Lecture no 23: Asset management

1. Lecture no 23: Asset management TDT4285 Planlegging og drift av IT-systemer Spring 2010 Anders Christensen, IDI TDT4285 Planl&drift IT-syst

2. Given an invoice ... • Revision – how was the money spent? • Documentation – show that the equipment is your own. Auditor Economy Invoice Equipment Theft Reuse Warranty TDT4285 Planl&drift IT-syst

3. Challenges • Which equipment is specified on an invoice? • Where is all the equipment? • Which equipment has been repaired? • What is the expected life-time of equipment? • What is currently lent out/under repair? • Who is responsible for which equipment? • Which equipment is not in use? TDT4285 Planl&drift IT-syst

4. Lifetime cycle for equipment Offer Transport Decommission Order Repair De-installation Delivery Installation Usage Phase out TDT4285 Planl&drift IT-syst

5. Means to maintain overview • Network card – from switches • Bar codes – on all units • Serial numbers – for all components • Acid/hot iron marks – against theft • Inventory – automatically collected • Databases – manually updated • Electronically – from RF etc TDT4285 Planl&drift IT-syst

6. Importent to know • What is the typically cost for different types of equipment (and users)? • What is the fault rate for types of equipment • How does this fault rate develop over time? • Which equipment can be reused? • How much of the equipment is overkill? • Do we have the right number of licenses? TDT4285 Planl&drift IT-syst

7. Price over lifetime Personnel costs Purchase costs Overcapacity Paper, ink, etc HW upgrades SW upgrades Network costs Server costs Power and A/C Training Adm overhead Ergonomic costs Building costs Total cost of ownership (TCO) TDT4285 Planl&drift IT-syst

8. Examples of TCO • Typical org: $7251 pr desktop pr year [Kauffman] • Highest: $12-15.000 pr year (analysts in finance and currency trade) [Kauffman] • NTNU NOK 8-12.000++ pr year TDT4285 Planl&drift IT-syst

9. Warranty Length of the warranty period? Only relevant or all usage? Who decides if it is a warranty? Warranty vs production error How do they respond to a report? Who pays for transport Replacement quipment? On site warranty? Buyer Seller Warranty Distributor Warranty Importer Warranty What happens if one of this goes broke? Producer Warranty TDT4285 Planl&drift IT-syst

10. Decommissioning of equipment • Selling equipment can be expensive! • Responsibility of warranty • Billing costs • Announcements • Computer equipment is special waste • Most equipment is marked! • Price: X per ton (?) • May contain sensitive data TDT4285 Planl&drift IT-syst

11. Storage of spare parts • Everything going in or out must be registered • Remove all defect parts • Minimize the size of the storage • If old parts are put into the storage, they should be tested • Let the storage have a supreme dictator • Don’t let a spare part storage become a repacement for warranties. TDT4285 Planl&drift IT-syst

12. Information wrt to purchaces • All contact with the user • Offers (perferably several) • Order (written) • Order confirmation – incl delivery date • Transport papers • Packing order – verify! • All serial numbers etc • Invoice • Repairs etc when in use. TDT4285 Planl&drift IT-syst

13. Mercantile keypoints Transport Extra costs Custom Sales tax (!) Environment tax Billing costs Your reference no Technical keypoints Cables Batteries Paper, ink etc Distr.media Documentation Empty media Maint. agreements ... Do not forget ... TDT4285 Planl&drift IT-syst

14. Salesmen and other strange animals … They will: • Exploit your courtesy • Make their own cost impenetrable • Put much energy into closing the sale • Often represent a long delivery chain • Always be willing to sell • Be dangerous if they change employer too often TDT4285 Planl&drift IT-syst

15. EXW – ex works FCA – free carrier FAS – free alongside ship FOB – free on bord CFR – cost and freight CIF – cost, insurance and freight CPT – cost paid to CIP – cost and insurance paid to DAF – delivered at frontier DES – delivered ex ship DEQ – delivered ex quai DDU – delivered duty unpaid DDP – delivered duty paid Trip wires: INCO-terms Where? Insurance? Transport? Responsibility? Ownership? Risk? TDT4285 Planl&drift IT-syst

16. Models for PC purchase Workst. / servers Portable Select one/two models Select a product series Whatever the user wants Select a vendor that has a world-wide support • Subscribe to equipment from one producer • Buy prebuilt PCs with standard third part components. • Buy parts and build the PCs yourself • Buy PCs from whomever is the cheapest • Out-source TDT4285 Planl&drift IT-syst

17. How to make pricing impenetrable • Bundling of extra goods, like courses, support, training, installation etc • Extra costs for e.g. transport • Sales tax included or not? • Dragging out delivery ‘forever’ • Non-existent advantages that you’ll never take advantage of anyway • Peculiar ways of paying TDT4285 Planl&drift IT-syst

18. Warranties • Have a clear understanding of the conditions from the start • Have order in your papers • Demand proper support • If you send in or hand over anything … get a receipt • Time them and log it! • Know which equipment that is out-of-house (i.e. being serviced) • Escalate systematic faults TDT4285 Planl&drift IT-syst