The demand for asset management software is growing exponentially. This is because businesses are aware of the advantages flowing from AMS in terms of improved efficiency, streamlined asset management processes, and great savings in time and resources.
Asset management software optimizes the lifecycle of assets, from the moment of acquisition to their final disposal. In leveraging the full potential of the tool, it is important to effectively track Key Performance Indicators (KPIs) for flawless feedback.
That makes deploying asset management software far more efficient than hiring a reputed asset management company.
For organizations, asset management software provides a composite visibility platform for assets across the life span with real-time status updates. This helps in better decision-making, as data-driven insights are available for efficient asset management strategies. KPIs are indispensable in drawing valuable inferences and conclusions.
Important KPIs to monitor
By tracking KPIs, asset management software gleans insights into the performance, maintenance effectiveness, cost efficiency, and compliance of various assets.
From the myriad KPs, some KPIs are very crucial. Some of the important categories of KPIs include reliability and uptime KPIs, maintenance and operations KPIs, and financial and lifecycle KPIs.
In the Reliability KPIs, the significant ones are the following.
Mean Time Between Failures (MTBF): It measures the average time an asset operates without any impasse or failure. The higher the MTBF, the greater will be the asset reliability and effective preventive maintenance.
Mean Time to Repair (MTTR): This explores the average time taken to repair an asset after a breakdown. If the MTTR is low, it means efficient maintenance processes exist and there is a faster return to service.
Overall Equipment Effectiveness (OEE): This metric looks at availability, performance, and quality from a holistic perspective, focusing on the optimum utilization of the asset.
Unplanned Downtime Percentage: This indicates the operating time lost due to unexpected asset failures. If its percentage is lower, it reflects proactive maintenance.
As for the Maintenance and Operations KPIs, the following variables are important.
Planned maintenance percentage (PMP): It is a percentage of total planned maintenance hours versus unplanned reactive maintenance. If there is a higher PMP, it will indicate the system had a proactive maintenance strategy.
Maintenance Backlog: This KPI, measured in hours, captures the data on the total amount of uncompleted work orders. If there is a huge backlog, it shows inefficient planning and problems of understaffing.
Maintenance Cost per Asset: This KPI is an update on the asset management software in terms of the total cost of maintaining an asset over a period of time and adds clarity on high-cost assets and areas needing urgent cost optimization.
Emergency Maintenance Costs: In this, the costs of unexpected repairs are tracked, which may often exceed the planned maintenance costs.
Total Cost of Ownership: Regarding financial and lifecycle KPIs, the total cost of ownership (TCO) is a significant KPI that tracks the total cost of an asset in its entire lifespan, from acquisition to disposal.
Equally crucial is the Return on Assets (ROA) variable that explores the profit that an asset will generate relative to its cost. This helps in targeting profitability and efficiency of asset utilization.
Top asset management solution providers
There are many asset management solutions providers helping businesses to stay ahead of competition. A case in point is the enterprise asset management software of Asset Infinity. Its automated solutions streamline asset operations by tracking assets, inventory, equipment, etc., with innovative procedures, including diligent KPIs as discussed above.
So, go ahead and salvage your business with the best asset management software.
