Asset Performance is vital for every organization. When an asset is not working downtime is increased. Every businessman knows unplanned downtime means loss. Loss in many ways such as maintenance expenses and hindering productivity.
According to Statista, “The statistic shows the average hourly cost of critical server outages, according to a 2019 survey. In 2019, 25 percent of respondents worldwide reported the average hourly downtime cost of their servers as being between 301,000 and 400,000 U.S. dollars.”
From the above instance, it is clear how much an unexpected downtime can impact your business! It simply results in loss of revenue, especially it depends on the industrial sector and nature & asset type!
How We Can Increase Asset Performance?
Asset performance improvement can be done in various ways:
Working on Downtime
Downtime means when the asset is not working when assets and equipment are in halt condition. Downtime can be divided into two categories:
Planned downtime is done when maintenance needs to be performed. It also results in increasing asset life. With planned timing, maintenance, machine optimization, and servicing type of activities are done. The management team needs to ensure that the inventory is available. Planned downtime does not interrupt daily operations if executed precisely.
This downtime interrupts daily operations and can hamper other activities as well. Unplanned downtime is the result of an unexpected breakdown of assets. Most importantly, unplanned breakdown of the machine can create havoc in the organization. In common cases, it occurs due to the lack of maintenance.
In both ways, maintenance is provided to the asset after which asset performance is improved specifically when downtime is planned.
Staff training is one of the most underrated activities. On the contrary, it is very effective if done in the right manner. Staff training will let your employees know how to run machines and equipment efficiently.
One of the primary reasons behind the machine does not work efficiently because employees do not know. They do not know when machines should be halted or if it needs rest. The machine shall be treated in the right way but one should know what is the right way! Thus, staff training can not only boost the productivity of employees but also can help in improving asset performance.
How Maintenance Costs Can Be Reduced?
Maintenance cost can be reduced by following these methods:
1. Preventive Maintenance
Let us take an example of an HVAC (Heating, ventilation, and air conditioning) unit. The company was using it regularly. Everything was going fine one day suddenly it stops working. Then, the maintenance team was called and they told several issues in the HVAC unit and created a huge bill for maintenance.
This is what happens when you use equipment until it's torn apart. Obviously, this (reactive) type of maintenance is expensive compared to regular maintenance.
The best tip for reducing maintenance costs is emphasizing preventive maintenance, especially for costly assets & equipment. Preventive maintenance occurs regularly in which assets are serviced properly and this process of oiling, cleaning, and changing air filter & oil type of activities are included. Other than this, changing rusty parts, wear and tear parts, and installing new-ones in the equipment.
As we know sudden equipment failure is costly. Since preventive maintenance is done regularly it reduces the chances of sudden equipment failure! This way maintenance costs will be reduced.
With the help of reports, you can definitely great insights about maintenance which can help in finding areas from where maintenance expenses can be reduced. One of the major areas is identifying non-performing assets.
One of the main reasons assets become non-performing is because they are idle most of the time & need maintenance more than healthy assets. Thus, the best thing to do is to change assets with new ones.
Reports allow you to analyze expenses information and data. Reports empower organizations to manage upkeep and maintenance tasks that assist in keeping assets in good condition and are helpful in creating quality products all year long. This improves the administration quality and speedier reaction times.
3. Choose Vendor Carefully
Vendor selection is very important for controlling maintenance expenses. They can provide inventory at a reasonable price when you have a good relationship with the vendor. The vendor can also adjust inventory quantity as per the order requirement.
As we know inventory is very crucial in maintenance. For instance, if an organization is purchasing inventory at a high price from the vendor. Then obviously maintenance costs will never be controlled. Thus, selecting the right vendor is very important.
So these were solutions through which you can reduce maintenance costs & boost performance. Meanwhile, asset management software is also used for controlling maintenance expenses and increasing asset performance. This software can do a lot for boosting asset performance:
- Calibration management
- Set alert for maintenance activity
- Ensure inventory availability
- Maintenance is done on time
Asset management software for controlling expenses:
- Maintenance tracking and Budgeting
- Emphasize preventive maintenance
- Asset statistics and reports
- Training staff
For more effective assets can be labeled with asset tracking techniques such as Barcode, QR Code. As they are more helpful in effective asset management.
Frequently Asked Questions (FAQs)
1. What type of data is stored in the asset management software for better stock handling?
A. Stock and inventory related documents including images
B. Vendor information
C. Order number
D. Stock quantity
These types of information are stored in the software for stock handling.
2. How to manage assets efficiently?
For managing assets efficiently asset management software is mandatory. It will be very beneficial for business. Not just assets, you can manage inventory as well with this software. Moreover, take asset tags & label assistance can be taken for more effectiveness.
3. Why asset management is important?
Asset management is significant because it enables an organization to track and manage its assets and equipment utilizing a systemized approach. When asset management is done correctly it results in increased productivity and better return on investment (ROI). Maintenance expenses are decreased and performance is optimized.