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Pro-active asset management – systems of the future

PART II: New features under development could reduce costs by predicting the optimum time to replace assets

Modern asset management systems make it easy to manage numerous assets across multiple sites, as we learned in part 1 of this series. However their role to date has been very much reactive – such as providing alerts when something goes wrong, recording the work carried out and maintaining a history for each asset.

Arguably this is only part of the asset manager’s job. The other aspect is deciding whether to continue maintaining an asset or replace it altogether. With high-value items such as cranes, chainsaws, playground equipment and railway stock, understanding the optimum time to replace assets could easily results of thousands of pounds worth of savings, and improve the value of the company’s balance sheet.

Replacing assets – factors to consider

However This involves a more pro-active approach to asset management and making a decision would require many different variables to be taken into account. For example:

  1. The age of the asset
  2. The number of break downs
  3. The cost of breakdowns
  4. The cost of repairs in terms of labour, travelling and materials
  5. The cost of replacement
  6. The cost of finance for the replacement
  7. Future cost of maintenance
  8. Safety of continued operation
  9. The opportunity cost for investing in other projects
  10. The value of the asset and value of a replacement.

Where companies have a fleet of numerous assets, making this type of calculation manually on each would not be possible. However the information held in existing asset management systems could provide a basis for decision making. When combined with the use of big data and AI, it is possible to develop a model which could automatically scan the data, select the records requiring attention and present them to managers.

Of course this in no way suggests that assets should be replaced automatically based on the recommendations of an IT system. It would simply be bringing the cases to the attention of managers, to enable them to use their experience to interpret and then act on the information. It would allow companies to manage assets more effectively, whether they are acting on their own behalf or in the case of inspection and maintenance companies, providing a service to others.

CoreRFID is working on a pro-active asset management system based on our market-leading CheckedOK system and is inviting input from potential users about any specific features they would like to see. For further information contact Richard Harrison on 0845 071 0985 or email r.harrison@corerfid.com.