Series of four stages bound to serve enhanced use, and eventual disposal of an asset within the business. Major factors determine the importance of the asset such as its cost to replace. Avoiding breakdowns or emergency maintenance, a proper cycle must be established to secure your valuable assets on the run.
Key Stages of Asset Management Lifecycle:
Planning: Determining the asset requirements, by running a valid evaluation of an existing asset and its potential to meet your delivery needs. This will effectively help with assessing the sufficiency of your existing assets, ensuring the necessary resources when needed, excess assets, scheduling a proper maintenance, and estimating provisions and funds for asset acquisitions.
Acquisition: The goal of acquisition is to be as cost effective as possible. It’s crucial to consider the total cost of ownership, in order to determine if the asset will be bought or built, taking into account cash flow and time without putting the process at risk.
Maintenance: Ensuring the proper run for an asset to provide the service needed. Consistently cleaning or performing routine maintenance, it’s better be maintained for a longer period of time to last as previously planned.
Disposal or Renewal: This may seem straightforward. However , business owners neglect proactive maintenance, leading into the loss of an asset. A good collected data might be cost saving measures deciding a renewal or even a proper disposal of an asset.
Great asset management lifecycle rests on those stepping stones, they can be accomplished in a different order or progressly in order. As long as the asset is functioning correctly, within its useful life, it’s truly an asset by all means.