How Effective Asset Maintenance Can Maximize Asset Lifespan

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How Effective Asset Maintenance Can Maximize Asset Lifespan

The machines and equipment you use to run your business amount to a large chunk of your investment. Even though these are well-budgeted, wouldn’t it be nice if you could use your assets for a long time? Imagine the savings you get when you don’t have to buy new equipment for a while.

Now, the question that most people are asking is, is business equipment an asset or a liability? The truth is, it could be either. Obviously, your business equipment, machines, materials, etc., are an asset because they help you run you and your employees run your company. However, in this article, you’ll see how the equipment you invested in will be an asset or a liability, depending on how well you handle and maintain it.

What happens when you fail to maintain your assets?

Before we go to the good parts of how effective asset maintenance can maximize your assets’ lifespan, let us first discuss the dangers of not having good asset maintenance.

1. Unexpected Equipment Disfunction or Poor Performance

There is no question that this is the most prominent risk if you don’t implement asset maintenance. When your assets fail, some of your business operations will be shut down. It will hamper productivity, which in turn, might hurt your customer service and sales.

2. Physical Harm to Employees

According to a report by EHS Daily Advisor, 2.5% of employee deaths account for workplace equipment malfunctions. That will cost your company several financial damages, including lawsuits, settlements, suspensions, penalties, maintenance or purchase of new equipment, etc. That’s aside from the bad publicity and hate you’ll get from your other employees and the public.

asset maintenance
Photo by Kateryna Babaieva on Pexels.

3. Mismanagement of your Supply Chain

Your business’ supply chain encompasses a whole cycle of processes, and one relates to another. If one aspect misfunctions, it affects the other. If a machine (for example, a printer) fails to operate, it will affect the whole order fulfillment process.

4. Profit Decline

All three effects mentioned above eventually lead to declining sales and profits. Imagine spending all your business expenses on an injury or a fatal accident because of machine failure. That’s one of the worst things that could happen to your business profits.

Implementing an efficient asset maintenance program is crucial in your business. By having an effective asset maintenance policy, your company can improve its assets’ performance and reliability, reducing the risk of equipment failure and unexpected downtime.

What is Asset Maintenance?

Asset maintenance refers to maintaining and repairing physical assets, such as equipment, facilities, and systems, to ensure that they are in good working order and can function as intended. This may involve various activities, such as inspections, cleaning, lubrication, repairs, and replacements, and implementing preventive maintenance programs to identify and address potential issues before they become problems.

In-house maintenance teams can perform asset maintenance or be outsourced to specialized maintenance contractors. The specific approach to asset maintenance will depend on the type and size of the assets, as well as the resources and expertise available.

How Effective Asset Maintenance Can Maximize Asset Lifespan

Basic cleaning and other physical repairs done by employees or contractors help maintain your assets, but did you know that advanced technology such as AI and machine learning have paved the way for more optimized and effective asset maintenance? When physical repair and AI are integrated, they work hand in hand to make your assets as new as they were for many years to come.

Smart machine and asset maintenance

Smart machine integration in asset maintenance refers to using advanced technologies such as artificial intelligence (AI) and machine learning to optimize the performance and maintenance of assets. It can be a powerful tool for improving asset maintenance and reducing maintenance costs.

asset maintenance
Photo by cottonbro studio on Pexels.

Here are a few ways in which smart machines can be used to optimize asset maintenance:

1.Predictive Maintenance

Smart machines can monitor the performance of assets and predict when maintenance is needed, enabling organizations to schedule maintenance in advance and avoid costly unplanned downtime. Using machine learning algorithms to analyze data from sensors and other sources, smart machines can identify patterns and trends that indicate potential maintenance issues.

2. Optimized maintenance scheduling

Smart machines optimize the scheduling of maintenance tasks by considering factors such as asset availability, maintenance history, and workload. This can help organizations reduce maintenance costs by minimizing downtime and ensuring that maintenance is performed optimally.

3. Improved asset utilization

Smart machines can be used to optimize the utilization of assets by identifying bottlenecks and inefficiencies in the asset management process.

4. Automation of routine tasks

Smart machines can automate routine maintenance tasks, such as asset tracking and scheduling, freeing up human resources for more complex tasks.

By adopting a proactive and data-driven approach to asset maintenance, organizations can optimize the performance and value of their assets and reduce maintenance costs.

Lifecycle Management

Lifecycle management involves managing assets throughout their entire lifecycle, from acquisition to disposal. This can help organizations make more informed decisions about when to repair, replace, or dispose of assets based on their condition and value.

By leveraging AI approaches, organizations can reduce maintenance costs, improve efficiency and productivity, and enhance safety and compliance.

Conclusion

Do you now see how your business investments become assets or liabilities? They become liabilities if you neglect them, but they become assets if you maintain them effectively by implementing AI strategies.

Effective maintenance is critical to the smooth operation and success of any organization that relies on physical assets, such as equipment, facilities, and systems. Proper maintenance can help increase their assets’ efficiency and reliability, reduce the risk of accidents or injuries, extend their lifespan, and minimize maintenance costs.

However, besides the benefits mentioned above, effective asset maintenance can also increase your business’s customer satisfaction, employee safety, and morale. Overall, it enhances your reputation and brand value.

Aratum’s solutions are ingrained in the latest and most innovative AI and machine-learning strategies, which can help maximize your assets’ lifespan and streamline your overall business processes. Book a Demo Now.

 

The featured photo of this article was sourced from Pexels.

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