Asset LifeCycle Management
What is lifecycle management?
Lifecycle management is the process of managing the life-cycle of an asset, “from cradle to grave.” Lifecycle management is often used with the goal of utilizing assets as effectively as possible. By monitoring an asset for the entirety of ownership, asset managers can identify inefficient processes in each stage of the lifecycle.
Asset management lifecycle stages
We break down an asset’s lifecycle into 5 stages:
Click each stage above to learn more!
The first stage of an asset’s lifecycle is when the asset is recorded. This involves verifying, recording and reporting receipt of physical assets such as equipment, supplies, and materials. Recording of assets can be done via data import, manual add, and edit, or by connecting the eQuip! asset management software with ERP systems.
The next stage is likely familiar to most organizations: asset use. This is generally the longest stage in the asset lifecycle, and often where organizations become lax on asset tracking. It’s important to note that even if an asset is in the Use stage, you should maintain reporting in order to get accurate asset records.
Included in this stage is transferring and reserving assets, assigning assets to people, transferring assets among different locations, combining different assets into kits, and building components into assembled products.
The third stage in the asset lifecycle is maintenance. This stage involves supporting the repair, calibration, preventative maintenance of assets. During this stage, asset managers often need to set up work orders with parts and labor, and track these work orders using CMMS or EAM software.
Next we have the Audit stage. Asset audits require asset managers to verify the location and exact count of their assets, and provide proof that the assets are audited.
Some organizations may need to perform an audit to meet regulations or government requirements. Audits also help to ensure an organization’s asset reports are accurate.
After the Audit stage, we have the Reporting stage. The Reporting stage involves generating reports about the lifecycle management of physical and IT assets to support decision making. Reports may give historical or current data about any aspect of asset management. Asset reports are often used to assist in acquisition and find current flaws in an asset management process.
Finally, we have asset disposal. Once an asset is past its useful life, it is disposed. Disposing and retiring assets at the end of asset life ensures an organization can operate effectively with proper working equipment and sufficient materials. Asset disposal can take many forms, such as donation, recycling, and more.
The “cycle” in “lifecycle”
Asset lifecycle management is a continuous process. Most organizations will find that they manage assets in every stage of the lifecycle simultaneously. As some assets are retired or disposed of, other assets are being acquired and recorded.
Because asset lifecycle management is continuous, it can quickly become complex. That’s why it’s important for an organization to use a lifecycle management solution when managing many assets. A robust asset management solution allows organizations to easily track thousands of assets in each stage of the lifecycle.