The Concept and Tools of Asset Management

To protect and increase the net value of your business, you may consider asset management. Provided that its services are utilised, it can maximise all the assets of your company. As it focuses on the life cycle decision making, it can help reduce risks and achieve your organisation’s strategic intent.

Concept of Asset Management

Asset management refers to the managing of assets invested in the business. It also relates to providing the service of managing money for both companies and individuals. The money managed can be in the form of bonds, stocks, cash equivalents, and other forms. Its importance lies in the fact that is it used largely in the industry of financial services. Here are some key tools of asset management.

Asset Management Plan

Asset management ensures that the actions, resources, and timescales are developed to deliver the business strategy in any organisation. The plan also ensures that company objectives and asset management actions are strongly connected.

Systems Engineering

Systems engineering is a robust approach to the creation and operation of systems. In critical assets, for example, systems engineering ensures the way assets, people procedures, and technology function together in different scenarios.

Failure Mode Criticality Analysis

This is a risk-based process used to study the failure modes of an asset used in a certain manner. This helps develop a catalogue of the way assets fail and feeds analyses in many disciplines such as improvement, reliability centred maintenance, downtime reduction, and elimination.

Configuration Management

This refers to the method of establishing and maintaining the consistency of an asset’s performance, and physical attributes. This is widely used in many business operations to handle complex and high-risk systems. It is common in industries such as engineering, aerospace, oil and gas, and other related industries. It emphasises the functional relationship between assets to control systems change.

Reliability Centred Management

This is a risk-based approach to the identification of a relevant, preventive, and corrective maintenance administration. This is derived from the studies and analyses of asset functional management including availability, maintainability, and reliability.

Asset management is important for any business or individual to manage the risk of losing all assets. It also plays a major part in keeping a handle on the cost of the company, while increasing the level of maintenance.

About the Author

James Maxwell, a Media Buyer at a media buying agency in New York. He was a former media ethics professor at a university in Los Angeles.