Every asset – whether it is playing equipment in a sports club or an air conditioner – has a life cycle. An in-depth understanding of the asset life cycle can help businesses to determine the value that an asset can bring to their organisation in terms of operational reliability and cost reduction. Additionally, understanding the asset life cycle can help organisations anticipate the future performance of assets.
The asset lifecycle involves different stages in the management of an asset. It begins with the planning stage when the need for an asset is determined and continues through the useful life of an asset and its eventual disposal.
Four stages of the asset life cycle
Although the business and structure of an asset life cycle can vary with industries, the following four stages are predominant.
–> 1. Planning
Planning helps determine the need for an asset based on the assessment of current operations and existing assets. This can be done by analysing trends and data to identify the need for an asset and what value it can add to a business.
–> 2. Acquisition
Once the need has been identified, the next stage is to acquire the asset. After the asset has been acquired and integrated into an organisation, it can be tracked throughout its life cycle by using asset tracking software.
A tracking system, integrated with advanced asset tracking tools, automates and simplifies the asset tracking process and provides a clear picture of assets at all stages – right from acquisition to maintenance and disposal.
–> 3. Operation and Maintenance
After the asset has been installed into the business, the next stage is operation and maintenance. It comprises the application and management of assets, including any repair or maintenance that may be required.
Operation is the longest stage in the asset life cycle during which the asset is constantly monitored for any performance issue. The best asset management software can help in better management of assets. It enables efficient scheduling of preventative asset maintenance and automates the distribution of asset management jobs to field employees and volunteers. Reliable asset management software also offers automatic reminders, enabling organisations to stay informed about upcoming maintenance tasks even if they are not actively keeping tabs on their maintenance schedule.
Timely maintenance of assets can improve asset efficiency and increase their useful life.
–> 4. Disposal
At the end of the asset’s useful life, it is disposed of. Although the disposal of an asset when it reaches the end of its useful life may not return any sales proceeds to a business, it is important to properly track how and when it was disposed. Assets should always be disposed of in a manner that is sensitive to the environment and safe for people.
If well planned, the disposal of an asset can trigger the commencement of the asset lifecycle for a replacement asset of the same type.
The ideal approach to find software for monitoring the asset life cycle is to compare and shortlist the best asset management software.
assetTRAC is smart and easy asset management software designed for sports clubs, Councils, and non-profit organisations to automate asset tracking and maintenance. assetTRAC is integrated with complete tracking and maintenance tools and provides a clear picture of assets throughout their life cycle.