Last Updated on July 18, 2023 by Ossian Muscad
Physical asset management is an important part of any business, as it involves tracking and managing a company’s physical assets. Companies rely on their physical assets to generate revenue; proper management can help ensure these assets are maintained in good condition.
This guide will discuss the importance of physical asset management, look at some of the processes involved, provide tips for effective asset management, and explore various technologies available to assist with this task. Businesses can achieve better performance and increased efficiency by understanding how to effectively manage physical assets.
What is Physical Asset Management?
Physical Asset Management manages and maintains physical assets throughout their lifecycle, such as equipment, property, or manufactured items. This involves everything from the asset’s conceptual design or purchase to its usage to its disposal.
Physical Asset Management aims to efficiently and effectively preserve the value of these assets while reducing costs and risks. This requires a systematic approach and specialized skills for operating, maintaining, and streamlining complex assets.
Physical Asset Management can also use specific software solutions to replace manual spreadsheets and provide a smarter way to track and organize assets. These tools can greatly enhance the efficiency and effectiveness of physical asset management in an organization.
Benefits of Managing Physical Assets
If you’re wondering why managing physical assets is essential, several benefits make it worthwhile. Here are some of the notable benefits of physical asset management:
- Increased Asset Availability and Reliability: Regular maintenance and timely repairs increase the operational availability of assets and reduce unexpected breakdowns.
- Reduced Downtime and Repair Costs: Proactive management can identify potential issues before they become critical, reducing downtime and expensive repair or replacement costs.
- Improved Safety and Compliance: Properly maintained assets are safer and more likely to meet regulatory compliance standards, reducing the risk of accidents and non-compliance penalties.
- Increased Asset Visibility: Asset management tools provide real-time visibility into the status and location of assets, enabling better tracking and control.
- Long-Term System Integrity: Regular maintenance and updates ensure the long-term integrity of the system, prolonging its lifespan and ensuring it remains in good working condition.
- Prevention of Inefficiencies: Efficient asset management prevents inefficiency by ensuring all assets are in good working condition and used optimally.
Physical Asset Management Best Practices
Conducting physical asset management can be complex, but following best practices can help ensure you manage assets effectively. Here are some tips to keep in mind:
Regular Asset Auditing
Regular auditing of your physical assets is crucial. It helps you keep track of the condition and location of your assets and to identify any missing or underutilized assets. Regular audits help ensure that all information in your asset register is up-to-date and accurate.
Implement Preventive Maintenance
Preventive maintenance involves regular, scheduled maintenance to keep assets in optimal working condition and prevent breakdowns. This proactive approach can significantly extend the life of your assets, reduce costly downtime, and improve overall operational efficiency.
Use Asset Management Software
Leveraging asset management software can streamline and automate many aspects of physical asset management. These tools can help you track assets, schedule maintenance, manage inventory, generate reports, and more. They also provide real-time visibility into your assets, which aids decision-making.
Standardize Asset Lifecycle Processes
Standardizing asset acquisition, use, maintenance, and disposal processes can help ensure consistency and efficiency. Clear guidelines should be established for each asset’s life cycle stage, and all stakeholders should be trained on these procedures.
Proper Employee Training and Orientation
All employees who interact with your assets should be adequately trained. This includes training on how to use and maintain assets properly and how to update the asset register and report issues. Well-trained employees are essential for effective asset management.
Develop a Risk Management Strategy
Physical assets are subject to various risks, including theft, damage, and obsolescence. Therefore, it’s essential to develop a risk management strategy. This might involve securing insurance, implementing security measures, and planning for asset replacement.
What is a Physical Asset Management Checklist?
A physical asset management checklist is an organized list designed to guide managing and maintaining physical assets throughout their lifecycle. This checklist is a tool used by organizations to ensure all aspects of physical asset management are addressed systematically and efficiently.
What To Include in a Physical Asset Management Checklist?
The items in a physical asset management checklist will depend on an organization’s specific needs and requirements. However, general items to include in such a checklist are as follows:
- [ ] Asset Identification: Documenting each asset’s details, such as the type of asset, its location, purchase date, condition, expected lifespan, and replacement cost.
- [ ] Asset Tagging: Each asset should be labeled for easy identification and tracking.
- [ ] Asset Inventory: An up-to-date inventory of all assets, including their current status and location.
- [ ] Maintenance Scheduling: A schedule for regular maintenance and inspections to ensure assets are kept in good working condition.
- [ ] Risk Management: Assessment of risks associated with each asset, such as potential for breakdown, theft, or damage.
- [ ] Asset Disposal: A plan for the end-of-life disposal or replacement of assets.
- [ ] Audit Preparation: Regular audits to verify the accuracy of the asset inventory and the effectiveness of the asset management process.
Create a Physical Asset Management Checklist Using a Low-code Platform
If you’re looking for an efficient way to create and maintain a physical asset management checklist, consider using a low-code platform. Low-code platforms are user-friendly tools that help non-technical users quickly build sophisticated business applications with minimal coding. This makes them ideal for creating custom checklists or other digital forms.
DATAMYTE is a quality management platform with low-code capabilities. The DataMyte Digital Clipboard is a low-code workflow automation software with a built-in checklist and smart form builder. This feature and its drag-and-drop interface allow you to create any checklist and form template you need—including physical asset management checklists.
To create a checklist or form template using DATAMYTE, follow these steps:
- Log in to DATAMYTE and navigate to the ‘Checklist’ module.
- Click “Create Checklist” to create a new checklist or form template.
- Add a Title to the checklist or form template; select the category in which it belongs.
- Click “Add Item” to add items to the checklist or form template.
- Add appropriate descriptions to each item, the type of answer required, and other relevant specifications.
- Assign the personnel responsible for completing the checklist.
- Indicate any required approvals from other relevant personnel, such as supervisors or quality assurance managers.
- Save your checklist; it will now be available on any device. You can also print a physical copy of your checklist.
DATAMYTE also lets you conduct layered process audits, a systematic review of critical process steps. This auditing method focuses on the areas with the highest risk of failure or non-compliance. By conducting LPA using DATAMYTE, you can effectively identify and correct defects before they escalate.
With DATAMYTE, you have the perfect solution for creating and implementing physical asset management checklists. Book a demo with us today to learn how DATAMYTE can help you streamline your asset management processes.
Conclusion
Physical asset management is a critical process for businesses in any industry. Following the steps outlined in this article, you can better track and manage your physical assets to ensure longevity and reduce costly downtime. With the right tools and approach, you’ll be well on your way to effectively managing your organization’s physical assets.
