As a plant manager, you want to make sure that your plant runs as smoothly and effectively as possible. To do that, you need easy access to all relevant information, and you also need to be able to trust the documentation related to your plant’s assets. Let’s have a look at five reasons for adopting proper asset information management procedures. The first four will help improve your plant’s short-term profitability whereas the last one takes a more long-term look at your plant’s success.
1. Improved efficiency of future investment projects
Effective asset information management reduces the risk of using inaccurate or inadequate information as the basis for investment or other business decisions. When used efficiently, asset information management helps you carry out the right actions on the right assets at the right time. Lack of reliable asset information, on the other hand, can result in poor decisions that can lead to unnecessary costs or risks and have a negative impact on capital expenditure and overall business performance.
2. Improved efficiency of maintenance and operations
Operational expenses make up the lion’s share of a plant’s regular costs. Many of these are hidden costs connected to, for example, time spent searching for information, collating and processing information from various sources, verifying the accuracy of the information, and, in some cases, even repeating or duplicating the process across multiple business units. Some studies have shown that these costs may rise up to around 25% of the organization’s total annual budget.
Effective asset information management creates a foundation for efficient maintenance and operations and is therefore an effective way to reduce those expenses. Improving the efficiency of your plant’s asset information management can cut up to 5% of the total business expenditures.
The Plant Manager in 2020
The Plant Manager in 2020
3. Improved employee satisfaction
Proper asset information management procedures help ensure that your engineers have fast and easy access to all the information they need while also making sure that the information is reliable and accurate. This will result in improved employee satisfaction and reduced employee turnover. In some cases, it may even reduce your salary costs as you don’t have to overpay your employees to ensure their commitment.
Studies show that plant engineers typically spend more than 25% of their time searching for information. This may significantly reduce their job satisfaction as they feel they are not doing what they’ve been trained and hired to do and thus not creating as much value as they could in ideal circumstances.
4. Improved customer satisfaction
Effective asset information management has a direct – positive – impact on your plant’s lead time and the quality of the work. Building a reputation of being in control of your assets will make your brand stronger and improve customer satisfaction. This, in turn, will help you increase your prices and, eventually, make more money.
5. Improved long-term profitability and competitiveness
Effective asset information management lets your organization focus on its core business by making sure that your engineers always have accurate and reliable information at their fingertips. This not only helps you increase the value of your plant but also future-proof your business and fully leverage the benefits of digitalization by taking advantage of emerging technologies, such as virtual and augmented reality.