Why Do You Need an Asset Management Plan

An Asset Management plan is essential for an effective Asset Management System. According to the ISO 55000, an Asset Management Plan involves optimising performance, risk and cost across the lifecycle of assets to get the most value from them. The best thing about having an this plan is that you will enjoy efficiency and productivity.

What are the benefits of having an Asset Management Plan?

  • Tracking Assets Becomes Easier- An Asset Management Plan helps you track an organisation’s items by providing details on where and how they are used. Keeping track of the assets a business owns helps to streamline operations. A plan also eliminates the chances of recording ghost assets since all items are accounted for.
  • Enhances Operational Efficiency- Asset Management involves aligning the company’s needs with the existing capabilities. A good Asset Management Plan will entail evaluating what you can leverage before spending more or the type of assets processes you can eliminate to save more money. Ultimately, this improves operational efficiency.
  • Enhancing Reliability- Having a good Asset Management strategy allows you to pay more attention to the assets’ condition. This means that you will have fewer unexpected failures, reduced emergency repairs, customer relations issues and costly lawsuits. Highlighting potential threats in a plan helps to boost your risk management efforts and allows you to focus resources on priorities.
  • Financial Planning- Accounting for the acquisition, usage, and disposal of assets allows you to plan for the funds you need. The financial summary section of an Asset Management plan includes cash flow estimates for one to five years. It also details how expenses should be treated to determine the best funding strategies and timing.
  • Cost Savings- There is evidence that a strategic Asset Management plan allows you to maintain assets in a reliable and sound condition. The plan aims at reducing maintenance and operating costs, which means that you will save more and get more value out of your assets.
Cost Savings | Why Do You Need an Asset Management Plan | Best Practice Biz Blog

Critical Aspects of Asset Management Planning

  • Levels of Service- It is essential to ensure that the level of service provided by particular assets is commensurate with the customers’ expectations. Some of these service levels include quality, cost, efficiency, safety, and quantity.
  • Lifecycle management of assets- The asset lifecycle management section on your Asset Management Plan should detail how the assets should be operated and managed at the specified service level. Some of the subsections to add are; background information, risk management plan, operating plan, recapitalisation plan and strategies, capital planning and strategies and disposal plan. It is worth noting that the asset lifecycle management segment forms the most critical part of the Asset Management Plan.
  • Continual improvement- This section focuses on current and future Asset Management practices. It should also detail monitoring developed management plans and modifications added to the systems.

Best Practice Biz Can Offer The Training & Certification You Need

Best Practice Biz is a JAS-ANZ accredited body that aims at offering quality in-house training and support systems to companies across the world. Do you want to obtain the ISO 55001 certification? We can offer a solution.

Our training services will boost your knowledge in Asset Management planning, thus giving your business a competitive edge and enhancing customer confidence. Contact our team at Best Practice Biz to learn more about how we can help you grow your business.

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