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Want to improve your maintenance team’s performance? This guide covers the 10 best practices for an excellent maintenance team, including hiring, defining roles, using technology, and ensuring safety. Learn how to build and sustain an efficient and reliable team. This article will provide you with a detailed guide on how to create an excellent maintenance team. 1. Hire the Right Maintenance Technicians Hiring the right employees can be challenging for any organization. It is sometimes impossible to gauge a person's ability to do the job without working with them for a set period. The technicians' skills, experience, and dedication are the foundation of your maintenance department's success. One of the first steps during an interview process is evaluating technical prowess and character traits. Neglecting either aspect can increase operational costs through overtime and outsourcing, ultimately impacting your facility’s overall performance. Creative Recruiting Employing creative recruiting methods like social media advertising, referrals from your existing employees, and industry trade shows are just a few methods for attracting top talent. Some of these web platforms can help you reach a wider audience of potential candidates, increasing your chances of finding the perfect fit for your team. Additionally, offering attractive incentives like 401(k) matching, training, childcare reimbursement, gym memberships, and office snacks can make your job openings more appealing to skilled professionals. Remember, investing in the right people from the start can save you time and resources, minimize downtime, improve asset performance, and improve the organization's performance. Source: WorkTrek Evaluate Technical Skills When evaluating candidates' technical abilities, don't just look at their resumes. Develop and put potential candidates through practical assessments and tests to gauge their hands-on skills. These evaluations will offer insight into a candidate’s competence with different hand and power tools, essential skills for any maintenance technician. Another tip is to include scenario-based questions that present real-world challenges applicants might face on the job. This strategy enables you to discern applicants who possess the required knowledge and can apply it effectively within your facility’s operations. Cultural Fit A cultural fit is as important as technical skills when selecting the ideal maintenance technician in many situations. When assembling your maintenance team, weigh cultural fit as heavily as technical abilities. Conducting in-person interviews during recruitment events can help gauge an applicant’s character and potential compatibility with the current team dynamic. Additionally, have the candidate meet as many team members as possible. The ability of any candidate to work well with others is more important than technical skills. Finding the right person with the correct cultural fit can sometimes be more important than technical skills. If the candidate has the aptitude, ability, and cultural fit, they can be trained with the correct technical skill set. Illustration: WorkTrek / Data: Forbes 2. Establish Clear Roles and Responsibilities Once you have assembled your ideal maintenance team members, defining their precise roles and responsibilities is the next critical step. This process is important for maintaining an orderly maintenance department and elevating operational efficiency. When all maintenance team members clearly understand their tasks and contribute to the collective objective, confusion can be reduced, and maintenance efforts can be optimized. Role Clarity Define each team member's role as clearly as possible. This requires developing comprehensive job descriptions that reflect and support your company's objectives. These detailed outlines should clearly define each team member’s duties and demonstrate how their functions interrelate with others in their department. Adopting mechanisms such as RAPID (Recommend, Agree, Perform, Input, Decide)can significantly help clarify each person’s role during decision-making. This method allows every member to gain a clearer insight into their unique contributions and how they connect with those around them, leading to improved unity and productivity. Source: The Bridgespan Group When all members are conscious of their contribution to the collective goal, pinpointing areas needing enhancement is simplified while allowing for agility amidst evolving requirements in maintenance tasks. Accountability Defining clear roles establishes the foundation for accountability, a pivotal component of an excellent maintenance team. Implementing robust accountability measures ensures tasks are assigned and executed correctly and on time. This involves tracking completed assignments and responsibilities, which can be facilitated using a Computerized Maintenance Management System (CMMS), as discussed in more detail later. An important metric is the maintenance backlog, which represents the labor required to complete all pending maintenance tasks. By regularly monitoring this backlog and holding team members accountable for their assigned duties, you can improve overall team performance, reduce delays, and enhance the efficiency of your maintenance operations. 3. Implement a Computerized Maintenance Management System (CMMS) As more companies go through digital transformation, implementing a CMMS system for your maintenance organization can significantly enhance productivity, improve routine maintenance management, and increase overall efficiency and equipment health. CMMS can be the primary hub for upkeep activities, boost coordination, enhance communication, and significantly increase operations' overall efficiency. Advantages of CMMS Implementing a CMMS can provide several benefits and advantages to any maintenance organization. It can reduce operational bottlenecks, improve asset performance, implement preventive maintenance tasks, and give maintenance managers a centralized view of all work activity. Automate Work Orders For instance, CMMS can autonomously set in motion service orders preemptively upon particular triggers like machine usage counts or through condition monitoring sensor inputs. This approach and key performance indicators, viewed in CMMS apps, can improve routine maintenance, reduce equipment failures, and organize all maintenance work. Source: WorkTrek Alerts Alerts about upcoming routine services or notifications signaling the need to replenish stock can ensure that maintenance operations run smoothly. CMMS can also provide alerts through mobile devices or email and SMS to everyone involved in the maintenance process. Source: WorkTrek Work Order Management One of the top benefits of CMMS is its ability to enhance and automate work order management. Some of the benefits include: Organizing and monitoring maintenance requests Streamlining work order assignments to maintenance technicians Improve equipment health and asset performance Define custom workflows to meet every business requirement Develop and employ industry best practices to work orders Reduce manual maintenance efforts Suppose you are still using paper-based or manual work orders. In that case, a CMMS can greatly improve your maintenance operations, reduce errors and equipment failure, and give the maintenance manager and maintenance supervisor full visibility to all tasks. Additional CMMS benefits There are a lot of other benefits to implementing a CMMS. Some of those benefits include: Removing inefficiencies in document management since all work orders, manuals, and safety documents are stored online Automating duplicate checkers for work orders can reduce team member error Organizing various tasks in one place while automating routine procedures conserves time, bolsters precision, and holds your maintenance team more accountable. Asset Tracking A CMMS excels by delivering instantaneous insights into the condition and performance of an organization's assets. IoT devices, QR Codes, or even bar codes can simplify tracking critical assets. Paired with a CMMS mobile app, maintenance technicians can scan and obtain critical information about each piece of equipment. Source: WorkTrek Health and Safety This information can include health and safety protocols, equipment manuals, and product diagrams. There is no longer a need to manage. With its asset tracking features, your team can take informed steps when determining what demands priority attention regarding upkeep activities, allocating resources wisely, and planning strategies for long-term asset care. Source: WorkTrek 4. Prioritize Preventive Maintenance Most successful maintenance strategies are anchored in an effective preventive maintenance process. Commitment to regular preventive care reduces the likelihood of equipment failure, minimizes unexpected shutdowns, and amplifies the durability of your assets. This method involves routine activities such as: Examinations Cleansing operations Lubrication tasks Filter and other consumable replacements Spare parts management Benefits of Preventive Maintenance It is always advisable to perform preventive maintenance before the system breaks down. This approach will reduce operating costs, minimizing downtime, and can lead to operational success. Implementing a robust preventive maintenance program requires deliberate planning and reasonable allocation of resources. One of the first steps in any preventive maintenance strategy is identifying the company's most important assets and critical components. Directing your preventative efforts towards key equipment crucial to operations (“critical assets”), you can enhance the effectiveness of any provided services under these protocols while ensuring optimal utilization outcomes from investing funds into it. Yielding better investment returns considering what’s at stake here: those integral parts themselves! Schedule Regular Inspections Regularly scheduled inspections are effective preventive maintenance for the maintenance team. These programs can: Prevent minor issues from developing into more significant, costly problems through early detection, ultimately conserving time and financial resources. Analyzing historical data can enhance the scheduling of future inspections, helping to discern patterns regarding equipment reliability and breakdown frequencies. Facilitate a strategic approach for establishing optimal preventative maintenance intervals that can lead to notable cost reductions. With a Computerized Maintenance Management System (CMMS) you can precisely monitor equipment usage patterns and accurately determine when preventive maintenance is necessary. You can also easily create PM checklists that can optimize your maintenance process. These standardized procedures guarantee uniformity among different technicians and locations, thus safeguarding quality control and efficiency within your organization’s preventive maintenance endeavors. Source: WorkTrek Failure Mode Analysis Incorporating Failure Mode Analysis (FMA) is a fundamental part of an effective preventive maintenance plan. This systematic process aids in detecting potential root causes behind equipment malfunctions, enabling your maintenance team to take anticipatory action. With FMA as part of their approach, teams can prevent recurring machinery issues and significantly enhance asset dependability. The practice requires an in-depth analysis of each item’s operation, examining every imaginable scenario for malfunction and its subsequent impact. By pinpointing vulnerabilities in how the equipment operates or is designed, FMA shapes more precise and beneficial maintenance approaches. When you weave FMA into your regular maintenance activities, you mitigate the risk of unforeseen failures and maximize efficiency across all maintenance work by ensuring that resources are invested wisely where they will have the most significant effect. 