Manage your assets to maximise your return on investment
Organisations make significant investments when purchasing assets to grow and improve their business and maintain a competitive edge. Those who implement an Asset Management and Compliance Software (AMCS) package benefit significantly during tender submissions, and also enjoy reduced business interruption, cost savings, full asset utilisation and lower business risks.
With companies under constant pressure to reduce costs and improve productivity, the ability to monitor what you own, where it is and whether it’s being fully utilised or not is of major importance to any company.
An AMCS monitors and maintains any item of value to an entity or group. It may apply to fixed or mobile assets, such as buildings and their infrastructure, trucks, trailers, excavators, tractors and pumps. An AMCS is relevant to all industries, including mining, quarrying, logistics, marine, transport, buildings and property.
An asset management system not only captures the value of an asset, it can also assess how to use it optimally for future benefits or cost savings.
What is Asset Management and Compliance?
Onesystem’s Asset Management and Compliance Software (AMCS) package is a leading Australian-owned software solution which ensures your investments are fully maintained, operate at maximum availability, are compliant with regulatory and customer requirements and that business risks are minimised.
Our AMCS is deployed in a diverse range of industries and ensures your business is structured, organised and efficient, giving you all vital information you need, at your fingertips.
Organisations that utilise Onesystem’s AMCS software enjoy peace of mind, knowing that their assets are managed in a logical and cost-effective way throughout their entire life cycle. Customers are able to view or action the following with a simple click of the mouse:
- Maintenance history.
- Regular preventative and reactive maintenance.
- Any overdue work.
- Unscheduled jobs.
- Historical maintenance tracking, cost comparisons and spare parts and consumables performance.
The benefits of implementing a systematic approach to asset management
According to Strategic Asset Management consultant Stanton McGroarty, “modern businesses operate with paper-thin margins and ever-shrinking customer lead times, but it is unrealistic to carry finished inventory or duplicate production assets to cover unreliable equipment. Running equipment until it breaks down is also simply not an option.”
The time and cost to repair an equipment breakdown are three to five times what it takes to make a planned repair of the same equipment prior to failure, he says, so ensuring your investments are fully maintained and operating at the highest availability is essential for any successful business. 1
Asset management consultant, Adrie Pouwer, says it is essential to plan for maximum profitability by ensuring all of your business assets are covered by a regular testing and maintenance cycle. Asset management and compliance software alerts you when equipment needs to be tested and the details of what testing is required. It also allows you to assign the work and monitor progress and alerts you if assets fail and need rectification.
He adds that it’s also key for finance and operations departments within an organisation to know when to replace or overhaul an asset. Factors that need to be taken into account are: Changing needs in capacity or quality that an asset can deliver, as well as considering new, more efficient models that may have reached the market through innovation. Wear and tear also increase maintenance costs.
Optimised assets also lead to higher internal and external customer satisfaction.2
Savings can also be made through improved efficiency. One example includes not having to rent equipment which could be more quickly deployed from another site, or knowing that an asset undergoing maintenance is due back on-line in the near future.
Reduce Business Risks
Information sits at the heart of knowing your business risks and making the right decisions to minimise them. According to Enterprise Asset Management (EAM) consultant, Paul Roberts, asset and compliance software allows tracking, creates reminders and supports documentation which allows you to:
- Reduce the risk of theft through physical asset inventory control.
- Reduce the risk of lost production and injury through routine maintenance and inspections.
- Reduce the risk of fines and bad publicity by preparing for outside inspections well in advance.3
These all, in turn, gain the support and confidence of key business stakeholders.
Asset and compliance management tools help you navigate and guide your business decisions with real-time, relevant data. This keeps your asset maintenance compliant and generates reports on planned preventative maintenance, test history, and asset lists.
This ensures compliance with the requirements and wishes of key stakeholders and improved knowledge management. These tools also make sure regulatory and legislative compliance is reached, which helps eliminate potential fines and negative publicity from possible preemptive inspections.
Lower Operating Costs
Managing and monitoring assets effectively can contribute significantly to a company’s bottom line, by reducing costs and optimising all the assets in a portfolio. Roberts points out some of the ways in which this is achieved:
- Eliminating costly emergency repairs, improving equipment uptime and increasing asset longevity through effective preventative maintenance, condition monitoring, and predictive upkeep.
- Taking advantage of asset warranties.
- Taking advantage of lower insurance premiums.
- Accurately predicting the relative energy costs associated with asset portfolios.
- Saving on administrative overhead, as a result of more efficient processes.
- Saving on costly, ill-informed decisions, as a result of poor data integrity.
- Saving on time, as time is money.3Long-term production stability, as investment decisions are explicitly made based on life cycle costs.
- The expected lifespan of assets is harmonized over different departments.2
Faster Return on Investment
Diligent management of an asset portfolio through the implementation of management and compliance software can lead directly to improved financial performance as a result of better ROI and cost reductions. This, in turn, leads to increased attractiveness for key stakeholders and shareholders.
Despite decades of lean manufacturing, JIT, outsourcing, Total Quality Management and Six Sigma, manufacturing executives are under constant pressure to constantly deliver the next big competitive improvement. The question is, where can these be found?
McGroarty answers, “the answer has been hidden in overhead accounts and factory corners since the beginning of mass production. The tools to manage it effectively have been emerging steadily in recent years, and today the science of asset management is accessible to any organisation willing to undertake fundamental changes in the way they manage production assets. The rewards can be astounding.” 1
He says that in most manufacturing or distribution operations, maintenance department costs are 5 to 15 percent of operating costs. Most accounting systems require that several accounts be combined to identify the total cost of maintenance operations, but a robust and comprehensive asset management tool can provide consolidated information in a snap.
Pouwer explains that an asset and compliance management system creates a link between organisational objectives and the activities of an asset that contribute towards meetings these – either directly or indirectly. An objective in the area of safety, for example, requires an asset manager to check if the required inspections are completed for the health and safety of employees – aside from any other business impacts if these didn’t take place.
AMCS ensures that critical aspects of inspection and maintenance have been done, and histories, detailed checklists, and analyses are easily available. This facilitates employee safety, by making sure corrective actions are done where required and process improvements are introduced to prevent accidents or recurrences.3
It is essential that modern businesses move away from ‘old school’ manual, labour-intensive processes that cost valuable time and money. A reputable asset management system allows you to keep an up-to-date and detailed report of every asset in your portfolio – no matter how many assets or sites you manage. The old method of tracking assets via word of mouth and spreadsheets is highly inefficient and should be retired as soon as possible.
With AMCS a comprehensive asset history, details of upcoming services and information such as manuals, checklists or photographs are made available to office and field staff – all combining to drive an efficient workflow. Information can even be made available to external customers and suppliers through an asset management system, if required.
Sound reporting also allows a business to make informed decisions about key asset drivers, such as performance, cost, profit, risks and opportunities. It also creates a record of decisions regarding an asset, such as who made them and when.
Roberts adds that reporting via asset and compliance software also documents more efficiently by electronically capturing invoices, receipts, requests for quote (RFQ) or purchase orders. “It also eliminates costly and inefficient redundancy by utilising the same electronic filing system across all departments.”
The software also reduces the time spent searching for information on facilities, equipment and other physical assets by streamlining communications through:
- Proper context – all asset information is organised into its proper context. Every ‘thing’ has its ‘place’.
- Filtering – asset portfolios are categorised and filtered to reduce information search times.
- Equipment databases – including asset specifications, loaded at set-up time.
- Eliminating paper checklists – electronic checklists are enabled for smartphone or tablet and replace paper work orders and checklists.3
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