Good asset management is the core of a well-run business, encompassing a whole-of-life plan for acquisition, control, and disposal of assets. Yet, amid the day-to-day imperatives of business management, it is easy to fall prey to operational priorities that distract from an optimized asset management strategy. Organizations make six common errors which, if identified and rectified, can lower the total cost of asset ownership, minimize capital spend, and optimize asset efficiency.
1. Focusing solely on operational costs
It’s understandable for an organization under financial pressures to focus on monthly and annual budgets. Yet, when cutting operational spending, maintenance budgets often receive attention as the impacts of uncompleted planned maintenance are not immediately manifested. Short-term thinking like this reduces asset life while increasing total ownership costs.
Understanding how the maintenance budget fits with overall asset longevity and availability is important. Target service levels, average availability, failure modes, and maintainability should be calculated. Finance will determine a …. (READ THE FULL ARTICLE ON AMERICAN MACHINIST)