5. Foster Continuous Improvement Implementing a continuous improvement culture and process can greatly enhance your maintenance team. This approach constantly looks for avenues to refine the various facets and overall functioning of maintenance processes and strategies. By adopting cutting-edge technologies, like CMMS software, and best practices, your maintenance department can stay at the forefront of industry changes and needs. Beyond Continuous Improvement Source: WorkTrek Continuous improvement extends beyond just addressing immediate issues. It involves preemptively pinpointing opportunities for progress and executing strategies that bolster efficiency and productivity. Involving all team members to evaluate current methods can help continuous improvement. Their hands-on experience provides valuable insights that can streamline processes and address ongoing challenges. Here are a few things you can do to improve communication between team members: Empower staff members to put forward their suggestions for enhancements Establish mechanisms through which employees can relay grievances or reservations Promote transparent dialogue by encouraging everyone’s input Benefits of Open Communication Not only does such open communication help spot inefficiencies, but it also heightens employee engagement and satisfaction levels. Concentrating on core processes or items where focused attention could substantially benefit your augmentation endeavors. Training and Development Fostering a culture of continuous improvement within the maintenance team requires a commitment to ongoing training and skill development. Regular instruction keeps your technicians up-to-date with industry best practices, equipping them for the dynamic nature of maintenance tasks. Crafting bespoke educational initiatives to plug specific proficiency or knowledge gaps can ensure optimum impact. These initiatives could be vendor-specific training or generalized training offered by local educational institutions. Training Options Provide additional training incentives to reward exceptional work performance, which can boost motivation and keep staff updated with industry advancements. There are several avenues for enhancing learning, including: Accredited certification paths Interactive workshops and symposiums Web-based instructional courses Structured mentorship arrangements By providing employees with pathways for professional growth, you can build a team that constantly learns, tackles any problem, and champions ongoing improvement across operational procedures. Source: WorkTrek Embrace New Technologies As the facilities management landscape continues to evolve, staying abreast of emerging technologies is crucial for maintaining a competitive edge in the industry. Leveraging the latest technological advancements, such as CMMS software, can significantly enhance your maintenance team’s effectiveness, optimize efficiency, and reduce costs. For example, adopting project management software offers a streamlined method for enhancing communication and overseeing maintenance tasks. These platforms typically offer a centralized hub that allows team members to collaborate effortlessly, share timely updates, and collectively address challenges in real time. Modern Tools Whether you’re considering sophisticated diagnostic equipment, IoT sensors geared towards predictive maintenance, or even AI-infused systems designed for orchestrating maintenance schedules, selecting appropriate technology can revolutionize your organization’s approach to upkeep procedures. Successfully introducing new tools relies heavily on comprehensive training and effective change management. This ensures that your staff can fully utilize these innovations in their roles. By continuously supporting new technical solutions and integrating them into daily practices, you guarantee that your facility’s management efforts align with recognized best practices in this ever-evolving field. 6. Promote Open Communication Effective communication channels are essential for maintaining a top-tier maintenance team. Such an environment enhances collaboration, improves problem-solving capabilities, and fosters a more cohesive workforce. When team members are encouraged to share ideas, raise concerns, and voice any apprehensions, it creates a proactive mindset where emerging issues can be identified and addressed quickly before they escalate. Ensuring this seamless exchange of information is crucial for maintaining equipment reliability and operational efficiency. Open Accessible Policy Establishing an accessible policy where workers feel at ease discussing their perspectives with management is key to championing open dialogue among staff members. This strategy nurtures confidence between colleagues at all levels, indicating that contributions from every member are respected. Having direct avenues for conveying messages enables prompt identification of concerns or complications, leading to quicker actions and significantly reducing system idle time. Creating an environment that prizes attentive listening is as important as speaking out. This leads to enhanced outcomes regarding machinery upkeep, amplified employee morale, and greater satisfaction in their professional roles. Team Meetings Consistent and clear communication within a maintenance department is essential, typically achieved through scheduled team meetings. These meetings can help evaluate task progress, set future goals, discuss key performance indicators (KPIs), and provide a collaborative problem-solving and innovation platform. These sessions should be used to achieve several objectives. Update everyone on the status of current assignments Look ahead at upcoming plans for equipment care routines Communicate shifts in approaches related to managing facilities Urge members of your crew to convey their struggles, triumphs, or unique insights Detect issues promptly, which permits faster response times with more resourceful resolutions To maximize efficiency during these discussions, consider adopting methods that best align with your team’s dynamics and available resources. Visualizing progress or incorporating educational segments into your regular meeting agenda might be helpful. The goal is to ensure these meetings are informative and engaging for everyone involved. Feedback Mechanisms Establishing a dynamic and responsive maintenance team depends on robust feedback mechanisms. These channels enable personnel to raise concerns, propose enhancements, and participate in continuously improving their maintenance processes and methods. Cultivate an atmosphere of open communication so that everyone feels empowered to provide frank and constructive opinions. This could be facilitated through various means, such as confidential suggestion boxes, systematic private meetings between supervisors and employees, or online forums for sharing and debating ideas. 7. Develop a Comprehensive Maintenance Plan Creating a comprehensive maintenance schedule helps steer your team toward effective maintenance management. This plan is a proactive strategy to prevent malfunctions, reduce costs, and enhance overall equipment efficiency. By identifying assets, determining maintenance needs, and designing preventive maintenance schedules that align with your organization’s specific requirements, you create a structured approach to maintenance that supports your infrastructure's goals and operational demands. Below are a few suggestions for creating a comprehensive maintenance plan: Assess current maintenance practices to identify strengths and areas for improvement. Establish maintenance goals centered around equipment reliability, cost reduction, and adherence to industry standards. Choose appropriate maintenance strategies for various assets by considering their criticality and likelihood of failure. This might involve a combination of preventive, predictive, and reactive maintenance approaches. Short-Term Maintenance Tasks You must incorporate short-term maintenance tasks into your routine schedule to ensure operational efficiency. These tasks focus on keeping equipment in good working order and include daily inspections and routine checks to catch and resolve minor issues before they become significant problems. Daily maintenance might involve monitoring fluid levels in machinery, checking for wear or damage, and performing basic cleaning operations. Source: WorkTrek Weekly Tasks These tasks may be expanded weekly with more thorough assessments, such as verifying electrical systems’ performance, lubricating parts to prevent frictional deterioration, and adjusting settings to hinder excess wear. By executing these preventative maintenance actions frequently each week, you can substantially lower the incidence rate of sudden equipment failures while increasing the longevity of your machinery. Ongoing scrutiny provides valuable insights that can shape broader maintenance strategies, leading to more efficient use of management resources. Teams must understand that preventive maintenance activities shouldn't be considered mundane chores. Instead, they are critical elements of a proactive approach that ensures continuous reliability and efficiency in the facility's operations. Source: WorkTrek Long-Term Goals While short-term tasks ensure daily operations run smoothly, setting long-term maintenance goals to maintain your facility's assets' sustained efficiency and longevity. These goals typically focus on increasing equipment lifespan and maintaining high production efficiency over extended periods. Long-term objectives might include implementing advanced predictive maintenance techniques, upgrading critical equipment to more efficient models, or developing comprehensive staff training programs to enhance overall maintenance capabilities. Another key element of long-term planning is scheduling major equipment overhauls and replacements, which are crucial for sustaining operational efficiency. Replacing critical assets can be costly and requires careful planning, budgeting, and collaboration among all team members. Remember, aligning these long-term maintenance goals with your organization’s broader business objectives ensures that your maintenance efforts contribute directly to the company’s success. Source: WorkTrek 8. Monitor Key Performance Indicators (KPIs) Key Performance Indicators (KPIs) help guide and sustain continuous improvement in your maintenance organization. KPIs provide tangible data points that facilitate evaluating how well you meet maintenance objectives and pinpoint areas requiring enhancement. Critical metrics for gauging the efficiency of maintenance teams include Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), and Planned Maintenance Percentage. These metrics offer insight into equipment reliability, effectiveness in carrying out repairs, and the current approach to conducting maintenance activities' proactive versus reactive nature. Measure KPIs Two important things to track with KPI's are reliability and availability matrix. The former assesses an item’s likelihood of functioning correctly over a given duration without breaking down. Conversely, availability calculates the proportion of time a piece of equipment remains ready for use, thus reflecting operational readiness levels. Tracking machine downtime is also essential, as it illuminates just how much production efficiency can be influenced by diligent or negligent execution of upkeep tasks. Source: WorkTrek Estimated Replacement Value Percentage Finally, yet important, is analyzing Maintenance Costs against the Estimated Replacement Value percentage (MC/ERV). This specific ratio aids in making more grounded judgments about whether it’s financially