Businesses around the world have identified that reducing asset downtime has to be minimized in order to maximize operational efficiency. According to Deloitte Insights, unplanned downtime costs around $50 billion per year, for organizations. Hence, it becomes very important to properly look after the assets that are present in a facility, maintaining them on a regular basis and predicting any inconsistencies that may take place in the future, so as to reduce this downtime. Looking at the changing technological landscape, it is a necessary function that needs to be undertaken by organizations to have a step ahead amongst the competition.
What is asset management in a facility?
Facility asset management is a systematic and holistic approach to optimizing the performance, longevity, and value of physical assets within an organization. Effective facility asset management involves a coordinated effort to plan, acquire, operate, maintain, and dispose of these assets in a cost-effective and sustainable manner. At its core, facility asset management aims to strike a balance between maximizing asset utilization, minimizing operational costs, and ensuring compliance with relevant regulations and industry standards. It encompasses various aspects, such as asset life cycle planning, risk management, maintenance strategies, data management, and performance monitoring. The employment of advanced techniques and technologies allows organizations to better understand the current state of their assets, anticipate future requirements, and make informed decisions regarding investment, repair, or replacement.
The need for asset facility management
The need arises mainly because assets, as the name suggests, are a valuable and crucial component that is required in the day-to-day operations of an organization. Since assets are artificial equipment that depreciates over time and lose their value in the long run, it becomes inherent for organizations to monitor the assets such that they are allowed to function at their highest potential for the longest period of time and also, predict any future problems. Since owning an asset is a significant financial investment, it also accounts for the risk factor that comes with it. Let us take a look below:
- Financial Investment: Physical assets represent a significant financial investment for organizations, and their proper management is crucial for maximizing return on investment and minimizing unnecessary expenditures. Poorly maintained or neglected assets can lead to premature failure, unplanned downtime, and increased operational costs, ultimately impacting an organization's bottom line.
- Risk Mitigation: Facility assets are subject to various risks, including environmental factors, wear and tear, and technological obsolescence. Effective asset management helps organizations identify and mitigate these risks, ensuring the continuity of operations and reducing the likelihood of costly disruptions or failures. By proactively monitoring asset performance and implementing preventive maintenance strategies, organizations can extend the useful life of their assets and optimize their performance.
The benefits of efficient asset management
Implementing an effective facility asset management strategy offers numerous benefits to organizations. Let us look at some of them:
- Cost Optimization: Cost Optimization is the process of utilizing resources efficiently, through reducing costs and increasing the returns received from the results. By maximizing asset utilization and minimizing downtime, organizations can reduce operational expenses and achieve significant cost savings over time. Proper maintenance practices and timely replacement of aging assets can also prevent costly breakdowns and minimize the need for emergency repairs.
- Increased asset life : Facility asset management plays a pivotal role in promoting sustainability by optimizing the lifecycle of assets and resources within a facility. Through effective asset tracking, maintenance scheduling, and resource allocation, organizations can extend the lifespan of their equipment, reducing the need for frequent replacements and minimizing waste.
- Improved Operational Efficiency: Well-maintained assets perform at their optimal levels, reducing the likelihood of breakdowns and disruptions. This, in turn, enhances overall productivity and enables organizations to meet their operational goals more effectively. Additionally, effective asset management can contribute to enhanced worker safety by ensuring that equipment and machinery are properly maintained and operated within prescribed safety parameters.
- Better Reliability: If the assets are managed properly, automatically they become more reliable. The meaning of asset management is to keep a check on all the assets and their present conditions, and also allow for predicting future inconsistencies that can be dealt with. Hence, when such assets and equipment are kept under check continuously, they become indispensable and their emphasis on being operationally sound increases and thus, assets are more reliable!
- Sustainable Approach: Facility asset management supports sustainability and environmental responsibility. Facility asset management systems often incorporate energy monitoring tools, enabling organizations to identify inefficiencies and implement strategies to reduce energy consumption and carbon footprint. By allowing for efficient asset performance and lifespan, organizations can reduce their environmental footprint and contribute to sustainable practices. A sustainable approach towards asset management helps in incorporating environmentally friendly practices of daily organizational operations.
Facility asset management: in a nutshell
Implementing an effective facility asset management strategy requires a comprehensive approach that involves various stakeholders and processes. It necessitates the establishment of clear policies, procedures, and performance metrics, as well as the adoption of appropriate technologies and tools for asset tracking, monitoring, and maintenance scheduling. Additionally, it requires a skilled workforce with the necessary expertise in asset management principles and practices. The need for partaking in asset management in a facility is immense and the two most common factors the need depends on the asset being a notable financial investment that has an element of risk attached to it. Hence, by utilizing a clear method of managing the assets proactively, organizations are able to optimize their business costs, have a greater reliability on the performance of the assets which has a positive effect on the operational efficiency of the functioning of the business, ultimately leading to a sustainable approach of fulfilling the business objectives. Ultimately, successful facility asset management requires a culture of continuous improvement and a commitment to data-driven decision-making.
A CMMS like IQnext can help you manage your facilities’ assets efficiently and effectively. Get in touch with us now!
