ASTM E2497-11
(Practice)Standard Practice for Calculation of Asset Movement Velocity (AMV)
Standard Practice for Calculation of Asset Movement Velocity (AMV)
SIGNIFICANCE AND USE
This practice establishes a standard calculation representing the operational fluidity of assets used by an entity.
It is intended that this practice foster and enable additional practices related to or based on AMV information.
This practice enables effective and consistent communication and trend tracking over time regarding AMV.
Calculating, recording, tracking, and comparing the computed AMV will provide comparative insight into the operational complexity of the entity. Determination of the component parts of the AMV calculation will provide information on the number of acquisition, disposition, and movement transactions and, viewed separately, will serve as a useful insight.
Clarifying Comparative Example:
Entity A has few assets that are of a high dollar value but have been in place for many years and seldom move. These items are tracked to the site physical location level (PLL). Entity A will have an AMV near 0.0. This will be an accurate reflection of the record keeping and transactional risk associated with the management of assets within the entity.
Entity B has over 5000 pieces of equipment that it tracks to the room PLL. As most of these items are information technology related, they typically have a useful life of a little over three years, after which they are donated to local schools. These items are moved from person to person and room to room very frequently for operational purposes. Entity B will have a high AMV, perhaps 3.0 or above. This will be an accurate reflection of the record keeping and transactional risk associated with the management of assets within the entity.
SCOPE
1.1 This practice calculates asset movement velocity (AMV) based on the movement of assets.
1.2 There is no existing, recognized practice for calculating AMV.
1.3 This practice is designed to be applicable and appropriate for all asset-holding entities.
1.4 This practice does not cover material inventory. Inventory velocity (or inventory turns) is extensively described and discussed in supply chain literature and is based on throughput rather than movement transactions.
1.5 AMV can be calculated for the entirety of the asset inventory of the entity or any defined subset, including individual assets.
1.6 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory limitations prior to use.
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Designation: E2497 − 11
Standard Practice for
1
Calculation of Asset Movement Velocity (AMV)
This standard is issued under the fixed designation E2497; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope 3.2 It is intended that this practice foster and enable addi-
tional practices related to or based on AMV information.
1.1 This practice calculates asset movement velocity
(AMV) based on the movement of assets.
3.3 This practice enables effective and consistent commu-
nication and trend tracking over time regarding AMV.
1.2 There is no existing, recognized practice for calculating
AMV.
3.4 Calculating, recording, tracking, and comparing the
computed AMV will provide comparative insight into the
1.3 This practice is designed to be applicable and appropri-
operational complexity of the entity. Determination of the
ate for all asset-holding entities.
component parts of the AMV calculation will provide infor-
1.4 This practice does not cover material inventory. Inven-
mation on the number of acquisition, disposition, and move-
tory velocity (or inventory turns) is extensively described and
ment transactions and, viewed separately, will serve as a useful
discussed in supply chain literature and is based on throughput
insight.
rather than movement transactions.
3.5 Clarifying Comparative Example:
1.5 AMV can be calculated for the entirety of the asset
3.5.1 Entity A has few assets that are of a high dollar value
inventory of the entity or any defined subset, including
but have been in place for many years and seldom move.These
individual assets.
items are tracked to the site physical location level (PLL).
1.6 This standard does not purport to address all of the
Entity A will have an AMV near 0.0. This will be an accurate
safety concerns, if any, associated with its use. It is the
reflection of the record keeping and transactional risk associ-
responsibility of the user of this standard to establish appro-
ated with the management of assets within the entity.
priate safety and health practices and determine the applica-
3.5.2 Entity B has over 5000 pieces of equipment that it
bility of regulatory limitations prior to use.
tracks to the room PLL.As most of these items are information
technology related, they typically have a useful life of a little
2. Terminology
over three years, after which they are donated to local schools.
2.1 Definitions of Terms Specific to This Standard:
These items are moved from person to person and room to
2.1.1 asset movement velocity (AMV), n—rate at which
room very frequently for operational purposes. Entity B will
assets moves into, within, and out of the accountability system
have a high AMV, perhaps 3.0 or above. This will be an
of an entity.
accurate reflection of the record keeping and transactional risk
2.1.2 portable equipment, n—asset not tracked to a physical associated with the management of assets within the entity.
location level because the nature of the asset usage requires a
high degree of flexibility in its physical location. 4. AMV Calculation
2.2 Acronyms:
4.1 AMV is calculated and communicated in terms of a
2.2.1 AMV—asset movement velocity.
specific PLL.
