Asset managers play a crucial role in managing assets and delivering optimal performance. To effectively do so, relying on a classification system known as asset classes can be helpful.
Wait, do you already think your assets are divvied into classes? We suspected that this might be the case, so today we’re exploring how getting a little more granular can help you grab better data, make more informed decisions and the big one — save some money overall.
What are asset classes?
In a simple distillation, asset classes are groups that can be further classified into types. Organizing assets in this way lets you capture the level of detail required for specific assets that can then be filtered by specific characteristics.
For example:
Tree = group; its type = species (fir, oak, maple, etc.)
Bridge = group; its type = suspension, foot, cantilever, etc.
Categorizing assets based on their maintenance, operations or facilities management requirements helps asset managers utilize data and insights to optimize their management practices.
Why organize assets this way?
Asset categorization into classes can streamline management, resulting in focused strategies, more effective resource allocation and proactive maintenance. It can help you prioritize activities, enhance risk management and maximize asset value, not to mention improve efficiency and optimize outcomes.
Five ways to use asset classes
Using asset classes can better inform decision-making, enable proactive maintenance strategies and ultimately maximize the value and longevity of assets.
1. It starts with a plan (for a plan)
Whether it’s setting priorities, allocating resources effectively or aligning maintenance activities with your organization's goals, asset classes can do a lot to provide a strategic planning framework.
Say you have a bunch of assets at a school, ranging all the way from the lightbulbs, to the desks, to the boiler and HVAC, to the building or campus itself. Though seemingly all separate, they are actually all connected and you can assign levels of importance — which ones are so mission-critical that if they were to break everything would stop until they're repaired? Or, if one goes down, how does it impact the other assets around it, and what skills are needed to repair it?
By understanding the different categories of assets and their specific maintenance and operational needs, asset managers can develop comprehensive asset management strategies and understand how one asset can impact everything else around it.
2. Set yourself up to prioritize actions
Categorizing assets into classes can help asset managers assess and manage risks associated with different types of assets.
For example, if a car drives off a road and crashes into a lamp post, what’s the right order of operations to make repairs? You have a broken lamp post, perhaps a blocked pavement, or even a part of your street that is now causing traffic to divert to another street. And, what’s going on with the electricity in the area? Was that lamp post connected to other elements in the vicinity and are they affected? Evaluating your assets by class gives you a bigger picture view to know what order to perform repairs.
When you prioritize assets based on their importance, maintenance requirements and potential impact on adjacent assets, you can allocate resources and implement preventive maintenance measures accordingly.
3. Trying to control costs? Use asset classes
Using asset classes can be a game-changer when it comes to budgeting and cost control. By having a good grasp of the maintenance needs and expected costs for each asset class, you can make smarter decisions about where to allocate your funds — it's all about being well-informed.
Asset classes can also help you optimize your resource usage so you're scheduling maintenance in the most strategic way, leveraging your existing staff to work more efficiently or following the order of operations that is the most effective for your organization.
4. Data is in the details when tracking performance
Categorizing assets into classes can give asset managers the data they need to track and evaluate asset performance over time. Asset managers can monitor these metrics and identify underperforming assets by setting specific performance indicators for each asset class, such as uptime, maintenance costs or energy efficiency.
Analyzing performance data also allows for data-driven decisions on maintenance, repair or replacement, which helps optimize asset performance and, you guessed it, overall value.
5. An asset’s lifecycle can be long, if you plan well
Asset classes can help asset managers develop comprehensive lifecycle management plans. If you can use data to understand the expected lifespan, depreciation and maintenance needs of assets within each class, then you can proactively plan for asset replacements or upgrades. (Helpful, when we talk about long-term budgeting, reducing unexpected costs and realizing optimal performance throughout an asset’s lifespan.)
Dive deeper to discover new-found efficiency
We get it, it sounds a little counterintuitive — who wants to spend more time logging details like asset classes? But hear us out. A little extra detail can go a long way to provide insight and agility when you need it most — and help make those more informed decisions.
Our Confirm software provides a comprehensive understanding of asset conditions and planned works. You can capture labor, materials and equipment costs for any type of asset, so you can know at a glance:
- What assets you have
- Where the assets are located
- What condition each asset is in
- The criticality of your assets
- How much your assets cost
- How much your assets are worth
See how Confirm can help manage your assets, streamline information and add value. Book a demo today.