smarter to maintain or replace assets. Regularly reviewing these indicators during meetings keeps everyone aligned with collective goals and enhances overall maintenance performance. This data should be collected and strategically applied in decision-making, fostering continuous improvements within the scope of operations managed under your care. Equipment Uptime Tracking equipment uptime helps monitor maintenance performance and enhance operational efficiency. Using a Computerized Maintenance Management System (CMMS), facilities can significantly reduce downtime caused by equipment failure or poor maintenance planning. This proactive approach allows for more accurate scheduling of maintenance activities and helps prevent unexpected breakdowns. Implementing condition-based maintenance strategies can further boost equipment uptime by addressing potential issues before they lead to failures. Every minute of downtime translates to lost production and potential revenue, making equipment uptime a crucial metric for assessing the effectiveness of your maintenance program. Regularly analyze your uptime data to: Identify patterns or recurring issues that might be affecting equipment reliability Focus on improving equipment uptime Enhance operational efficiency Contribute directly to your organization’s bottom line through reduced repair costs and increased productivity. Cost Savings Identifying and monitoring cost savings are vital components of maintenance management, and they have direct consequences on your organization’s financial health. An effective maintenance program can enhance machinery longevity and diminish cumulative upkeep expenditures. Monitoring Maintenance Costs as a percentage of estimated replacement value (MC/ERV) is crucial for assessing whether persisting with an asset’s maintenance or procuring its replacement is more economically viable. CMMS for Expense Tracking Employing a Computerized Maintenance Management System (CMMS) can track expenses associated with various aspects, such as labor and parts involved in maintenance processes. This can help unearth potential efficiencies and areas where spending could be optimized. Creating tailor-made reports can identify areas that can hinder production schedules. Source: WorkTrek 9. Maintain a Positive Work Environment Creating and maintaining a positive work environment can improve the performance of your maintenance team. This approach increases morale, productivity, and job satisfaction among team members. When they feel recognized and valued, these individuals exceed expectations, offer creative solutions, and enthusiastically engage in teamwork. More importantly, it helps keep the team focused on shared objectives. Rewarding your maintenance team members Acknowledging, rewarding, and recognizing your maintenance team members can help nurture a positive work environment. Verbal commendations or public recognition can be equally meaningful. Continuous recognition for diligence and excellence cultivates an environment where high standards are pursued. This approach can cultivate an environment where ongoing high standards are pursued by setting up continuous recognition for diligence and excellence. Source: WorkTrek Recognition and Rewards To foster an enthusiastic maintenance team that excels, incorporate a robust system of acknowledgment and incentives. While physical rewards like monetary bonuses or gift vouchers can serve as solid motivators, the potency of spoken praise or open commendation should not be overlooked. Often, these gestures carry more weight in boosting morale over time. Establishing structured appreciation programs for standout employees demonstrates their value to the enterprise. A particularly effective means of recognition involves inviting maintenance staff into decision-making spheres. This validates their expertise and instills an enhanced sense of responsibility toward their work. Break Rooms and Amenities Often overlooked, comfortable break rooms are equally important in creating a supportive environment for your maintenance team. A thoughtfully arranged break room provides a sanctuary where maintenance staff can unwind, rejuvenate, and partake in casual conversations that frequently lead to creative solutions. To equip these spaces adequately, consider including: Cozy seating options Adequate lighting Facilities like a fridge, microwave oven, and coffee machine Leisurely items such as televisions or gaming tables to promote relaxation during downtime Investing in these key areas shows your support for the comfort and happiness of your team members, which significantly enhances morale and job satisfaction. Remember that when a maintenance team's welfare is prioritized, its members often reciprocate with heightened dedication to their roles—positively impacting overall facility management objectives. Source: WorkTrek 10. Ensure Safety Protocols are Followed Safety should be the primary concern in any maintenance task. Establishing and adhering to solid safety protocols is essential for protecting team members, safeguarding assets, and preserving high operational efficiency. These protocols require regular updates incorporating industry best practices and adjustments corresponding to changes within your operations. Merely having safety guidelines is insufficient. Every team member should be regularly trained on safety protocols and procedures. Another approach is to hold regular safety drills so all personnel involved in maintenance thoroughly understand what actions must be taken during emergencies. Such exercises help staff internalize procedures geared towards keeping them safe, enabling automatic responses when faced with stressful conditions. Provide easy access to adequate PPE (Personal Protective Equipment) and conduct periodic audits pertaining to security measures at work. By consistently emphasizing securing a hazard-free environment, you’ll not only shield workers from harm but also show dedication to their welfare—this can lead to substantially improved spirits among employees alongside enhanced job contentment. Safety Training Ensuring the safety and efficiency of maintenance operations hinges on continuous and comprehensive safety education. Such training must encompass a broad spectrum, extending from general to specialized practices tailored to your facility's distinctive machinery and processes. It’s important for your program to continually keep the maintenance workforce abreast of evolving standards as well as industry best practices in various domains, including: Correct utilization of personal protective equipment (PPE) Management of hazardous substances Safety regarding electrical systems Protocols for emergencies Lock-out and Tag-Out Procedures Place heightened emphasis on critical safety measures such as lock-out tag-out procedures that prevent injuries when maintaining equipment. Adopt diverse instructional approaches, such as classroom learning, practical exercises, and digital courses, that accommodate distinct educational preferences while promoting a thorough grasp of crucial information. Regularly scheduled refresher trainings play an indispensable role in keeping key concepts fresh and briefing staff on modified guidelines. Committing to continual instruction about safe conduct meets legal obligations and cultivates an ethos where conscientiousness about security resonates through every dimension of your maintenance tasks. Source: WorkTrek Emergency Procedures Establishing clear-cut emergency protocols is can mitigate hazards and ensure efficient, synchronized action in dire circumstances. These plans must encompass a variety of urgent scenarios, such as: Malfunctions in equipment Acts of nature causing widespread disruption Fire-related crises Health-related urgencies Security breaches Such strategies ought to be customized for your establishment's particular requirements. It’s important that every member of the maintenance team receives comprehensive training regarding these procedures and recognizes their specific responsibilities during assorted crisis events. Safety Workshops It’s vital to conduct regular safety workshops that focus on the established protocols and promote knowledge about spotting dangers and evaluating risks. Workers should be adept at swiftly identifying and neutralizing immediate threats when an emergency arises—this could mean ceasing machinery operations or initiating evacuations from hazardous zones. Developing readily available guides or checklists for emergencies can offer quick references that team members may turn to amidst stressful conditions. Illustration: WorkTrek / Data: Bearing and Machine Ltd. Summary To conclude, developing and sustaining a superior maintenance team hinges on strategic planning, unwavering effort, and an ethos of continuous improvement. By incorporating these essential top 10 best practices—from selecting competent technicians to defining precise roles, embracing technological advancements, emphasizing preventive maintenance strategies, and cultivating a positive work environment—you can substantially boost your maintenance operations’ productivity and competence. Adopting these individual practices into a unified approach can help support your organizational objectives. Maintenance crews have the potential to evolve into an exemplary model of effectiveness, resilience, and ingenuity within the maintenance industry. Frequently Asked Questions How often should we conduct preventive maintenance checks? Preventive maintenance routines ought to be tailored according to the type of equipment, its level of usage, and importance. Initial scheduling should align with the manufacturer's recommendations while fine-tuning using unique requirements and historical performance data. To manage these processes effectively, implement a Computerized Maintenance Management System (CMMS) that will assist in monitoring equipment performance and refining maintenance schedules accordingly. What are the key features to look for in a Computerized Maintenance Management System (CMMS)? When choosing a CMMS, focus on functionalities such as managing work orders, tracking assets, overseeing inventory, scheduling preventive maintenance, and reporting and analytics capabilities. Make sure that the software is accessible on mobile devices. Confirm that the interface is easy to navigate and backed by dependable customer service. Consider both scalability and your unique needs for a well-informed choice regarding the system selection. How can we improve communication within our maintenance team? Hold frequent team meetings and utilize a unified communication platform to enhance communication within your maintenance team. Promote open conversation, define precise reporting processes, and foster casual exchanges and activities to build the team’s camaraderie. These strategies will bolster teamwork and improve your maintenance crew's operational effectiveness. What are some practical ways to motivate maintenance staff? To successfully encourage maintenance staff, acknowledge and incentivize good work, provide opportunities for career growth, include them in making decisions, guarantee a secure workplace setting, and sustain transparent dialogue. Consistent feedback and well-defined opportunities for progression are also vital elements for motivation. How can we measure the success of our maintenance program? The effectiveness of your maintenance program can be evaluated by examining a range of Key Performance Indicators (KPIs). These include equipment uptime, MTBF (Mean Time Between Failures), MTTR (Mean Time To Repair), the backlog of maintenance work, cost savings achieved through effective practices, and overall equipment effectiveness (OEE). By consistently reviewing these KPIs, you will gain an in-depth perspective on how successfully your program is performing.  