2.2.2 PLL—physical location level.
4.2 Movement transactions as used in this practice include
acquisitions of assets, changes in the recorded physical loca-
3. Significance and Use
tion of assets, and disposition of assets.
3.1 This practice establishes a standard calculation repre-
4.2.1 Changes in location include movement transactions
senting the operational fluidity of assets used by an entity.
recorded in the applicable asset record system and may include
permanent or temporary movement for purposes such as use,
1
temporary use, maintenance, calibration, storage, and so forth.
This practice is under the jurisdiction of ASTM Committee E53 on Asset
Management and is the direct responsibility of Subcommittee E53.01 on Process
4.2.2 Changes in location do not include physical location
Management.
changes of portable assets but do include changes to the
Current edition approved Dec. 1, 2011. Published January 2012. Originally
location or accountability tracking information recorded for the
approved in 2006. Last previous edition approved in 2006 as E2497 – 06. DOI:
10.1520/E2497-11. portable assets.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
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E2497 − 11
4.3 AMV is calculated and communicated in annual terms, 4.6.1 If:
though data may be collected and the AMV calculated for any
MT 5
...
This document is not an ASTM standard and is intended only to provide the user of an ASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
Designation:E2497–06 Designation:E2497–11
Standard Practice for
Calculation of Equipment Movement Velocity
1
(EMV)Calculation of Asset Movement Velocity (AMV)
This standard is issued under the fixed designation E2497; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope
1.1 This practice calculates equipmentasset movement velocity (EMV)(AMV) based on the movement of equipment.assets.
1.2 There is no existing, recognized practice for calculating EMV.AMV.
1.3 This practice is designed to be applicable and appropriate for all equipment-holdingasset-holding entities.
1.4 This practice does not cover material inventory. Inventory velocity (or inventory turns) is extensively described and
discussed in supply chain literature and is based on throughput rather than movement transactions.
1.5EMV1.5 AMV can be calculated for the entirety of the equipmentasset inventory of the entity or any defined subset,
including individual items of equipment. assets.
1.6 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility
of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory
limitations prior to use.
2. Terminology
2.1 Definitions of terms specific to this standard:
Definitions of Terms Specific to This Standard:
2.1.1 equipmentasset movement velocity (EMV), (AMV), n—rate at which equipmentassets moves into, within, and out of the
accountability system of an entity.
2.1.2 portable equipment, n—equipment—asset not tracked to a physical location level because the nature of the equipmen-
tasset usage requires a high degree of flexibility in its physical location.
2.2 Acronyms:
Acronyms:
2.2.1 EMV—Equipment movement velocity. AMV—asset movement velocity.
2.2.2 PLL—Physical—physical location level.
3. Significance and Use
3.1 This practice establishes a standard calculation representing the operational fluidity of equipmentassets used by an entity.
3.2 It is intended that this practice foster and enable additional practices related to or based on equipment movement velocity
(EMV) AMV information.
3.3 This practice enables effective and consistent communication and trend tracking over time regarding EMV.AMV.
3.4 Calculating, recording, tracking, and comparing the computed EMVAMV will provide comparative insight into the
operational complexity of the entity. Determination of the component parts of the EMVAMV calculation will provide information
on the number of acquisition, disposition, and movement transactions and, viewed separately, will serve as a useful insight.
3.5 Clarifying Comparative Example:
3.5.1 Entity 9A9Ahas few pieces of equipment assets that are of a high dollar value but have been in place for many years and
seldom move. These items are tracked to the site physical location level (PLL). Entity 9A9Awill have an EMVAMV near 0.0. This
will be an accurate reflection of the record keeping and transactional risk associated with the management of equipmentassets
within the entity.
3.5.2 Entity B has over 5000 pieces of equipment that it tracks to the room PLL. As most of these items are information
technology related, they typically have a useful life of a little over three years, after which they are donated to local schools. These
1
This practice is under the jurisdiction of ASTM Committee E53 on Property Management Systems and is the direct responsibility of Subcommittee E53.01 on Process
Management.
Current edition approved Oct. 1, 2006. Published October 2006. DOI: 10.1520/E2497-06.
Current edition approved Dec. 1, 2011. Published January 2012. Originally approved in 2006. Last previous edition approved in 2006 as E2497 – 06. DOI:
10.1520/E2497-11.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1
---------------------- Page: 1 ----------------------
E2497–11
items are moved from person to person and room to room very frequently for operational purposes. Entity B will have a high
EMV,AMV, perhaps 3.0 or above. This will be an accurate reflection of the record keeping and transactional risk associated with
the management of equipmentassets within the entity.
4. EMVAMV Calculation
4.1EMV4.1 AMV is calculated and communicated in
...
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