Role of Asset Management in Improving Business Efficiency
- February 6, 2024
It has become imperative for business organizations to look for different ways to increase their operational efficiency, especially in today’s competitive landscape. Asset management is one of the major factors that helps businesses achieve their goals. Organizing, systematic planning and managing the company’s resources all contribute to effective asset management, which in turn, help create more value, reduce cost, and boost success. By implementing various asset management techniques, organisations can improve productivity and streamline processes. It also helps them to reduce downtime and enhance profitability. In this article, let’s explore the role of asset management in improving business efficiency.
What is Asset Management?
The term ‘Asset Management’ refers to the process of managing the assets of an organization to reduce risk and increase their availability. To get maximum value, asset management requires a comprehensive approach to obtain, implement, maintain, and dispose of assets, while minimizing risks and associated costs. Asset management uses different technologies and methodologies to improve asset performance, eliminate obstructions and ensure regulatory compliance.
How does Asset Management work?
A comprehensive perspective of an asset’s whole life cycle is included in asset management. Thus, this is the life cycle of a piece of machinery, from purchase and installation to replacement and disposal. Spreadsheets can be used to implement asset management; however, the best solutions make use of the appropriate software.
This software should have the capacity to gather and process data effectively, enabling the making of critical asset management decisions. It is possible to monitor the effects of each operation on an asset, allowing for the revision of the cost-benefit analysis.
Benefits of Asset Management
Enhanced Asset Utilisation
Organizations can optimize asset utilization through effective asset management, ensuring efficient deployment. Businesses can acquire valuable insights into asset utilization patterns by monitoring, tracking, and analyzing asset data, enabling them to identify areas of overutilization or underutilization. This data helps organizations make informed decisions about how to allocate assets, leading to increased productivity and optimized resource usage.
Businesses can reduce the need for new assets and related costs by using asset management, which improves asset utilization. Organizations can increase asset productivity and reduce idle time by identifying underutilized assets, which will increase efficiency and profitability.
Preventive maintenance and reduced downtime
By utilizing asset management, businesses can adopt proactive maintenance practices and avoid expensive downtimes. Organizations can use data-driven insights to schedule preventive maintenance tasks, minimizing the risk of unforeseen breakdowns. By doing this, not only will downtime be reduced, but asset lifespan will also be extended, and repair and replacement costs will be reduced.
Accurate and current data on the lifecycle, performance, and condition of assets are necessary for effective asset management. To make well-informed decisions, asset management uses analytics and data. Through the analysis of this data, companies may minimize downtime and maximize return on investment by making well-informed decisions about whether to replace, maintain, or repair assets.
Improved Asset Lifecycle Management
Organizations can gain a deeper understanding of asset cycles with asset management. This enables organizations to plan budgeting for various aspects such as asset replacements, lowering the risk of unforeseen costs and downtime.
Better Inventory Management
Another advantage of asset management is that organizations can gain real-time visibility into their inventory levels. This allows them to have better control and optimization over inventory. Implementing an efficient inventory management system helps businesses to deal with issues such as overstocking or stockouts, which can result in lower carrying costs. Streamlined operations and improved cash flow are also results of better inventory management.
Improved Financial Performance
A company’s financial success can be significantly impacted by effective asset management. Businesses may enhance their cash flow and profitability by minimizing downtime, cutting unnecessary maintenance expenditures, and optimizing asset utilization.
Businesses must keep accurate and current records of all their assets, including their location, condition, and maintenance history, to comply with asset management regulations. This might be crucial for companies operating in regulated industries or with numerous locations or divisions as it offers a transparent audit trail and enhances accountability for asset-related decisions and activities.
An edge over competitors
The financial performance, customer experience, and overall success of an organization may all be greatly impacted by asset management, which is an essential component of every business operation. By employing the appropriate tools and technology in conjunction with a comprehensive asset management plan, businesses may optimize asset value, reduce risk, and achieve a competitive edge in their industry.
How can VLogic Systems help with Asset Management?
The Asset Management / CMMS software from VLogicFM offers a comprehensive life-cycle solution with features like preventative maintenance (PM), on-demand work order scheduling, and sophisticated, drawings-centric asset tracking capability that maximizes the useful life of facility assets. With the use of an easy-to-use mobile app, building residents can create on-demand service requests, and managers can assign repair professionals and manage the service process, the solution also increases asset fix rates.
The unique feature of VLogicFM is that it connects assets to CAD facility drawings, unlike other CMMS systems. With our software, it becomes easy to connect a work order to an asset by displaying the asset in its surrounding area and nearby assets on the floor plan drawing. Study repair data within the context of a floor plan and use the floor plan to direct the technician to the asset.
With VLogic System’s Asset Management/CMMS Software, one can efficiently manage assets by identifying and tracking various types of assets. This process also applies to adjusting or creating preventive maintenance (PM) work order schedules for specific assets and entire groups of assets.
Comprehensive management is further improved by associating support paperwork with the associated assets, including warranties, manufacturer PM schedule guidelines, and service provider contacts. In addition, the software makes it possible to submit and monitor work requests on-demand, which enables fast resolution of problems like asset failure or performance degradation.