Why You Should Be Tracking Asset Lifecycles

Tracking asset lifecycles sounds like one more thing to do in a busy maintenance professional’s day. However, many discover they’re already well on their way with CMMS software.

The goal of asset lifecycle management is to get the maximum value from the assets your organization owns.

With a few simple tweaks to your CMMS, you’ll create a wealth of asset information with every work order or scheduled PM task. That data allows you to make more informed decisions—and save a lot of money.

How Can I Start Tracking Asset Lifecycles?

Creating an asset management plan starts with gathering the right data. And nothing is better at gathering maintenance data than CMMS software. Here are three steps to get started.

  1. Start with your critical assets. Pick the ones with high replacement costs or that directly impact production capacity.
  2. Choose the information you want to track. Enter information on each asset’s purchase date, purchase price, startup date, and warranty expiration date. Include other data important to your organization, like location, cost center, department, etc.
  3. Let CMMS do the hard work. And let your team do their jobs. Every work order or PM task entered into your CMMS software creates a historical record that calculates the cost of labor and parts used for the job.

You’ll have the most up-to-date information on the total cost of ownership for your assets, helping you make informed decisions.

How Do I Know Whether to Repair or Replace?

When it’s time to decide whether to repair or replace a failed asset, these small changes help you answer key questions like…

  1. What was the purchase price of the asset?
  2. When did we acquire it?
  3. How much has it cost to maintain it, especially in the past year?
  4. How much downtime is the asset experiencing lately?

Compare those costs to the estimated costs (and potential added productivity) of a new asset. You’ll have the data to make decisions about all aspects of the asset lifecycle, from purchase to disposal.

Assets can easily cost more than they’re worth, particularly as they age. Your oldest equipment might be costing you the least amount of money in repairs—or the most—but you’ll only know if the data is there.

Have questions? We’re here. One phone call is all it takes to get started.