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Assets can be an expensive source for businesses. A well-planned practices for managing assets can help to reduce these costs. A well-designed asset management system will reduce the cost of assets through maximising their use, prolonging their lifespan, and reducing maintenance costs. It can also increase efficiency in operations and increase productivity.

The process of strategic asset management involves coordinating physical infrastructure investments with an organization’s overall strategy. This means determining what assets to purchase and when to replace them and how to distribute and dispose of excess or inactive assets.

One important component of strategic asset management is the collection and analysis of data. It can be a difficult task but with the help of modern technology, such as an asset management software, it is made easier. It is able to track the performance of assets as well as monitor work orders and service requests and collect and analyze energy consumption, and also provide useful information regarding assets.

Once the data has been established, a plan of action for asset management can be formulated. This plan should contain a realistic, stretchy, and attainable production goal over three to five years. The plan should also describe what the company will need to make changes to achieve its goal. It should also include the expected costs and production in relation to the improvements that are being implemented.

A solid strategic asset plan should be concise and easy to understand and will highlight all the key elements. It should be written at a level that allows managers at a higher level to examine its findings without having to go through the details. It should also clearly define and define the scope of the plan, as well as describing the areas affected and the timeframe in years that it is applicable.

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