An effective enterprise asset management system serves two primary purposes: Helping your company successfully achieve its operational goals and financial objectives. Under the operational heading comes maintaining and prolonging an asset’s useful lifecycle, reducing downtime, maximizing performance and reducing risks (such as safety risks). Financially, enterprise asset management seeks to optimize investments, reduce unnecessary costs, improve revenues, and minimize risks (such as regulatory compliance fines).
Is your enterprise asset management program satisfactorily accomplishing these goals? Are you operationally suffering from:
- Excessive downtime?
- Too many preventable failures?
- Shortened asset lifecycles?
- Lack of visibility into your process?
- Poor planning and decision making?
On the financial side, is your company hampered by:
- Inaccurate financial statements?
- Lost revenues?
- Higher taxes and insurance premiums?
- Regulatory and compliance fines?
- Poor planning and decision making?
The problem probably isn’t your assets or your personnel. The trouble likely is the data you rely on to track, manage, maintain and run your facility.
Asset downtime represents the biggest headache for plant executives and managers. Bad equipment maintenance data is often the culprit here. Inferior operator rounds and shoddy paper record keeping results in management having to rely on intuition and experience to make asset management and maintenance decisions.
According to one estimate, the average manufacturing plant endures 800 hours of downtime every year. That’s nearly 15.5 hours each week. A typical automotive plant loses $22,000 per minute when production stops. A 15-minute shutdown (the length of a coffee break) could run $330,000 in missed production, lost revenues and wasted resources. Downtime can also irritate customers, who may now see their anticipated deliveries delayed.
Inaccurate financial statements stemming from poor asset management pose another sore spot for plant higher-ups. Incorrect statements give a false impression of a company’s performance. This false impression can harm key stakeholders through lower stock prices and damage the organization’s reputation with lenders, stunting potential future growth.
Asset tracking and inventory difficulties also carry a financial cost. Ghost assets can remain on ledgers long after they’ve been disposed of or have ended their useful life. This results in higher taxes and insurance premiums which eat into a company’s bottom line.
One recent survey found that only 71 percent of C-suite executives completely trusted their financial data. That number was far worse in the accounting department, where just 38 percent believed the numbers they were reporting were true and accurate.
No matter the industry, top management is looking for a way to improve its asset management process. One method that is gaining popularity is harnessing the power of digital transformation. Digital transformation, simply defined, is the integration of digital technology into all areas of a business. It’s a change in attitude about how problems are solved and value delivered to customers. Digital transformation encourages challenging the status quo, rethinking operating models and becoming more agile in responding to issues.
Innovapptive, a mobile-first digital transformation provider, offers asset management solutions that enable companies to reach their operational and financial goals.
Innovapptive’s solutions deliver verified, high-value data that executives and managers can use to make informed choices based on facts, rather than intuition and experience. Operational and financial asset management benefits include:
- 90% reduction in downtime and production delays.
- 90% fewer preventable failures.
- 20% cut in overpayment of federal, state and property taxes.
- 15% drop in insurance premiums.
- 80% decline in regulatory fines.
- 99% accuracy of fixed asset financial statements.
- 100% reconciliation of global fixed assets to meet audit and regulatory requirements.
* Based on previous customer results. Your results may vary.