Ultimate Guide About Enterprise Asset Performance Management

Lots of organizations today rely on the reactive type of maintenance which is not an effective strategy. In the reactive strategy, assets are used till they break, and then they are fixed! Is your organization doing the same?

If yes, then you must focus on asset performance management! Enterprise Asset performance management can help organizations in saving money on maintenance, increase the performance and life of each asset.

What Is Asset Performance Management?

According to Gartner,  “Asset performance management (APM) encompasses the capabilities of data capture, integration, visualization and analytics tied together for the explicit purpose of improving the reliability and availability of physical assets. APM includes the concepts of condition monitoring, predictive forecasting, and reliability-centered maintenance (RCM).”

In simple words, asset performance management enhances the performance of each asset. It makes the asset more reliable and reduces the risk of asset failure.

It mainly focuses on asset maintenance and other than this it is also helpful in report making and data analysis. Overall, it provides a complete view of asset health, performance, and quality.

Also Read: How Preventive Maintenance Discard Common Conveyor Issues?

As you continued looking for operational greatness, asset performance management (APM) assumes a fundamental part in accomplishing business objectives - guaranteeing assets convey an incentive at least expense while working in a safe and ecologically dependable way.

From operational prescient and prescriptive examination to resource dependability, measure wellbeing, and respectability the board programs, APM arrangement brings activities, designing, and upkeep together to oversee business measures in an organized choice help environment.

What Are the Benefits of Asset Performance Management?

The benefits of asset performance management can be seen in different industries!

• According to an oil & gas organization, they saved $5.3 million by preventing asset and equipment failure.
• A food and beverage manufacturing company reduced 20 percent decreased work as they do not have to find their assets and equipment.
• Maintenance work order-based companies have seen performance optimized by 15 percent.

1. Asset Performance

As the name suggests asset performance, optimizing asset performance, and ensuring that asset breakdown does not occur and asset works properly and calibration management can also be done.

Subsequently, the significant goal of asset performance management is to smooth out upkeep and to keep an asset in the best-structure. To do so, asset upkeep records and history assistance is also taken.

2. Increased Asset Life

When asset performance management needs to be done efficiently then the assets life cycle is critical. From the asset procurement stage, the disposal phase. It helps with improving productive asset life in all stages. It keeps up in maintaining the asset and improves its effectiveness.

Also Read: How Asset Management Saves Money Via Capital Asset Depreciation?

Simultaneously, it keeps definite records of every asset to look after & maintain. Besides, it is additionally advantageous in giving power over all the assets in operation activity.

Through asset management, the client can sort out which asset isn't offering some incentive to the association or if an asset is not being productive then assets need to be disposed of before any asset failure occurs.

3. Maintenance Expenses Saved

Ineffectual management of assets not just prompts superfluous cash spent on upkeep yet additionally diminished the life expectancy of assets. At the operational phase of a resource life cycle, a business firm can defy a few support issues. Maintenance issues can cut into the development & growth of the association.

Asset performance management (APM) manages the work for you; it keeps all data and information on all assets. APM schedules the upkeep activities also and make activities notified and alerts so that no asset maintenance is left. It helps in business development by distinguishing ineffective assets.

4. Employees Safety

Safety is always a concern in manufacturing firms and organizations. Safety is a critical issue for assets as well as employees. For this purpose, asset inspection is done regularly so that equipment spillage or leakage does not occur.

When upkeep work is done on time then the asset is more secured and optimized, and its performance is additionally expanded. Dodging breakdown prompts asset safety.

Determining potential issues spare an association with a ton of cash since it is conservative to changes a couple of parts of the machine as opposed to changing the entire machine. Besides that, the environment is more secured for employees.

5. Maintenance Reports and Statistics

With asset performance reports, managers can collect great intel for effective asset management. These reports are helpful when an asset needs maintenance and when it needs to be disposed of!

Analytics data can be retrieved within minutes as per the requirement. In reports, you can see the performance of each asset. With asset management reports, you can discover potential issues and plan for the future & schedule maintenance accordingly.

Conclusion

Saving money or reducing expenses without compromising on needs is a good way to grow a business! Increasing asset performance is also required for business expansion. Asset performance management provides a positive effect on each significant key performance indicators (KPIs) that the upkeep team tracks.

The main reason behind huge asset maintenance bills and reduced productivity is reactive maintenance. In reactive maintenance, organizations wait for assets to be broken but this is not a good practice at all. As we know small issues can turn into big issues with time and big problems are expensive to solve.

Thus, it is better to move from reactive maintenance to proactive maintenance as it is conducted regularly and chances are reduced for sudden breakdown and it is also less expensive. Asset management software can be used for the same purpose of increasing & optimizing performance and reducing asset failure chances.

Also Read: How CMMS Software Helps in Streamlining Our Business Operations?

Frequently Asked Questions (FAQs)

1. What are the goals of organization management when they implement asset performance management?‍

Below we have mentioned the major goal of organization management when they implement asset performance management:
1. Reducing operating cost
2. Generating more revenue
3. Increasing profit ratio
4. Customer satisfaction
5. Risk management

2. What are the point-to-point advantages of asset performance management?

‍All the benefits are mentioned above other than that:
1. Improved asset performance
2. Informed decisions
3. Risk minimized
4. Optimized brand image and reputation
5. Increased sustainability

3. Which industries use asset performance management most?‍

1. Oil and gas industry
2. Solar energy industry
3. Food & beverage industry
4. Manufacturing industry
Mostly asset performance management is used by these major industries.