If you’re struggling with asset management, then be sure to read this blog that talks about the importance of understanding the asset lifecycle management process.
When trying to better manage your assets, people often will look at specific areas or fine details about a certain factor. However, a better approach is to get a holistic view of the matter to better understand the whole lifecycle involved. This is when it’s best to consider asset lifecycle management.
James Forbis with 4BIS.COM in Cincinnati, OH shares insights into the importance of Asset Lifecycle Management.
What is Asset Lifecycle Management?
Asset lifecycle management is an approach that helps to better manage assets through every phase of their lifespan. It works to maximize the efficiency and affordability of the assets throughout their existence. In order to get the most out of your assets, then having the right asset lifecycle management process is key.
Why Plan the Process?
The average business typically has a high number of assets. These include everything from IT hardware to company vehicles. If you think about all of the costs involved with these assets like purchasing it initially and ongoing maintenance, then your assets can take up a good chunk of your budget. But when you have the right tools and strategies for determining the cost-effectiveness and efficiency of your assets, then managing your assets and staying on a budget becomes a lot more simple.
When developing an asset lifecycle management process, you’ll want to consider the four stages of the average asset lifecycle. This includes:
This stage consists of gathering information about your assets. When a new asset is purchased, you’ll want to make a business case in regards to why the purchase was required, what’s its purpose, the costs, etc. It’s vital that the information is gathered properly in order to ensure its purpose fits into the needs of the business.
After a very detailed and thorough planning phase, an asset can then move onto the purchasing stage if approved to do so. Once approved, acquiring this asset happens in multiple steps. You’ll want to research options available, make comparisons, possibly try demos or trials, then purchase the asset and add it to the register.
Operation and Maintenance
This step is focused on getting the most out of your assets. This is generally the longest stage of the process, but also the most important. You’ll want to always touch base with your asset to ensure that it is working to the best of its ability. If changes are needed, it’s vital that these are made quickly. Especially for high-value assets, you’ll want to properly maintain them to ensure useful operation for an appropriate period of time.
Dispose and Replace
With most assets, there comes a time where it is not needed any longer or times where it should be replaced. If you’re constantly maintaining your assets and checking their effectiveness, then understanding when it’s time to replace should be no issue. Moving through this step properly can ensure a smooth transition into a new asset. Discussing the performance of your assets and the alternatives available should be a top priority in this phase.
If you understand the asset lifecycle management process we’ve outlined above, then you can inch that much closer to managing your assets as efficiently as possible.