Why Simplified Asset Management is Vital for Organizational Growth

In any organisation, asset management (AM) is vital in achieving a greater financial sustainability. The basic process of asset management involves curbing operating costs, minimising the asset maintenance, and effective management of capital. The employees also need to recognise the importance of asset management, and have the knowledge on a variety of optimisation techniques. AM best practices include a broad range of activities, but the key aspects are: Asset Planning, Setting Service Levels, Managing Risk to drive asset related decisions, Minimising Life Cycle Costs, and Managing Asset Related Knowledge. It is also about balancing Service Levels with Cost, and is extremely important to involve people throughout the organisation in the AM process instead of making it simply a staff function. It requires the right organisational arrangements to sustain gains achieved as the program evolves. Due to advancement of information technology, organisations have started using sophisticated softwares without understanding its calibrations and detailed processes involved. Using software is good but it should be limited and it should be simple to use. Asset Management cannot be performed without valuable input from experienced operations staff. No software can give us a perfect solution; in fact good quality field data is the most important information which needs to be incorporated in any asset management model/plan. The asset management team and field staff should work together in refining the asset management model and they should understand the implications of each input variable. Hence there is a great need to define a simple process in order to get an effective asset management model which can be used by all asset management practitioners. The objective of this study is to formulate a strategy which can assist us to simplify the asset management process so that whole organisation can use it in order to get maximum benefits.