[Written By External Partner]
Every organization has a fixed asset that provides value to its services and reputation. Without the support, a company lacks its crux and thus, falls apart in no time. That is why there is a dire requirement to manage these assets and ensure they remain upgraded throughout the period. This is what is called Asset Lifecycle management today.
The process of asset management falls open in four main stages that help optimize its delivery and manage it comprehensively. Let us take a look at them for best practices!
What Is Asset Lifecycle Management?
Asset lifecycle management is simply what manages the assets of a business or an organization. Thus, it is a strategic approach to asset management that is best performed using asset management software. Therefore, it falls into different key stages: Planning, Procurement, Operation & Maintenance, and Disposal. Each of these critical stages has something different to offer that helps make this process a cakewalk. This systematized process helps decide upon various factors such as budget, reliability, and efficiency.
What Are The Four Key Stages of Asset Lifecycle Management?
The first stage consists of planning a valuable asset for the business. Such a thing is done by incorporating decision makers and allowing them to take a unanimous decision about adding support to the business organization that provides value and reputation to it. Thus, this is crucial because this is the stage that helps determine an asset’s buying and identifying them for future management purposes. Such a thing occurs by keeping in mind the value of the existing assets as well.
The second stage of procurement deals with the financial side of the asset. It means that the asset has been carefully scrutinized, analysed, and is now ready for purchase. Thus, this is the time when the budget is involved. Only once the asset has been bought and prepared for use can it be used for lifecycle management. Thus, effective tracking solutions fall under implementation to make this step occur correctly.
- Operation and maintenance
In the third stage, the asset is to work. This is the most extended phase of its lifecycle management as it deals with operation and maintenance. Thus, this is the time when the asset functions for the company and is under supervision. Therefore, any repairs or whatever needs to happen to the asset occurs during this process. As a result, the investment begins to generate revenue for the company and provides all its benefits. The wearing and tearing of the asset also start to occur during the last stages of this one.
The asset’s final stage is where the purchase has completed its usefulness in the company and is now ready to be removed, thrown away, or recycled in many cases. Although its value ends at this time, the disposal needs to occur efficiently to ensure eco-friendliness.
The Bottom Line These were the most critical stages of Asset Lifecycle Management that prove to change an organization’s system. Thus, one should choose their assets wisely.