ASTM_E_2811_-_11.pdf

Designation:E281111Standard Practice forManagement of Low Risk Property(LRP)1This standard is issued under the fixed designation E2811;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 covers the assessment of risk and manage-ment of low risk property(LRP).1.2 This practice is directed at tangible LRP.1.3 This practice does not promote mismanagement ordereliction of duty to protect property,nor protecting propertyunreasonably to the extent that usefulness is impaired.Thispractice recognizes the constraints of materiality and costsversus benefits in the control and management of property.2.Referenced Documents2.1 ASTM Standards:2E2131 Practice forAddressing and Reporting Loss,Damage,or Destruction of Tangible PropertyE2132 Practice for Inventory Verification:Electronic andPhysical Inventory of AssetsE2135 Terminology for Property and Asset ManagementE2608 Practice for Equipment Control Matrix(ECM)E2279 Practice for Establishing the Guiding Principles ofProperty Management2.2 Other Documents:3NPMA Fundamentals of Personal Property Management,First Edition 20063.Terminology3.1 Definitions:3.1.1 identification/control numbersmarkings(barcode,plate,engraving,etc.)affixed to the asset.3.1.2 life cycle processes(LCP)the various managementand control stages of property from its acquisition throughdisposition;these processes include but are not limited toacquisition,receiving,identification,records,movement,maintenance,storage,physical inventory,loss,damage,anddestruction reporting and disposition.3.1.3 low risk property(LRP)assets that are monitoredand controlled at the discretion of asset managers and typicallyconsist of low risk expendables or durable equipment andtooling based on established and disclosed criteria.(Refer to4.2 for more information.)3.1.4 toolingdevices that are used in performing or facili-tating mechanical operations,including assisting or aiding inthe manufacture or repair of an item.4.Significance and Use4.1 LRP should be administratively controlled and managedto a lesser degree or with a more efficient technique than higherrisk property.4.2 The type and scope of control and management shouldbe commensurate with the level of risk.The entity shalldetermine the level of risk using the following criteria:4.2.1 Scarcity,4.2.2 Technological obsolescence,4.2.3 Lead time,4.2.4 Standardization,4.2.5 Criticality,4.2.6 Sensitivity,4.2.7 Dollar value,4.2.8 Environmentally regulated,4.2.9 National security/threat,4.2.10 Schedule constraints,4.2.11 Vulnerability,4.2.12 Societal or personal safety,and4.2.13 Contractual agreements.NOTE1The listing in 4.2.1-4.2.13 is not all inclusive and may besupplemented by the entity.4.3 The information received from conducting standardasset life cycle processes(LCP)for LRP may not providesufficient value to the entity that is equal to or greater than thecost associated with performing the processes.4.4 Entities should establish policies and procedures,basedon certain criteria in determining whether all or selected assetLCP should be conducted for LRP.4.5 The success of any entity is dependent in part on itsoperational effectiveness.To be effective entities should shift1This 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 March 1,2011.Published March 2011.DOI:10.1520/E2811-11.2For referenced ASTM standards,visit the ASTM website,www.astm.org,orcontact ASTM Customer Service at serviceastm.org.For Annual Book of ASTMStandards volume information,refer to the standards Document Summary page onthe ASTM website.3Available from National Property Management(NPMA),28100 US Highway19 North,Suite 400,Clearwater,FL 33761,http:/www.npma.org.Copyright ASTM International,100 Barr Harbor Drive,PO Box C700,West Conshohocken,PA 19428-2959.United States1 their focus from“risk avoidance”to one of“risk management.”The required processes and associated cost to eliminate all riskis prohibitive and contrary to producing timely,high-quality,and competitive products and services.5.Procedure5.1 Entities adopting this practice shall establish policiesand procedures implementing this practice.These policies orprocedures established should be consistent with NPMA,Terminology E2135,and Practices E2131,E2132,E2608,andE2279.6.Documentation6.1 Entities should establish,maintain,and disclose docu-mentation appropriate to support their decision as to the type ofscope of property control and management.7.Keywords7.1 low risk property(LRP);risk assessment;risk manage-mentASTM International takes no position respecting the validity of any patent rights asserted in connection with any item mentionedin this standard.User