As defined by the Institute of Asset Management (UK), Physical Asset Management is the set of disciplines, methods, procedures and tools to optimize the Whole Life Business Impact of costs, performance and risk exposures (associated with the availability, efficiency, quality, longevity and regulatory / safety / environmental compliance) of the company’s physical assets.

By effectively tracking your assets, maintenance, inventory and contacts you can achieve asset optimization. Asset optimization is a comprehensive, fully integrated strategic program directed to safely gain and sustain the greatest lifetime value, utilization, productivity, effectiveness, value, profitability, and overall return on assets (ROA) from physical manufacturing, production, operating, and infrastructure assets.

The proper utilization of this information allows the maximized reliability and availability of assets by optimizing maintenance leading to sustainable spending and minimizing unnecessary maintenance activities. By doing so you can optimize capital requirements for delivery of service and focus on the highest value opportunities and improvements. This will overall build awareness and accountability over the total lifetime of an asset.

In the end increasing your ROA involves Performing the right tasks involved with maintaining and improving your assets and performing those tasks well by properly planning and correcting inefficiencies that are hiding within your current system. To get started you need to assess your business by asking some simple questions: What do we own, what condition is it in, who is responsible for it, how do we maintain it, how do we optimize it, and who else needs to be involved? If you can answer all those questions then you’re already one step ahead of the game; now the question is who else in your organization can answer those questions?

To implement a good Physical Asset Management program a Physical Asset Management Team needs to be established to conduct audits and ensure information is collected, correlated, and updated. To do this the team needs to establish organization level policies and provide systematic follow up and evaluations on the effectiveness of those policies. Once the information is assessed improvement decisions can be made and implemented by this team.

So how does Performance Plus fit in? Performance Plus is a web-based asset management program that functions as a database to coordinate and display information about an organizations assets. It is a building block for an organizational asset management program. Our team can help your organization implement this cost saving program today, contact us at info@manageperformanceplus.com.