Guidance For Candidates - The Iam Certificate: Edition 2 - January 2013

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GUIDANCE FOR CANDIDATES THE IAM CERTIFICATE

Edition 2 - January 2013

CONTENTS
Introduction Certificate or Diploma: Which is right for you? Passing the Exam what do you need to know? The Modules Explained Self-Assessment Questionnaire

Other documents you may wish to read


IAM Certificate in Asset Management (IAM Certificate Ver1.2 Jan2013) Asset Management An Anatomy BSI PAS 55:2008 IAM Competences Framework 2012

See also www.theIAM.org/Quals

Copyright information The IAM copyright notice displayed in this document indicates the date of last revision and issue Amendment number Edition 2 Date January 2013 Comments Correction of answers to sample questions and typographical errors

Guidance for Candidates - Certificate Ver10 Jan13

2013 The IAM

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INTRODUCTION
If you are reading this Guidance document, you have probably registered recently to take the exam. However, you may also be reading it before deciding to do so. Our intention is that it should suit both purposes, but if you have already registered, you may wish to skip the Section: Certificate or Diploma: Which is right for you?

Who is the Certificate for?


The IAM Certificate is a qualification designed for people who are new to asset management or have some initial experience of working in an asset management role. To gain the qualification candidates are required to pass an examination that tests their comprehension of best practice asset management principles, requirements and frameworks and their ability to select and apply relevant aspects of this knowledge.

The examination
The IAM Certificate exam is set by the IAM Examinations Board and draws on the knowledge and experience of practitioners and subject matter experts in the IAM membership. The exam comprises a set of multiple-choice questions with a fixed period of time in which to answer these. The exam is delivered on-line and, like a growing number of professional examinations, it is open-book. In other words, candidates are allowed to use reference materials while they undertake the exam, if they wish. However, candidates who do so will need to balance the time taken to look up possible answers against the need to answer enough questions correctly to gain the pass mark. IAM exams will be held at IAM Assessment Centres. These are venues which have the necessary facilities to deliver the exam safely and securely. Typically these might be office, hotel or college premises anywhere in the world. To sit the IAM Certificate exam, all that an individual candidate, or their employer or their training organisation, needs to do is: register on the IAM website; use the online exam portal and practice questions if they wish; book an exam date when they feel ready and turn up at the chosen Assessment Centre at the right time on the right day. Candidates who pass the examination will be awarded the IAM Certificate. Candidates who fail can register to take the examination again if they wish. There is no limit on the number of times a candidate can sit the exam but the registration fee is charged in full each time.

Moving on to the IAM Diploma


People who hold the IAM Certificate should consider taking the examination for the IAM Diploma. It is designed for people who are experienced in asset management roles and/or are being prepared for more responsibility or a specialist role. The Diploma examination is a tougher test of a candidates asset management knowledge and understanding and allows for specialisation through a core-plus-optional modules approach.

Guidance for Candidates - Certificate Ver10 Jan13

2013 The IAM

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CERTIFICATE OR DIPLOMA: WHICH IS RIGHT FOR YOU?


The IAM Certificate and IAM Diploma are designed to appeal to two groups of people. The IAM Certificate: is intended primarily for people new to or with some experience in asset management roles and seeking formal recognition of their knowledge. The IAM Diploma: is intended primarily for people with prior knowledge and experience of asset management or being prepared for, or recently appointed to, specialist or management roles. Each qualification focuses on the types of work done and challenges typically faced by the people in its target audience. The following table describes the differences between the qualifications in terms of the demands they place on candidates.
Qualification Challenges Achievement requires: IAM Certificate the ability to select/use relevant knowledge and understanding, methods and skills to complete tasks which are well-defined and routine but have some complexity; and comprehension of best practice asset management principles, requirements and frameworks. Achievement requires: IAM Diploma the ability to identify/use relevant knowledge and understanding to complete tasks that are well-defined but non-routine and have some complexity; the ability to exercise autonomy or judgement within set parameters; understanding of best practices and how these apply in context; and awareness of different perspectives or approaches.

