The Good Data: How efficient asset management can minimize life cycle costs Life Cycle Costing is a crucial asset tracking tool that evaluates all possible costs incurred in the life of an asset. It includes all ownership and maintenance costs including concept, design, development, installation, support and disposal cost. That is why Life Cycle Costing is also referred to as Total Cost of ownership. Though, some of these costs can be projected, and estimated with some accuracy such as energy cost but some costs are subjective. Maintenance and repair costs are the biggest variables in LCC.
Variable costs are a hugely dependent on the type of asset, initial investment and the efficiency of asset management software or system. With the help of an efficient asset management platform, a company can track its time and money being spent on maintenance and repair. This provides a robust data for life cycle costing and prepares a schedule for proactive regular maintenance. In the absence of such a system, there is no data to review and hence it becomes difficult to be prepared for hardware or software failures. Thereby, increasing overall cost of the asset. An additional benefit of an efficient asset management tracking system is that a well-maintained equipment or software becomes easier to dispose of at the end of its life-cycle. Since, all expenditures are being recorded regularly, this data also identifies problem equipment
before it becomes a bigger liability. This has provided various small and big business to invest in equipment management software also known as CMMS. By choosing a Computerized Maintenance Management System, CMMS, businesses invest in preventive maintenance software that provides long term benefits: Track and stock inventory - An efficient CMMS enabled fixed asset management software stores real-time data that includes documents and images related to an asset, serial number of the part, customized fields, vendor details, associated asset or equipment, threshold quantity and also the state of the equipment or the asset Track recurring maintenance costs – With the help of an equipment preventive maintenance software business can track repeat services and schedule an effortless maintenance management system. This ensures smooth operations and better decision making. Improve inventory management – Mostly, every computerized maintenance management software has inventory management feature that allows businesses to ensure that solve for availability issues. Track Employee Asset engagement – Without preventive maintenance system it is difficult to track inefficiency in equipment maintenance by employees. This leads to wastage of resources, reduced lifespan of assets and possible injuries at work. A preventive maintenance solution ensures distributing the right tools to right person for higher efficiency and best methods across your business. Improve vendor management – An efficient CMMS provides detailed vendor reports that can be analyzed for better maintenance scheduling. Implementing a CMMS helps in preserving assets, by collecting relevant data, updating it regularly and providing insights to make cost-efficient decisions.