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IAM IAM-Certificate The Institute of Asset Management Certificate Exam Practice Test

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Total 93 questions

The Institute of Asset Management Certificate Questions and Answers

Question 1

In what year did the term "asset management" start to be used?

Options:

A.

1980

B.

1981

C.

1982

D.

1983

Question 2

Which of the following statements isnota management asset?

Options:

A.

A recognition that assets have a life cycle

B.

An approach that looks to get the best out of the assets for the benefit of the organisation and/or its stakeholders

C.

Understanding and managing the risk associated with owning assets

D.

A substitute for quality management

Question 3

The objectives that the organization wants to achieve from its asset management activities, are ....

Options:

A.

to describe an organisation’s long-term approach to managing its assets

B.

the future capability and performance requirements of assets, asset systems and the asset portfolio as a whole

C.

A & B True

D.

A & B False

Question 4

A definition of asset management is:

Options:

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

Question 5

Assurance is the combination of monitoring and control (of processes and outcomes) to confirm the assets, systems and processes are operating as intended.

Options:

A.

False

B.

True

Question 6

What is the purpose of whole-life cost analysis?

Options:

A.

To determine the option for a particular decision which has the lowest costs over the life of the asset

B.

To determine the most important costs associated with an asset

C.

To determine the renewal costs at the end of an asset’s life

Question 7

Which of the following statements is true?

Options:

A.

Good asset management has clear connectivity between an organisation’s strategic plan and the value core

B.

Assets is not a potential value to an organisation

C.

Assurance is the combination of monitoring and auditing

D.

Visible senior level leadership and commitment is insignificant in organisations

Question 8

Which of the following statements best describes the difference between an Asset Management Policy and an Asset Management Strategy?

Options:

A.

Policy defines objectives and time; strategy defines principles

B.

Policy defines principles; strategy certifies condition

C.

Policy defines objectives and time; strategy summarizes work plans

D.

Policy defines principles; strategy defines objectives and time

E.

Policy defines financial trade-offs; strategy summarizes planning

Question 9

To successfully establish, operate and improve asset management within an organisation, it is essential that leadership, and commitment, is demonstrated by all levels of management – from senior executives to supervisors.

Options:

A.

False

B.

True

Question 10

What are the main cost elements of a whole-life cost approach?

Options:

A.

Installation, failure and refurbishment costs

B.

Asset deterioration and reliability costs

C.

Maintenance, associated financing costs, refurbishment, and disposal costs

D.

Installation, maintenance and operations, and disposal costs

Question 11

What is NOT usually considered in the decision to decommission and dispose of assets?

Options:

A.

The residual value of assets

B.

Alternative uses for the assets

C.

The depreciated value of the assets

D.

The environmental impact of disposing of the assets

E.

Legislation regarding disposal of the assets

Question 12

There are many factors that can drive the decommissioning of assets,except:

Options:

A.

Obsolete technology

B.

Compliance with changes in legislation

C.

Excess of service capacity

D.

Cost of retaining in service

Question 13

A policy is best defined as...

Options:

A.

Overarching objectives setting context and direction

B.

Intentions and direction as formally expressed by top management

C.

Activities to create value for customers

D.

Temporary endeavor to create unique output

E.

Action plans to attain objectives

Question 14

External stakeholders can influence asset management activities within an organisation by:

Options:

A.

Defining the renewal and maintenance policies which govern the creation of the asset management plan

B.

Having the power of veto over what the organisation does

C.

Influencing the Organisational Strategic Plan through structured engagement

Question 15

A change of maintenance contractor for an operational system is being proposed. Which of the following processes should be applied?

Options:

A.

Maintenance Planning Process

B.

Reliability Engineering Process

C.

Change Request Process

D.

Contingency Planning Process

E.

Spares Provisioning Process

Question 16

This covers everything that goes into planning, designing, and procuring an asset.

Options:

A.

Acquire

B.

Commission

C.

Operate

D.

Dispose

Question 17

Which of the following requirements would you expect to find included within an Asset Management Strategy?

Options:

A.

Asset data configuration

B.

Asset register

C.

Project handback to operations

D.

Maintenance special tools

E.

Future demand

Question 18

The benefits of an asset management system are...

Options:

A.

Formalizes asset management

B.

Establish roles and responsibilities

C.

Bring best practices into the organization

D.

A-B-C are true

Question 19

A public transportation company has a fleet of 150 trams. Type A (25 years old), Type B (19 years), Type C (2 years). Expected lifetime is 30 years. Type A and B perform sufficiently but suffer obsolescence and spare parts issues.

What would be a feasible action now?

Options:

A.

Prepare to phase out type A as they are near the end of life

B.

Start an asset rationalisation study on type A (and maybe B) to determine the possible end-of-life options

C.

Replace type A and B with 80 new type C trams to standardize fleet

D.

Prepare an overhaul for type A and B

E.

Modify type A and B to maintain service and solve obsolescence

Question 20

Ignoring the time-based value of money, in Whole Life Cost Modelling, annualised costs are:

Options:

A.

The sum of the maintenance and operating costs divided by the service life of the asset in years

B.

The sum of the costs in the Create, Operate, Maintain and Disposal phases

C.

The life cycle costs divided by the service life of the asset in years

D.

The annual costs to operate and maintain the asset

E.

The annual capital investment costs in the create and mid-life upgrade phases

Question 21

Risk is best described as:

Options:

A.

The effect of uncertainty on an organisation's objectives

B.

An organisation's tolerance to uncertainty

C.

An organisation's appetite to uncertainty

D.

The effect of meeting an organisation's objectives

E.

The impact of uncertainty

Question 22

Vou ate presenting an 'Introduction lo good Asset Management' workshop. A member of the audience asks you to draw a simple diagram that best describes the three main parameters Involved in good practice Risk Management. Which of the following diagrams are you most likely to draw?

A)

Question # 22

B)

Question # 22

C)

Question # 22

D)

Question # 22

E)

Question # 22

Options:

A.

Option A

B.

Option B

C.

Option C

D.

Option D

E.

Option E

Question 23

Which of the following is NOT normally an input to an asset management plan?

Options:

A.

Maintenance schedules

B.

Asset knowledge

C.

Demand forecast

D.

Organizational objectives

E.

Asset Management Objectives

Question 24

The term optimizing describes:

Options:

A.

The process of Maintenance the best value compromise between a set of competing factors, in order to support asset management decision-making

B.

The process of establishing the best value compromise between a set of competing factors, in order to support asset management decision-making

C.

The process of control the best value compromise between a set of competing factors, in order to support asset management decision-making

D.

The process of review the best value compromise between a set of competing factors, in order to support asset management decision-making

Question 25

The following things are taken into consideration in developing an asset management strategy,except:

Options:

A.

Consistency

B.

Life cycle approach

C.

Asset requirements

D.

Management needs

Question 26

How is risk best quantified within an ISO 55001 compliant Asset Management System?

Options:

A.

Risk is quantified as a product of asset criticality and unavailability

B.

Risk is quantified by defining boundaries of acceptable risk

C.

Risk is quantified by multiplying event probability by event consequences

D.

Risk identification processes quantify risk

E.

It is not possible to quantify risk

Question 27

Asset Management is explicitly focused on helping organisations to achieve their defined objectives and to determine the optimal blend of activities based on these objectives.

Options:

A.

True

B.

False

Page: 1 / 9
Total 93 questions