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IAM The Institute of Asset Management Certificate Sample Questions:

1. A definition of asset management is:

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

2. Two widely used approaches to conceptualising value in an organisation are:

A) The Value Stream and Chain
B) The Value Net and Delivery
C) The Value Stream and Delivery
D) The Value Net and Chain

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

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

4. When undertaking whole-life cost analysis it is important to remember that:

A) It is impossible to get the right answer unless all the data and information are understood
B) The analysis should be completed without reference to other organisational functions to ensure independence
C) As many costs as possible should be included in the analysis ensuring these are consistently derived between analyses

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

A) Installation, maintenance and operations, and disposal costs
B) Asset deterioration and reliability costs
C) Installation, failure and refurbishment costs
D) Maintenance, associated financing costs, refurbishment, and disposal costs

Solutions: