By definition, asset management (AM) is the balancing of opportunities, risks, and costs against the expected performance of a property with the aim of achieving the goals of an organization.
Asset management is determined by factors such as timeframe. Like AM, Operations and Maintenance (O&M) are also part of the business activities in an organization. With operation and maintenance, you must have a manual and plan for a broader transfer of knowledge about system operations.
Difference Between AM and O&M
In every business activity, asset management is a larger umbrella, from which operations and maintenance are part of. It is no secret that asset managers are supposed to provide comprehensive services to business owners. The reason is to help them run the business technically, financially, and optimally. Unlike operational maintenance, AM is wide and include everything from the operation level to the investment and financial level. Traditionally, O&M boots a lot in the ground. With operations & maintenance, there are aspects such as preventive and corrective maintenance. For example, if an inverter fails to operate, people who are called to rectify the problem are from the department of operational maintenance. On the other hand, AM manual helps managers with the process of getting the best results from every project.
Responsibilities Of Asset Managers
According to the AM manuals, managers can oversee the job progress as well as the commitment of the people from the maintenance department. The responsibility of asset managers is to ensure that the individuals from operational maintenance fulfill their duty on time. Sufficient preventive and corrective maintenance guarantees good results. Lately, managers are putting a lot of focus on the activities within the operational maintenance department. This is the department that requires attention because every project is expected to run as planned. There must be increased efforts to make people realized that they need to take care of every system and process in a business organization. AM is different from operational maintenance because it requires proactive actions, which can help you avoid underperformance. The idea is to increase the performance of every asset. However, this is the part that every person fails to recognize when it comes to AM.
Asset Management And Operations Maintenance Both Go Together
Despite the differences, operational maintenance depends on AM and vice versa. For instance, in industries, there are a lot of cases where asset managers work closely with the people from the operational maintenance department. The objective is to figure out good solutions to business problems. In a successful organization, everybody will be thinking about how to cut costs, the latest technology to employ, and who is competent enough. Normally, both people in the AM and OM department split responsibilities with the aim of bringing down expenses.
Asset Management Benefits
AM can result in good business practice and increased customer satisfaction. Careful management of assets results in improved reliability. This will also depend on how you structure your daily activities and the attention you will give to the condition of your business systems. The concept of system integrity and sustainable infrastructure is brought up by good management of assets. This is achieved by working closely with policy makers and the people from the operation department. Management of infrastructure in a reliable and sound manner can help you save a lot of money from your business. From infrastructure management, you will be in a position to recognize the life cycle cost, evaluate maintenance cost, reduce operating cost, and accommodate the long-term business expenses. With proper management of business infrastructure and systems, you have a chance of attracting many shareholders. Management of business systems and assets implies demonstration of compliance with legislation and regulation.
Benefits of Operations & Maintenance
• Operations & maintenance can significantly reduce the time input for management process.
• The methods used are flexible and result in improved utilization of your business resources.
• Through operational maintenance, your business infrastructure can reach optimum performance.
• The processes results in longer assets life and postponed decommissioning budgets.