1.5 Scope of the Study

This study covers the design and implementation of Asset information system for construction company using Seyang construction company, Ikot Ekpene as a case study.

1.6 Organization of the Research

This research work is organized into five chapters. Chapter one is concerned with the introduction of the research study and it presents the preliminaries, theoretical background, statement of the problem, aim and objectives of the study, significance of the study, scope of the study, organization of the research and definition of terms.

Chapter two focuses on the literature review, the contributions of other scholars on the subject matter is discussed.

Chapter three is concerned with the system analysis and design. It analyzes the present system to identify the problems and provides information on the advantages and disadvantages of the proposed system. The system design is also presented in this chapter.

Chapter four presents the system implementation and documentation. The choice of programming language, analysis of modules, choice of programming language and system requirements for implementation.

Chapter five focuses on the summary, conclusion and recommendations are provided in this chapter based on the study carried out.

1.7 Definition of Terms

Asset(s): plant, machinery, property, buildings, vehicles and other items that have a distinct value to the organization

Asset management: systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan

Asset management information: meaningful data relating to assets and asset management.