Tag: assets

Physical asset management is the practice of effectively using the physical assets of the company. Many companies have an in house department taking care of that but in some cases, an outside party is called in to help them out.

For this to work, the team has to know first hand the assets of the company. To prevent duplication, it should point out the depreciation value and the utility in the process of production. This process is better known as cost analysis as this will increase economic life and reduce component failures such as the incidence of theft and mistakes in the procurement of supplies and equipment.

It can also assist management in tax planning and forecasting business solutions which could save the company millions of dollars.

For instance, production suffers if machines break down frequently. This is normal if the machine being used is already old. The company can try to repair it but if the cost is much higher than a brand new one, then perhaps they should try to sell this at a reasonable price then use the money to buy a new one.

The same goes if a company has hundreds of stores and only a few of them are making a profit. Since the unprofitable ones are not really bringing in revenue, perhaps it will be a good idea to close them. You must first identify which are constantly unprofitable and it might be a good idea to find out whya and if the situation can be corrected.

This is something that a lot of companies are doing now due to rising costs of fuel and the economic slowdown. Rather than filing for bankruptcy, they would rather slash a few thousand jobs and close down stores. Some companies that have done so include Starbucks, American Airlines, JP Morgan and a lot more. Remember here that workers are also consumers and when they lose their jobs, they tend to consume (buy) a lot less. Other members of society may decide to punish those who lay off workers by not buying their goods or services. The other option is for some companies to merge just to stay afloat.

The bottom line is that physical asset management gives the company an idea as to what they actually have. This will help prevent them from missing out on opportunities when they present themselves.

One way of keeping track of the companyís assets instead of doing it by hand is by investing in asset management software. This will allow those in management to gain access to it whenever it is needed via the companyís intranet.

This can be done by bar coding everything similar to what is done in the supermarket. This will enable the in house team to just scan the item which not only increases accuracy but helps to save time on repeated inventories.

There are four stages which make up the physical asset management cycle.

First is planning and procurement. Here the company sees what is available and then decides what more is needed. They will look at various suppliers and then buy the machine that is affordable and efficient.

In the second stage, those who use it have to use the equipment in order to maximize its productivity.

Third, is called financial management. Here, the company will see if it was worth getting the equipment. It also includes ensuring accurate tax, depreciation and other costs.

Fourth is disposal. If the machine is obsolete, it has to be replaced in compliance with environmental regulations.

Companies will be able to practice effective physical asset management by following the life cycle. Sometimes tough decisions have to be made in order for the company to survive.

There is no doubt that asset management software is needed in todayís environment. But what if you want to communicate with other offices? For that you will need to invest in an online asset management software system.

Online asset management software is connected to an enterprise-wide network or the Internet by embedding special equipment that will allow maintenance personnel to track the functioning of the equipment in real time. Thus, you are to perform preventive maintenance measures and quickly take action when there are breakdowns. This also enables the company to manage their inventory from any location by using the web browser.

To give you an idea, here are some examples where online asset management software can be used.

Since this can be accessed remotely, it can help information technology personnel monitor the hardware and software installed on the enterprise network. Advanced versions of these applications can also help managers control the hardware and software applications on the servers.

Even advertising and media agencies have joined the bandwagon. This is because it helps the people in these companies automate the process of maintaining, marketing, publishing and viewing their multimedia gallery or store.

As for software product development companies, they can use this electronically distribute or manage the digital products they have developed.

On the human resources level, the online asset management software will help the HR department to track employee performance, manage talent and even identify star performers. This can also be used when they go out and attend job fairs so resumes can be stored.

Finance companies also use this so their clients are able to track their own financial assets especially stocks and mutual fund investments in real time. All the customer has to do is log in and then get the latest status on their assets.

Once a company has fully integrated the online asset management software, it will be easy for the various departments to talk to each other. It can detect the installation of unlicensed or unauthorized software, enhance helpdesk security and generate reports so this can be viewed and printed.

Asset management software provides analysis of data, which helps company to make new strategy plans for cash flow, helps in the efficient utilization of resources, and in turn increases the productivity of the company.

