How to Manage the Lifecycle of Your Assets Efficiently

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How to Manage the Lifecycle of Your Assets Efficiently

Assets are one of the most critical components of any organization. You must track assets and focus on key details to get a better understanding of them. CMMS software helps you manage their lifecycle in a way that prolongs their longevity with minimum risks.

Check if they are aging, what the greatest risk of asset failure is, which assets require special attention so that they have maximum impact on your business operations and determine assets that are exposed to liability. Try to estimate the cost range to maintain your assets over the next decade or two. Employing an asset planning software will help you address all these requirements efficiently. Let us see how you can manage the lifecycle of all your assets.

  • Develop a Detailed Management Plan

Understanding the details of individual assets will allow you to develop lifecycle forecasts into a comprehensive management plan. You can utilize lifecycle forecast tools of an asset management software in real time for maintaining and operating facilities. This helps in mitigating the risk of impact to the end users and operators.

Data is captured in real time in this stage. Data capture is an iterative process which ensures that the forecast and plan remains current and relevant. This data should support the combination of quantitative and qualitative assessments to enable value-based decision making.

  • Steps to Plan Development

Plan development comprises of 4 steps:

Step 1: Use EAM software for assessing the current condition of an asset that is already in service. This field-based activity requires observation, data capture and reporting by qualified and experienced individuals.

Step 2: Understand the current asset operating conditions. Check if the asset is in continuous service or standby duty, if there are specific areas of the exterior building envelope that could be subjected to greater exposure to the elements, etc.

Step 3: Document maintenance records and performance history. Determine if the asset has a history of unexpected failure and if it is subjected to routine maintenance.

Step 4: Determine the Expected Useful Life (EUL) that is typically expected for the asset as per the manufacturer.

  • Predicting Needs of Asset Lifecycle

When you combine the above mentioned data, analyze the health of an asset and prioritize to ensure operational continuity taking the assistance of preventive maintenance software, you can make predictions regarding cyclical maintenance requirements, major refurbishment or renewal of assets and, ultimately, asset replacement. You can even estimate the cost of each activity in the lifecycle forecast and allocate necessary budget to each asset. Doing this will help you get a comprehensive capital and maintenance budget forecast which encompasses an entire building or asset portfolio.

  • Forecasting Lifecycle Costs

When you can forecast the lifecycle of an asset with the help of maintenance metrics, you can form the basis of a strategic plan for targeting expenditures. If you spend money without a plan on areas before they are needed, you will end up increasing costs of managing the portfolio. If you don’t prioritize your budget, it may only last for a limited time, however, having a targeted plan will help you last the budget in a longer and efficient manner.

On the other hand, limited or no targeted investment may accelerate the asset renewal, replacement or failure date. It can even create a backlog in funding requirements to address the resultant growing deferred maintenance issue.

  • Creating Asset Knowledge

A maintenance management software helps you store asset knowledge. With the help of asset knowledge, you can increase planned activities and reduce reactive activities. You can even extend the asset lifespan, mitigate the risks of impact on stakeholders and users, and reduce the frequency of renewal and replacement. Asset knowledge lays the base for performance measurement, enables monitoring, promotes control and value-based decision making for driving success.

With NEXGEN’s Asset Management software, you can create a roadmap of current and future needs to drive informed, sustainable business decisions by creating knowledge through the capture, management and analysis of raw property and operating data.