How do you implement an asset life cycle management program?

Implementing a stellar asset life cycle management program requires alignment with your overall business strategy, data-driven decisions, and the right culture.

One of the major responsibilities for a facilities manager is to take care of a company’s assets. For most manufacturing or production facilities, that can be a big job. A single machine might be worth hundreds of thousands of dollars. Multiply that by all the equipment operating in a plant and add the reactive, preventive, and predictive maintenance tasks that need to be coordinated, and things can get quickly overwhelming. Here are some steps to guide an asset management program.

Step One: Align With Overall Strategy

Start by understanding the overall strategy for your business. Your executive team should set the general direction, which could be focused primarily on things like rapid growth, customer success, or increased reliability. Your job, then, is to create an asset management plan that aligns with that overall strategy.

Step Two: Make Data-Driven Decisions

You not only need solid data to make smarter business decisions, but you also need the data on an ongoing basis to measure your progress. Software such as CMMS and document management systems can help you effectively organize your data to produce helpful reports on a regular basis. By analyzing this data, you can better select the top asset management priorities for your facility.

Step Three: Take a Life-Cycle View

Start with your largest and most important assets, and paint a life-cycle portrait of that machine or equipment. Take into consideration how much it cost to initially purchase and install as well as operation, upgrade, and maintenance costs over its usage. Don’t forget to include the cost of decommissioning the equipment.

Step Four: Nurture the Right Culture

In the end, quality machines, great management programs, and efficient processes mean nothing without the buy-in and cooperation of the people using it all. A strong, consistent management team must lead by example and create a culture where each member of the team takes ownership of his or her role in asset management.