The Importance of Asset Management in FM: Challenges and Benefits

What you will find in this text?

  1. Challenges of Asset Management in FM
  2. Main Aspects of Asset Management in the FM Industry
  3. Benefits of Asset Management in FM
  4. Technology Solutions for Asset Management in FM

Facilities Management is a complex and multifaceted discipline that involves the management of a wide range of assets, including buildings, equipment, and infrastructure. Effective asset management is critical to the success of FM, as it can help FM teams improve asset performance, reduce costs, and enhance safety and compliance. In this article, we explore the challenges and benefits of asset management in FM and how technology solutions can help FM teams overcome these challenges and achieve these benefits.

According to a report by MarketsandMarkets, the global facilities management market size is expected to grow from $39.5 billion in 2020 to $65.5 billion by 2025, at a compound annual growth rate (CAGR) of 10.6% during the forecast period. The report highlights the growing need for effective asset management and maintenance solutions in the facilities management industry, driven by the increasing adoption of smart building technologies and the growing focus on energy efficiency and sustainability.

Challenges of Asset Management in the FM Industry

Asset management in the facilities management industry can be challenging due to various factors. One of the most significant challenges is the lack of visibility into assets. Without a complete understanding of all the assets within a facility, it can be difficult to track performance, identify potential maintenance issues, or plan for replacement.

Another challenge is the age of infrastructure and equipment, which may require regular maintenance, repairs, or replacement. This is especially true of older buildings, which may have outdated systems more prone to failure. Facilities managers may also have limited resources, including budgets, staff, and time to manage assets effectively.

Finally, regulatory compliance requirements can add another layer of complexity to asset management. This requiresfacilities managers to ensure they meet various safety standards, environmental regulations, and building codes.

Furthermore, inadequate equipment cleaning and sanitation was found to be the leading cause of food recalls between 2012 and 2017, according to a report by the Food and Drug Administration. The cost of food recalls has also increased by 93% over the past decade, with an average cost of $10 million per incident, as reported by a study conducted by the University of California.

Main Aspects of Asset Management in the FM Industry

Asset management in facilities management involves several key aspects, including asset tracking, maintenance planning, preventive maintenance, reactive maintenance, and replacement planning. Asset tracking involves identifying and tracking all assets within a facility, including equipment, machinery, and infrastructure.

Maintenance planning involves developing a maintenance plan for each asset based on its condition, usage, and criticality. Preventive maintenance involves conducting regular maintenance activities to prevent equipment failure, extend asset lifespan, and reduce repair costs.

Reactive maintenance involves responding promptly and efficiently to equipment failures to minimize downtime and disruption. Finally, replacement planning involves developing a replacement plan for assets that are no longer viable or have reached the end of their useful life.

Benefits of Effective Asset Management and Maintenance

Effective asset management and maintenance in FM can provide several benefits, including increased asset lifespan, improved asset performance, reduced downtime, lower maintenance costs, and improved safety and compliance. Regular maintenance can extend the life of assets, reducing the need for costly replacements.

Additionally, regular maintenance can improve asset performance, leading to higher efficiency and productivity. Preventive maintenance can reduce unplanned downtime, minimizing disruptions to operations and reducing costs.

Catching small issues before they become major problems can reduce overall maintenance costs. Finally, regular maintenance can ensure assets are operating safely and in compliance with regulatory requirements.

Technology Solutions for Asset Management in FM

Maintenance software, also known as computerized maintenance management software (CMMS), can help facilities managers streamline and automate asset management and maintenance processes. CMMS can help identify and track all assets within a facility, including their location, usage, and condition.

Additionally, CMMS can help develop a maintenance plan for each asset based on its usage, condition, and criticality. Automation of preventive maintenance tasks such as scheduling routine inspections, lubrication, and calibration can be done with the help of maintenance software. Work order management can also be streamlined using maintenance software.

Reporting and analysis provided by maintenance software can generate reports and provide insights into asset performance, maintenance costs, and other key metrics, helping facilities managers make data-driven decisions.

A survey by FacilitiesNet found that 87% of facilities managers use some type of software to manage assets, with CMMS being the most commonly used tool. CMMS can help facilities managers track asset performance, identify potential maintenance issues, and plan for replacement. The report also notes that the use of advanced technologies, such as the Internet of Things (IoT) and artificial intelligence (AI), is expected to drive further growth in the facilities management industry.

These technologies can help facilities managers collect real-time data on asset performance, predict maintenance needs, and optimize asset utilization, leading to increased efficiency and reduced costs. As the facilities management industry continues to evolve, effective asset management will remain a crucial component of delivering high-quality services and maintaining safe, efficient, and sustainable facilities.