Asset Planning: Generating value through Service Management

Asset planning and Service Management are nowadays a powerful pair that allows us to control and generate value to the company through the correct use, operation and distribution of assets to respond to the business needs.

Meet the latest updates on the perception of asset planning from the perspective of service delivery; and discover how are they closely linked to the business objectives.

Service Management and Asset Planning

When we talk about Service Management, we automatically think about the best practices to satisfy the external client or end user. Probably the last thing crossing our minds is that the members of our organization are also customers who need and demand services. In short, the company’s employees are internal clients that also require timely service and attention.

What is service for the internal customer?

Basically, everything that your employees need to fulfill their functions and tasks within the organization, is a service. From simple pencil and paper to the different softwares and access to sensitive files and data of the company. All of them are assets that the company puts at the service of its internal clients to make their work easier.

Now, like every invention of man; assets are subjected to a life cycle marked by corrosion or degradation over time. So, to give an account of the state in which each asset is within the life cycle; we need to approach Asset Planning as a Service addressed to the internal client.

How to achieve the correct blending between Service Management and Asset Planning

On the other hand, Asset Planning allows companies to schedule and follow a maintenance schedule for tangible and intangible assets.

Such calendar must include variable parameters to determine the correct actions to follow once a milestone has been reached in the life cycle of the asset; or when it comes to an end.

However, such actions aim to adding value to the company more than anything else. That is, if we are going to recycle, replace or discard an asset for whatever applicable reasons; the ultimate benefit pursuing behind it is to add value to the entire organization so that it fully complies its objectives.

In any case, the ISO 55000 standard was created to managing services from the perspective of Asset Planning. It compiles definitions, guidelines and actions to achieve maximum sustainability for the company.

The ISO 55000 Standard and Asset Planning

The general framework of the ISO 55000 Standard obeys to the following statements:

  • Setting Asset Planning Objectives

The first step of the standard encourages us to set objectives within the asset planning. The compass to follow to do so are the company’s general objectives since they derive the desired results into benefits.

  • Meeting business objectives with real necessities

Following, we must match the objectives of asset planning with the real needs of the company. Similarly; asset planning they can be expanded and divided into subsets to satisfy multiple functions.

Likewise, they also must respond to needs of external supplies and services (suppliers, contractors, and even regulatory entities and external shareholders).

  • Establishing General Control Parameters for Asset Management

Finally, asset planning must fit into a calendar that accounts for what it measures in logical units; its duration in time; and the actual success achieved vs. expected. Qualitative and quantitative measurement units are allowed.

In any case, what it really stands out for experts in Asset Planning; is that even when ISO 55000 seems to have special application to the maintenance area, it really focuses on service delivery. Now, that’s why we made the reference of a consolidated marriage that deals with service delivery for the internal client to add global value to the company through the correct use of its assets.

Regarding the ISO 55000 Standard as a reference for the planning and control of assets; we recall that it focuses on specifying which elements composes a management system focused on the nature of the assets; and its interrelation with the business objectives that we need to control to add value while minimizing its associated risks.

What’s new in Service Management for Asset Planning?

Regarding this point, many experts agree in the conclusion that Asset Management is simply a fancier name for Maintenance Management; and the ISO 55000 is the document that supports this perception. But, why doing that? Simple: It makes more attractive the concept for senior executives.

As IT experts; we partially agree this conclusion since it applies for manufacturing and industrial operations. However, reducing asset planning and control to preventive/corrective maintenance activities is unfair.

Making both approaches synonyms is oversimplifying the scope and benefits of asset planning; especially because Service Management comes to the equation to add and amplify its intrinsic value. Then, the assembly of both approaches gives us:

  • Extensive approach to asset management focused on value delivery.
  • Increase in reliability, availability, maintenance capacity and interoperability.
  • Automation of services, and programming strategic stops for the evaluation and preventive/predictive maintenance of all types of assets.
  • Comprehensive approach to maintenance and asset management focused on reliability.
  • Wide range of application in industries of various sizes.

In any case, here are some of the innovations that Service Management contributes to Asset Planning:

Life Cycle Planning focused on Business Requirements

As previously mentioned; the service management strategy for asset planning begins with the meeting of business objectives. So, everything starts in the strategy and the plan to reach such objectives, and then it supports the value delivery associated with the plan.

Nevertheless and from the more traditional perception, asset management generally skips this step to focus on other more immediate necessary activities such as maintenance or prediction.

This is one of the new features that Service Management adds to Asset Planning. Then, to reach the ultimate benefit of adding value to the company; it is necessary to determine which assets will be necessary to sustain it in the short, medium and long term.

Let’s see it this way: Where are we going to lead our business strategies if we unknow our asset requirements; and how are we going to use them over the next few years?

Asset Performance from the perspective of Business Requirements

Again, from the traditional point of view of Asset Management; almost all strategies fail in the analysis of the performance of the assets regarding to the real requirements of the business. At the most, they timidly approach to detecting the differences that exist, but do not delve into why or how they can be improved.

asset planningThe fundamental thing here is being transparent and answering how efficiently are we using the available assets to achieve business objectives; and managing them to achieve their maximum. Again, asset management from the point of view of service delivery adds this new value.

Incorporating capital investment in the asset planning

Next, capital investment is another area generally neglected in the traditional approach to asset management. Let’s be honest: Generally, the preponderant criterion for asset investment focuses on minimizing expenses. This ends up by compromising the service quality.

Then, by preponderating savings over quality, the acquired assets will not necessarily respond neither to the real needs of the company; nor to its objectives.

In the medium run, this strategy will bring the need to reinvest in adaptations; New Materials; and other expenses related to the cost of the life cycle of the asset and its performance. And this is precisely what you want to avoid.

In short, Service Management for the Asset Planning offers a comprehensive view of the investment criteria applied to the assets’ life cycle. This is positive because it saves you from wasting money and effort.

Integration of automated tools for the planning and control of assets

Although there are many options in the market for asset management; most of them are based upon the principle of attending basic random order of common faults.

Service management applied to asset planning offers us a more comprehensive vision because it focuses on the administration of preventive maintenance; and covers the work involved in tasks to be completed within a cycle.

One of the most complete options for managing asset planning from the point of view of service delivery, is in BMC Track-It! This powerful option helps you to ensure effective asset management because it deals with:

  • Predicting asset requirements in the short, medium and long run;
  • Diagnosing the asset’s performance or current status and making automated inventories from this information;
  • Making projections of capital investment to acquire, replace or enhancing existing assets;
  • Managing resources to implement strategies.

GB Advisors puts it at your fingertips at the best market price, and in your language. Check here our plans and services to acquire it, and get ready to generate more value to your company.

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