What is a Physical Asset?
A Physical Asset is a tangible item that a company owns and uses to generate value. Physical assets can include infrastructure, buildings, equipment, vehicles, and land. These assets are essential to a company’s operations, and they require proper management to ensure their longevity and continued value.
What is the Primary Aim of Physical Asset Management?
The primary aim of Physical Asset Management is to maximize the value of physical assets while minimizing the risks associated with owning and operating them. An AM strategy helps ensure that physical assets are:
- Available when needed
- Reliable and fit for purpose
- Cost-effective to operate and maintain
- Compliant with regulations and standards
- Safely and sustainably managed
What are Examples of Physical Assets in a Company?
Physical assets can vary depending on the industry and the company’s operations. Here are some examples of physical assets in various industries:
- Manufacturing: Machinery, equipment, and tools
- Energy: Power plants, pipelines, and transmission lines
- Transportation: Vehicles, planes, and infrastructure
- Real Estate: Buildings and land
- Utilities: Water treatment plants, reservoirs, and distribution systems
We tend to differentiate Asset Management of an organization’s tangible assets, such as machinery, equipment, vehicles, buildings, and infrastructure, as a separate discipline from Investment asset management which is closer aligned with financial services, however both disciplines share core principles. Physical or Infrastructure Asset management involves planning, acquiring, maintaining, operating, and disposing of these assets in the most efficient and cost-effective manner possible, with the purpose of delivering the Organization’s strategic objectives.
What are the Two Types of Asset Management?
There are two types of Asset Management that companies can use to manage their physical assets: Reactive Asset Management and Proactive Asset Management.
- Reactive Asset Management: This approach is based on fixing assets after they fail or break down. This type of Asset Management is costly and can lead to unplanned downtime, lost revenue, and safety hazards.
- Proactive Asset Management: This approach involves monitoring assets in real-time, predicting potential failures before they occur, and conducting preventative maintenance to avoid downtime and costly repairs. This type of Asset Management reduces risks, increases reliability, and maximizes the value of physical assets.
What are the Benefits of Physical Asset Management?
Implementing an AM strategy can provide significant benefits to companies, including:
- Increased asset availability and reliability
- Reduced downtime and repair costs
- Improved safety and compliance
- Enhanced efficiency and cost-effectiveness
- Extended asset life and improved sustainability
- Better risk management and decision-making
How Do You Maintain Physical Assets?
Maintaining physical assets involves several steps, including:
- Conducting regular inspections and assessments
- Identifying potential failures and risks
- Prioritizing maintenance activities based on criticality and impact
- Scheduling and executing preventative maintenance
- Recording and tracking maintenance data
- Continuously monitoring asset performance and condition
- Training employees on proper maintenance procedures and safety protocols is also crucial for maintaining physical assets.
Conclusion
In conclusion, Physical Asset Management is an essential aspect of Asset Management that involves managing physical assets to maximize their value and minimize risks. An AM strategy helps companies ensure that physical assets are available, reliable, cost-effective, compliant, and sustainably managed. Implementing an AM strategy can provide significant benefits to companies, including increased asset availability, improved safety and compliance, and better risk management. As an Asset Management training company, it’s crucial to educate employees on the importance of Physical Asset Management and provide training courses that equip them with the necessary skills to implement a successful AM strategy.
Our training is delivered by expert instructors with years of experience in the field, ensuring that participants receive practical, real-world insights that they can apply to their own organizations. We use a combination of interactive classroom sessions, case studies, and practical exercises to ensure that participants are fully engaged and able to apply what they have learned.
By investing in our asset management training courses, organizations can improve their operational efficiency, reduce costs, and stay ahead of the competition. Our training provides a competitive advantage, giving participants the skills and knowledge they need to manage physical assets effectively and efficiently.
So, whether you are looking to improve asset performance, reduce downtime, or comply with regulatory requirements, our asset management training courses are the perfect solution. Contact us today to learn more and take the first step towards your new career.
