Assets can be a source of substantial expense for companies, and the right strategic asset management practices can minimize the cost. A well-designed and implemented system can help reduce the cost of assets by optimizing their use and extending their life span and reducing maintenance costs. It also improves operational efficiency and boost productivity.
The process of strategic asset management involves aligning the physical infrastructure investment to the overall business strategy. This involves determining what assets to buy, when to replace the assets, and the best way to dispose of assets that are surplus or unneeded ones.
The collection and analysis of data is an important part of the strategic asset management. This can be a challenging task, but it is made simpler with the help of cutting-edge technology like an asset management software solution. This software is able to monitor the performance of assets, monitor service requests, evaluate energy consumption and other useful information.
After the data has been taken, a strategy for asset management can be created. This should include a specific production target that is realistic, stretchable and achievable over a 3 to five year period. The plan should also outline what the company needs to alter in order to achieve its goal. Finally, it should identify the expectations for production and costs dependent on the improvements that will be made.
A well-crafted strategic asset management plan will be clear and concise and will highlight the main points of the document. It must be written in a manner that managers can look over the findings without having to dig through the details. It should also clearly define the scope of the plan, including the affected areas as well as the timeframe — in years — to which it applies.