Get More Out of Your Fixed Assets
Get 10% more value from your fixed assets with a well chosen Fixed Asset Management Software.
To set the record, getting 10% more value from your fixed assets over time is more straightforward than you might think.
If you have assets worth £10 Million, getting 1 Million Pounds of incremental revenue from your fixed assets should be straight forward. You only have to increase your asset’s life or its performance by 10% to achieve the incremental value.
Following is the framework to achieve substantially more value from your fixed assets;
1. Eliminate guesswork and hassle in managing your fixed assets
Information rekeying, having overlapping or duplicate information and having data about your fixed assets in multiple folders across different locations cannot paint a holistic picture about the status of your fixed assets.
Without the holistic picture of your fixed assets, every task becomes an overhead rather than goal achieving exercise. It is almost impossible to build holistic and goal achieving fixed asset management system with multiple spreadsheets. (Here is a comparison between spreadsheets and fixed asset management software)
If you are looking to store data then use spreadsheets, if you are looking to manage and drive value from your fixed assets, adopt a software that suits your situation. You may want to consider free fixed asset management software options or open source options if you are not sure about your budget. (There is no such thing as free, there is always a catch. It is worth buying entry level asset management software, there are number of UK based options which start at £39 per user – you can review and compare them on our website)
2. Maintain accurate view of your asset register
Once you have an asset management software, the next step is to import and maintain an accurate asset register (some experts also refer to this as asset inventory)
The purpose of asset register to give you an all-round insight on how many fixed assets you have, where they are and what is their status.
The critical next step is to identify and classify fixed assets based on your asset management plan/strategy.
1. Classify assets where you plan to increase their asset life with a good CMMS plan
2. Assets where you plan to increase their performance by predictive analysis or monitoring usage
The list will vary depending on your business and your plan. For example; for facilities intensive business – large facilities will fall under the first category and small meeting rooms could fall under the second category.
3. Quickly calculate current and future economic value of your assets
With a good depreciation module/feature you should be able to calculate the current and future economic value (with and without your asset management efforts). This will allow you to feel and sense what your efforts can deliver to your business.
4. Create a list of tasks as per your asset management plan.
Typical examples include; get facilities painted every 3 years or get the flooring changed every 4 years or upgrade the furniture every 2 years.
In you are managing an industrial plant, CMMS or maintenance related tasks make up your list.
5. Track the progress of your tasks very closely.
Many businesses track asset stages which does not mean much, if you track the small tasks, you will be able to influence where your assets ends up.
The above framework will easily enhance the life and/or performance of your fixed assets by 10%.