Asset Management

What is asset management?

Asset management in manufacturing involves the coordinated activities of an organization to realize value from its assets. This includes tracking and monitoring physical assets, ensuring timely maintenance, and optimizing asset utilization to enhance productivity and operational efficiency. Effective asset management enables manufacturers to make informed decisions regarding asset procurement, maintenance, and disposal. 

The purpose of asset management

The primary purpose of asset management in manufacturing is to maximize the value and performance of assets while minimizing costs and risks. This involves ensuring that assets are used efficiently, maintained properly, and replaced or upgraded as needed. Effective asset management helps manufacturers achieve operational excellence, maintain high production standards, and ensure the reliability and availability of critical equipment. 

The types of asset management

Asset management in manufacturing can be categorized into several types based on the scope and focus. Each type plays a distinct role in maintaining and optimizing assets: 

1. Preventive Maintenance: 

  • Definition: Preventive maintenance involves regularly scheduled maintenance activities aimed at preventing equipment failures before they occur. 

 

  • Details: This type of maintenance includes routine inspections, lubrication, adjustments, and parts replacements at predetermined intervals. By performing these tasks, manufacturers can prevent minor issues from escalating into major problems, ensuring that equipment operates smoothly and efficiently. 

 

2. Predictive Maintenance: 

  • Definition: Predictive maintenance uses data and analytics to predict when maintenance is needed based on the actual condition of the equipment. 

 

  • Details: This approach involves monitoring equipment using sensors and data analytics to detect signs of wear and tear or other potential issues. By analyzing data such as vibration, temperature, and performance metrics, predictive maintenance can forecast when equipment is likely to fail, allowing for timely intervention and minimizing unplanned downtime. 

 

3. Corrective Maintenance: 

  • Definition: Corrective maintenance involves repairing equipment after a failure has occurred to restore it to operational condition. 

 

  • Details: This type of maintenance is reactive, dealing with equipment breakdowns as they happen. While it is essential for addressing immediate issues, relying solely on corrective maintenance can lead to higher downtime and repair costs. Effective asset management balances corrective maintenance with preventive and predictive approaches to optimize equipment uptime. 

 

4. Asset Tracking: 

  • Definition: Asset tracking involves monitoring the location, usage, and condition of assets in real-time using technologies like barcodes, RFID tags, or IoT sensors. 

 

  • Details: Real-time asset tracking helps manufacturers keep accurate records of where assets are located, how they are being used, and their current condition. This information is crucial for efficient resource allocation, reducing the time spent searching for equipment, and ensuring that assets are utilized effectively. 

 

5. Lifecycle Management: 

  • Definition: Lifecycle management involves managing assets from acquisition to disposal, ensuring optimal performance throughout their lifespan. 

 

  • Details: This approach covers every stage of an asset’s life, from procurement and installation to operation, maintenance, and eventual decommissioning. Effective lifecycle management ensures that assets are acquired at the best possible cost, maintained properly to extend their useful life, and disposed of or replaced at the right time to maximize return on investment.

 

By adopting these various types of asset management, manufacturers can create a comprehensive strategy that addresses all aspects of asset performance and efficiency. This leads to improved operational outcomes, cost savings, and a competitive advantage in the market. 

Why asset management is important

Asset management is crucial in manufacturing for several reasons: 

  • Operational Efficiency: Ensures that equipment and machinery operate efficiently, reducing downtime and increasing productivity. 

 

  • Cost Savings: Prevents costly breakdowns and extends the lifespan of assets, reducing the need for frequent replacements. 

 

  • Safety: Properly maintained equipment reduces the risk of accidents and ensures a safer working environment. 

 

  • Regulatory Compliance: Helps manufacturers comply with industry standards and regulations by maintaining accurate records and ensuring equipment is up to standard. 

 

  • Strategic Planning: Provides valuable data and insights for making informed decisions about asset investments and improvements. 

The challenges that manufacturers face with asset management

Manufacturers face several challenges in asset management, including:                                                                                                                                                              

  • High Initial Costs: Investing in advanced asset management systems and technologies can be expensive. 

 

  • Data Management: Ensuring accurate and consistent data collection and management across all assets. 

