What is Physical Asset Optimization?
Physical Asset Optimization is the practice of maximizing the value of a company's physical assets, particularly equipment and property. This includes everything from maintenance scheduling and technician training to operating ratio analysis and novel revenue stream generation from physical assets.
Asset optimization is all about making strategic improvements to the effectiveness of your overall asset management methodology by providing more holistic adjustments.
An asset is an item of value owned.
Optimization is the process or methodology for making something as functional or practical as possible.
This revolution in data has opened a whole new world of physical asset management and maintenance based on the analysis of this data.
Facility management is about much more than managing buildings, infrastructure, and services—it is critical to the successful functioning of every organization, according to a recent IFMA report on strategic decision making.
Why is Physical Asset Optimization Important?
Physical Asset Optimization is essential because it improves operational efficiency for buildings and facilities by collecting quality data and insights during a facility condition assessment.
Facility managers are tasked with various constraints, from aging infrastructure to health and safety compliance to shrinking budgets. Therefore facility executives must know how every building, physical asset, and system performs. In addition, facility managers must be aware of potential facility optimization areas that go above and beyond energy savings.
Data Collection and Management: New developments in data collection technology have provided the opportunity for companies to assemble an unparalleled volume of data from their facilities, equipment, and physical assets. This revolution in data has opened novel avenues for effective physical asset management, maintenance, and optimization. However, it is the analysis of this data that enables companies to truly enhance physical asset optimization.
By incorporating new technologies like the FOUNDATION Solution, your company can move toward the future of asset management into and into the optimization of physical assets that will deliver high value for your company in the long run.
Top 6 Ways Physical Optimization Delivers Value
Creating value with asset management optimization must go beyond simple cost reduction strategies. According to a recent article in Building Operating Magazine, "productivity increases offer an opportunity to boost long-term profitability in a way that the most aggressive cost-cutting can't match."
Here are the top six ways physical asset optimization creates value.
1. Strategic Management
Do the proper work at the right time to deliver the right level of service.
2. More than Maintenance
Asset management requires leadership to drive change and implement controls through a management system across the organization.;
3. Improves ROI
Asset management delivers value by contributing to the bottom line – a 30% efficiency savings is typical.
4. Value for your Customers
Better managed assets have fewer faults and failures, which results in improved performance and happier building occupants.
5. Organizational Objectives
Better managed assets result in a safer built environment, which directly correlates to improved sustainability and reductions in environmental impact.
6. The Digital Difference
Better managed information and data analysis can save at least 5% for an organization's total expenditures.
How value plays into physical asset management
In conclusion, when considering how value plays into physical asset management, it is essential that organizations"evaluate the balance between cost, risk, and performance, thereby allowing better-informed decisions," according to a recent study by the Institute of Civil Engineers.
The discipline of Facility Management is about more than managing property assets. It is crucial to achieve maximum value from workplace and environmental benefits that improve productivity and protect employees and consumers.
Therefore it is absolutely essential to move beyond cost-cutting strategies to implement a holistic asset management optimization methodology to truly create real long-term value at your organization.
Be Smart. Be Strategic. Get the FOUNDATION Solution by Intellis
It is time to take Asset Management, Facility Condition Assessment, and Capital Planning to the next level.
Working with Intellis enables you to develop an optimized plan for your entire portfolio of facilities that aligns with your company's mission and adapts to its needs.
Top Benefits with Intellis:
- Save an average of 3+ hours per week by removing the need for data entry.
- Second, increase budget funding by 60% or more on capital planning projects.
- Finally, cut spending by half on your annual Facility Condition Assessment.
Say goodbye to complicated excel spreadsheets. And hello to the digital age with cloud-based software for more intelligent, more efficient facility condition assessments, physical assessment management, and capital planning, so you can focus on the long-term success of your facilities.