Guide to Asset Management Strategy
According to the Institute of Asset Management, an asset management strategy is a “long-term optimized approach to management of the assets, derived from, and consistent with, the organizational strategic plan and the asset management policy.” Stated differently, an asset management strategy is a high-level but very important document that guides asset management activities within an organization.
An Overview of the Asset Management Strategy Development Process
Implementing an asset management strategy is typically considered a six-step process, as indicated below:
- Review the organization’s structure.
- Conduct an asset management self-assessment.
- Identify the asset management policies and goals to be achieved.
- Prepare and implement an asset management action plan.
- Review and monitor progress.
- Solicit feedback from stakeholders.
The Role of Maintenance Management Software
Perhaps the key component of an asset management strategy is maintenance management software. Without effective computerized maintenance management software (CMMS), it is nearly impossible to develop a strategy for managing assets. By utilizing CMMS software, an organization can save both time and money in a variety of different ways:
- Labor costs can be reduced as staff efficiency is maximized.
- Delays in asset downtime are minimized, as replacement parts and inventory are available ahead of scheduled maintenance work orders.
- Work order feedback loops are available to create a more granular view of the history of specific assets, allowing for both analysis of similar assets and more accurate maintenance records.
Thinking Beyond Simple Life Cycles
Several considerations should be made in conjunction with the establishment of an asset management strategy, all of which move beyond a simple assumption of maintenance work order scheduling based on suggested life cycles.
- As part of the implementation of an asset management strategy, examine the preventive maintenance requirements for each asset. This will inform the development of a cohesive plan, which can subsequently be programmed into CMMS software.
- Using the feedback loop discussed above, include condition-based maintenance concepts into your preventive maintenance. On a more detailed level, this means allowing for adjustments to future work orders contained in the maintenance management software. This will allow personnel to account for unexpected deterioration.
- Carefully considering optimal preventive maintenance times is one additional component to keep in mind. Since maintenance, whether planned or otherwise, removes an asset from production, the goal should be to eliminate the impact of this downtime on the business. This often means taking into account any seasonal business patterns, as well as knowing which days in a typical week are slower.
An asset management strategy cannot be implemented successfully without CMMS software, due to the complexity of maintenance management and detailed data required to act on any strategy. If your organization is in the planning stages of such a strategy, Consider enterprise asset management (EAM) software, which helps companies maximize equipment uptime and automate maintenance tasks. DPSI offers a range of CMMS and EAM software solutions and professional services. Our experienced software trainers and consultants can take an in-depth look at your company’s maintenance management processes and put together a step-by-step plan for transitioning smoothly to new software. Contact DPSI for more information or schedule a CMMS demo.