What is Asset Performance Management?

Failure management of assets is a serious risk for organizations. If equipment fails, it means that a product or service is not delivered, or is delayed. Organizations need to be able to check the status of assets to minimize this problem. Asset Performance Management allows organizations to monitor and manage their assets.

What does Asset Performance Mean?

Asset performance is the metric that allows a business to measure the efficiency of its assets. It can be used to determine how much it costs to operate an asset, or how many units of output it produces. Asset performance is most often used in manufacturing settings and by other businesses that produce goods, such as retailers or food service establishments. It is a measurement of how well an asset performs in relation to its cost and expected lifespan.

The most common metric for asset performance is the cost per unit (or cost per unit of output). This metric shows how much it costs to produce each unit of output produced by an asset. A factory might use this measurement to determine how efficient its machines are, for example, or a restaurant could use it to measure how efficient its kitchen equipment is at preparing food. Another common measurement is revenue per unit, which shows how much revenue each unit produced generates for its owner.

Businesses use asset performance to identify areas where they can improve efficiency by reducing costs or increasing revenue. They can also use it to evaluate their investments in new products or services before making them part of their business model.

What is Asset Performance Management?

Asset Performance Management (APM) refers to business processes for monitoring and managing the health of organizations' physical assets. Asset Performance Management helps organizations save on maintenance costs and increase the performance and life of each asset. That is why Asset Performance Management has become the primary enabler of digital transformation for asset management among industrial companies. Asset Performance Management systems combine traditional asset management practices with digital technologies to drive maintenance execution and transformational advances in business performance.

Asset Performance Management aims to increase equipment safety and availability while limiting risks and costs. With Asset Performance Management systems, intensive industries (mining, manufacturing, oil, gas, transportation, utilities, etc.) have more say over their critical assets.

Asset Performance Management systems work by analyzing data through a complex set of filters to improve equipment. It gives the user information on where improvements need to be made and what is available at any given time. Asset Performance Management systems contain different tools for different industries.

What are the Benefits Of Asset Performance Management?

Adopting an Asset Performance Management strategy and implementing accompanying practices result in less unplanned downtime, reduced maintenance costs, and increased availability of assets.

1- Increased Asset Lifetime

Asset Performance Management is critical to the lifecycle of assets. Helps improve productive asset lifespan at all stages of the asset lifecycle. It preserves its existence and increases its effectiveness. It contributes to the protection of the asset and the planning of its maintenance by keeping records of the assets. This assists in the effective use of assets and ensures the disposal of inactive assets.

2- Targeted Maintenance Tasks

Asset Performance Management stores all data and information about assets. It provides the user with the information needed to target preventative maintenance tasks at critical moments. The Asset Performance Management system schedules maintenance activities and provides notifications and alerts when the time comes. It helps to distinguish inactive assets. With Asset Performance Management, assets are neither overprotected nor neglected.

3- Improved Equipment Efficiency

Asset Performance Management systems are used for optimizing asset performance, ensuring the smooth operation of assets, and calibration management. The most important goal of Asset Performance Management is to keep any asset in its best shape with the help of asset maintenance records and ships. Using this data increases equipment efficiency. Asset Performance Management allows to use less energy, spend less material to reject production, and spend less time producing quality results.

4- Targeted Improvement

Data collected with the help of Asset Performance Management systems can be analyzed to see where inefficiencies occur, and this analysis data is also used to develop improvement targets for assets.

5- Increased Security

Assets need to be inspected regularly so they don't break or leak. Avoiding failures demands asset security, and when maintenance is done regularly, the asset is more secure and optimized and expanded in addition to performance.

Monitoring the performance of assets allows detection machines and other assets to operate outside of safe parameters. Asset Performance Management monitors the assets and warns the user about future problems and allows them to be resolved before they cause major problems.

6- Saved Costs

Identifying potential problems with assets in advance and planning their maintenance and repair saves organizations from heavy costs.

Proactive Asset Performance Management with Loggle

Loggle offers IT asset management solutions to simplify the enterprise architecture of businesses. Application Portfolio Management, Hardware Asset Management, Integration Inventory Management and IT Cost Management solutions offered by Loggle support the establishment of an end-to-end measurement and management system for assets. With Loggle, you can evaluate assets according to IT value and business function and get rid of costly IT assets.