 What are the top software and tools you can use as a service technician to elevate your capabilities, streamline complex tasks, and sharpen your competitive edge? This article highlights the different software categories you can use to help you streamline your process. We will provide some sample software categories that will help simplify your process as a service technician. Most of the product leaders in each of these categories will offer you a free demo so that you can gauge the user-friendly interface, improve efficiency, and save time by implementing the solution. This article will help you gain insights into how this software for service technicians can transform dispatch management, streamline payments, automate inventory control, facilitate real-time team interactions, and empower you with the tools needed to excel in service tasks. Essential Software Tools for Service Technicians Running a field service business using manual pen and paper can be challenging without the right tools. That’s what a field service solution can deliver for your organization and help you manage your field service personnel and overall business operations. Imagine a world where running a field service business is streamlined and allows you to grow without a considerable increase in manpower. That’s what a field service solution can deliver for your organization. Many of these applications can provide a good mobile app, the ability to easily view job progress, quick access to customer data and service history, and quick assignment of technicians to jobs. Integrations These solutions integrate various aspects of your operations, from scheduling and dispatch to inventory and customer relationship management, creating a cohesive system that enhances efficiency and productivity. Whether a small business or a large organization, these tools can help you complete jobs faster and save resources. By automating routine tasks and providing real-time data access, field service solutions enable technicians to focus on delivering exceptional service, ultimately leading to increased customer satisfaction and business growth. Technology Services Furthermore, these solutions often come equipped with advanced features such as GPS tracking, a mobile app, and automated payment processing, which simplify field operations and provide valuable insights into performance metrics and operational bottlenecks. This holistic approach ensures that all components of your field service business work harmoniously, reducing downtime, minimizing errors, warming field workers with the right tools, and enabling more informed decision-making. In an increasingly competitive market, leveraging a comprehensive field service solution can be the key to staying ahead and achieving long-term success. This is a must-have tool for simplifying tasks in field service operations. It offers dispatch, record keeping, and remote access to critical data for the mobile workforce, enabling more significant success in any field service business. Benefits of Field Service Management Software A field service management solution provides numerous benefits and features, including integration, mobile applications, barcode generation, customer portals, document management, reporting dashboards, payment processing, customer management, electronic signatures, asset location tracking, collaboration abilities, and workflow optimization. Leveraging such powerful software enhances daily workflows and supports potential earnings growth through an intuitive, user-friendly interface. Source: WorkTrek Scheduling and Dispatch Solutions Service technicians can boost efficiency by utilizing advanced scheduling and dispatch software, which converts real-time data into a smooth flow of productive work processes. The primary benefits of adopting these solutions include: Minimized wait times for customers Automatically notify customers of arrival times Reduction in the frequency of schedule clashes Allow managers to track key performance indicators Provide simple guidance for technicians to travel between jobs Implementing a scheduling and dispatch solution can help simplify task allocation and ensure that technician schedules are optimized. Job Management Systems A robust job management system is essential for every successful service visit. This involves applying processes, systems, and technology to help technicians perform their tasks seamlessly. These systems can include specific workflows, centralized service level agreements, a list of parts, and even system documentation, all centralized for the technicians. Customer Relationship Management (CRM) CRM is the heart of service around the customer. It’s where all contact details, support requests, and customer info live so service pros can provide exceptional service. Technicians can quickly access customer contact information and details of any call logs or emails the customer sends. CRM platforms serve as bridges between team members, providing a unified view of each customer. This seamless integration fosters better collaboration among staff and significantly enhances the quality of client relationships. Optimizing Technician Routes with GPS Tracking Field service technicians increasingly turn to GPS technology as a vital navigational aid in optimizing routes and better understanding locations. The key benefits include tracking asset locations and leveraging real-time visibility to quickly respond to unforeseen changes and delays, ensuring fleets operate accurately and efficiently. By embedding GPS into mobile apps, customers receive reliable time estimates, and technicians gain distinct navigation guidance. Aspects such as travel duration and expenses that used to be cloaked in guesswork are now revealed through the precise intelligence provided by GPS data. Real-Time Data and Analytics Explore the dynamic world of real-time analytics in field service management, where tracking response times and customer satisfaction metrics is vital for attaining superior operational performance. This encourages streamlined communication and enhanced efficiency as field technicians coordinate with office staff, ensuring seamless transitions from invoice issuance to settlement without friction. This can also help track key performance indicators. Regarding dispatch operations, integrating GPS tracking with automated systems revolutionizes how technicians are assigned and rerouted. Enhancing Field Worker Safety Protecting mobile workers is a significant benefit of GPS tracking, going deeper than operational efficiency and data analysis. Thanks to the technology’s ability to monitor staff positions live and geofencing capabilities, managers can confirm that employees stay safely within their assigned work areas. Global positioning system (GPS) tracking is an essential tool for emergencies. It delivers accurate positional information, enabling swift and efficient reactions in critical situations. Mobile Apps for Field Service Technicians In a period when time efficiency is critical, a mobile app is essential for field service technicians' accessibility and customization. Mobile apps provide more than simple tools; they give technicians access to live communication channels, extensive knowledge repositories, and control panels that transform their smartphones into centralized operation hubs. These tailored designs accommodate the wide range of gadgets used in the field, ensuring that all necessary details for providing services are readily accessible to those who need them. Empowering Technicians on the Go Mobile applications empower service technicians by serving as a digital foundation. They provide clear prework summaries to maintain contractual standards and elucidate tasks. These applications function as connective threads, bringing customers, service teams, and technicians into a unified communication system. Reducing Manual Errors with Digital Forms In the age of digital transformation, errors stemming from manual processes have become a thing of the past due to the precision offered by digital forms. Mobile apps employ these tools in field service management, establishing uniformity in data gathering and paving the way for advancements. Enhanced professionalism is evident in each executed service inspection. The Benefits of CMMS Software to Field Service Technicians CMMS (Computerized Maintenance Management System) software revolutionizes field service technicians' operations by offering a centralized platform for managing maintenance activities. One primary benefit is enhanced efficiency in scheduling and dispatching. Technicians can access real-time updates on work orders, asset histories, and maintenance schedules, ensuring they are always informed and prepared for their tasks. Source: WorkTrek Reduce Downtime with CMMS This level of organization minimizes downtime and reduces the likelihood of scheduling conflicts, allowing technicians to complete more jobs in less time. Additionally, the software's ability to automate routine tasks such as preventive maintenance scheduling ensures that assets are serviced regularly, preventing unexpected breakdowns and extending the lifespan of equipment. Another significant advantage of CMMS software is the improved accuracy and accessibility of data. Field service technicians can easily log maintenance activities, track parts inventory, and record equipment performance metrics directly from their mobile devices. Real-Time Data This real-time data capture eliminates the need for manual record-keeping, reducing the risk of errors and ensuring that all information is up-to-date. Moreover, instant access to detailed asset histories and maintenance records empowers technicians to diagnose issues more quickly and make informed decisions. This enhances their productivity and improves the quality of customer service, leading to higher satisfaction and loyalty. Streamlining Payment Processing and Invoicing Payment processing and invoicing represent the pinnacle of field service management, where integrated systems streamline these monetary activities to facilitate flawless transactions. Technicians transform into fiscal representatives capable of conducting immediate payment collection on location, offering customers the convenience of executing online payments. Thanks to task centralization and automation within field service platforms, overseeing accounts receivables was once a daunting challenge, but it is now effortlessly managed. Payment Automation Cutting manual checks is a thing of the past. Integrating payment processing into your mobile device will help technicians quickly settle payments after service has been rendered. Implementing Field service software fulfills this need by integrating various payment options tailored to customer preferences. This helps streamline regular billing cycles and ensures secure transactions, fostering a dependable environment for users in the field service industry. Automated Invoice Generation We are entering an age where automated invoicing heralds significant improvements: it accelerates cash flow, diminishes errors, and conserves time. By automating the billing process, companies can free up valuable resources previously tied to manual tasks, helping the team focus on strategic growth activities instead. Transitioning to a paperless environment isn't just a minor upgrade—it's a significant advancement. It results in cost savings, while digital signatures offer a secure way to finalize transactions within this more efficient invoicing process. Asset Management for Service Businesses Asset management service businesses ensure that all equipment and assets are in the right place. When field technicians use mobile apps, these tools become super handy, letting them easily log tasks, check claims, and get parts with a quick photo. Technologies such as maintenance management systems do more than monitor activities; they can help track spare parts, prevent breakdowns, and maintain uninterrupted operations within business machinery. Inventory Control A comprehensive inventory control system can provide real-time stock levels, simple ordering, and alerts when a part falls below a certain threshold. Integrating Barcode or QR Code scanning simplifies gathering information, transforming disordered records of equipment and maintenance backgrounds into orderly ones. From initial implementation to routine activities, barcodes and regulated demand orders guard precise inventory tracking. They ensure that technicians are consistently equipped with the necessary components and materials without shortage, reducing delays during calls. Preventive Maintenance Scheduling Immerse yourself in the advanced field of preventive maintenance planning, where the predictive strength of data analytics harmonizes with the precision of field service management software. This blend of innovative technology and strategic foresight transforms routine maintenance from a reactive task into a proactive practice, enhancing asset lifespan and reducing the likelihood of unforeseen repair emergencies. When intelligent assets autonomously generate service requests, it not only diminishes but actively reduces operational interruptions. Source: WorkTrek Enhancing Customer Experience Through Service Portals Service portals can allow customers to easily view the status of their work orders, reducing the need for calls or texts that can take valuable employee time. This can significantly improve the organization's operational efficiency for field service companies. Most mature field service management software tools on the market can help you create a simple portal for users to see the status of their service orders. Real-Time Updates and Notifications Establishing trust with your customers is part of the service portal's goal of offering real-time notifications so clients can stay abreast of progress. Through automatic notifications, clients stay updated and involved without seeking information, comforted by their service provider’s continual digital engagement. Access to Service Records Transparency can create trust with customers. Allowing customers to view previous job histories and corresponding invoices fosters a transparent relationship beyond merely exchanging services and guarantees good reviews and future work. Customers’ ability to effortlessly obtain information is critical to their empowerment. This capability supports them in making knowledgeable choices and bolsters their assurance of the service provider’s capabilities. In turn, this boosts customer satisfaction significantly. Time Tracking and Productivity Insights Source: WorkTrek   Time tracking and productivity can improve job management and invoicing. It can also give managers a direct view of job progress and the ability to compare those actual numbers against estimates. By offering tools that oversee work