How Does Asset Management Increase ROI and Profits?
Companies rely on their assets and equipment to operate efficiently and effectively, so the importance of sound Asset Management (AM) practices and programs cannot be overstated. A digital AM solution helps companies ensure the safety, reliability, and longevity of their equipment, people, the environment, and the communities in which they operate.
From a corporate bottom line perspective, AM will increase productivity and provide the best return possible on your investment in your assets. Here are nine ways how.
1. Better Inventory Control
An AM program is designed to inform you when assets are ready to be retired or replaced. Decisions are based on data, not “best guess.” This eliminates using capital before necessary and protects against greater damage or safety risks if you wait too long to take corrective action.
2. Improved Resource Management
Like inventory control, knowing the state of your assets in real time will guide you to the best decisions concerning their upkeep and maintenance.
3. Decreased Inefficiencies, Equipment Repairs, Failures, and Downtime
A well-designed AM program will identify potential issues with equipment or assets before they cause a breakdown or failure. By catching problems early, companies can take preventive measures to decrease the inefficiencies of equipment failures, reducing downtime and increasing productivity.
4. Prolonged Equipment Lifespan
AM programs include a requirement for regular monitoring and maintenance. This heightened attention extends the life of equipment and assets, improving your overall return on investment.
5. Improved Production
Because your AM program ensures your assets are in optimal working condition and compliant with all regulations, there are fewer barriers to your ability to perform and produce.
6. Safer People, Workplaces, and Communities
Effective AM programs help identify and mitigate safety risks associated with equipment and assets. Regular inspections and maintenance ensure that equipment and assets function as intended, reducing the risk of incidents, injuries, and fatalities. This means your people, worksites, and communities are all safer.
7. Optimized, Predictable Performance
AM programs can help streamline operations and improve overall efficiency, leading to cost savings and increased profitability. Regular maintenance optimizes equipment performance and helps companies meet sustainability goals by reducing waste, improving energy efficiency, and minimizing environmental impact.
8. Improved Business Policies and Practices
A digital AM solution provides real-time data and analytics. Immediate access to complete data means you can make better decisions about your equipment and asset management. This, in turn, leads to improved strategic planning and business practices.
9. Regulatory Compliance
Compliance with regulations is critical to maintaining everyone’s safety. But from a purely monetary consideration, it also protects against costly fines, potential legal liabilities, and the reputational risk that can result from non-compliance. AM programs help ensure regulatory compliance.
Manage, Maintain, Monitor, and IMPROVE
Apart from ROI and profitability benefits, AM programs promote a culture of continuous improvement for any asset-intensive company in any industry. They ensure equipment and practices are regularly assessed so that improvements can be made at the right time.
By focusing on safety, reliability, and sustainability, AM programs help companies reduce costs. In addition, using data to make decisions concerning asset maintenance and management reduces downtime and improves productivity.
But Wait! There’s More!
Companies prioritizing asset management demonstrate their commitment to safety, quality, and reliability. In return, these companies enjoy a reputation for being responsible and caring for their employees and customers.
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