Asset Lifecycle Management

Any industry that relies on physical infrastructure understands the importance of protecting its assets. Without physical assets, there would be no oil and gas, no power generation, and no manufacturing. That being said, enterprises in these and similar industries understand just how essential it is to maximize equipment lifecycle. Companies want to increase their return on investment, and that’s where asset lifecycle management comes into play. Appropriately managing assets throughout their lifecycle ensures that assets deliver maximum results for as long as possible.

Maximizing the asset lifecycle

Asset lifecycle management involves overseeing the entire lifespan of an asset in order to maximize its value. This process begins with acquiring the asset, then eventually moves into using the asset, and concludes with properly disposing of the asset.

However, proper asset lifecycle management does not just entail presiding over an asset throughout its lifetime. It also involves optimizing the asset to enhance its performance and return on investment.

Extending the equipment lifecycle is of no use if the asset’s performance is compromised. That’s why maintenance, analytics, and assessment play such an integral role in proper asset lifecycle management. Continuously monitoring an asset’s performance throughout its lifecycle helps companies determine whether or not their assets are profitable. Being able to glean these insights can help enterprises make wiser decisions about the types of assets they acquire and utilize in their operations.

Asset lifecycle management stages

The asset lifecycle management process consists of five stages: procurement, deployment, utilization, maintenance, and disposal. Each of these stages is critical to the equipment lifecycle.

1. Procurement - The first step of the asset lifecycle management process is procurement, or acquiring the asset. However, there’s more to this step than simply purchasing the asset. Enterprises first need to identify an asset that will meet their needs, then budget for the purchase accordingly. Finally, the business can make the purchase and add the asset to their inventory.
   
   
2. Deployment - Deployment is the stage that occurs between acquiring the asset and actually utilizing it. This step involves assembling the asset and inspecting it for any defects or faults that may compromise the equipment lifecycle and the asset’s ability to properly function. Inspection may entail running diagnostic tests to evaluate any kinds of issues that may inhibit the asset’s performance. Once an asset is cleared and deemed usable, it is deployed from inventory to in-use.
   
   
3. Utilization - As the name suggests, utilization involves using the asset for its designated purpose. This is the longest stage in the equipment lifecycle and involves evaluating the asset’s performance over time. Enterprises may opt to use process optimization software and other process analytics tools to gain insight into an asset’s performance and optimize accordingly to ensure the asset delivers the best results possible.
   
   
4. Maintenance - This stage is critical in asset lifecycle management in that it maximizes an asset’s performance throughout its lifecycle. Performing routine maintenance, repairs, and upgrades ensures that an asset continues to deliver results throughout its expected lifetime. However, successful maintenance doesn’t just involve making routine repairs. It also entails using technology such as predictive maintenance analytics and maintenance management software to gain powerful insights into asset performance.
   
   
5. Disposal - Once an asset has maximized its output, enterprises must determine whether or not the asset is still valuable. If the asset is deemed invaluable or inoperable, it must be disposed of properly. Although the asset is no longer in operation at this stage, disposal is still an important asset lifecycle management step that cannot be ignored. Typically, there are stringent health and safety regulations for properly disposing of assets or equipment, and companies must abide by such regulations to prevent penalties. Furthermore, if an asset contains any sort of sensitive data, this must be wiped before disposal.

An essential component of enterprise asset management

Physical assets are at the heart of countless enterprises. From food and beverage manufacturers to power plants, these businesses would not exist without their assets and equipment. Asset lifecycle management aims to make the most of these crucial resources so that companies can boost their return on investment. Optimizing assets so that they reach their full potential ultimately helps businesses save money, increase productivity, and work smarter.

FAQs

What is asset lifecycle management?
Asset lifecycle management is a process in which enterprises monitor assets and their performance throughout their lifespan in order to maximize profitability. Asset lifecycle management also involves gathering insights and data about asset performance and making necessary changes to optimize productivity.

What is an asset lifecycle?
“Asset lifecycle” or “equipment lifecycle” means the longevity of an asset over time. It begins with the acquisition of the asset and ends with the discarding of the asset. Some assets may have a longer lifecycle than others, and asset lifecycle can be optimized with proper attention and strategy.

What are the four phases of the equipment lifecycle?
The four phases of the equipment lifecycle include planning, acquisition, operation/maintenance, and renewal/disposal. These phases are broader than those of the asset lifecycle management process, which are listed below.

What is the correct order of the asset lifecycle phases?
There are five stages of asset lifecycle management: procurement, deployment, utilization, maintenance, and disposal.

• Procurement - The first step of the asset lifecycle management process is procurement, or acquiring the asset. However, there’s more to this step than simply purchasing the asset. Enterprises first need to identify an asset that will meet their needs, then budget for the purchase accordingly. Finally, the business can make the purchase and add the asset to their inventory.
  
  
• Deployment - Deployment is the stage that occurs between acquiring the asset and actually utilizing it. This step involves assembling the asset and inspecting it for any defects or faults that may compromise the equipment lifecycle and the asset’s ability to properly function. Inspection may entail running diagnostic tests to evaluate any kinds of issues that may inhibit the asset’s performance. Once an asset is cleared and deemed usable, it is deployed from inventory to in-use.
  
  
• Utilization - As the name suggests, utilization involves using the asset for its designated purpose. This is the longest stage in the equipment lifecycle and involves evaluating the asset’s performance over time. Enterprises may opt to use process optimization software and other process analytics tools to gain insight into an asset’s performance and optimize accordingly to ensure the asset delivers the best results possible.
  
  
• Maintenance - This stage is critical in asset lifecycle management in that it maximizes an asset’s performance throughout its lifecycle. Performing routine maintenance, repairs, and upgrades ensures that an asset continues to deliver results throughout its expected lifetime. However, successful maintenance doesn’t just involve making routine repairs. It also entails using technology such as predictive maintenance analytics and maintenance management software to gain powerful insights into asset performance.
  
  
• Disposal - Once an asset has maximized its output, enterprises must determine whether or not the asset is still valuable. If the asset is deemed invaluable or inoperable, it must be disposed of properly. Although the asset is no longer in operation at this stage, disposal is still an important asset lifecycle management step that cannot be ignored. Typically, there are stringent health and safety regulations for properly disposing of assets or equipment, and companies must abide by such regulations to prevent penalties. Furthermore, if an asset contains any sort of sensitive data, this must be wiped before disposal.