To help you decide which IAM Qualification is right for you, do the following: Write down what you need to know and understand in order to do your current job or get the job you want Compare what you have written with the contents of the IAM Certificate and IAM Diploma (you can use the next section to do this: The Modules Explained) Think about what more you need to do to help achieve your future ambitions? Try and answer the IAM Certificate practice examination questions on the IAM exam portal (after registering) and see how well you do this will give you an idea of how ready you are to take the examination and stand a chance of passing it Take the advice of one of the IAM Endorsed Training Providers which specialises in preparing candidates for the IAM Certificate and Diploma examinations

Note that although there is a natural progression from the IAM Certificate to the IAM Diploma, you do not have to obtain the IAM Certificate before attempting the IAM Diploma examination. Each qualification stands alone in its own right and is valued for what it represents. Be careful not to overestimate your readiness for the IAM Diploma examination.

Guidance for Candidates - Certificate Ver10 Jan13

2013 The IAM

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PASSING THE EXAM WHAT DO YOU NEED TO KNOW? The Modules explained
The IAM Certificate contains five modules: C1 to C5.

Module C1: Introduction to Asset Management


This covers the key principles of asset management. It covers what asset management is, why it is important to asset dependent businesses, the relationship with risk, the importance of information management and its financial impact.

The key topics covered are: 1 Asset management strategies, policies and plans.

How these respond to business drivers, how they are developed and how they can be used to shape operational performance.

Investment issues and whole-life costing.

Why its important to analyse the costs, risks and benefits of investment options; what whole-life cost models are and how theyre used.

Operation, maintenance, repair and disposal of assets.

Why operational work and resource plans are needed; how they are developed and implemented; why its important to review and update plans, especially for maintenance and refurbishments; evaluating asset performance and capacity; planned life-extension and decommissioning and disposal of assets.

Risk management.

Identifying and assessing risk associated with asset management activities; measures for controlling risks; and the range of legal, regulatory, ethical and social requirements that need to be considered.

Information needs and systems.

Why accurate, relevant and up-to-date asset date and information is important. Specifying technical requirements for information systems and how those systems are used; supporting the delivery of the asset management strategy and plans.

A typical exam question for Module C1 might be:


Who authorises the organisations asset management strategy? a) b) c) d) e) Customers Shareholders Top management Operations director Auditors

The correct answers are on the final page of this document Guidance for Candidates - Certificate Ver10 Jan13 2013 The IAM Page 4 of 14

Module C2: Asset-Related Risk


This deals with the anticipation, measurement and management of the risk associated with assets. It covers risk assessment and management, quality assurance, performance monitoring and the development of asset management systems. This includes risk in relation to cost-benefit analysis, regulatory and statutory requirements, compliance management, audits, organisational learning and continuous improvement.

The key topics covered are: 1 Assessment and management of risk

How to identify asset-related risks; implementation of risk management processes; measures and methods for controlling risk; improvements to working practices; the integration of asset-related risk management with organisational risk management systems.

Contingency planning

The identification of potential disruptions; planning appropriate responses to incidents and emergencies; and ensuring that suitable resources are available to respond to incidents and emergencies.

Asset management review

How to monitor the performance of assets and systems; how changes to assets and systems are managed; how asset management key performance indicators are determined; and, the need for asset management stewardship reporting and how this is achieved.

A typical question for Module C2 might be:


When a population of the same asset type or activity is too large for complete audit coverage which technique can we use? a) b) c) d) e) Sampling Averaging HAZOP Closed loop system Pareto analysis

The correct answers are on the final page of this document

Guidance for Candidates - Certificate Ver10 Jan13

2013 The IAM

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Module C3: Asset Lifecycle Management


This is concerned with the main stages of the life-cycle namely asset creation or acquisition, installation, operation and maintenance, decommissioning and disposal. It covers development of design specifications, internal and external factors influencing the life-cycle including the implications of different types of business organisation and activity and the impact of procurement policies on achieving optimum life-cycle performance and costs.

