January 06, 2025
Understanding Asset Management: A Comprehensive Guide
Under the general category of maintenance management, you have several subcategories. In this article, we'll have a better understanding of one of those: asset management. We'll look at the following:
- Defining Asset Management Programs
- The Benefits of a Successful Program
- Developing a Successful Asset Management Policy
- Implementing Your Asset Management Program
- How CMMS Enhances Your Asset Management Program
You'll find assets in every business. From computers to vehicles to buildings/property to industrial equipment. For a business to thrive, these assets must stay at the highest baseline functionality possible.
What does this mean? "Out of the box" assets operate at their peak. Over time, you must conduct maintenance to keep assets at their baseline. This could consist of preventive tasks or repairs.
Of course, all assets age. This means that the baseline lowers. Eventually, maintenance costs outweigh the cost of a new or replacement. At that time, you'll have to decide to invest in something else.
This may take multiple personnel: supervisors, management, planners, production people, and accounting.
Defining Asset Management Programs and Their Importance
This refers to the systematic approach applied to maintain the lifecycle of both physical and intangible assets. You have the overarching goal of optimizing their value. This comprehensive approach encompasses the strategic development, operation, maintenance, upgrading, and disposal of assets.
The need for policy arises from its role in meeting stakeholder, business, and legal requirements. It serves as a mechanism to align operations with international standards. This saves both time and money.
Discover how streamlined maintenance processes can elevate production. Learn more.
The Benefits of a Successful Program
Standardization in Asset Management Programs
Especially for preventive maintenance (PM), you want the concept of "same thing each time." This means workers execute routine tasks using the same inventory and the same procedures.
Otherwise, you risk different technicians doing different work. Read on to see how this affects efficiency.
For both PMs and repairs, you want the same type of information within a work order for each job. Example: Type of job; priority; asset; location; checklist/job description; safety protocols.
Having a "form" for work orders puts everyone on the same page.
Improving Efficiency Through Asset Management
If you have a routine and receive standardized information, you'd expect improvement in efficiency.
Example: If you always put the required parts on the work order, the technician knows what to obtain from the stockroom. Adding the location of those parts saves "search time." Therefore, he gets to "wrench time" faster.
Enhancing Safety with Proactive Asset Management Plans
Part of the standardization might include adding safety measures to each work order. In general, though, a proactive asset management plan reduces safety hazards. PMs do their part in resolving issues before they become major problems.
Tracking equipment readings helps ensure safety measures. Again, you're watching for issues that might develop into something more.
Example: You see that a temperature gauge moves toward the red zone. In time, this means problems. You'll take steps to bring that temperature back to an optimal level.
Communications
Review the above and you will see the improvement in communications. Further benefits result from having the following in the program:
- Feedback. Have a discussion with your technicians about the jobs. What available improvements can you use?
- Quality reviews. You don't need them for every job but a review on important work can benefit.
- Acknowledgment of achievement. From a simple "thank you" to awards or bonuses.
Extending Asset Lifespans with Preventative Maintenance
As mentioned, you want to have those assets last as long as they can. Proper PMs and general maintenance push the date to buy new further out.
Developing a Successful Asset Management Policy
People you should consider in this discussion: maintenance technicians, production line representatives, accounting, and management. Stay simple. Stay concise. Stay clear on every point.
Goal(s)
You have to make these more than "to keep equipment running." Yes, you make that part of the goals, but look at long-term goals. Reduction of unplanned downtime. Reducing overall costs.
Range
Will your team take responsibility for all assets? For instance, you might contract out lawn care and plumbing systems.
Principles
These could be laying out methods of operation. How to process work requests. Schedules. Crew and craft designation. Outlining those standardizations from above.
If not already in existence, develop those safety protocols.
Responsibilities
You hired your team members based on skills and experience. Put those to good use. Assign technicians or groups to certain jobs. Establish approval procedures. How will you handle feedback and quality reviews?
Implementing Your Asset Management Program
Now that you have your new policy formed, how do you put it to work? Once again, you rely on the foundational skill of communication. Make sure everyone knows the goals and methodology.
Then, according to the setup, make sure you have accessibility. To the system, to supervisors. To inventory.
If you introduce a new system, such as a CMMS, you'll want to take advantage of training opportunities. This will help the preceding point of accessibility. The three common training methods:
The final step in this process requires tracking and documentation. You want this for numerous reasons.
- Accountability. Example: Attainment percentages for workers. You want to have the most productivity out of their shifts without overloading them.
- Regulation. You'll generate reports auditors visit.
- History. You want a history of maintenance. This will aid your later purchasing decisions.
- Equipment readings. I mentioned these before. They'll help shape your PM strategy.
- Depreciation. You'll want to track certain assets to determine when maintenance costs outweigh new purchases.
- Accounting.
How CMMS Enhances Your Asset Management Program
How does a CMMS benefit?
Organization
It develops into your central database for assets, inventory, PMs, work orders, and more. For asset management, you create your list of assets. Include as many details as you want. Set up PMs. Set up equipment reading and depreciation tracking.
Reports
Review the documentation section. Your CMMS will offer plenty of reports on any input information.
Mobile
You'll appreciate how a CMMS on a mobile device helps everyone. Better communications. You access data from anywhere. Create work orders, look at revisions, and so much more.
Building a Sustainable Management Program
You invest in your assets for a successful business. To keep them operating at capacity, you must employ a quality asset management program. Take the time to develop an effective strategy to care for your assets.
This means bringing in technicians, production people, and others. All should have input.
Even when you have a policy up and running, take time to review and improve.
Look to a CMMS for extra value for your assets. Invest in a system that offers scalability, that will grow as you grow. Look for quality support, training opportunities, and customization.
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