durations and scrutinize performance indicators, field service management software provides a clear view of the core operational dynamics of service squads, guaranteeing that each minute utilized is converted into discernible value. Monitoring Work Hours By utilizing the Time Tracking features in field service management software, companies can ensure precise timesheets and handle the complexities of payroll execution with adherence to regulations. This detailed monitoring of work hours is crucial for optimizing the productivity of a field service team. Analyzing Performance Metrics Field service management software excels at skillfully evaluating performance metrics, crucial indicators of a service team’s efficiency. Metrics such as average time-to-completion and first-time fix rates act as yardsticks for high quality, steering field service teams toward continuously enhancing their service standards. Summary From scheduling to CRM, GPS tracking to mobile apps, payment processing to asset management, and beyond, these systems empower technicians, enhance customer satisfaction, and drive operational efficiency. The future of field service management is here, and it is digital, dynamic, and decidedly user-friendly. Frequently Asked Questions What are the key features of field service management software that benefit service technicians? As critical components, field service management solutions encompass advanced scheduling, dispatch management, work order management, and centralized document storage. These essential features aid field service technicians in managing their schedules efficiently, accessing information swiftly, and keeping track of job orders effectively while ensuring that data is always securely available. How does GPS tracking improve field service operations? Field service operations are optimized by enhancing travel routes and offering real-time visibility of fleet vehicles through GPS tracking. Integration with mobile apps facilitates task assignment based on the technician’s location, which improves location intelligence and consequently boosts customer satisfaction in the field service sector. Can mobile apps for field service technicians work offline? Indeed, field service technicians can utilize offline mobile apps to accomplish tasks and later synchronize the data once they reconnect. This feature guarantees they maintain essential access to service details and associated documents in transit, irrespective of network availability. What are the advantages of integrating payment processing within field service management software? Incorporating payment processing capabilities into field service management software enhances billing procedures, reduces the likelihood of mistakes, boosts operational efficiency, and provides easy-to-use payment choices for customers—thereby aligning with customer expectations in the domain of field service management. How does access to service records via customer portals benefit homeowners? Homeowners gain from having access to service records through customer portals, as it offers them a clear perspective on their job history and invoices. This transparency builds trust and equips them with up-to-date information that enhances customer experience.

Energy management today represents one of the most significant application sectors of engineering. By critically analyzing this area we can understand how important it is for companies and how efficient it can be in terms of results and benefits that organizations can draw. CMMS is software that can help with overall energy management. Learn more about how CMMS software can benefit your business. What is Energy Management? Energy management is the control, influence, and monitoring of energy consumption in a building or business. It can help you reduce energy consumption. This is done by mapping energy flows and then implementing energy-saving measures. Energy consumption is an important cost factor for businesses. After labor and material costs, companies spend the most money on energy. At current energy prices, this percentage will only increase. Read more about how can CMMS software save you money. The Benefits Of Energy Management Energy management can reduce energy consumption. This has several advantages. Save on energy costs Energy prices were already soaring, and the war in Ukraine made them even more expensive. As a result, more and more companies are struggling with profitability. Energy management can reduce these enormous costs. Compliance The European Union's "Green New Deal" has led to an increasing number of laws and regulations on energy consumption. Consumption standards are becoming more stringent in response to climate change. As a result, mid-sized businesses face more rules and regulations. Therefore, implementing energy management systems and related energy management systems can make it easier for companies to comply with regulations. In addition, solid energy management helps fulfill corporate social responsibility. By reducing energy consumption, you contribute to a healthier planet. Today, many customers want their business to be climate-friendly. The Functions Of Energy Management And The Digitization Of Maintenance Processes By energy management we mean all those processes dedicated to the effective management of energy to reduce consumption and increase efficiency of use. The savings that are obtained by implementing energy management processes are mainly due to the introduction of digital technologies typical of Industry 4.0. IoT (Internet of Things), CMMS software, and industrial automation systems. The birth of the smart factory based precisely on IoT and real-time analytics. It will determine the increase in energy efficiency and change the relationship with customers and business models. Therefore equip the smart factory with important tools to start efficiency processes both from an energy point of view. In this way, habitual waste will be reduced. Inefficient equipment will be replaced with others that will be equipped with innovative technologies capable of preventing future damage. Learn more about CMMS Facility Management. The main activities on which the energy management process is based are four: analyses monitoring data collection management  These four functions ensure efficient results allowing you to obtain significant benefits with great savings in terms of resources. To carry out these functions which aim to ensure the prevention of damage, the energy management department will have to make use of: CMMS for Energy Management that ensures precision and facilitates the procedures implemented during the maintenance phases. the figure of the energy manager. A highly qualified professional who coordinates and manages departments and resources efficiently, cooperating for the success of the company. The use of CMMS (Computerized Maintenance Management System) therefore helps to optimize the use of machines, anticipating failures, maintenance operations of plants and physical equipment such as vehicles, machinery, infrastructure, communications, and other types of assets. Next, read about how CMMS software can reduce downtime. CMMS for Energy Management: Why is it important These systems adapt to different industrial sectors, where the implementation of the physical infrastructure assumes fundamental importance for all sectors; from manufacturing, and energy to construction and transport, etc. The fundamental aspect of a mobile CMMS software therefore lies in its database: a data model capable of organizing and supporting the various phases of a system. To do this, and determine a result, the technologies are activated to start an analysis process divided into various phases where in each of these monitoring will be performed at various levels from which data and information are made available. With the energy management system, it will therefore be possible to detect failures, losses, or anomalies and to have information on the utilities that have been used during the work phases and the times in which production was not active. Read also 20 benefits of CMMS for businesses [cta title="Digitalize your maintenance processes with WorkTrek CMMS!" text="Book a WorkTrek demo to see how a CMMS can help your business." link="https://login.worktrek.com/Account/Register?_gl=1*fpersd*_ga*MTcwMjE1OTkzNy4xNjU0NTA3NTI2*_ga_8N6446P9LX*MTY3Mzk2ODEzNS4yNi4xLjE2NzM5Njg4MDAuNDguMC4w"] The Benefits Of CMMS: A Monitoring Software For Energy Management The use of CMMS software allows you to reap many advantages when it comes to managing important processes such as those deriving from energy management activities. Here are some insights: Documentation and history management – Among the advantages, first of all, is that a CMMS system can contain any type of information regarding maintenance. Optimization of maintenance processes – Having a large amount of data available, CMMS software will be able not only to support and optimize maintenance processes but also to provide all the data necessary to make a detailed analysis of the processes themselves, monitoring times, costs, and performances. All this takes place thanks to business intelligence systems that analyze data and provide personalized and detailed reports. Check out this blog to learn more benefits of a CMMS. Transition from reactive to proactive – The derived CMMS data allows you to move from a reactive to a proactive approach so you can develop an advanced asset maintenance strategy. Data derived from daily activities together with IoT tools can provide information from processes and assets giving the possibility to intervene in time and activate preventive measures before failures occur or performance becomes obsolete. The best CMMS software can automate most of these processes ensuring that work orders are managed. They are assigned to the correct personnel based on the indications provided to the system. User resources – CMMS software makes various functions available to users, such as organizing shifts, managing work resources, and assigning tasks to specialized personnel in the sector of their application. Archive and register – CMMS software holds an internal register capable of storing information on materials management, inventory, supplier management, order tracking, report generation, analysis, and verification of all maintenance categories. Next, read how employees should be trained for CMMS. Energy and Power Maintenance Management Challenges The power and energy industry faces maintenance management challenges for power plants and wind turbines. Generate safe energy at all times The operation of nuclear, coal, hydro, and steam power plants requires rigorous procedures. They need to stay online and continuously produce efficient, safe energy. This requires careful maintenance management with consideration for public safety, the environment, and the protection of factory workers. Equipment must be monitored regularly Maintenance of equipment, especially wind farms, is more challenging than nuclear power. It requires continuous or frequent monitoring of machine conditions and maintenance accordingly. Workers in this industry adopt best practices from other industries such as industrial manufacturing, mining, and natural resources. The aim is to plan the necessary preventive maintenance measures for wind energy professionals at appropriate intervals. Continuous inspection Since plants in the power and energy industry must be in operation at all times, continuous inspections of power plants and wind turbine equipment are essential. These checks ensure that parts are lubricated and system connections are made. They also ensure that necessary repairs are found and made before it develops into an emergency. Security and Regulatory Compliance Another challenge in power plant maintenance is meeting regulatory compliance standards, including the Occupational Safety and Health Administration (OSHA), Environmental Protection Agency (EPA), and Federal Energy Regulatory Commission (FERC) standards. This is a challenge as technology in this industry evolves rapidly. What is relevant now may not be relevant anymore in six months to a year. Regular checks for new requirements and ongoing further training in the field are crucial. Learn more about how to develop a plant maintenance plan. Control Of Energy Expenditure With A CMMS Energy consumption has long been an indispensable focus of attention at all levels of our society. The impact we have on our planet has become a growing concern and our energy consumption represents a significant part of the ecological impact on our environment. In addition, in our country, we have been able to observe that the cost of energy has been constantly increasing, in recent years, until it has become a hot topic in the media for months, which makes it another strong argument for regulating and optimizing our consumption. Fuels, gas, and especially electricity are subjects which have often made the headlines and which must be tackled on different fronts. It is also something that concerns us whatever our field of action. Maintenance as a solution The value of good maintenance as an energy efficiency tool in the planning of such a strategy should be highlighted. Ultimately, the costs of maintenance, energy, or upkeep as such represent a very high percentage of the life cycle costs of facilities and infrastructure. This is why it is necessary to have good maintenance mechanisms, automating recurring preventive maintenance and minimizing the need for corrective maintenance. Not only to avoid deterioration and additional replacement costs but also to reduce the energy consumption of our facilities. By ensuring that all elements operate in their optimal state and without overheating, poor cooling, stagnation or any other incident that ends up causing overconsumption and, therefore, cost overruns. If maintenance is carried out correctly and if we record the necessary data, we will not only reduce energy costs thanks to the proper functioning of our devices. We will also have the information necessary to research possible improvements in our systems and further optimize our installations. CMMS solutions, tools that integrate all equipment inventory, maintenance flows, personnel, and work orders into a single environment, have already become very popular. However, today, to stop there is to deprive oneself of the possibility of optimizing the energy efficiency of assets. Consider reading, CMMS for Healthcare Facilities. Conclusion Reduced downtime and lost productivity in today's fast-paced energy production environment, CMMS software is critical. CMMS systems often include advanced functionality not only for asset tracking, but also for job scheduling, labor costs, and inventory tracking. It also helps maintenance teams keep detailed records of their equipment and assets.