 

  • Integration: Integrating asset management systems with other enterprise systems such as ERP and CMMS. 

 

  • User Training: Training staff to effectively use asset management tools and systems. 

 

  • Predictive Maintenance: Implementing predictive maintenance requires significant investment in sensors, data analytics, and skilled personnel. 

 

  • Change Management: Adopting new asset management practices can face resistance from employees accustomed to traditional methods. 

The best practices in asset management

To optimize asset management, manufacturers should follow these best practices:                                                                                                                                            

  • Conduct Regular Audits: Regularly audit assets to assess their condition and performance. 

 

  • Implement a CMMS: Use a Computerized Maintenance Management System (CMMS) to automate and streamline maintenance activities. 

 

  • Train Staff: Provide ongoing training for employees on asset management practices and tools. 

 

  • Use Data Analytics: Leverage data analytics to gain insights into asset performance and predict maintenance needs. 

 

  • Standardize Processes: Develop standardized processes for maintenance, inspections, and record-keeping. 

 

  • Continuous Improvement: Regularly review and improve asset management practices based on feedback and performance data. 

How to improve asset management

Improving asset management involves several key steps, leveraging the capabilities of a CMMS like CERDAAC:                                                                                        

  • Enhance Data Management: Improve data collection and management practices to ensure accurate and actionable data. 

 

  • Integrate Systems: Ensure seamless integration between asset management systems and other enterprise systems. 

 

  • Focus on Predictive Maintenance: Invest in maintenance tools and techniques to proactively address maintenance needs. 

 

  • Engage Employees: Involve employees in asset management processes and provide incentives for adopting best practices. 

How to build an asset management strategy

Building an effective asset management strategy involves:                                                                                                                                                                                  

  • Assess Current Practices: Evaluate existing asset management practices with relevant teams and stakeholders and identify areas for improvement. 

 

  • Set Objectives: Define clear objectives for what you aim to achieve with asset management. 

 

  • Develop a Plan: Create a detailed plan outlining the steps needed to achieve your objectives. 

 

  • Select Tools and Technologies: Choose the appropriate tools and technologies to support your asset management strategy. 

 

  • Implement and Monitor: Implement the plan and continuously monitor progress and performance. 

 

  • Review and Adjust: Regularly review the strategy and make adjustments based on feedback and performance data. 

Key features of asset management

Key features of effective asset management in manufacturing, particularly with CERDAAC, include:                                                                                                     

  • Comprehensive Asset Tracking: Real-time tracking of asset location, condition, and usage using barcodes, RFID tags, or other sensors. 

 

  • Centralized Asset Repository: Storing and managing all asset data in a single, centralized platform for simplified maintenance scheduling, warranty claims, and asset documentation. 

 

  • Maintenance Management: Scheduling and tracking preventive, predictive, and corrective maintenance activities. 

 

  • Lifecycle Management: Managing assets from acquisition to disposal, ensuring optimal performance throughout their lifespan. 

 

  • Reporting and Analytics: Providing real-time data and insights for informed decision-making through customizable reports and dashboards.

 

  • Compliance Management: Ensuring adherence to regulatory standards and maintaining accurate records for audits. 

 

  • Integration: Seamless integration with other enterprise systems such as ERP, MES, and SCM for enhanced operational efficiency.

 

  • Cybersecurity Measures: Robust security protocols including data encryption, access controls, and regular security audits to protect sensitive asset information.

Understanding the ROI of asset management

The Return on Investment (ROI) of asset management with a CMMS can be significant. Benefits include:                                                                                                  

  • Reduced Downtime: Minimizing equipment failures and unplanned downtime through effective maintenance management. 

 

  • Extended Asset Lifespan: Preventing wear and tear and extending the useful life of assets. 

 

  • Cost Savings: Lowering maintenance and replacement costs through effective asset management. 

 

  • Improved Productivity: Ensuring that equipment operates at peak efficiency, leading to higher production rates. 

 

  • Compliance and Safety: Avoiding fines and ensuring a safer working environment through proper maintenance and regulatory compliance.

 

  • Data-Driven Decision Making: Enhanced decision-making capabilities through real-time data and insights with comprehensive reporting and analytics tools. 

