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Asset and Equipment Monitoring

  
  
  

Ignore Asset and Equipment Monitoring at Your Peril

Often, complexity is one of the biggest challenges for organizations. Unmanageable complexity often arrives as organizations grow and priorities are established. Even companies that have managed to grow rapidly amidst the current economic climate have found that their growth was accompanies with a host of unforeseen issues.

Throughout the expansion process employees must be trained to cope, customer relations must be fine-tuned, marketing departments must keep pace and equipment management processes must also be re-examined.

Asset and equipment management processes are often reactive in nature rather than proactive. Unless a comprehensive system has been established, historical data on equipment total cost of ownership will not be recorded to assist with asset decision making. Additionally, if a track record of maintenance has not been maintained, it is difficult to accurately determine a machine’s independent efficiency.

As equipment reaches its theoretical end of life, should it automatically be replaced or upgraded. Or, does that piece of equipment tend to last longer than expected so economically it would make sense to continue ongoing maintenance and use? Without a comprehensive asset management system, these questions cannot be accurately answered.

Often, complexity is one of the biggest challenges for organizations. Unmanageable complexity often arrives as organizations grow and priorities are established. Even companies that have managed to grow rapidly amidst the current economic climate have found that their growth was accompanies with a host of unforeseen issues. Throughout the expansion process employees must be trained to cope, customer relations must be fine-tuned, marketing departments must keep pace and equipment management processes must also be re-examined.

In an increasingly competitive world, knowledge is power. Data intelligence that reveals actionable information about operations will give an organization a significant advantage. When it comes to efficiency and performance, the only way to make proper decisions is to be working with the best information.

Many organizations are coming under pressure to extend usable asset lifecycles rather than to replace equipment. With capital budgets under pressure and investors peering over the shoulders of management executives, asset and equipment longevity must be realized to prove best management. If information about excessive callouts and issues with a certain piece of equipment are hidden amongst a mountain of paperwork, it cannot be utilized in the decision-making process.

Asset and Equipment Monitoring Policy and Your Organization

With asset and equipment management policy in place, for the first time an organization may learn the real cost of its equipment ownership and be able to establish trustable benchmarks. With these measures established, businesses can start to really see how their different assets and facilities perform and compare to one another.

While the depreciated cost of asset and equipment inventory is a sizable part of the company's annual expenditure, the energy associated with the performance of each asset is also of great importance. Combined, we can now see how vulnerable a business can be without access to actionable data.

Asset and Equipment Monitoring Needs Proper Equipment Identification

For far too long, management has relied upon outdated spreadsheets to hold vital information about asset and equipment performance. Spreadsheets are by definition static and do not easily provide us with "what-if" scenarios for our projections. They are no match for digital systems that enable us to work from instant alarms or alerts.

While the depreciated cost of asset and equipment inventory is a sizable part of a company's annual expenditure, the energy consumed by each asset is also of great importance. For an enlightened understanding of operations, one must know the initial cost of equipment, energy consumption patterns, maintenance costs and disposal fees. By tracking all of these costs and establishing the total cost of ownership, a company can become truly enlightened of their operations.

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