The main topics covered are: 1 Creation and acquisition of assets

How and why assets are created or acquired; how this relates to asset management strategy and plans; the need for accurate and timely information about client requirements and asset specifications; ensuring design specifications are practicable and achievable; ensuring assets meet specifications and are installed correctly; commissioning processes and record-keeping. Developing feasible and realistic procurement objectives and criteria; identifying and evaluating procurement methods to achieve best value for money; selecting and evaluating procurement methods; determining terms and conditions; the tendering process, bid evaluation and contract negotiations; and, monitoring the performance of suppliers and contractors.

Maintenance of assets

Developing risk-based maintenance and refurbishment work plans; specifications for managing spares and inventory; identification of appropriate condition assessment techniques; asset condition and performance monitoring in relation to maintenance plans and regimes; options for extending asset life.

Renewal and disposal of assets

How to identify and plan actions to extend the life of assets and their decommissioning and disposal; the implementation of action to extend the life, decommission or dispose of assets and the effectiveness of these actions when implemented; and ensuring that disposal is carried out responsibly and ethically in according with good environmental practices and relevant legislation.

A typical question for Module C3 might be:


Which of the following is LEAST important when considering end-of-life options for an asset? a) b) c) d) e) Changes to legislation Cost of ownership Demand analysis Design life of the asset Low availability of spares and maintenance engineering skills

The correct answers are on the final page of this document

Guidance for Candidates - Certificate Ver10 Jan13

2013 The IAM

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Module C4: Asset Information


This is concerned with asset knowledge systems and procedures, the use of IT as an asset management tool, selection and use of appropriate systems and procedures and the collection, dissemination, storage and maintenance of data.

The main topics covered are: 1 Asset information requirement

How asset condition standards and measures are defined, including definitions of asset defects and failures and standards for asset performance management.

Specification and use of asset information systems

The appropriate use of information systems; how to ensure that asset information management systems produce relevant, usable and accurate data; and how the use of information systems and tools can be monitored.

Using asset management information

How asset management information is collected, maintained and updated, stored and disseminated, and the related planning and management systems and procedures; how data are processed and analysed to provide effective management information; preparation of reports and identification of anomalies in data; and, the provision of asset management data and information needed for transferring assets into operational use.

A typical question for Module C4 might be:


Which of the following corporate systems is the LEAST likely to support good asset management? a) b) c) d) e) Customer database Failure and defect management systems Asset Register Work management systems Finance systems

The correct answers are on the final page of this document

Guidance for Candidates - Certificate Ver10 Jan13

2013 The IAM

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Module C5: Financial and Business Impact


This deals with quantification of the financial and business impact of asset management and includes issues such as making informed decisions about asset management and investments, and the need for such decisions; and the analysis of business needs with regard to asset acquisition or development and the attendant risks, costs and benefits.

The main topics covered are: 1 Strategic requirements

In the context of the asset management strategy, why risks must be identified within the strategy and the implications of current and forecast condition of assets; how and why current and future customer requirements are analysed; and considerations of legal, social, environmental and economic factors and trends relevant to the strategy.

Investment decision-making

How investment options are identified, for achieving the asset management strategic objectives; and how and why costs, risks and benefits of investment options are analysed.

Asset management planning

How the asset management plan is developed, including considerations of how asset management activities and projects will be resourced, managed and evaluated; and how the resources and services required to deliver the asset management plans are defined.

Creation and acquisition of assets: the business case

How and why business needs are analysed, with regard to the creation or acquisition of assets on the basis of the asset management strategy and plan; the assessment of costs, risks and benefits of competing creation and acquisition options; and how and why the business case for evaluating costs, risks and benefits is prepared.

