Poor Asset Maintenance Represents Real Risk

by Bob Neely on May 2, 2012

Good article from Mike Schmidt over at Manufacturing Business Technology about how a lack of proactive, intelligent asset management is a true risk to the organization:

If you’re not managing assets properly, you don’t know what the cost of those assets are and (what the cost is) to repair those assets,” he says. “That creates a big risk to an organization.

That’s really the crux of it. Said another way, if your organization is not managing its assets properly and systematically, you are throwing money away!  In my daily conversations, I often find myself surprised at how many companies do not have an asset management system. Of those that do, I’m finding that many don’t use the solution to its fullest extent — if at all.

My daily conversations jibe with what Schmidt found:

According to the survey, only 37% of respondents currently have EAM/CMMS solutions in place. In addition, 49% do not use applications to manage documents about their assets.

Organizations need to understand that’s some powerful shelfware.

Schmidt’s is targeted at the manufacturing sector, but is directly applicable to all asset-intensive industries, such as higher education, utilities and power generation, energy and healthcare.

Another key quip about whether or not executives realize the true risk poor asset management represents:

And it’s that risk that is only going to lead to more pressure in the coming years, says Zirnhelt.

“The pressure’s been there, but my impression is that executives, in an average sense, don’t appreciate it,” he continues. “It has just taken them a long time to appreciate the severity of it.”

Bottom line: if your organization is not managing its assets effectively and efficiently, there is no better time to start than now. If you’re an Oracle/PeopleSoft shop, check out our whitepaper about PeopleSoft Maintenance Management: An Introduction and Overview of Benefits for a good jumping-off point.

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More links:

MIPRO Consulting main website.

MIPRO on Twitter and LinkedIn.

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