Asset Management Plan – A ‘Must Have’ for Every Property Manager

Asset Management Plan

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With profit margins getting thinner and turnaround times getting shorter, real estate managers are looking for new ways to squeeze the most possible value out of their assets. An effective management plan is one way to do that. But what is an asset management plan and how can we get a good handle on our assets?

In this article, we’ll examine the purpose and importance of working with an asset management plan as well as suggest an advanced solution that can help optimise your asset management in the future.

Table of Contents

What is an asset management plan?

An asset management plan (AMP) is a tactical plan for managing a company’s infrastructure and other assets that outlines how a company will make use of its assets. It provides the framework for allocating resources, managing expenses and reacting to changing conditions.

Typically, an asset management plan will cover more than a single asset, taking a system approach – especially where a number of assets are co-dependent and are required to work together to deliver an agreed standard of service.

What is the purpose of an asset plan?

The purpose of an asset plan is to ensure that organisations can continue to operate, even when facing disaster or other major challenges.

Companies should develop asset plans in order to:

  • Identify any potential threats that could cause damage to their facilities and equipment;
  • Create a strategy for responding appropriately if such threats arise;
  • Develop strategies for protecting vulnerable assets.

Why do you need an asset management plan?

An asset management plan is a roadmap for your business. It helps you and your team make sound decisions about the use of your assets, including employees, time, and money.

With an asset management plan in place, you can:

  • Keep track of all of your company’s assets (including people) so that they are used effectively and efficiently.
  • Know exactly where you stand on any given day because you have a clear view of where things are at with projects or goals.
  • Maximise growth by aligning resources with opportunities for growth and expansion that present themselves within the company—whether it’s through new hires or bringing in outside consultants/contractors, etc.

What are the components of an asset management plan?

Asset condition assessment

This is a detailed study of the condition, performance and lifespan of the asset. It includes surveys, inspections and tests.

Asset evaluation

To decide how much money to invest in an asset, you need to find out whether it’s worth investing in or not. You can do this by comparing it with similar assets that have already been upgraded or replaced. For example, if one asset cost $2 million but can only last for five years before needing maintenance work again but another costs $5 million but can last for 30 years without needing any more work done on them then it would be cheaper for your business to replace the former rather than keep repairing the latter every five years!

Financial planning

The financial impact of replacing an asset should also be considered when deciding whether or not you should invest in upgrading/replacing it. For example, if buying new equipment means that your company will make more profit then there shouldn’t be any hesitation about replacing old equipment even if they’re still working well enough at present time (but may fail soon).

How has asset strategy management been handled in the past?

Some companies have been doing asset strategy management for years. Others are new to the concept and need some help getting started.

In many cases, asset condition assessment has been done through a visual inspection of each asset. This is an important first step, but it doesn’t tell you what’s going on inside your assets or how well they perform over time.

To gain a better understanding of these things, you need to perform an asset evaluation using tools that can be used to assess how well your asset is operating and whether it needs maintenance work.

How should asset strategy management be handled today?

In order to keep your asset management plan on track, it is important to prioritise tasks and establish schedules for each of them. It can be overwhelming at first, but once you get into the routine of setting priorities and schedules, it will become second nature. Here’s how it works:

  • First, determine what needs to get done—and by when. For example, you may decide that one day out of every month is designated as your “clean-out-your-car day.” You’ll then make sure that every other week has a day where you wash or detail your car (or both).
  • Next, take stock of what resources are available to help with each task. You may discover that there isn’t enough time in the day for everything; so if this is the case for something on your list (like taking care of all those things), consider delegating some responsibilities or outsourcing parts altogether!

How Pickspace can help you to execute your asset management strategy?

We hope this article has given you a good understanding of the importance of an asset management plan and how it can be used to track your assets. This is just one example of what technology can do to help businesses improve their processes and make smarter decisions. If you want more information about how we can help with smartly managing your properties, Book a demo with us today!

FAQs

An asset management plan (AMP) is a tactical plan for managing a company’s infrastructure and other assets. An asset plan ensures that companies can continue to operate, even when facing disaster or other major challenges.

The components of a solid asset management plan are:

Asset condition assessment

This is a detailed study of the condition, performance and lifespan of the asset. It includes surveys, inspections and tests.

Asset evaluation

To decide how much money to invest in an asset, you need to find out whether it's worth investing in or not. You can do this by comparing it with similar assets that have already been upgraded or replaced. For example, if one asset cost $2 million but can only last for five years before needing maintenance work again but another costs $5 million but can last for 30 years without needing any more work done on them then it would be cheaper for your business to replace the former rather than keep repairing the latter every five years!

Financial planning

The financial impact of replacing an asset should also be considered when deciding whether or not you should invest in upgrading/replacing it. For example, if buying new equipment means that your company will make more profit then there shouldn't be any hesitation about replacing old equipment even if they're still working well enough at present time (but may fail soon).

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