Assets can be an expensive source for businesses. The right asset management practices will help to reduce these costs. A well-designed system can help reduce the cost of assets by optimizing their use and prolonging their life and minimizing maintenance costs. It also improves the efficiency of operations and increase productivity.
The strategic asset management process involves aligning the investments in physical infrastructure with an organization’s business strategy. This involves determining which assets to purchase, when to replace them and how to distribute and dispose of surplus or inactive assets.
A key element of asset management strategy is the collection and analysis of data. It can be a difficult task, but with the aid of modern technology, such as an asset management software, it becomes easier. This software is able to track the performance of assets, track service requests, analyze energy consumption and other relevant information.
After data has been gathered, a strategic asset management plan can be developed. The plan should include an achievable, stretchy, and achievable production target over a period of three to five years. The plan should also detail what the company’s needs to alter in order to reach its goal. It should also outline expectations for costs and production dependent on the improvements that will be implemented.
A strategic asset strategy should be concise and easy to understand with all the essential aspects. It should be written in such a way that senior management can review the findings without having to go through the details. It should also clearly define its scope, listing the affected regions and the timeframe in years- that it applies.