Intergrated logistics Support to IMPROVE ASSETS LIFECYLCE
The primary focus in asset management is to lower the total lifecycle costs incurred in making a product or service, thereby guaranteeing a higher return on fixed assets (ROFA). A higher ROFA than the competition allows a company to offer its products and services at a lower price and attract investors to finance business operations.
Over the years, there has been a rise in demand for an integrated approach to asset management. Because asset lifecycle management requires the involvement of diverse departmental teams, an integrated approach is critical for effectiveness, hence the birth of Integrated Logistics Support. Through Integrated Logistics Support (ILS), business assets are effectively managed throughout their lifecycle to guarantee maximum efficiency. ILS facilitates asset management from the moment an asset is acquired and commissioned to the time it is disposed of.
An integrated asset management strategy enhances the asset lifecycle through:
1. Acquisition planning
Every business must develop a strategy to acquire and manage any asset necessary for its operations. Proper planning prevents incidences where inappropriate equipment is bought at unsustainable prices. Through Integrated Logistics Support, business executives can identify the need for assets and acquire the right equipment for the job. This, in turn, lowers costs that would have otherwise been incurred in servicing substandard machines.
2. Risk management
There is a certain level of risk associated with every business decision. This includes the decision to acquire, operate, and ultimately dispose of machines that no longer work. But a comprehensive asset management strategy helps minimize these risks by anticipating and preparing for unseen eventualities. When such incidences finally occur, its impact will be significantly reduced because there will be room for mitigation and response.
3. Enhanced operational efficiency
A significant aspect of integrated logistics support is to enhance operational efficiency while minimizing lifecycle costs. This is the overall objective of asset management. It is often achieved by acquiring and operationalizing quality systems to reduce failure, planning for and carrying out scheduled maintenance tasks, and replacing system parts that aren’t operational to prevent system breakdown.
4. Monitoring and evaluation
As a vital component of every business operation, monitoring and evaluation is necessary for ensuring that every system is operating as it should. Once the business is running, and the systems’ operational, close monitoring is required to identify errors and recommend remedial action before the problem becomes too large to the extent of threatening operations. Data is collected and compared to predetermined parameters to evaluate overall efficiency, after which tweaking is carried out to get as close as possible to the recommended values.
Integrated Logistics support is central to asset management. Through ILS an asset’s lifecycle is identified, which then helps inform all subsequent decisions regarding the asset, from its purchase, commissioning for operation, to its disposal. As a premier engineering assets management consultancy in UAE, Iridium Engineering Assets Management & Consultancy exists to offer clients asset management solutions that are functional and customized to their needs. Visit our website at https://iridiumils.com/ to learn more about logistics engineering services in the UAE.