If you own a property, business or collection of assets, asset lifecycle management is essential for you to stay within budget, work effectively and remain safe. Essentially, asset management is the process of managing vital assets. The management involves a life cycle which describes every stage: planning, purchasing, maintenance and disposal. In this blog we explain what exactly is meant and the benefits which occur as a result of implementing this into your financial company schedule.
We have briefly explained what is meant by asset lifecycle management, but what exactly is an asset? This is something which is valuable to an organisation, this could be specific machines, buildings, software, processes etc. The type and level of value will be different for each company as all will have different goals, expectations and necessities in order to successfully complete work.
As previously mentioned, the process is broken down into 4 main areas:
Planning
This is the first stage of the lifecycle as you will need to highlight the asset’s requirements in order to work efficiently. Their requirements are pinpointed through analysis of existing assets to the specifications of the asset in question. As a result of this, you are able to predict the value to the organisation and decide whether it is a worthwhile investment (in terms of money, time and energy). Throughout the lifecycle, it is essential to always ensure the asset is providing value- if not, it is time to decide whether it is feasible to keep it.
Purchasing
Now you have planned and determined the value, it is time to plan your process of acquiring the asset. In the purchasing process, it is vital you remain cost-effective (with money, time and resources) as well as having evidence that this is the correct choice to make. Due to this, a realistic budget should be implemented to keep the process reliable, trustworthy and timely. Furthermore, a schedule and any specific requirements should be addressed to keep this stage on track and easily understandable by other members of the team.
Maintenance
Perhaps the most important stage, maintenance. Now you have planned and bought the best version of the asset required, you will need to ensure a maintenance schedule is created and implemented so that the asset lasts as long as possible. Factors such as intended use, amount of use, risk analysis, location etc should all be included so appropriate techniques can be used. Operational fails can have large negative effects on a business, therefore every opportunity to avoid this should be adopted- mainly regular maintenance. However, it will depend on the asset as to what maintenance is required and how often.
Disposal
Once an item becomes ineffective, it will then need to be disposed of. However, It will depend on the asset on the appropriate disposal technique as there are many factors to consider. You will need to acknowledge whether disposing of the item is safe, the cost associated to disposal, whether the item can be recycled, and if it will need replacing- therefore, starting the lifecycle all over again.
Benefits of applying these processes include:
- Compliance with requirements from stakeholders, regulations and legislation
- Better financial results, e.g. return on investment, cost reductions, higher profits
- Informed business decisions
- Minimised risk
- Helps business plans as you can manage the life cycle of the asset
- Improved customer satisfaction
- Better knowledge management
For more information about WINNS’ Asset Lifecycle Management or to book our services, please contact us on 01702 719100 or or email us at info@winnsservices.co.uk
