How Is Asset Management A Part Of Maintenance Management? Know More Here

CMMS, or computerized maintenance management software, is a type of maintenance software used for the timely and efficient maintenance of business assets and processes.

CMMS offers several types of functionality, such as maintenance scheduling, order management, inventory control, etc.

Maintenance management is crucial for several types of businesses that have a large inventory and several moving parts. Maintenance management is often used interchangeably with asset management.

Enterprise asset management is a more specific type of software that caters to asset management functions. It deals with more specific features, such as maintaining multiple groups of users and sites.

However, CMMS software often comes with complete enterprise asset management features.

When we talk of asset management, we do not mean it in the financial sense, but rather in the physical sense.

For our purposes, asset management is looking after the proper upkeep and well-functioning of different types of business assets such as machines, tractors, computers, and more.

Asset management in the industrial sense means the processes that ensure the long-life of business assets and physical components.

Asset management is a part of maintenance management since businesses need to maintain their assets along with other operations.

How Is Asset Management A Part Of Maintenance Management?

As mentioned above, asset management sounds very similar to maintenance management, and many people use the terms to mean the same thing.

However, if you go deeper into the subject, you will find that maintenance management is a larger umbrella, under which asset management falls.

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asset lifecycle

Additionally, some components of asset management are not directly a part of maintenance management.

For effective asset management, a business needs to coordinate between several departments, including accounting, engineering, asset planning, production, and maintenance.

All these groups of people need to work together to arrive at the cumulative asset’s value, performance, risk, and cost.

Maintenance management focuses on ensuring that all the assets of a business are functioning as they should. The job entails keeping track of the performance and maintenance of all these assets.

While there are other functions of maintenance management and CMMS software, this is the primary function of maintenance management as it relates to asset management.

What Does Asset Management Consist Of?

There are six primary functions that any asset management team needs to consider. These functions are maintenance, cost, specification, condition, location, and identification.

asset management

Maintenance

Maintenance needs to ensure that all the assets of the business are running correctly. There are two primary types of maintenance operations: preventative maintenance and corrective maintenance.

Both would be a part of a maintenance assistant job description. Depending on the type of asset in question, a maintenance management team will depend on what approach to follow.

If an asset is not critical and the business can afford the asset to not function for a short period, organizations prefer to only make corrective maintenance efforts.

This saves the business considerable time and cost that would have gone into making preventative maintenance efforts since corrective maintenance only needs to be done if something actually goes wrong.

However, for critical business assets, preventative maintenance must be carried out.

This is because a business can lose a great deal of money in production if one of their critical assets is not working, especially in the manufacturing industry.

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Cost

An asset management team’s primary purpose is to ensure that an asset runs for its maximum life at the lowest cost possible. Thus, management teams need to explore various cost-cutting avenues without compromising on the quality of the performance of the asset.

There is a significant cost involved in maintenance operations that need to be considered. A business may prefer to pay a higher procurement cost if it means that the long-term maintenance costs would be lower.

Specification

The specifications of each individual asset class will tell the maintenance types what kind of operational parameters they can expect from that asset class.

For example, if the business uses a certain kind of high-cost computing machine, then maintenance teams need to know its specifications to determine whether the computer is functioning to the best of its abilities.

Condition

Maintenance teams need to keep track of the operating conditions of each asset to determine their maintenance strategy. To this end, the maintenance crew must conduct a physical visual inspection or monitor key performance parameters.

Location

Asset management teams need to know the exact location of each asset that the business owns to effectively manage their assets.

This can seem simple enough at first, but large businesses operate through several different offices, factories, and warehouses. A large company can have several thousands of individual assets that need to be kept track of.

Identification

Like location, an asset management team needs to identify all the assets that a business owns and operates.

They need to have efficient identification mechanisms so that all the other operations surrounding asset management can be done quickly and without hassle.

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How Does Maintenance Management Help With Asset Management?

CMMS can help a business with several components of its asset management processes. A CMMS has features that allow a company to track key performance indicators (KPIs) for its assets.

This software can not only take care of individual assets but also inform managers about trends that can help with a more efficient allocation of resources.

A CMMS will also have features relating to keeping track of the maintenance operations that have been done and those that are due. It will allocate the maintenance engineer who is responsible for each round of maintenance operations.

The reporting features of a CMMS will help managers make critical decisions, such as when to replace a piece of equipment.

Replacement must be considered due to a product reaching the end of its lifecycle, or maintenance operations getting too expensive for a particular asset.

Depending on the CMMS, several value-added features can help ease asset management and maintenance operations.

Final Thoughts

Effective asset management has a lot of processes that are in common with maintenance management.

Even though the two processes can be considered distinct, every maintenance manager needs to take care of certain asset management functions.

CMMS software is a reliable tool that can enhance manager performance and look after such processes.

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