In our last entry, we explained how the use of an asset management system can significantly help you improve your asset management practices. But, what makes a “good” asset management system?
An adequate asset management system should provide, at least, the following capabilities:
- An asset register to track asset identity, location and condition from purchase to maintenance, capital improvement to disposal
- Tools to define, organise, and implement inspection and corrective and preventive maintenance plans
- Works and program management tools, from planned and unplanned minor maintenance to major capital projects
- Access through mobile devices to allow the capture of asset data or work requests in the field, to receive work requests while in the field, and with dynamic map routing between jobs
- Asset accounting including registration, depreciation calculation, capital additions, revaluations, work management cost reconciliation, and revenue or service attribution
- Integration with other corporate systems such as ERP, GIS and Accounting systems
Enterprise Asset Management
These functionalities support all the operational aspects of asset management but, are they enough? Would it be possible to go a step further and think of asset management not only from an operational perspective but from a strategic approach? The answer is yes, and that is where strategic asset management comes to play.
Strategic asset management: enhancing enterprise asset management
Usually an enterprise asset management solution, while covering the operational side of asset management, lacks the ability to predict asset health or to optimise spending and allow asset owners to maintain the level of service, increase asset lives, and decrease maintenance and capital usage. Strategic asset management software offers the ability to develop performance models for assets and to analyse the result of alternative scenarios. Models are built that describe how types of assets deteriorate over time under usage, inspection, maintenance and capital treatment processes, and within a defined hierarchy for prioritisation of capital expenditure. Then a number of simulations are run using differing capital expenditure scenarios to determine the resulting condition and thus service level of the stock after 10, 20 or 50 years.
Strategic Asset Management
These are just some of the questions a strategic asset management solution helps you answer: given a level of funding, what is the best level of service an asset can provide, and the forecast future condition of your portfolio? What level of Opex and Capex funding is required over the long-term to deliver a satisfactory or desired level of service? How can you translate the optimal maintenance and replacement treatments into actionable work programs?
Assetic, world-class strategic asset management software in the cloud
Strategic asset management is a new field that is not offered by most providers of enterprise asset management systems. One company that is really standing out from the crowd is Melbourne-based Assetic. Assetic has designed a cloud-based asset management system that enables organisations to manage the entire life-cycle of their assets, combining the value-added insights and capabilities of strategic asset management with the operational functionalities of an enterprise asset management solution. The software is provided in modules, and the Assetic Predictor module is for strategic management modelling, whilst the other modules handle the works management, accounting and registry functions described above. This article on Smart Company tells you a little about Assetic and its vision for strategic asset management.