ASTM E2497-11(2017)

Standard Practice for Calculation of Asset Movement Velocity (AMV)

SIGNIFICANCE AND USE
3.1 This practice establishes a standard calculation representing the operational fluidity of assets used by an entity.  
3.2 It is intended that this practice foster and enable additional practices related to or based on AMV information.  
3.3 This practice enables effective and consistent communication and trend tracking over time regarding AMV.  
3.4 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.  
3.5 Clarifying Comparative Example:  
3.5.1 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.  
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 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, health, and environmental practices and determine the applicability of regulatory limitations prior to use.  
1.7 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.

General Information

• Status: Published
• Publication Date: 31-Oct-2017
• ICS: 25.060.20 - Dividing and tool-workpiece holding devices
• Technical Committee: E53 - Asset Management
• Drafting Committee: E53.01 - Process Management

Relations

• Replaces: ASTM E2497-11 - Standard Practice for Calculation of Asset Movement Velocity (AMV)
• Effective Date: 01-Nov-2017
• Referred By: ASTM E2675-22 - Standard Practice for Asset Management System Outcomes
• Effective Date: 01-Nov-2017

Overview

ASTM E2497-11(2017): Standard Practice for Calculation of Asset Movement Velocity (AMV) provides a unified approach for calculating and reporting asset movement velocity within organizations. Developed by ASTM International, this standard addresses the need to quantify the operational fluidity of assets across all asset-holding entities. The practice focuses exclusively on asset movement-not material inventory, which is covered under other supply chain standards.

The calculation of AMV offers asset management professionals a consistent and effective way to track, record, and compare how frequently assets are moved, acquired, or disposed of. This delivers valuable insights into operational complexity as well as record-keeping and transactional risks related to asset management.

Key Topics

• Asset Movement Velocity (AMV): AMV quantifies the frequency at which assets move into, within, or out of an entity's accountability system. It considers acquisition, disposition, and location change transactions.
• Standard Calculation Method: The AMV is calculated by adding the number of acquisition, disposition, and movement transactions, then dividing by the number of assets in the selected set or subset.
• Physical Location Level (PLL): Assets can be tracked at varying physical location levels, such as site or room. The chosen PLL influences the accuracy and detail of AMV reporting.
• Consistent Communication: The standard ensures that AMV reporting is clear and consistent, enabling effective communication and benchmarking over time.
• Comparative Analysis: By enabling organizations to compare AMV values, the standard helps highlight differences in operational risk and asset management strategies.

Applications

Implementing ASTM E2497-11(2017) provides several practical benefits for organizations with significant asset portfolios:

• Operational Benchmarking: Entities can compare AMV rates internally across departments or sites, or externally with industry peers, to identify areas of high or low asset movement.
• Risk Assessment: A higher AMV can indicate increased transactional risk and greater demands on asset tracking and record-keeping systems, while a lower AMV often reflects stable, infrequently moved assets.
• Process Improvement: The standard supports the identification of process bottlenecks or inefficiencies in asset management, guiding decisions for procedural adjustments or technology investments.
• Asset Lifecycle Management: Trend tracking of AMV helps organizations anticipate upcoming asset turnovers, relocations, or disposals, supporting lifecycle and financial planning.
• Applicability: The practice is designed to be universal for any type of asset-holding entity and can be applied to the entire inventory or customized subsets, making it highly flexible.

Related Standards

Consider referencing these associated guidelines and standards for a comprehensive asset management and tracking strategy:

• ASTM E2132 - Standard Practice for Inventory Verification: Complements AMV by ensuring the accuracy of inventory records and physical audits.
• ISO 55000 Series - Asset management standards providing a framework for optimizing asset performance and lifecycle.
• ASTM E2452 - Standard Practice for Equipment Identification: Supports unique asset identification to facilitate accurate movement tracking.
• Material Inventory Velocity (Inventory Turns): While not covered in ASTM E2497-11(2017), inventory velocity is extensively addressed in supply chain literature for material assets and throughput processes.

Summary

ASTM E2497-11(2017) establishes a clear, standardized practice for calculating and communicating asset movement velocity, supporting consistent asset management, risk analysis, and process improvement across all sectors. Utilizing this standard can enhance operational insight, promote effective trend tracking, and foster improved decision-making in asset-intensive organizations. For further enhancement of asset management processes, integration with related standards is recommended.

Keywords: asset movement velocity, AMV, ASTM E2497, asset tracking, physical location level, PLL, asset management, operational fluidity, record-keeping, transaction risk.

Standards Content (Sample)

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
...