Examples of asset management by CERDAAC

Let’s share some real-world examples of how CERDAAC has successfully implemented asset management systems for various organizations. 

 

  1. ViewRay – Medical Device Manufacturer                                                                                                                                                                              

Situation: ViewRay, a leader in medical device manufacturing, needed a robust system to manage over 1,000 manufacturing-related tools across multiple global locations. The company faced challenges with tool calibration, tracking, and maintenance, critical for meeting FDA regulations and ensuring product quality. 

Implementation: ViewRay implemented CERDAAC’s comprehensive asset management platform to streamline its processes. CERDAAC provided a centralized system for enrolling, tracking, calibrating, and maintaining tools. 

Impact: 

  • Improved Efficiency: The materials team now has all data in a single source of record. This centralized approach has eliminated the need for multiple spreadsheets and manual updates. 

 

  • Enhanced Compliance: CERDAAC’s digital signatures and automatic notifications ensure all stakeholders can sign and approve forms at their convenience, ensuring readiness for audits. 

 

  • Real-Time Tracking: Users can instantly see the location, status, and availability of tools, improving resource allocation and reducing downtime. 

 

Testimonial: Sidqdeep Ghoman, a Materials Planner at ViewRay, stated, “It’s easier to have everything, including digital signatures, in CERDAAC. I no longer have to create PDFs and send them to multiple people each time. CERDAAC sends notifications to the right people automatically, and everything is tracked in one system, so we are ready whenever there’s an audit.” 

 

  1. Myriad Genetics – Genetic Testing and Precision Medicine                                                                                                                                               

Situation: Myriad Genetics, a leading company in genetic testing, struggled with managing manufacturing assets such as robot platforms, liquid handlers, centrifuges, and pipettes. The existing combination of paper and legacy systems made it difficult to track preventive maintenance and asset locations efficiently.                                                                                                                                                                                                                                                  

Implementation: CERDAAC was implemented to provide a centralized system for asset tracking and maintenance scheduling. The platform supports over 400 users across three sites in Utah, California, and Ohio.                                                                                                                                                 

Impact: 

  • Centralized Asset Management: The system enables the service engineering team and individual labs to track assets across multiple locations seamlessly. 

 

  • Enhanced Visibility: When equipment is moved, the system is updated instantly, making it easy to locate assets for maintenance. 

 

  • Improved Maintenance Scheduling: Preventive maintenance is scheduled and tracked efficiently, reducing downtime and ensuring equipment reliability. 

 

Testimonial: Wayne Findlay, Supervisor of the Service Engineering Group at Myriad Genetics, mentioned, “As long as the lab tells us where they moved it to or who has it, who owns it, we can track it, and we can update it easily in CERDAAC.” 

 

  1. Toray Plastics – Contract Manufacturer                                                                                                                                                                              

Situation: Toray Plastics, a major contract manufacturer, faced difficulties in managing an extensive equipment inventory using traditional methods. The company needed a more efficient way to ensure timely maintenance and avoid production disruptions.                                                                                     

Implementation: Toray Plastics implemented CERDAAC to manage preventive maintenance activities across its facilities. The system allowed for detailed scheduling, tracking, and documentation of maintenance tasks, ensuring that all equipment was maintained according to predefined schedules.           

Impact: 

  • Streamlined Processes: The implementation of CERDAAC enabled Toray Plastics to streamline its maintenance processes, reducing the frequency of equipment breakdowns and associated downtime. 

 

  • Cost Savings: By optimizing maintenance schedules and ensuring that maintenance activities were performed efficiently, the company achieved significant cost savings. 

 

  • Improved Equipment Reliability: Enhanced equipment reliability and reduced downtime translated into increased production capacity and lower operational costs. 

 

These examples demonstrate how CERDAAC’s asset management solutions have helped various organizations enhance their operational efficiency, ensure compliance, and achieve significant cost savings. By providing real-time tracking, centralized data management, and automated maintenance scheduling, CERDAAC enables manufacturers to optimize their asset management processes, leading to improved productivity and reduced downtime. 

By adopting effective asset management practices and leveraging CMMS tools and technologies, manufacturers can achieve greater operational efficiency, cost savings, and overall productivity.