Asset Life Cycle Management Software: Guide & Definition
Contrary to what some people believe, the primary purpose of an asset life cycle management software is not to add work for managers and users, what it will do is contribute to creating a better net worth of assets. A good life cycle asset management software will reduce the cost of operated equipment.
What are the best practises in terms of asset life cycle management? Find out with the following 4 stages:
Analysis of what is offered on the market
Definition of features and field of application
Procurement and receiving planning
Adding to equipment repository and labelling
Class and hierarchy definition
Adding specification documents to the asset record
Power and commissioning
Planning of preventive maintenance
Planning of resources and budget
Control of operations
Performance reporting and monitoring
Cost of replacement versus cost of repair analysis
Deactivation of asset registration
What are the Issues of Asset Life Cycle Management for an Organization?
The third stage of an equipment life cycle is the most important because it allows increasing the reliability of operations and maintaining its performance at the desired level. Therefore, it is crucial to regularly carry out and plan preventive maintenance. This planning will allow operators to forecast necessary budgets and resources.
Planning upgrades, updates and replacement of some components thus allow to maintain an acceptable inventory level of replacement parts. If maintenance and repair are neglected, it becomes obvious that the product will deteriorate due to the premature wear and aging of some components.
Asset Life Cycle Management: Take Advantage of your Data!
Using the appropriate solution requires the use of an adapted tool or software, namely, an integrated asset management system. Such a system is adaptable to the different business units of an organization. In order for it to become an absolute asset, it must be able to process and analyze a complex data stream.
An integrated asset management system is an extension added to a computerized maintenance management system (CMMS). It includes a reliable data repository and is regularly updated by the various users. This allows monitoring planned maintenance downtime and upgrades required for the proper functioning of equipment, all the while minimizing the duration of these outages.
The logging of all the data related to completed tasks include meter readings, items consumed, the duration of each intervention, as well as the acquisition and installation costs. This allows developing key performance indicators (KPI) and knowing the overall costs of the equipment during the acquisition, implementation and maintenance stages. The logging allows identifying financial and operational improvement opportunities for each asset. It also allows to assess its cost effectiveness for the organization.
It is thus essential to exploit the full potential of your data by processing and analyzing it in order to make the right decisions.
Asset Life Cycle Management Software Paired with the Createch’s Extension
Totally integrated to IBM Maximo Asset Management, the extension developed by Createch allows obtaining the information crucial to make the best financial decisions. Therefore, your organization will be able to optimize the performance of its assets.
By getting an asset management software along with Createch’s extension, you ensure your organization:
A quick acceptance from its user: in effect, little training is necessary thanks to an interface similar to IBM Maximo Asset Management systems
Put a halt on the integration or duplication of database tables
Createch’s life cycle asset management extension is designed to give you a complete view of all assets’ categories. It also allows instant access to key information. It could be forecasts, indexed replacement value, repair costs assessments, as well as the state and anticipated life cycle.
Standardized data supply a baseline for hypotheses about the moment when a particular asset, such as a boiler or a cooler, will need to be replaced. External sources can be easily added to the application and integrated into calculations. Sources such as Owners and Managers Association (BOMA), the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), Farm Service, Agence (ASF), etc.
The application comprises an estimation function that provides an easy way to capture asset information and record detailed assessment data for each asset. People in charge of asset life cycle can establish the assets’ overall state and age, note if repairs are required to be carried out immediately, and supply an assessment of the assets’ lifespan.
Renewal costs of the assets’ life cycle can represent an important percentage of major operating and maintenance expenditures. A deep understanding of deadlines and renewal costs is crucial to effectively prioritize maintenance needs that could, for example, be postponed.
Thanks to “and if” functions, financial and operational planners can now look into those costs. Therefore, they are able to see increases and lows in their capital expenditures over a period of 30 years. Then, they can start assessing the organization’s expenditures in order to optimize the return on their investments in assets.
Over time, your organization will gain a better control and visibility of required funding. The purpose of this approach is to prolong the assets’ life cycle, increase their performance, and reduce the cost of maintenance.
This article was written by Maryem Ladhari and Lucie Girard.