Improving asset management using technology

In today’s technology world, the facilities manager can improve asset management by using software developed for that purpose. A good asset management starts by creating and developing an asset register which contains all relevant asset information. The register should feed into asset management software which holds information about the maintenance schedule of the assets including helping to plan for replacement and keeping a record for insurance.

Retaining an up-to-date asset management plan allows facilities managers to analyse performance of operating models over a period of time. Life cost analysis involves the continuous monitoring of asset performance and maintenance during operation, identifying areas in which cost savings may be made. This helps to determine whether it is better to replace an asset with a more efficient solution prior to the end of its useful life, rather than continue with the initial poor purchase decision.

The operational phase of an asset is the most useful period of its life and this is when the asset is managed and used to deliver services to support the core business of an organisation. With an asset register already in place, an asset management procedure should be set up to ensure that new items are added when they are purchased or leased and that any changes to the condition of the asset are recorded.

Regular audit is very important and its frequency will depend on the environment and the nature of the assets. In such cases, factors that should be considered to determine frequency of audit will include historic performance of assets, intervention strategies, risk assessment and business planning.

Proactive maintenance is at the very heart of asset management. A robust maintenance plan and the right type of maintenance (i.e., preventive or reactive) will extend the life of an asset.

The data contained in the asset management software will help the facilities manager to ascertain whether, for example, investing 10 percent more per annum in maintenance cost will double the life of an asset. Scoring this by priority (0 is low and 100 is high) will help the FM company to appreciate the urgency of jobs and develop an understanding of asset characteristics to make informed decisions on the frequency of maintenance.

There comes a time when an asset reaches the end of its useful life and is disposed. Such assets must be recorded on the asset register to ensure they are not included as part of the organisation’s portfolio. An equipment disposal form will allow the asset ‘owner’ to explain how the asset was disposed and identify any residual value.

Software can manage the entire asset management process which includes asset discovery, condition monitoring, asset tracking and condition management. It can establish true operating costs and support optimal life strategies, as well as improving audit and transparency of an organisation’s asset base.

A key advantage of implementing software is the visibility of data. Accurate data underpins good asset management. For the data to be useful, the organisation must have a clear and consistent approach to verification, correction and management. As a result, it will measure and track performance in greater detail which allows adjustment to achieve desired results.

A good asset management strategy can deliver significant financial and performance or service improvement to an organisation. Every asset needs to be managed and maintained to ensure it functions within the design parameters, making life easier for the facilities manager at an operational level.