A typical question for Module C5 might be:


Which of these lists best describes factors which should be considered for achieving best value for money? a) b) c) d) e) Purchase cost, installation cost, cost of consumables, warranty terms, cost of decommissioning and disposal Purchase cost, installation cost, availability of spare parts, forecast useful service life, cost of decommissioning and disposal Purchase cost, installation cost, cost of consumables, forecast useful service life, scrap value Manufacturers lead time, installation cost, cost of consumables, forecast useful service life, cost of decommissioning and disposal Purchase cost, installation cost, cost of consumables, forecast useful service life, cost of decommissioning and disposal

The correct answers are on the final page of this document

Guidance for Candidates - Certificate Ver10 Jan13

2013 The IAM

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SELF-ASSESSMENT QUESTIONNAIRE IAM CERTIFICATE


How much do you really know about Asset Management? Find out by completing our self-assessment questionnaire
Its free, its confidential! Its designed to help you determine where you are and what you might need to do with regard to training and development.

What do I do?
Its simple: tick the boxes as appropriate (only one per row), for each of the evidence specifications in the table, according to your self-assessment of your knowledge and understanding of the topics concerned, with regard to the IAM Certificate. Be honest! Your aim is to highlight areas where some extra training might be helpful.

Then what?
When you have completed the questionnaire, look at your answers and also how many there are in each column.

Answer in Good Column


Where you are confident in your knowledge and understanding of the subject concerned: you need to keep up to date with new developments but there probably isnt a need at present for formal training;

Answer in Not so good Column


Where you have some knowledge but feel that you need some training and development activities to bring you fully up to strength; and

Answer in No detailed knowledge Column


Where you feel that you dont know enough, if anything, about the subject(s) concerned and there is a real need for some training and development to overcome this shortfall in your knowledge and understanding. So: entries under Columns Not so good and No detailed knowledge will help you decide on your training needs and to design you training plan to address the gaps in your current knowledge and understanding. Then its up to you, or your personnel colleagues, manager or training provider to decide how to fill the gaps. We also suggest that you refer to the full specifications for the IAM Certificate to see the full evidence statements for each one. (IAM Certificate in Asset Management Ver1.1 20Jul12)

Guidance for Candidates - Certificate Ver10 Jan13

2013 The IAM

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IAM Certificate, Module C1: Introduction to Asset Management


# Evidence specifications (from the IAM Certificate) Your current knowledge and understanding Tick appropriate column, one entry per row only Good (I know about and do this a lot) 1 Contributing to asset management strategies, policies and plans. how strategies, policies and plans are developed their importance to the business organisation the effects of their implementation on dayto-day as well as longer-term operational requirements. Contributing to defining: asset management policy aims and objectives; the aims and objectives of the asset management strategy. Contributing to development of: an asset management plan (which describes how asset management activities and projects will be resourced, managed and evaluated) Contributing to: defining resources and services (required to deliver the asset management plan) Knowing the importance of: analysing the costs, risks and benefits of investment options. whole life costing models (what they are, what they do, how they are used) Operation, maintenance, repair and disposal of assets Risk management: identifying and assessing risks measures for controlling risks relevant legislation, regulations, etc Information needs and systems: functional and technical requirements appropriate use TOTALS FOR C1 Not so good (I know a little bit about this, but there are some gaps) No detailed knowledge (I need to find out and learn a lot more)

6 7

Guidance for Candidates - Certificate Ver10 Jan13

2013 The IAM

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IAM Certificate, Module C2: Asset-related Risk


# Evidence specifications (from the IAM Certificate) Your current knowledge and understanding Tick appropriate column, one entry per row only Good Not so good No detailed (I know about (I know a little knowledge and do this a bit about this, (I need to find lot) but there are out and learn a some gaps) lot more)