Enterprise Asset Management Software - Introduction Enterprise asset management (EAM) refers to the management of a company's assets through the various elements that may occur during their life cycle in terms of facilities, departments, units and/or geographical areas. These so-called assets can be plans, buildings, machines, vehicles and infrastructures. The EAM system is used to plan, control, optimize and execute the necessary asset maintenance activities according to their order of priority, the materials to be used, the tools, or the skills required, all made possible by the information made available. This includes design, commissioning, operations, maintenance and replacement. Ultimately, the objective of EAM is to optimize the life cycle of an asset in order to decrease the total cost of ownership (TCO) while maximizing the overall productivity of the asset (OPA) and the return on asset (ROA). What Is Enterprise Asset Management Software? EAM: definition The term EAM stands for Enterprise Asset Management. It is the management, over their entire life cycle, of all the material assets of a company (or any organization), which can be installations, buildings, infrastructures, or any other type of equipment. The EAM covers all stages of the life cycle of these assets, it encompasses their design and construction as well as their commissioning, operation, maintenance or replacement, and their destruction or demolition. What Are The Objectives Of Enterprise Asset Management? Broadly speaking, EAM aims to track the life cycle of a company's physical assets to optimize their use. This optimization aims to: improve asset-related processes, facilitate more flexible and efficient use of assets, reduce operating and maintenance costs, improve the safety and reliability of assets, ensure their regulatory compliance, promote the preservation of the environment, replace underperforming assets. EAM concerns all the material assets of a company, in particular the buildings and the infrastructures linked to them: workstations, meeting rooms, facilities dedicated to employees, fleets, vending machines, etc. Regarding the EAM of buildings, we often speak of property management. To implement EAM effectively, it is necessary to use EAM software. Who Needs Enterprise Asset Management? Regardless of the type of your equipment or assets, maintenance should be part of your daily routine. Monitoring and managing an asset is important for any business regardless of its size. While some companies already use EAM as part of their enterprise resource planning (ERP), others require an independent version of the software. Indeed, companies heavily dependent on complex and expensive physical assets must benefit from a detailed and optimal overview of their assets. With an autonomous EAM system, these companies see a drastic increase in their power of control over their assets and associated maintenance activities. In Practice, How Does EAM Work? The EAM system is based on a complete and proactive analysis of the life cycle of assets allowing the implementation of predictive maintenance. The data recorded by the sensors of the connected machines is directly collected and analyzed. Using machine learning and advanced analysis, it is possible to automatically predict when the condition of an asset will become critical suggesting a potential failure. Work orders are then sent, and a preventive maintenance intervention on the asset concerned can be scheduled before it fails completely. The EAM software can also provide information on required replacement tools or parts. Why Is Enterprise Asset Management Essential Today? With the progress of the Internet of Industrial Products and Industry 4.0, the digitization and integration of maintenance management systems have become a real must. A software solution such as EAM represents a perfect opportunity for companies with heavy assets to minimize their risk of failure resulting in costs and thus to significantly optimize their profits. The EAM software is accessible on multiple mobile devices and platforms (maintenance workstations, tablets, smartphones, etc.) anywhere in the world. In the era of digitalization, EAM allows you to take an active part in the optimal management of your assets thanks to an overview and transparency of their life cycle and associated maintenance operations. As you will have understood, EAM is a systematic computerized solution, easy and simple to access, whose various indicators allow a great improvement in terms of performance, integration and visualization of data. This type of software makes it possible to avoid costly sources of instability as much as possible while guaranteeing increased quality and protection of the production process. Benefits Of Enterprise Asset Management (EAM) The right EAM solution can help your business track, manage, analyze and optimize your assets at all stages of their lifecycle, from acquisition to disposal. This can lead to notable improvements in transparency and preventive maintenance capabilities. This results in time savings, increased efficiency and reduced costs. An EAM can also help your organization to: Streamline inventory management Effective maintenance requires optimized inventory management. An EAM can facilitate this management by reading barcodes. Inventory tracking capabilities and visibility of parts usage and cost also facilitate this management. Maximize asset life The historical data, real-time data, and analytical tools of an EAM can help you extend the availability, reliability, and usefulness of your physical assets. This increases the efficiency and the ROI of the company. Extend the life cycle of assets The historical data, real-time data, and analytical tools of an EAM can help you extend the availability, reliability, and usability of your physical assets. This increases efficiency and ROI. Work from anywhere Mobile and multi-site capabilities and features can maximize remote capabilities and facilitate social distancing. The ability to read meters, capture electronic signatures, and use barcodes also expands these same capabilities. EAM: What Small And Medium-Sized Businesses Need To Know Small and medium-sized businesses with a large number of installations or equipment can benefit from the EAM. EAM data can help identify asset performance issues, indicate which equipment needs maintenance, and suggest efficiencies by changing how that equipment operates. What Are The Features Of EAM Software? Most enterprise asset management software supports standard EAM functionality. Basic EAM primarily involves maintaining a detailed database of assets and their characteristics, along with their maintenance history and associated regulatory documents. EAM solutions also include, in most cases, a financial management tool and analytical tools. In addition, the most popular software includes an asset life cycle management feature. This covers the main stages of this cycle, from design to dismantling, including production – or construction in the case of real estate assets or infrastructure – and management of the guarantee. Many solutions also offer inventory, materials and supply management modules, as well as planning tools. The management of the supply chain, which plays an important role in EAM because it makes it possible to obtain the materials and components necessary for the construction, upkeep and maintenance of the equipment, is thus facilitated. Finally, maintenance scheduling is a popular feature in enterprise asset management. It is thus possible to organize the availability of maintenance personnel according to the needs and required skills, and to manage the work orders and record the hours. With powerful software, preventive or predictive maintenance can be implemented. How To Implement The Resources For A Good EAM? EAM is a professional discipline that combines services, systems and software. It controls and maintains the equipment, as well as the assets in order to be operational. Enterprise Asset Management (EAM) is typically driven by management software. This type of EAM software warns managers of an imminent failure or wear of a part of a device. It also serves as an efficient technical support for a company. To have a good EAM, it should be associated with other software. In the age of the Internet and connected objects, technicians are including artificial intelligence and advanced analytics in EAM. The information collected is analyzed using artificial intelligence. The resulting data allows teams to: to optimize investments in their equipment, perform preventive maintenance, improve their efficiency, 24/7 stock tracking, equipment and task management, preventive maintenance planning, requesting and ordering parts, prevention of equipment failures, effective prioritization of maintenance activities, identification of critical states, priorities and risks, tracking labor costs and reducing downtime, make the best decisions. What Is The Difference Between EAM And CMMS? Some companies use hardware maintenance software called CMMS, short for “computerized maintenance management system” but also called “computer-assisted maintenance management software”. CMMS and EAM systems have similar goals and some of the same functionality, although EAM systems offer a wider range of functionality. What really sets them apart is philosophy and scope. A CMMS system focuses on support, while an EAM system takes a holistic approach, integrating multiple business functions. The CMMS begins to provide follow-up after the purchase and installation of an asset. On the other hand, the EAM system can follow the entire life cycle of an asset, starting with design and installation. A CMMS system is designed to handle a single site or offer limited multisite support. The EAM system is equipped with extensive functions to manage multiple sites and companies. An EAM system is a comprehensive tool for managing physical assets and optimizing their performance across the enterprise. EAM is a CMMS combined with an inventory management system, a purchasing management system, a document management system, an accounting system, a project management system, multi-site management tools and performance management, all in one integrated software.

