Asset

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Categories: Terms

A thing, entity or item that has actual or potential value to the organization.

Condition-based maintenance
A proactive maintenance technique that uses real-time data (collected through sensors) to identify when an asset’s performance or condition reaches an unsatisfactory level.
Asset life
The period of time from asset creation to end of life or retirement.
Asset management
Refers to any system that monitors and maintains things of value to an entity or group. The practice of managing assets to achieve the greatest return (particularly useful for productive assets such as plant and equipment), and the process of monitoring and maintaining facilities systems, with the objective of providing the best possible service to users. The coordinated set of activities to ensure the delivery of value derived from physical assets.
Asset utilization
The measure of the ratio of plant equipment capacity versus equipment production. In finance, it is the ratio of total revenue earned for every dollar of assets a company owns.
Asset value
The asset’s adjusted purchase price, including the preparation for use costs.