ASTM E2497-11(2017)

This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the
Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
Designation: E2497 − 11 (Reapproved 2017)
Standard Practice for
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 2.2.1 AMV—asset movement velocity.
2.2.2 PLL—physical location level.
1.1 This practice calculates asset movement velocity
(AMV) based on the movement of assets.
3. Significance and Use
1.2 There is no existing, recognized practice for calculating
3.1 This practice establishes a standard calculation repre-
AMV.
senting the operational fluidity of assets used by an entity.
1.3 This practice is designed to be applicable and appropri-
3.2 It is intended that this practice foster and enable addi-
ate for all asset-holding entities.
tional practices related to or based on AMV information.
1.4 This practice does not cover material inventory. Inven-
3.3 This practice enables effective and consistent commu-
tory velocity (or inventory turns) is extensively described and
nication and trend tracking over time regarding AMV.
discussed in supply chain literature and is based on throughput
rather than movement transactions.
3.4 Calculating, recording, tracking, and comparing the
computed AMV will provide comparative insight into the
1.5 AMV can be calculated for the entirety of the asset
operational complexity of the entity. Determination of the
inventory of the entity or any defined subset, including
component parts of the AMV calculation will provide infor-
individual assets.
mation on the number of acquisition, disposition, and move-
1.6 This standard does not purport to address all of the
ment transactions and, viewed separately, will serve as a useful
safety concerns, if any, associated with its use. It is the
insight.
responsibility of the user of this standard to establish appro-
3.5 Clarifying Comparative Example:
priate safety, health, and environmental practices and deter-
3.5.1 Entity A has few assets that are of a high dollar value
mine the applicability of regulatory limitations prior to use.
but have been in place for many years and seldom move.These
1.7 This international standard was developed in accor-
items are tracked to the site physical location level (PLL).
dance with internationally recognized principles on standard-
Entity A will have an AMV near 0.0. This will be an accurate
ization established in the Decision on Principles for the
reflection of the record keeping and transactional risk associ-
Development of International Standards, Guides and Recom-
ated with the management of assets within the entity.
mendations issued by the World Trade Organization Technical
3.5.2 Entity B has over 5000 pieces of equipment that it
Barriers to Trade (TBT) Committee.
tracks to the room PLL.As most of these items are information
2. Terminology technology related, they typically have a useful life of a little
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
specific PLL.
4.2 Movement transactions as used in this practice include
This practice is under the jurisdiction of ASTM Committee E53 on Asset
Management and is the direct responsibility of Subcommittee E53.01 on Process
acquisitions of assets, changes in the recorded physical loca-
Management.
tion of asset
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