The market today is flooded with hundreds of asset maintenance software such as CMMS and EAM trying to position themselves as the perfect and authoritative management solution for enterprise asset maintenance. For this reason, it is necessary to clarify once and for all the difference between EAM (Enterprise Asset Management Software) plant management software and CMMS (Computerized Asset Management System) plant management software, try and continue to do so in addition to their respective marketing campaigns, to discover clear differences between the two maintenance systems. The two management systems of asset maintenance are really nothing more than two sides of the same coin, serving the same purpose: to better manage our company's assets and increase their efficiency, productivity and life cycle through optimized management of maintenance. What Is A CMMS? The acronym CMMS stands for Computerized Maintenance Management System. This software package was designed to manage maintenance globally, on a strategic, financial, and operational level. It is today the essential software of the industrial sector. Much more than simple computer programming, it is an assistant for maintenance teams, the cornerstone of industrial efficiency. Because you can use it to achieve different goals, there are different ways to describe computerized maintenance management software. On the one hand, it is sophisticated software that captures and uses thousands of data points to provide an overview of how a facility is operating or detailed information about individual pieces of equipment. In terms of functionality, CMMS software offers businesses the ability to monitor inventory levels, manage work orders, set up and schedule preventive maintenance programs, and quickly generate accurate reports. But on another level, it's just the solution maintenance managers need. Automating processes and streamlining workflows makes your life less stressful by making your workday more predictable. How Does A CMMS Work? The easiest way to understand how it works is to first look at two old ways of managing maintenance, paper, and spreadsheets. With paper, you always run the risk of losing or corrupting data. Every time you doodle a new work order, chances are you'll include mistakes. And even if you copy everything perfectly, chances are someone will lose that piece of paper, your only copy of that essential data. With spreadsheets, it's the opposite problem. The risks of copying and pasting bad data are still there, but now you often have too many copies of the same data. Why is this a problem? Because as soon as someone updates one copy's information, all other disconnected copies are out of sync. In the end, each member of the team works from their own version of the truth. Everyone is out of it, but no one realizes it. What Is EAM? EAM: definition The term EAM stands for Enterprise Asset Management. It is the management, over their entire life cycle, of all the material assets of a company (or any organization), which can be installations, buildings, infrastructures, or any other type of equipment. The EAM covers all stages of the life cycle of these assets, it encompasses their design and construction as well as their commissioning, operation, maintenance or replacement, and their destruction or demolition.  What Are The Objectives Of Enterprise Asset Management? Broadly speaking, EAM aims to track the life cycle of a company's physical assets to optimize their use. This optimization aims to: improve asset-related processes, facilitate more flexible and efficient use of assets, reduce operating and maintenance costs, improve the safety and reliability of assets, ensure their regulatory compliance, promote the preservation of the environment, replace underperforming assets. EAM concerns all the material assets of a company, in particular the buildings and the infrastructures linked to them: workstations, meeting rooms, facilities dedicated to employees, fleets, vending machines, etc. Regarding the EAM of buildings, we often speak of property management. To implement EAM effectively, it is necessary to use EAM software. Who Needs EAM? Regardless of the type of equipment or assets, maintenance should be part of your daily routine. Monitoring and managing an asset is important for any business regardless of its size, sector, or industry in which it operates. While some companies already use EAM as part of their enterprise resource planning (ERP), others require an independent version of the software. Indeed, companies heavily dependent on complex and expensive physical assets must benefit from a detailed and optimal overview of their assets. With an autonomous EAM system, these companies see a drastic increase in their power of control over their assets and associated maintenance activities. In Practice, How Does EAM Work? The EAM system is based on a complete and proactive analysis of the life cycle of assets allowing the implementation of predictive maintenance. The data recorded by the sensors of the connected machines is directly collected and analyzed. Using machine learning and advanced analysis, it is possible to automatically predict when the condition of an asset will become critical suggesting a potential failure. Work orders are then sent, and a preventive maintenance intervention on the asset concerned can be scheduled before it fails completely. The EAM software can also provide information on required replacement tools or parts. Are EAM And CMMS Asset Maintenance Software The Same? When it comes to asset and enterprise asset maintenance software, the market is primarily dominated by two types of programs: CMMS asset management and EAM asset management. However, the difference between these two types of asset maintenance software is not always clear, especially when you need to decide which maintenance information system is best for managing the maintenance of our company's assets. The main reason is that these products are very similar and both end up being suggested as the perfect solution for the same task. Comparison of CMMS and EAM Asset Management Some companies use hardware maintenance software called CMMS, short for “computerized maintenance management system” but also called “computer-assisted maintenance management software”. CMMS and EAM systems have similar goals and some of the same functionality, although EAM systems offer a wider range of functionality. What really sets them apart is philosophy and scope. A CMMS system focuses on support, while an EAM system takes a holistic approach, integrating multiple business functions. The CMMS begins to provide follow-up after the purchase and installation of an asset. On the other hand, the EAM system can follow the entire life cycle of an asset, starting with design and installation. A CMMS system is designed to handle a single site or offer limited multisite support. The EAM system is equipped with extensive functions to manage multiple sites and companies. An EAM system is a comprehensive tool for managing physical assets and optimizing their performance across the enterprise. EAM is a CMMS combined with an inventory management system, a purchasing management system, a document management system, an accounting system, a project management system, multi-site management tools, and performance management, all in one integrated software. Asset Maintenance Management With Enterprise Asset Management (EAM) Software EAM is an acronym for Enterprise Asset Management. The term assets refers to all tangible and intangible property, such as movable and immovable property, equipment, plant and machinery, and their component parts. Therefore, we can say that EAM systems are proposed as asset maintenance management systems, which are intended as physical assets of a company. EAM software can handle all aspects of asset maintenance, including functions such as asset lifecycle management, preventive maintenance planning, asset warranty, and contract management. Some of the most important and unavoidable features of EAM software include: Full life cycle management of enterprise assets Work order management MRO Material management, inventory, and spare parts management are often also associated with direct and indirect management of deliveries and purchases. Contract management Expense report Reporting and Analysis Machine stop tracking Lockout Tagout System Management [cta title="See why WorkTrek CMMS is the best for your business!" text="Book a WorkTrek demo to see how a CMMS can help your maintainability." link="https://login.worktrek.com/Account/Register?_gl=1*fpersd*_ga*MTcwMjE1OTkzNy4xNjU0NTA3NTI2*_ga_8N6446P9LX*MTY3Mzk2ODEzNS4yNi4xLjE2NzM5Njg4MDAuNDguMC4w"] Plant Maintenance Management With CMMS Software (Computerized Software Management System) What is CMMS Software? CMMS is the acronym for Computerized Software Management System. These systems have appeared on the market since the 1960s, mainly known as IT systems for managing work orders, and then emerged as software in the 1980s. Since then, their growth in terms of extension and functionality has been unstoppable. With the advance of SaaS (Software as a Service) programs, CMMS plant maintenance software is recognized today as the best solution for maintenance management within companies of all types and sizes. The main benefits that this type of CMMS system management is able to recognize for companies are: Greater efficiency Increased productivity Optimization of maintenance operations Cost and waste reduction Asset lifecycle extension The CMMS systems management system is particularly appreciated for its ability to make maintenance operations within a company more effective (for example by determining which machines require preventive maintenance intervention, or which warehouse contains the components necessary to carry out an order of work) and help managers and managers make data-driven decisions (for example by calculating the cost of a corrective maintenance intervention on a given plant and comparing it with the costs of preventive maintenance on the same). These data and reports are also useful for verifying the state of regulatory compliance, as well as for the evaluation of the performance of the production plants through, for example, the OEE or MTBF calculation. In addition to analyzing and collecting data, CMMSs also perform a more organizational and purely managerial task: the planning of scheduled maintenance activities, for example, or the management of requests for intervention and the management of the related work orders. As regards the functions offered by CMMS plant maintenance software, it may be useful to make it clear that, unlike an EAM system, a CMMS program does not limit its field of action to industry and production, but finds use and reason for being in most sectors: from facility management to services, passing through fleet management, hospitals, the hospitality sector, retail and more generally wherever there are assets, buildings, and equipment that need to be managed. More specifically, the main functions of a CMMS include: Intervention requests Work order management Asset management Scheduled maintenance management Preventive maintenance management Inventory and warehouse management Cost reporting Contract management Warranty management Tracking of machine stops Reporting and analytics Lockout-tagout management Checklists Mobile app Plant Maintenance Software CMMS vs. Plant Maintenance Software EAM: A Marketing Problem? If we analyze the characteristics of CMMS asset maintenance software in detail and compare them with those of EAM management software, we will find that the two systems are actually very similar. So much so that it's reasonable to question whether the differences between the two are irrelevant to the problems posed by choices that are essentially in the realm of marketing. There is no doubt that both software programs are well suited as asset maintenance management software, and their functionality is essentially the same. What they want to achieve within the company is also the same: Increase productivity Reduce machine downtime Management of company assets and facilities Manage workflow Corrective maintenance Provides useful data and reports to improve maintenance operations Plan preventive and planned maintenance activities Inventory management However, the absence of significant differences between the two maintenance management systems today does not mean that they never existed. When EAM software came out in the past, this was achieved by incorporating some features not found in conventional CMMS management software on the market at the time, such as the ability to manage multi-site systems. Features even included in the most common maintenance management are now included. Because of this, many CMMS management developers have begun marketing their products as CMMS and EAM asset maintenance software, effectively integrating these two different programs. This is a perfectly acceptable option as long as the functionality remains the same. However, as discussed above, the fact remains that not all CMMS maintenance management systems provide the same functionality, and some of them, especially low-end systems and even more open-source systems, do not fall into the category that CMMS and EAM software could become. Today's CMMS And EAM Maintenance Management Systems: How To Choose And What Has Changed As the chart above shows, most products today no longer have the differences that might have existed between this two factory maintenance software a few years ago, which actually justifies the significant price difference and different product positioning. However, some EAM software vendors continue to ignore features that are now common in any CMMS software (and, as it turns out, might otherwise have disappeared from the market by now), such as inventory management. Multi-site management or document management and archiving. There are also basic functions such as reporting, dashboards, and KPI monitoring (all functions are also usually provided by mid/low-level plant maintenance software). Because of this, some software companies have started, and probably rightly, to refer to their products as CMMS/EAM hybrids to emphasize that there is no longer any real reason to differentiate the two maintenance management systems. Although EAM software was originally developed as an evolution of the common CMMS and took a more facility-centric approach than its ancestors, today this distinction is no longer universally valid. It turns out that even large manufacturing companies with hundreds of machines and factories in various locations rely on CMMS management systems, not just EAM software, to maintain their factories. In fact, the difference between the two systems seems to be more a matter of scope (EAM for manufacturing and CMMS for facilities management) than a matter of the functionality and actual value of the software used.