You can find online asset management software online. Most sites will allow you to download their program for a 30 day trial and then you have to buy it to continue using it. When you are shopping for it, compare their features and the price. Donít forget to read product reviews and blogs because how well it has performed or not has already had been tested by various users.

When you have found the right online asset management software program, make sure that those in the company are trained how to use it. This will prevent problems later on when data is sent back and forth.

Asset management even if it is now available online is still the process of designing, implementing, planning and maintaining the companyís assets. These include everything from infrastructure, plant, property, and human resources. Being able to access this from a remote location is just another way of checking on things if you are out of the office, while you are out of town, or out of the country.

Asset management is replete with issues or problems that arise, regardless of the generation under which you are operating it. The good thing is that many people have already been open to sharing their experiences on asset management, which saves newbies to asset management time and energy from learning things the hard way. Here is a short list of the most common problems pertaining to asset management that every asset manager must know of.

Lack of updates in the evaluation

When there is a bigger team asked to deal with the asset management of the company, sometimes the updates are much more difficult to attribute to individuals. This is because, while there is rotation among the members, some parts may not be covered thoroughly. On the other hand, if too many people are assigning tasks to individuals without the updates specifically communicated among the different members, the updates will be much more difficult to establish.

Miscommunication among departments

This is the most common problem of asset management that involves human factors. The miscommunication can go from as short as missing one decimal place to having questionable discrepancies on file. The miscommunication is a great disadvantage because it involves lack of proper use for the different instruments made available for asset management.

Incompetence to Manage Assets

The technical competence to mange assets is also equally important. If one of the team members has not taken the time to train for the use of the equipment and the dynamics needed by the job of managing assets, the incompetence will result in disasters in the managing of assets. Inventory problems and management issues may arise, and in essence, it is still better to manage with a few high quality people than with many below average ones.

Lack of Technology Demanded by the Company

For example, you have all the competent people you need. But if you do not have the technology that matches their qualifications for doing to job, success will be much more difficult to achieve. You may get an above average performance from the people, but it will still be much much better if the technology matches the good skills of the asset management team.

Lack of support

When there is lack of support in any given endeavor, it is bound to fail. The same goes with asset management. The lack of support among departments may not be conducive for positive change and objective or honest inventory of assets. Where there are ulterior motives being satisfied among the ranks, the management of assets may not be as pure or clean as one would like. This lack of support may be remedied by strengthening the ties of the team members via enriching activities.

No balance in asset elements

The balance is the key to perfect asset management. A balance in the different categories and the figures that represent them in the charts are the core outputs of a good management of assets in an organization. A lack of balance means that there are some things that need to be modified, or that some people are out of shape for this activity.

Too little risks taken for growth

When one’s asset is much managed, there is also a tendency to eliminate all risks, even when in fact these risks are contributory to the company’s growth and yield good returns. Asset management must also involve taking calculated risks.

Industrial asset management is the trend these days in order for a company to optimize profits. This is done by exploiting assets to the fullest by taking consideration not only the measurement of assets and resources but also analyzing data, current market trends and quickly taking business decisions based on information collected. In short, you take everything into account to ensure productivity.

This is achieved by first identifying what are the current resources. This could be capital investments or the plant itself. Once it has been identified, it is time to come up with policies that preserve them. Some companies keep track of this by using asset management software that makes the information accessible to all departments.

This program is better known as enterprise asset management systems. It was first developed in the 1960ís with improvements being done constantly so it may encompass all the stages of the asset life cycle from planning, designing, purchasing, installing, operating, maintaining and finally disposing. Customized maintenance management software forms the subset of EAM.

With the assets stored in the companyís server, this will ensure that it is not possible for the duplication of resources. This means not having to spend money on new equipment and supplies when they are still available in the companyís inventory.

Another benefit of industrial asset management is that the company can focus their energy on non-productive assets. This will enable the company to convert, for instance, idle land into developed real estate or simply get rid of it and making some money from it.

This is very useful for banks that have confiscated assets which the clients could not pay for and then auction these off to interested buyers so money can be made.

