Decide on a strategic approach to asset management
Physical assets provide the platform from which an organization delivers its services and print business or organization is no exception. For example, assets like printing equipment, machineries and delivery vans have life span they are planned for as they are being manufactured, that is to say they have predetermined useful years in which they would be managed and at the expiration of the useful years they are no longer required but prepared for disposal.
In the past asset management has been associated with policies governing purchases, disposals, periodic stock takes, physical security, maintenance, transfer of assets and reporting losses. A strategic approach however has much more to offer the long term development of a print organization and its business. The guiding principles are:
- Assets exist only to support the deliveries of services
- Asset planning is a key corporate activity that must be undertaken along as we plan for human resources, information systems, knowledge creation and transfer and finances.
- Non asset solutions (enhanced technology, technological alternatives), full life cycle costs, risk and existing alternatives must be considered before investing in building assets.
- Responsibilities for assets should reside with elements that control them
- Asset management at the organizational development level should reflect the organizations overall asset policy framework
- Waste must be eliminated
- The full cost of providing , operating and maintaining assets should be reflected in the delivery of services
The management framework through which these assets journey or its life cycle occurs is strategic asset management that is, aligning physical assets with service demands and promoting better practices in all stages of the journey. We shall consider three key points to help you improve asset management in your print business.
Develop individual plans leading to a strategic asset management plan
A strategic asset management plan for your print business should consist of most or all of the following components.
Capital development applies to all capital assets including buildings, building services, print equipment and machines and the infrastructure necessary to support these assets.
Maintenance applies to maintenance or restoration of non-current or capital physical assets to their original condition. Part of this plan comprises of statutory maintenance (required by legislation) preventive maintenance (generally manufacturers requirements), corrective maintenance (breakdowns of machines & equipment) for example deferred and backlog of information is derived through a comprehensive facility audit.
Facility management aligns the physical workplace with the people and work of the organization. Example include energy management – lighting, air conditioners, generator sets) and the management of other utilities, environmental management, cleaning, waste removal and recycling, workplace health and safety and training. The facilities management plan is the area most often associated with asset planning
Organizational management ensures facilities management activities aligned with the strategic direction of the organization. It will be the organizations culture and structure that ultimately determine the success of any facility management.
Disposal/adaptation uses all assets to best support the mission of the organization.
Apply a similar structure to those features
The following structure could apply to each plan
- Definition: what you mean by maintenance or facilities and so on
- Objective: What the Plan hopes to achieve.
- Scope: what is covered by the plan
- Benefits and risks: benefit of having and not having the plan.
- Statutory requirements: those that impact on the process
- Responsibilities, roles and functions: what is to be done, by whom?
- performance indicators: how you will measure effectiveness and efficiency of the plan
- Competencies and training: what core competencies and associated trainings is required. You will find a flow chart a valuable tool in illustrating how each element contributes to individual plans
Compile an asset register
Your asset register will be one of the outcomes of a comprehensive facility audit. The register should provide some or all of the following details – location, original cost, current cost insurance, replacement cost and any deferred maintenance. That register should be upgraded on a regular basis to incorporate new purchases, adaptations and disposals. Labeling, bar coding, a simple number system or similar appropriate procedures should be used to ensure accountability and that the register remains current
Prepare Budgets
A strategic asset budget must be a working document affected by the direction set by the strategic plan- a good reason for including facility managers in boardroom discussions. Remember:
- For many organizations without exception to print business the value of physical assets far exceeds the total annual operating budget
- Making decisions on only an annual budget is impractical because you will be neglecting part of your assets
- Effective facility management ensures that areas like energy and waste management are not interpreted as overhead but as manageable items. Waste management for example may include recycling, negotiating with suppliers like paper converters, ink suppliers to collect and dispose of packaging accompanying orders or other innovative management approaches.
