4 Simple Steps of Asset Life Cycle Management

Facility management is a complex and dynamic field that involves the efficient operation of physical assets. These assets, whether they are buildings, equipment, or infrastructure, go through a lifecycle that includes planning, acquisition, maintenance, and disposal. Understanding and effectively managing these stages is crucial for optimising asset performance, reducing costs, and ensuring the longevity of your facility. In this article, we will explore the four stages of the classic asset lifecycle in facility management.

1. Planning

The asset lifecycle begins with the planning stage. This phase involves setting the foundation for effective asset management. During this stage, facility managers, in collaboration with other stakeholders, establish clear goals and objectives for their assets. Key tasks in the planning phase include:

• Needs Assessment: Identifying the specific needs and requirements of your facility.
• Budgeting: Allocating funds for asset acquisition, maintenance, asset depreciation value, cost to replace and future disposal.
• Risk Assessment: Identifying potential risks and challenges associated with the assets.
• Regulatory Compliance: Ensuring that assets meet all legal and regulatory requirements.

Planning lays the groundwork for making informed decisions about asset acquisition and management throughout their lifecycle.

2. Acquisition

The acquisition stage involves the procurement and implementation of assets based on the planning stage. It is where facility managers take concrete steps to bring their asset strategies to life. Key components of the acquisition stage include:

• Vendor Selection: Choosing the right suppliers, contractors, and manufacturers for assets.
• Procurement: Acquiring and installing assets based on budget and performance expectations.
• Quality Assurance: Ensuring that the assets meet required quality and safety standards.
• Documentation: Keeping comprehensive records of asset specifications, purchase cost, lifetime expectancy and warranties.

Effective asset acquisition is vital for achieving your facility’s objectives, and it’s a critical step in the asset lifecycle.

3. Maintenance

Maintenance is perhaps the most extended stage in the asset lifecycle, involving all activities aimed at preserving and prolonging an asset’s useful life. Efficient maintenance ensures assets operate at peak performance, minimising downtime and costly repairs. Maintenance tasks include:

• Preventive Maintenance: Regular inspections, cleaning, and servicing to prevent breakdowns.
• Corrective Maintenance: Addressing and rectifying issues or failures promptly.
• Predictive Maintenance: Using data and analysis to predict when maintenance is needed.
• Condition-Based Monitoring: Continuously assessing asset conditions to make informed decisions.
• Spare Parts Inventory: Managing spare parts to facilitate timely repairs and replacements.

Effective maintenance strategies have a direct impact on the longevity of assets and the operational efficiency of your facility.

4. Disposal

The disposal stage is the final chapter in the asset lifecycle. Assets reach the end of their useful life due to a predetermined time period set at the planning stage, wear and tear and being too costly to maintain due to their age, obsolescence, or changes in business needs. The disposal process involves:

• Decommissioning: Safely shutting down and removing assets from operation.
• Asset Valuation: Determining the remaining value of the asset.
• Disposal Method Selection: Choosing whether to sell, recycle, or dispose of the asset.
• Environmental Compliance: Ensuring that disposal methods align with environmental regulations.
• Documentation and Reporting: Keeping records of the disposal process for auditing purposes.

In conclusion, the implementation of a Computer-Aided Facility Management (CAFM) system plays a pivotal role in enhancing the efficiency and effectiveness of the asset lifecycle at all its stages. Here’s how a CAFM system contributes to each stage:

Planning: A CAFM system provides facility managers with a comprehensive platform for strategic planning. It enables data-driven decisions by offering insights into the performance of existing assets. By analysing data such as maintenance history, facility managers can assess asset health and prioritise improvements and set life expectancy. This ensures that the planning stage is based on accurate, up-to-date information, helping to define clear objectives and allocate resources effectively.

Acquisition: During the acquisition phase, a CAFM system streamlines the procurement process. It helps in vendor selection by providing access to a centralised database of suppliers and contractors, which can include performance ratings and past project histories. This valuable information aids in making informed choices, ensuring that the chosen assets meet quality standards. Moreover, the system facilitates efficient documentation and inventory management, maintaining clear records of asset specifications and warranties, install costs and depreciation value which are vital during the acquisition phase.

Maintenance: The maintenance stage is significantly enhanced by the presence of a CAFM system. It enables preventive, corrective, and predictive maintenance through data analysis. Facility managers can set up maintenance schedules, perform condition-based monitoring, and utilise predictive analytics to foresee asset issues. With automated work order generation and tracking, the system helps in the timely execution of maintenance tasks. A well-implemented CAFM system ensures that maintenance teams are adequately trained and equipped, contributing to more effective maintenance practices.

Disposal: In the disposal stage, a CAFM system continues to add value by assisting in asset valuation. Through historical data, it provides insights into an asset’s condition, usage patterns, and remaining value. This information is invaluable for determining the asset’s worth and deciding on the most suitable disposal method. The system can also track disposal records, ensuring compliance with environmental regulations and enabling a transparent record of the disposal process.

By providing a centralised platform for data storage, analysis, and reporting, a CAFM system ensures that facility managers have a comprehensive view of their assets at every stage of their lifecycle. This real-time visibility allows for more informed decision-making, efficient resource allocation, and improved asset performance. In summary, a CAFM system is an invaluable tool in the facility manager’s arsenal, facilitating the asset lifecycle from start to finish, optimising operations, and ultimately contributing to cost savings and the longevity of assets.

Author

Charlie Bown

Ex Facility Manager, I feel your pain!

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