Asset Management

Table of Contents

To define asset management, let’s start with defining what an asset is. An asset can be any physical or intangible resource that a company owns, controls, or uses. Therefore, asset management is the systems and processes used by the company to realize asset value. This includes the design, acquisition, operation, maintenance, and disposal of an asset throughout its life cycle.

Tangible vs. Intangible Assets

While an asset can be both physical and intangible, this definition primarily refers to tangible assets. These are your physical resources such as equipment, machinery, or physical structures. When it comes to maintenance management, you’re dealing almost entirely with tangible assets. Alternatively, intangible assets are more involved in accounting and administrative work. These types of assets include financial assets, intellectual property, accounts receivable, etc.

Management of Tangible Assets

Maintenance and facilities management of tangible assets can be broken down a step further to fixed assets and mobile assets. This includes:

  • Buildings – fixed asset
  • Tools – mobile assets
  • Equipment and Machinery – can be either fixed or mobile
  • Land – fixed asset
  • Furniture – fixed asset

All of these assets work together to support a business and its production. For example, equipment and machinery are vital and require tools for upkeep. Further, building maintenance is essential for housing the equipment and creating a safe work environment. Finally, while furniture may seem less important to include on the list, it is fundamental to the administrative team and hosting clients or potential customer meetings.

Benefits

Above all, tracking and managing your assets enables you to ensure your return on investment. Depending on the asset, failure to manage it properly could result in expensive, unplanned downtime and costly repairs. On the other hand, you can use software for the ease of tracking and to get the best results from your assets.

  • Visibility – tracking asset management gives you valuable insights, such as the total cost of ownership for your assets.
  • Mitigate Risk – proactive maintenance reduces the risk of breakdown or a safety incident.
  • Improve Asset Reliability – automating vital maintenance can help you finally achieve your asset reliability goals.
  • Increase Profitability – decreased downtime means increased production and profitability.
  • Efficient Scheduling – having an inventory of assets integrated with their maintenance plan helps you efficiently schedule work to optimize production.

What Do You Need to Implement?

The main factor to consider in asset management is how to collect data and what to do with it. Redlist provides a convenient, user-friendly app to collect your data, auto-populate reports, and enable you to make decisions based on accurate, real-time information. You can implement additional technology to support data collection, including sensors. There are many different resources and software available. But, the main options are Computerized Maintenance Management Software (CMMS) or Enterprise Asset Management (EAM) software. These systems digitize your processes, automate maintenance, and offer robust reporting. Going digital allows you to save valuable time by eliminating the double data entry or slow processes caused by paper or spreadsheet-based systems.

Level Up Your Asset Management

Implementing software will provide the biggest benefit to your business’ asset management. However, you can also have your employees trained with specific certifications. The training options include the Institute of Asset Management (IAM) Certificate, IAM Diploma, Certified Asset Management Practitioner (CAMP), or Certified Asset Management Assessor.

These certifications are not required to reap the benefits of the software. The software alone will transform your asset management practices. It increases accountability, peace of mind, and visibility into your assets’ health and performance. In order to maintain your asset management plan, it is best to review and revise regularly. Measuring the effectiveness of your maintenance program is an opportunity to identify savings and areas for improvement.

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