Assessment and management of risk identifying asset-related risks risk management processes and procedures measures and methods for controlling risks identifying improvements needed to working practices and procedures Contingency planning, covering: identifying potential disruptions planning appropriate responses to incidents and emergencies resource availability to respond to incidents and emergencies Asset management review, covering: monitoring asset and systems performance change management general management reviews and audits key performance indicators condition monitoring of assets and systems TOTALS FOR C2

Guidance for Candidates - Certificate Ver10 Jan13

2013 The IAM

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IAM Certificate, Module C3: Asset Lifecycle Management


# Evidence specifications (from the IAM Certificate) Your current knowledge and understanding Tick appropriate column, one entry per row only Good Not so good No detailed (I know about (I know a little knowledge and do this a bit about this, (I need to find lot) but there are out and learn a some gaps) lot more)

Creation and acquisition of assets: developing design specifications to achieve optimum life-cycle requirements installation and commissioning of assets impact of procurement policies on achieving optimum asset life-cycle performance and costs Maintenance of assets: Developing risk-based maintenance and/or refurbishment workplans, specify requirements for management of spares and inventory and plan the distribution of spares and supplies Identifying appropriate condition assessment techniques and assess condition and performance of assets and modify maintenance plans and regimes as required Providing input on options for extending the life of assets Renewal and disposal of assets: Identifying and planning life-extending, decommissioning, disposal and risk control actions Implementing action to achieve lifeextension, decommissioning, disposal and risk control of assets and evaluating the effectiveness of such action Ensuring that assets are disposed of responsibly and ethically and in accordance with accepted good environmental practice and relevant legislation. TOTALS FOR C3

Guidance for Candidates - Certificate Ver10 Jan13

2013 The IAM

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IAM Certificate, Module C4: Asset Information


# Evidence specifications (from the IAM Certificate) Your current knowledge and understanding Tick appropriate column, one entry per row only Good (I know about and do this a lot) 1 Asset information requirements. Contributing to the definition of asset condition standards and measures, including definitions of asset defects and failures and standards for asset performance management Specification and use of asset information systems. Demonstrating appropriate use of information systems Ensuring asset management information systems produce relevant, usable and accurate data Monitoring the use of information systems and tools Using asset management information. Planning and managing the collection, maintenance and updating, storage and dissemination of asset management information Processing and analysing data to provide effective business information, as required. Preparing reports as required and recognise and identify anomalies in reported data TOTALS FOR C4 Not so good (I know a little bit about this, but there are some gaps) No detailed knowledge (I need to find out and learn a lot more)

Guidance for Candidates - Certificate Ver10 Jan13

2013 The IAM

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IAM Certificate, Module C5: Financial and Business Impact


# Evidence specifications (from the IAM Certificate) Your current knowledge and understanding Tick appropriate column, one entry per row only Good (I know about and do this a lot) 1 Strategic requirements Identifying risks to be considered within the asset management strategy and the implications of current and forecast condition of assets Supporting the analysis of current and future customer requirements to be considered within the asset management strategy Contributing to considerations of the legal, social, environmental and economic factors and trends relevant to the asset management strategy Investment decision-making Identifying investment options for achieving the asset management strategy and asset management objectives Contributing to analysis of the costs, risks and benefits of investment options Asset management planning Developing an asset management plan which describes how asset management activities and projects will be resourced, managed and evaluated Defining resources and services required to deliver the asset management plan Creation and acquisition of assets: the business case Contributing to the analysis of business needs regarding the creation and/or acquisition of assets based on requirements of asset management strategy and plan Assessing the costs, risks and benefits of competing asset creation and/or acquisition options Contributing to preparation of business cases which evaluate costs, benefits and risks of proposed solutions TOTALS FOR C5 Not so good (I know a little bit about this, but there are some gaps) No detailed knowledge (I need to find out and learn a lot more)

The Correct Answers to the Sample Questions (previous Section) are: 1c, 2a, 3d, 4a, 5e

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2013 The IAM

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