A strategic asset management plan will allow you to understand how effective your assets are being utilized. The value over the entire lifecycle of an asset can be determined and planned for. You can dispose of costly assets that are not deemed necessary and generate funding from their sale.
Collect information about which assets your organization currently holds. This information should be available from company accounting records. Confirm the records with a physical audit of the tangible assets. Think of how well your assets are serving the goals of your organization or individual department. Consider your company’s short-term and long-term goals and then use this information to help you determine how the assets may be assisting or hindering your organization. Take into account projected costs for any asset to learn what steps you need to take now.
Some assets may be necessary to hold but may require upgrades. Certain assets may be deemed non-essential or extraneous and may not require further holding by your organization. For example, your organization may own a manufacturing plant or lease a building for operations or administration. The value to cost ratio of this plant will need to be assessed to fully determine just how important it is to your organization’s goals. Be sure to separate individual assets within a building based upon cost, contribution, frequency of use, and importance. You will likely need to work closely with other departments to fully understand their procedures.
Acquisitions (including leases or rentals). Operations. Maintenance. Disposal. Funding. Risk assessment and management.
This phase may also include replacement assets. Cost to benefit analysis should be calculated before acquiring or leasing an asset. Only assets that have already been evaluated as being necessary should be acquired. For example, your organization might want to expand and acquiring a new facility could be part of your acquisitions planning phase.
Any operational costs should be considered during this phase. If any training is required in relation to the asset it should be factored into this phase of the strategy. For example, an industrial water filter will have a certain cost attached to its function over time. Including this operational cost will let you compare it to other costs in order to make a good strategy for its management.
Keep in mind that all of a company’s assets are important for carrying out the strategic plan. The physical assets that your organization owns will all require some type of maintenance to improve your chances of success. Details of planned future maintenance operations should be included in this phase. Include projected costs of maintenance over time. For example your company may own an older facility. It can be expected than that maintenance costs will likely continue to rise. These rising costs will factor into the organization’s decision regarding the future of the facility.
Include the reasons for disposal. List the methods of disposal. If the asset is being sold list the value that it could generate. All assets should have a disposal plan that details when they are to be disposed of and when. For example, your organization might have recently acquired a new shipping vessel. Even though it is new, you should have a planned retire date for the ship based on projected operational and maintenance costs compared to how critical the ship is to your company’s functions.
Consider the cost of the asset over its entire lifetime. Consider costs of disposal as well as any funds generated from the sale of disposed assets.
Keep in mind that all of a company’s assets, whether they are physical, financial, human, information or intangible, will have different risks associated with each of them. You will need to address all of these risks. Funding should be made available for the replacement of essential assets in case of an emergency. Plans to quickly acquire key assets in the event of their loss can be included in your risk assessment. For example, there may be a low risk that your company’s generator will stop working as long as it is properly maintained. However, should it fail to be maintained, having a plan in place can help minimize loss.
The ISO 55000 will take you through the entire process of creating your strategic asset management plan. The ISO 55000 can help you meet regulatory laws and requirements that might be demanded from your organization. The ISO 55000 meets international standards including the American National Standards Institute and ASTM International standards. [6] X Research source The ISO 55000 is becoming a necessary standard when working with clients, insurers or investors.
Assets are things of value that a company owns or is responsible for. Asset systems are groups of assets that must function together.
Mission statement and introduction. Information about your organization including the state of your business, needs of clients, and an asset portfolio. A section that details the planning process that went into your strategic asset management plan. Objectives for your asset management program. Strategic plans that include targets, time-frames, priorities and who is responsible. Lastly your strategic asset management plan should detail risks and end with a conclusion.
A planning process that is backed up by strong strategies suited to your organization. Your plan should include both assets and asset systems. Any objectives presented need to be included clearly and plainly.
