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IAM The Institute of Asset Management Certificate Sample Questions:

1. Holding equipment spare parts can be expensive. What is the best justification for holding spares?

A) The organization has always held spares
B) The Maintenance Manager wants to hold spares
C) When maintenance is outsourced to a maintainer who doesn't hold spares
D) When cost of downtime or service losses exceeds cost of holding spares
E) When the original equipment manufacturer recommends spares should be held

2. Which of the following types of information would NOT normally be required for the development of an asset management plan?

A) Asset Condition
B) Asset Criticality
C) Organisation's share price
D) Asset Register

3. Which of the following is most likely to reduce a company's income?

A) Ageing assets
B) Increased number of asset failures that affect service levels
C) Interest rates
D) Capital investment in new assets
E) Poor asset condition

4. A definition of asset management is:

A) The optimal maintenance an organisation undertakes on its assets
B) The optimal life cycle management of physical assets to sustainably achieve the stated business objectives
C) A clear understanding of the linkages between each stage in the asset lifecycle
D) A grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations

5. Characteristics of organisational context that affect what is achievable and worthwhile in asset management fall into three categories:

A) All above true
B) Volatility of the business environment
C) Scale and complexity of the asset portfolio
D) Asset systems criticality

Solutions: