Nowadays, assets are widely used by different industries and organizations to run their operations smoothly. From machinery and equipment to technology and infrastructure, these assets are the backbone of a business and are critical to its success. One crucial aspect that plays a significant role in achieving these objectives is effective asset life cycle management.
4 Key Stages in Asset Lifecycle: An Overview
From acquisition to disposal, there are phases in the asset life cycle that offer an opportunity to improve systems and enhance performance to lower the total cost of ownership. All this can be easily achieved with the help of an efficient asset management solution.
But before we dig deep into the benefits of an enterprise asset management tool, let’s understand the stages of an asset life cycle:
Acquisition
The assent life cycle begins with strategic acquisition. By thoroughly assessing business requirements and long-term goals and conducting comprehensive market research, organizations can make sound decisions.
Utilization
The proper use of the assets remains the key to low-cost production. Utilizing the assets to the fullest makes the underutilization, delays, and non-performance a thing of the past. Providing employee training and modern monitoring solutions can also contribute to optimized asset utilization.
Maintenance
Asset maintenance is of extreme importance and necessary to avoid unforeseen operational interruptions. Implementing preventive management software helps to foresee potential issues before they become big problems, thereby preventing expensive repairs and downtime.
Disposal or Replacement
The last stage of the cycle of an asset is its disposal or replacement. At this step, the current condition, efficiency and emergence of modern and advanced alternatives of the asset are examined. It prevents costs associated with maintaining inefficient and outdated assets.
Benefits of Asset Lifecycle Management
Now that we have understood the asset life cycle stages, let’s see how asset life cycle management reduces the total cost of ownership:
Reduced Downtime and Maintenance Costs
Ongoing asset life cycle management minimizes unplanned downtime and mitigates maintenance needs. This consequently lowers maintenance costs and keeps assets running at their optimum efficiency.
Enhanced Productivity
Strategic asset management leads to better efficiency and productivity. Properly managed and optimally utilized assets help organizations to reduce their expenses and to achieve their goals with fewer resources.
Extended Asset Lifespan
With preventive maintenance measures and fully utilizing assets, businesses can lengthen the lifespan of assets. The extended lifespan provides an opportunity to maximize the initial investment made by the companies.
Final Thoughts
Life cycle management becomes a strategic goal for businesses that are focusing on the reduction of total ownership cost.
Asset Infinity is an advanced asset management solution to simplify the process of keeping track, monitoring and managing the assets in the organization.
By providing real-time tracking, maintenance scheduling, and a detailed analysis of data, Asset Infinity allows businesses to make informed decisions, efficient management of assets, and reduce the total cost of asset ownership.
