Summary:

The key idea of this article is to explain the reasons for businesses to invest in a systematic asset management system that helps them to better administer their assets and optimise their performance.

Assets are undeniably important for businesses to execute their day-to-day operations. Assets of business include purchased materials, product inventory, buildings, machinery, infrastructure, fleet, finances, shares, etc. They need to be managed and protected to assure the confidentiality of the stakeholders. However, when such a vast range of assets needs to be managed, an organisation should choose a strategic and certified approach. The ISO 55001 certification for asset management best demonstrates your organisation’s ability to strategically and efficiently manage your assets.

Aimed at organisations of all sizes, ISO 55001 certified asset management enables you to technically classify your assets, identify and avert risks, and optimise their economic performance assuring higher value through their lifetime. Asset management helps you gain a comprehensive understanding of how assets operate by tracking them at every stage, from acquisition to dismissal. Thus, you are provided with data on every stage of the assets’ operations which helps in decision-making for maximising their performance.

Here are the inherent reasons why organisations need to invest in a robust Asset Management System (AMS), preferably ISO certified, for managing their assets.

4 Reasons for Investing in a Strategic Asset Management System

Provides Complete Understanding of the Costs

Owing to the vast requirements of assets in an organisation, it is essential for them to invest wisely in cost-optimised assets. An effective AMS would allow you to analyse first the lifecycle of the assets and importance of their functions in your business. That in turn helps you to find the most cost-effective solution. Ability to understand the role of assets in their different phases of their lifecycle would also help you to consider necessary actions at any phase to reduce risks and loss in their value.

Minimisation of Downtime in Business

Undeniably, systematic or organised management of all your assets not only minimises risks but also considerably reduces downtime. Increased downtime is the most complex challenge for organisations because it is not possible for them to eliminate every risk arising for every asset. An AMS enables you to continuously analyse data on how your assets are performing. You could easily identify any risks to assets’ function and find the causes behind them, so you can take necessary actions to address those risks and prevent them from causing any operational halt.

Gives Insights of How to Improve Your Business

Assets, especially machinery, employees and fleets, need to perform consistently to ensure your business delivers output fast to the market. An AMS helps not only in efficient asset management but also improving them to positively impact your business performance. An AMS gives a 360-degree view of all your assets and how they are used in respective processes. You are able to know how optimally they are used for the intended purposes, if any assets are wasted or used wrongly, and whether any asset is taking too much time. In other words, with all-round insights of your assets, you are able to address any inefficiency in any asset’ performance and direct resources to improve them. Asset performance is directly related to the bottom line of a business. When they perform better, the operations are naturally carried out quickly and smoothly. Thus, you are able to deliver more in the market and augment revenues.

Improves Employee Performance

Many organisations do not realise this, but a strategic AMS helps in enhancing their employee performance. Asset management defines the assets as well as the responsibilities of employees in deploying and using them. This means the employees are going to be continuously monitored. An AMS calls for continuous supervision of employees’ roles to check if there is any negligence causing a rise in costs or risks to the assets. In simple words, an AMS assures that every employee is working more dedicatedly and efficiently ensuring safety and maximum performance of assets.

Key Takeaway!

A comprehensive and structured asset management system is no doubt essential for businesses owing to the varied range of assets they have to manage every day. A certified AMS allows them to manage their portfolio of assets for optimal performance while finding the risks and eliminating them at the source. Achieving the ISO 55001 certification is an assured way for businesses to establish a definite AMS that manages their assets and improves their economic performance. Such strategic management also helps in accelerating the ROI (Return of Investment) from your assets rather than just ensuring their overall performance. Thus, if you are keen on improving the returns of your assets and creating additional value for the business, an AMS is the ultimate solution.

Author's Bio: 

Damon Anderson is the owner of a distinguished ISO consultancy in Australia that assists organisations in different sectors to get certifications of various ISO standards smoothly with services like gap analysis, implementation guides, and internal auditing. He is a dedicated ISO 55001 certification consultant and spends his free time writing blogs on the latest improvements in the ISO 55001 standard, importance of an AMS, and other related topics.

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