Asset management is a complete and structured approach to the long-term management of assets as tools for the efficient and valuable delivery of community benefits. An association called world road association (PIARC) has adopted an OECD definition of asset management. Road asset management means managing a road network that is roads, bridges, traffic facilities, etc to satisfy the requirements of business and private road users, at the lowest possible cost over a long period of time. Asset management is being advocated as an essential improvement for the manufacturing, process, and production industries.
Aim of asset management applied to toward achieving greatest effectiveness and profitability from production and manufacturing equipment. Asset management is a frame of mind and total life-cycle strategy for optimum achievement installation, operation and maintenance. It links capacity and operating and maintenance cost to business objectives. It results equipment asset management rather than task oriented. The performances are based priorities and measures. The complete process is directed by profit center or relatively to cost center principles. It advocated from the perspective of various disciplines, primarily control and maintenance.
An understandable distinction exists between cost and profit-centered mentalities. A cost center has no systematic incentives to optimize whether it may disincentives to optimize. Everyone knows the reward for coming in under financial statement in a cost center. Obviously there is a great deal more to think about if an experienced as maintenance professional as well as a supplier of vibration monitoring and analysis instrumentation, leads the Machinery Information Management Open Systems Alliance.
Asset management viewed as the unify element between production planning, quality, process control, maintenance safe, effectiveness and profitability. It also incorporate on the best attributes of reliability centered maintenance, total productive maintenance, preventive maintenance, predictive maintenance, reactive maintenance and application of profit-centered prioritization to arrive at an optimum balance. Investments and costs are evaluated from the viewpoint of results and return and it is certainly healthier and better suited to a complex process or manufacturing environment.
The basic process of asset management is business conditions, and particularly the origin of profit. The fundamental asset management is necessary to gain a clear understanding of the principal factor that determines and drives profit and it determines the deployment and allocation of resources. The cause of getting more profits and benefits are safety, regulatory and quality and efficiency improvements. Main thing is the amount of input gives the same amount of out put.
A systematic process of effectively maintaining, production upgrading, operating assets and combining engineering principles with economic rationale, and providing the tools to facilitate a more organized and flexible approach to making decisions necessary to achieve the public’s expectations. Benefits from this asset management are many. Maximum profitability is gained by maximum adaptation and efficiency, minimized unscheduled outages and partial output, elimination of industrial injuries, and minimized risk to the environment. This management must satisfy to all grade people. Current net asset are used for assessing the performance and effective of equipment assets. Main branch in asset management are to identification of need for the community requirements. Investments and costs are evaluated from the standpoint of results and return. Latter is definitely healthier and better suited to a complex process or manufacturing environment. Safety is a supreme consideration. Regulatory (ecological) factors have a strong effect, and good quality. And operating closer to quality standards produces greater profit of output. Asset management comprises the elements focused on facilitating the delivery of community benefits such as accessibility, mobility, economic development and social justice.