Why is Asset Lifecycle Management Important?

1. Why is Asset Lifecycle Management Important? It's vital to define the term asset before moving on to the asset life cycle. Any item of property possessed by an individual or business is referred to as an "asset" in the broadest sense. The complete office complex or a single pencil in a person's desk drawer are both assets. However, when the terms "asset life cycle" and "asset lifecycle management" are used, they typically relate to a physical asset, such as a piece of equipment, that needs maintenance and monetary investment to remain in top form. What does the asset life cycle entail? A facility manager will buy an asset, put it to use, keep an eye on it, maintain it, and either replace it or get rid of it. This process is known as the asset lifecycle. Asset life cycle management is the system or process that facility leaders use to maximize the usable lives of their assets through planning and maintenance in order to boost productivity, extend asset lifespans, and lower costs. Stages of the asset life cycle

2. Plan, acquire, use, maintain, and dispose of are the five basic stages that every asset passes through over its lifetime. The usage and maintenance phases take up the most time, but each one is equally crucial to getting the most out of your asset. The advantages of asset life cycle management The life cycle of your assets should be tracked, managed, and optimized because doing so has many advantages. Just a handful of these advantages are listed below: Increase Asset Lifespan Monitoring an asset's lifecycle gives you useful insights into how it functions and when maintenance is most beneficial. Create an asset lifecycle plan using this data, outlining the ideal maintenance schedules and methods to keep the asset in top working order. The asset's useful life can be increased by intervening with preventative maintenance at these crucial times. In fact, 78% of facilities that keep track of maintenance history and maximize preventive maintenance claim to have noticed an increase in equipment longevity. Reduce Downtime By reducing the requirement for reactive maintenance, downtime can be decreased by adhering to an asset life cycle management strategy. You can manage how much time an asset is down by scheduling preventative maintenance before reactive maintenance becomes necessary. Additionally, the risk of unplanned, excessive downtime from emergency reactive repair is decreased by preventive maintenance. To ensure that maintenance doesn't interfere with productivity, you can plan it for the off-peak hours while the facility is open. Boost Facility Effectiveness Equipment quality improvement is another advantage of asset life cycle management. Assets are kept in the optimum condition by routine maintenance, which also helps to avoid damage from careless handling. The result of well-maintained equipment, longer asset lifespans, and decreased equipment downtime is increased facility efficiency. You and your staff will feel less stress as a result of asset life cycle management, which makes it feasible for your facility to run as efficiently as possible.

3. Save Funding An effective facility is also affordable. Cost savings accompany each of the advantages below: •Longer lifespans mean less frequent need for new equipment purchases, which saves money. •As a result of less downtime, there will be higher uptime and more revenue. •Typically, the cost of reactive maintenance is 3–9 times higher than the cost of preventative maintenance. •You may drastically reduce the cost of maintenance by scheduling it in advance with asset life cycle management. Inform Your Decision-Making Procedures Asset lifecycle management gives you access to information about your facility that you might not otherwise have. You may make better decisions and plans by using this information to guide your decision-making process.

4. Conclusion Conclusion Asset life cycle affects all business units, not just the IT department. From the time you acquire them until you sell them, critical assets are crucial. If your company is really about implementing an asset management solution, understanding asset life cycle is a crucial part of a preventative maintenance approach.