ASTM_E_2497_-_11.pdf

Designation:E249711Standard Practice forCalculation of Asset Movement Velocity(AMV)1This standard is issued under the fixed designation E2497;the number immediately following the designation indicates the year oforiginal adoption or,in the case of revision,the year of last revision.A number in parentheses indicates the year of last reapproval.Asuperscript epsilon()indicates an editorial change since the last revision or reapproval.1.Scope1.1 This practice calculates asset movement velocity(AMV)based on the movement of assets.1.2 There is no existing,recognized practice for calculatingAMV.1.3 This practice is designed to be applicable and appropri-ate for all asset-holding entities.1.4 This practice does not cover material inventory.Inven-tory velocity(or inventory turns)is extensively described anddiscussed in supply chain literature and is based on throughputrather than movement transactions.1.5 AMV can be calculated for the entirety of the assetinventory of the entity or any defined subset,includingindividual assets.1.6 This standard does not purport to address all of thesafety concerns,if any,associated with its use.It is theresponsibility of the user of this standard to establish appro-priate safety and health practices and determine the applica-bility of regulatory limitations prior to use.2.Terminology2.1 Definitions of Terms Specific to This Standard:2.1.1 asset movement velocity(AMV),nrate at whichassets moves into,within,and out of the accountability systemof an entity.2.1.2 portable equipment,nasset not tracked to a physicallocation level because the nature of the asset usage requires ahigh degree of flexibility in its physical location.2.2 Acronyms:2.2.1 AMVasset movement velocity.2.2.2 PLLphysical location level.3.Significance and Use3.1 This practice establishes a standard calculation repre-senting the operational fluidity of assets used by an entity.3.2 It is intended that this practice foster and enable addi-tional practices related to or based on AMV information.3.3 This practice enables effective and consistent commu-nication and trend tracking over time regarding AMV.3.4 Calculating,recording,tracking,and comparing thecomputed AMV will provide comparative insight into theoperational complexity of the entity.Determination of thecomponent parts of the AMV calculation will provide infor-mation on the number of acquisition,disposition,and move-ment transactions and,viewed separately,will serve as a usefulinsight.3.5 Clarifying Comparative Example:3.5.1 Entity A has few assets that are of a high dollar valuebut have been in place for many years and seldom move.Theseitems are tracked to the site physical location level(PLL).Entity A will have an AMV near 0.0.This will be an accuratereflection of the record keeping and transactional risk associ-ated with the management of assets within the entity.3.5.2 Entity B has over 5000 pieces of equipment that ittracks to the room PLL.As most of these items are informationtechnology related,they typically have a useful life of a littleover three years,after which they are donated to local schools.These items are moved from person to person and room toroom very frequently for operational purposes.Entity B willhave a high AMV,perhaps 3.0 or above.This will be anaccurate reflection of the record keeping and transactional riskassociated with the management of assets within the entity.4.AMV Calculation4.1 AMV is calculated and communicated in terms of aspecific PLL.4.2 Movement transactions as used in this practice includeacquisitions of assets,changes in the recorded physical loca-tion of assets,and disposition of assets.4.2.1 Changes in location include movement transactionsrecorded in the applicable asset record system and may includepermanent or temporary movement for purposes such as use,temporary use,maintenance,calibration,storage,and so forth.4.2.2 Changes in location do not include physical locationchanges of portable assets but do include changes to thelocation or accountability tracking information recorded for theportable assets.1This practice is under the jurisdiction of ASTM Committee E53 on AssetManagement and is the direct responsibility of Subcommittee E53.01 on ProcessManagement.Current edition approved Dec.1,2011.Published January 2012.Originallyapproved in 2006.Last previous edition approved in 2006 as E2497 06.DOI:10.1520/E2497-11.Copyright ASTM International,100 Barr Harbor Drive,PO Box C700,West Conshohocken,PA 19428-2959.United States1 4.3 AMV is calculated and communicated in annual terms,though data may be collected and the AMV calculated for anyspecified time period based on data that is standardized to anannual basis.4.3.1If an alternate time period is used,the time periodshall be clearly specified.4.4 The number of total movement transactions is the sumof the number of acquisition transactions,physical locationchange transactions,and disposition transactions.4.5 AMV is the total number of movement transactionsdivided by the number of