Strategic Asset Management

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Assets can result in significant expenses for businesses and the most effective methods of managing assets can reduce the amount of money spent. A well-designed asset management system will reduce the cost of assets through maximising their use, prolonging their life, and minimising maintenance costs. It can also boost productivity and increase operational efficiency.

The strategic asset management process involves aligning the investment in physical infrastructure to the company’s business plan. This includes determining the type of asset to buy and when to replace assets, and how to dispose of assets that are surplus or those that are not being used.

The collection and analysis of data is a crucial aspect of a strategic asset management. This can be a challenging task, but it can be simplified with the help of technology that is advanced, like an asset management software solution. It is able to monitor the performance of assets as well as monitor service requests and work orders and also analyze energy consumption, as well as provide other useful information regarding assets.

Once the data has been taken, a strategy for the management of assets can be devised. It should include a clear production target that is realistic, stretchable and feasible over a three to five year period. The plan should also detail what the company will need to change to reach its goal. It should also detail the anticipated costs and production in relation to the improvements which are currently being implemented.

A well-crafted strategic asset management strategy should be clear and concise that focuses on the main aspects of the document. It should be written in a way that senior management can review the findings without having to go through the details. It should also clearly define and define the scope of the plan, as well as describing the affected areas and the timeframe in years that it is applicable.