Analysing the Asset Life Cycle From Planning to Disposal
The ability to understand and analyse an asset life cycle is just one key benefit of having a management software system in place.
This life cycle can be broken down into four stages, which help to understand the life cycle from planning to disposal.
What is the Asset Life Cycle?
Whether it is an espresso machine in a coffee shop or a computer in an IT centre, every business asset has a life cycle.
By deeply understanding this life cycle, a business can then plan how much value an asset can offer the company in terms of cost reductions and operational reliability.
The life cycle can also enable a more accurate prediction of future performance of assets, based on scenarios and strategies.
A lifecycle can be placed into four segments, which can then be analysed for a business to implement effective procedures to guarantee effective use and maintenance from each stage.
Although an asset’s lifecycle within a business most commonly begins with its acquisition, it can actually be traced back to the identifying and planning stage.
Four Stages of the Asset Life Cycle
Although the organisation and structure of an asset life cycle may differ between different industries, there are some stages that are more predominant than others. The entire life cycle can be broken down into key four areas, from planning and acquiring to operation and disposal:
Planning helps establish the requirement of the asset based on the 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 cycle. This means that, based on multiple options, a business has taken the decision to purchase this asset as it fulfils the business needs and meets the budget requirements.
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 stage indicates the application and management of the asset, including any maintenance and repair that may be needed.
Operation is the longest stage of the asset life cycle, as it is finally put to its intended use within the business. The asset is now earning revue for the business and is reacting to upgrades, patch fixes, licenses and audits.
During operation, the asset it continuously monitored and checked for any performance issues that could unexpectedly develope. This is when maintenance and repairs start to become a common occurrence.
As the asset ages, and is put through wear and tear, regular maintenance is needed to help prolong the life and value of the asset. Not only does this mean repairs, but modifications and upgrades too to keep the asset in sync with an every cha ging workplace.
By target potential improvement areas, maintenance can even help the asset become faster and better than it originally was.
Finally, at the end of the asset’s productive life, it is removed from service and either sold, re-purposed, thrown away or recycled.
Although the asset has no business value anymore, it may still need to be disposed of efficiently to ensure it does not harm nature or society. This process could even involve dismantling the asset piece by piece or whipping it clear of all data.
But if there is still an operational need for this type of asset, a replacement can be purchased and the life cycle begins again with the acquisition of a replacement.
How to Find Software for Monitoring the Asset Life Cycle?
The next thing to do is to search, compare and shortlist the right asset management software to better manage assets for your business needs with our free questionnaire