Unplanned downtime is a significant financial burden for asset-intensive industries. In fact, 82% of companies have experienced at least one unexpected downtime incident over the past three years. Most have suffered two or more.
Adopting predictive maintenance approaches enables organizations to anticipate when their equipment might malfunction. These strategies effectively spot potential issues early on, allowing companies to take proactive measures to prevent unforeseen breakdowns.
Here are five strategies to keep your business’s assets secure, tracked, operational, and compliant.
Defining Performance Metrics – KPIs
Establishing a well-thought-out KPI (key performance indicators) framework will help you evaluate an asset’s performance relative to the investment it represents. These KPIs can include metrics like Mean Time to Repair (MTTR), Mean Time Between Failure (MTBF), Inventory Turnover Ratio (ITR), Overall Equipment Efficiency (OEF), and Preventive Maintenance Compliance, among others.
Using these Key Performance Indicators (KPIs) allows a business to pinpoint aspects of asset management that need enhancement. This approach yields a more precise and detailed ROI (return on investment) calculation.
Comprehensive Information Collection
Knowledge is power! Amassing detailed information about your assets empowers you to make decisions that can significantly reduce costs. Documenting asset health in detail helps in predicting equipment failure. This goes a long way in managing the costs involved in asset upkeep.
Precise Depreciation Assessment
A precise calculation of the asset depreciation is necessary, and asset management software can help organizations determine accurate depreciation values. A detailed understanding of the structure of asset depreciation helps make more strategic choices about the timing for asset retirement or investing in new assets.
Preventive Maintenance Plan
The data gleaned from asset tracking is instrumental in formulating a preventive maintenance schedule for your operations. The advantages of such maintenance are many, leading to cost savings, enhanced asset performance, the avoidance of unexpected downtime, and improved operational efficiency.
Adopting a digitized approach to asset maintenance significantly boosts efficiency and capability. At the very least, transitioning from paper-based methods—which can be riddled with mistakes, and inaccuracies, and tend to be labor-intensive—to digital, device-first asset maintenance solutions is necessary. Such technology allows organizations to track assets better & refine reporting while managing information processes effectively, thus ensuring real-time data availability and transparent operational management.
It is clear that successful asset management is vital for any business aiming to develop and maintain assets with a long lifespan and significant capital investment. Effective asset management practices are invaluable, providing critical support to your organization. They keep you well-informed and aid in making strategic decisions to address various challenges.
If you are searching for the ideal asset management methods or software, opt for a solution that oversees your assets and monitors their health while making your operations more efficient.