Even if you’re not completely familiar with what physical asset management is, there’s a good chance you’re already doing it, at least in part.
Your physical assets are the tangible things that enable your organization to fulfill its mission and goals; oftentimes, it’s machinery but it could also be buildings, equipment or tools. What sets physical asset management apart is its organized approach to maintaining those assets throughout their lifecycle.
The concept of the lifecycle is critical to understanding physical asset management. It starts the moment you identify necessary assets and progresses through procurement, usage and maintenance to removal, disposal, and replacement. Various aspects of the lifecycle are measured and analyzed to develop cost figures and budgeting, allowing for greater efficiency and more informed decision-making as it relates to physical assets.
When developing physical asset management plans, perhaps most important is keeping the idea of the lifecycle front and center, because assets are either providing value or losing value at all times. It’s an approach that stresses engaged maintenance strategies within the context of leveraging assets for maximum return. Physical asset management requires that you have an objective and strategies to meet that objective; risks will be assessed, managed, monitored, and reviewed on an on-going basis. Once the cycle is complete, it begins again, with adjustments, if needed.
With established physical asset management protocols in place, organizations can see improved productivity and greater efficiency through maximized cost savings.
Physical asset management is a reliable tool for supporting your organization’s goals and objectives by minimizing downtime and risk while improving performance and return on investment. Instead of allowing physical assets to run in the background, an organization using physical asset management can successfully leverage these often-overlooked assets with an eye for maximizing returns.