A comprehensive asset management strategy can help a company navigate the challenges of maintaining expensive infrastructure and equipment. Whether you’re a seasoned maintenance manager looking to improve your strategy or new to streamlining organizational processes, this guide will provide the tools and information you need to create an effective asset management policy.
It will also highlight the importance of using advanced asset management software, like LLumin’s Computerized Maintenance Management Software (CMMS+), to support your new policy.
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Managing assets without a clear policy covering risk, cost, compliance, and performance objectives can be risky. It’s like going on an expensive journey to acquire assets without a solid plan for acquiring, managing, and retiring those assets.
Here are the top reasons why your company requires an asset management policy:
Establishing your company’s objectives and goals is the first step in laying the groundwork for an asset management policy. Decide whether you want to reduce downtime, increase asset lifespan, ensure compliance, or accomplish other particular goals. Your objectives will guide you as you develop the policy.
It’s also important to understand that asset management is a team effort involving multiple parties, such as maintenance managers, engineers, and other financial decision-makers. A new policy should be developed, implemented, and maintained with their input and participation.
We’ve provided a series of sequential steps, each building on the previous, to help you create an effective asset management policy. By following these steps, you can lay the groundwork for comprehensive asset management practices within your organization.
Defining your assets is the first step of the process. It’s important to categorize assets based on their type, function, and criticality. For example, you could categorize assets as production machinery, IT equipment, or facilities. Also, assign priority levels to assets based on their criticality to your operations.
After you’ve created an inventory of your assets, it’s time to assess the risks associated with them, such as equipment failure, safety hazards, or compliance issues. Risk assessment is the process of identifying potential risks and assessing their impact. This is an important step that will enable you to make informed decisions and properly allocate resources.
Consider using a risk assessment methodology, Risk-Based Asset Management (RBAM) to evaluate risks systematically. This provides a more structured approach to risk assessment.
Effective maintenance procedures are critical for ensuring that assets operate at peak performance and have a longer lifespan. To achieve this, it’s necessary to establish a well-structured schedule for routine maintenance tasks, inspections, and servicing.
Within your procedures, provide precise, step-by-step instructions, and emphasize the importance of preventive maintenance. Proactive maintenance can identify and resolve issues early, preventing costly problems down the line.
Compliance with relevant regulations is essential for avoiding penalties and ensuring safe and ethical asset management practices. To accomplish this, start by identifying the specific regulations that pertain to your operations and industry.
Create a compliance checklist that will allow you to systematically monitor compliance with these regulations. Because regulations change over time, make sure to review industry updates on a regular basis.
Properly documenting your asset management policy is crucial for transparency and accountability. To make the policy easily understood by everyone involved, use plain language and avoid complex jargon.
Include a clear executive summary highlighting key points and objectives, and define roles and responsibilities within the policy. Ensure that all relevant personnel can easily access the policy, and use version control to track updates and keep it current and relevant.
Your asset management policy is a living document that should be updated on a regular basis. To ensure its relevance and effectiveness, it must be continuously monitored and evaluated.
To keep your asset management practices at their best, consider the following:
A well-designed asset management policy can empower your organization to navigate challenges, optimize performance, and ensure compliance. With continuous monitoring and improvement, you can ensure many years ahead of sustained success.
LLumin’s CMMS+ software is a valuable asset in this process, providing tools and insights for continuous improvement. It serves as a centralized hub for asset inventory and maintenance history data. This cloud-based, mobile-ready platform can be accessed from anywhere with an internet connection and provides access to real-time machine-level data.
Don’t let inefficient processes hold you back from experiencing the benefits of effective asset management supported by the right tools and procedures. Join the increasing number of happy maintenance management professionals who are using LLumin today!
LLumin develops innovative CMMS software to manage and track assets for industrial plants, municipalities, utilities, fleets, and facilities. If you’d like to learn more about the total effective equipment performance KPI, we encourage you to schedule a free demo or contact the experts at LLumin to see how our CMMS+ software can help you reach maximum productivity and efficiency goals.