Should there be a surplus after taking everything into account, they may also decide to sell these off and make a few bucks. To compute the selling price, it is best to inspect it, have it appraised then advertise so interested buyers will come over and buy it.

Industrial asset management may also work for those who buy the goods for the company in terms of inspection of the assets for sale, contract reviews, search and comparisons to see if there are any alternatives and the procurement and shipping of the item.

Industrial asset management can do one other thing for the company. If they see that there is something they lack and there is an opportunity to acquire it, they can check if it can be added to their portfolio so the company is able to grow.

Companies that have used the software include aerospace, automobile, mining and service companies because even if they do have assets worth billions of dollars they do not want to see a single penny go to waste.

Will installing a software program to monitor industrial asset management do the trick? The answer is no because you still need management to be involved throughout the whole process. Each company has different needs and these have to be addressed accordingly.

Industrial asset management is a good thing because it helps the company stay productive. You have to remember that it is simply a tool and there is still a lot of work to be done to ensure you get maximum returns on your investment.

Setting out to find someone who can help you invest your money can oftentimes be nerve-wracking. After all, this person will be handling your finances and in a way will be holding your life in his hands. This is especially true with people who are about to retire and have no other means of income but the money that they have saved over the years. But no matter how frightening it can be, the fact is, you need asset management in your life if you want to remain problem-free for your entire life.

You see, the money kept in the bank is not enough to finance a comfortable retirement. With such a measly interest, all it can give you is small change that can perhaps last you 3 months when you donít have other income. Inflation rates and the rising cost of living are enough to knock down the value of your money in the future.

But finding a good asset management program and personnel is not always the trial that people say it is. When done right, you can actually get yourself a good deal with a trustworthy manager who will help you triple or quadruple your assets. Here are some tips that can help you.

1. Shop for it

Do not just settle for the first one that you see. Look around and compare notes. Get as many as you can and then choose from the line up. That way, you will not be pressured to take one program or hire one person even if you donít really trust it or believe in it.

Looking for a good asset management program is like shopping for a doctor when you have a terminal illness. Think that you are looking for someone who can save your life. And when you come and think about it, finding a good one is actually kind of like saving one’s life. After all, your entire future will depend on the performance of this one person and the effectiveness of the program.

2. Ask around

One way to find a good asset management program is to ask people about it. Believe it or not, it is that simple. You see people who have also gone through the same motions will know where to look and will even have tips on how to look.

You can also ask for recommendations. Have them give you the number of the asset management manager that they hired. Start with your friends and families. They will surely know people who they can refer to you. If you know successful people in business or those whose financial portfolio you admire, go right ahead and ask them for referrals. Their asset manager should be really good.

Once you get their contact numbers, call them. Ask about the personís accomplishments and track record as well as the number of years that he or she is working for your acquaintance. Set up and appointment and get to know the guy (or gal) in person. That way, you can see for yourself what his personality and attitude is in business. Do the same thing with other referrals and then choose the best.

3. Never trust completely

Never put your trust in one person even if he comes with great recommendations. Even if you have hired him or her already, still take an active part in the management of your assets. It is good that you also know what is going on with your money.

4. A basic idea

No investor can afford to lose any amount of their principle. ROI (return On Investment) can vary and should never be zero but any investment that puts your principle at risk is a bad one for “The little guy (or gal).” “The big guys” can afford to do the “High Risk, High Gain (or Bigtime Loss)” type of investing (gambling) because they have the wealth to do so. If you are a “little guy”, stay away from that game.

5. General guideline

In looking for asset management, you might be able to find an individual manager who is a genius, completely honest, is devoid of self interest and is extremely lucky. The odds on this are about the same as those for pigs acquiring flight ability. So a general rule is, the bigger the company you have managing your assets, the safer they will be. The smaller, the more risk you will incur.

An actual case in point was a small brokerage firm that had invested their own money in an international monetary fund. They had their account managers call their clients and recommend they get into this fund. For every dollar a client put in, they could take one of their own out. When the fund crashed, investors lost a good percentage of their principle but the brokerage firm had already gotten themselves out at the high point.