Asset Life Cycle Management in Facilities Management (FM) - Effective Ways to Improve Asset Life

A facility is home to several low and high-value assets which operate together to enable the business to operate at optimum efficiency. So, ensuring a facility that runs well consistently is easier said than done, and even the best ones struggle to get it right occasionally. 

Naturally, buildings with better-managed assets outperform their peers and serve their stakeholders better. Effective facility asset management (FAM) is a careful balance of financial management, regulatory compliance, and physical maintenance. 

This article discusses the intricacies of facility asset management and how businesses can benefit from it. 

What is Facility Asset Management?

Facility asset management refers to the process of overseeing and optimising an organisation’s physical assets’ life and utility by improving their maintenance and use. It takes care of physical assets that are crucial to maintaining the overall functioning of the facility, which includes - 

• Facility-related - HVAC, Carpets, Elevators, Lighting and Common Room Appliances
• IT-related - IT Equipment, Computers/Laptops, Printers and Data Infrastructure

Facility managers churn out a systematic and well-thought-out approach which aligns with the long-term organisational goals and complies with the applicable regulatory standards to maximise the value of the assets.

Key Processes Involved in Facility Asset Management and How They Benefit Businesses

FAM is an all-encompassing perpetual process vital for the assets of a facility. Here are the key processes involved in robust facility asset management and their value addition to organisations and their processes - 

Asset Tracking and Recording

Undertaking regular asset tracking enables facility managers to identify discrepancies, uncover hidden issues, and keep a tab on all assets’ condition, performance, and location. The proactive approach is vital in preventing unexpected financial outflows by addressing issues before they escalate. 

For this, regularly updating records to ensure they showcase the current state of all assets and keeping detailed information about each item, such as their purchase date, usage reports, and condition reports, is vital. Managers would also benefit from undertaking periodic audits and maintaining audit trails to keep track of changes and updates made to asset records. Facility managers often take the help of dedicated asset management software like Factech which makes tracking changes and managing regulatory compliance easier to handle. 

Periodic Maintenance and Optimised Asset Usage

Facility managers are required to undertake preventive and timely asset management to prevent unwanted breakdowns and optimise the life of their facility’s assets. For this, managers and the assigned personnel have to continuously track the assets’ health and spot potential problems. This can be done efficiently by undertaking regular inspections which also aligns with industry standards and regulatory requirements and manage work orders and detailed documents efficiently to keep a tab on all the assets. 

Businesses aim for optimised asset usage to enhance productivity, avoid breakdown costs, and reduce waste. Having robust planning for capacity usage and working on resource allocation to make the most of their assets would enable them to generate the highest ROI. For this, they have to consistently track performance and mitigate potential issues at the earliest. Generating detailed reports on how assets are being used would also enable them to track and find areas for improvement say Deepak Dabas founder of Factech Automation Solutions Private Limited.

Asset Lifecycle Tracking and Management

The lifecycle of an asset involves four stages - acquisition, maintenance, upgradation, and disposal. Effortless facility asset management requires businesses to track asset behaviour throughout the four stages carefully. 

Most businesses document the initial purchase and deployment of their assets but they should also proactively monitor the need for upgrades to ensure the assets perform as expected and are compliant with industry standards. To achieve effective asset management, entities also need to be mindful of their responsibilities to dispose of the asset when its lifecycle comes to an end and minimise its environmental impact in the process. 

Integration with Organisational Systems and Ascertaining Role-based Access Control

Integrating asset data with other organisational systems is vital for optimum facility asset management. Connecting it with procurement, financial, and HR systems enables a seamless data flow which conveys accurate and up-to-date information to all the departments. In addition, Facility managers can further sync the routine asset management tasks with ERP like Factech to automate the process and ensure timely maintenance. This would not only facilitate better communication among relevant teams but also pave the way for better reporting and planning. 

All of these facility asset management endeavours will only be fruitful if ample security measures are deployed. Those in charge can limit sensitive asset-based data to only specific personnel which would ensure every activity is easily traceable. Businesses can also set up customised permissions to enable their workforce to perform their duty seamlessly and streamline operations. 

Using Data Analytics and Machine Learning (ML) for Proactive Maintenance

Predictive maintenance has become an inseparable part of facility asset management in recent years. With the help of AI and ML, facilities can now undertake automated trend analysis to use historical data and AI smarts to foresee potential failures and identify patterns. 

Facilities can also use performance benchmarks from their peers or the best in the business to understand their asset-handling efficiency and find areas of improvement. With data analytics at their disposal, businesses can now also track compliance monitoring and set up automated alerts to ensure regulatory compliances are effortlessly managed. 

Conclusion

In these competitive times, financial discipline is a must-have for a business to thrive. With assets taking up a majority of most entities’ budgets, facilities asset management has become more important than ever. For that to be successful, it is vital for stakeholders to have access to relevant and up-to-date information. All of this can be achieved through effective planning and coordination. 

At YFMM, we understand the importance of effective facility asset management and have a host of experts like Factech listed on our portal who specialise in facility asset management. In addition, we also regularly post news and updates to enable facilities to manage their assets better. 

About Factech Solutions

Factech Automation Solutions Private Limited is a leading provider of innovative facility management solutions, specializing in leveraging technology to optimize building operations and maintenance. Our platform offers real-time monitoring, maintenance, and data-driven insights, enabling clients to reduce operational costs, improve efficiency, and enhance occupant satisfaction. With a focus on scalability and integration, Factech serves a diverse range of industries, from commercial real estate to healthcare and education. Our commitment to sustainability and smart building practices positions us as a key player in the rapidly growing PropTech industry, offering significant value and growth potential.