Asset Lifecycle: From Planning to Disposal
A key benefit of having an asset management system in place is the understanding of an asset lifecycle. This life cycle can be broken down into four stages, which help to understand the life cycle from planing to disposal.
The 4 Stages of an Asset Lifecycle
The first key stage of an asset life cycle is Planning. Planning helps establish the requirement of the asset based on evaluation of existing assets. This can be done by introducing a management system that can analyse trends and data, to identify the need for the asset and what value it adds to the business.
Once identified, the next stage in acquiring the asset; thus beginning the asset lifecycle. When the asset is acquired and installed into the business, it can then be tracked throughout its entire life-cycle by using an asset management system.
3. Operation & maintenance
With the asset now installed into the business, the next key stage is operation and maintenance. This indicates the application and management of the asset, including any maintenance and repair that may be needed.
Finally, at the end of the lifecycle, the asset is removed from service and either sold, re-purposed, thrown away or recycled. However, if there is still an operational need for the asset, the life-cycle begins again with the acquisition of a replacement.
Where do you go from here?
The next thing to do is to search, compare and shortlist the right asset management software for your business needs with our free questionnaire