In the industrial sector, your company constantly faces increasing pressure to improve its customer service, increase its performance, and ensure the availability of its assets. Tracking these is an essential step that saves your organization both money and time. From the moment they are acquired until they are disposed of, assets play a predefined role. Indeed, when properly selected, configured, and maintained, and you have access to the right information at the right time, they can reduce your costs and bring you a significant return on investment. To do this, good management practices, including the acquisition of an automated maintenance management solution, can help your organization achieve its goals. What Is An Asset? An asset is an item of value owned by an organization or individual. Assets are divided into tangible assets (physical assets such as land and machinery) and intangible assets (information technology assets such as copyrights, trademark rights, and computer software). Within tangible assets, there are two subcategories: current assets (cash, inventory) and fixed assets (equipment, buildings, machinery, and other physical resources used in the operations of a business that are unlikely to be sold). When we talk about asset lifecycle management, we're talking about managing the lifecycle of fixed assets. What Is Asset Lifecycle Management? Asset management is a relevant concept for each sector in the industry and is also an integral part of maintenance processes. For manufacturing companies, this management concerns the entire life cycle of assets within the plant, such as equipment, parts, production lines, and the company buildings themselves. This also includes making decisions about their use, their investment and disinvestment policies, and portfolio management. By definition, the life cycle of an asset is its ability to perform its function, under conditions of use and maintenance, until the end of its useful life or its limit state is reached. As the name suggests, the cycle involves a series of stages in the life of the equipment. Lifecycle management, then, is about adopting best practices to track them throughout their existence and extend their use as much as possible, while optimizing how you use your time, data, and resources. Optimization, ongoing maintenance, replacement, or more recent upgrades are therefore part of the "activities" to be managed on a daily basis. If one step in a process is overlooked, it can lead to breakdowns, downtime, and emergency replacements. Why Should Asset Management Be Used? IT departments have many responsibilities, such as maintaining system uptime, supporting users, and managing hardware and software inventory. Some companies use spreadsheets or a lightweight database to manage their inventory, but these solutions typically don't allow real-time, shared access to data. Managing inventory in this way can be very complex. Quality Asset Management practices will allow you to have a good command of your inventory, which will help you in the day-to-day management of assets and their finances, as well as in carrying out audits and compliance checks. Asset management is important for several reasons: Resource utilization optimization Asset management ensures that the company's resources are used efficiently and optimally. This can help reduce costs and improve business efficiency. Equipment monitoring and maintenance Asset management helps track and maintain enterprise assets, which can extend their lifespan and reduce long-term maintenance costs. Data security Asset management ensures the protection of corporate data against loss, leaks, and security breaches. It can also help meet regulatory compliance requirements for data security. License management Asset management helps to ensure that the company uses software and licenses in a legal manner and in accordance with the terms of use. This can avoid lawsuits for unauthorized use of software and associated costs.     The 4 Key Stages Of The Asset LifeCycle Management Your maintenance department teams are not only responsible for the health of the equipment, from its acquisition to its disposal, but also for controlling the corresponding expenses. Several questions then arise: What is the lifespan of the equipment? When will the equipment provide maximum operating gain? Should it be downgraded or resold? When should you stop maintenance operations or when should you start renovating? Tracking an asset's lifecycle provides valuable insight into how the asset is performing, and also when it is best maintained. Each of them also has a cycle divided into 4 key stages: Planning The planning phase consists of gathering all the strategic information and relevant data for the acquisition of an asset. This includes trend analysis based on what already exists in your software and your business needs. A CMMS tool, for example, has the ability to compare the different materials available on the maintenance platform and generate quotes and supplier orders. Procurement Once an asset has been identified and matches your needs, the next step is to acquire it. It is then necessary to put it into service. When the asset is finally acquired and deployed, it can then be tracked through its lifecycle using an asset management system. Features such as equipment management, tree structures, adding documents and reports, traceability or barcode labeling will be particularly useful to you. Maintenance/operation The asset is now installed. At this stage, it helps to generate income. This phase is probably the longest in the life cycle of an asset, but also the most expensive. It includes all the maintenance and repair that may be necessary, inventory management, performance monitoring and reporting, replacement of components, intervention planning, mobilization of resources and a budget, etc. Regular maintenance keeps assets in their best condition and prevents damage caused by improper maintenance. Again, obtaining accurate data ensures control to prevent failures. An automated system, therefore, allows your company to measure the condition in real-time. This step entails: Reduction of downtime; Reducing unnecessary emergency repair costs; Increasing the availability of equipment; Extending the life of assets. Disposal of assets Finally, during this last phase, the product shows repeated failures and can no longer be repaired. It's time to ask the right questions because your organization's productivity is suffering. Should we repair the equipment or analyze the cost of a new acquisition? At the end of an asset's useful life, it is removed from service and either sold, reused, discarded, or recycled. [cta title="You have to ensure the growth and profitability of the company!" text="Get real value for money with WorkTrek!" link="https://login.worktrek.com/Account/Register?_gl=1*fpersd*_ga*MTcwMjE1OTkzNy4xNjU0NTA3NTI2*_ga_8N6446P9LX*MTY3Mzk2ODEzNS4yNi4xLjE2NzM5Njg4MDAuNDguMC4w"] Technology At The Service Of Asset Lifecycle Management The real benefits of good lifecycle management are derived and observed from and through the real-time collection of asset data. By making the best use of resources, managers can avoid unnecessary purchases, eliminate waste, and improve overall efficiency. A CMMS solution represents the ideal tool to track the health and cycle of each asset, provide a continuous flow of data, and reinforce maintenance and equipment planning. Let's take a look at how using a maintenance management tool can guide you through these processes! From a global point of view, it allows to: Calculate the depreciation value of assets using key performance indicators; Build preventive maintenance strategies; Ensure compliance with regulatory standards; Calculate the cost of supply and replacement; Improve the efficiency, reliability, and quality of facilities; Reduce maintenance costs; Get better performance.  Audits To Ensure Continuous Improvement Probably one of the best ways to ensure your asset lifecycle is improving is to perform audits on your existing processes and practices. The goal? Allow you to understand where your assets are, and what their status is and respect the compliances to which your organization must submit. Your company and your teams must be vigilant about the accuracy of its asset registers, in particular, because any failure in this regard will have an impact on your internal functioning. If you notice that you're overspending on repairs, experiencing multiple unplanned downtimes, and the rate of aging of your assets is increasing, it's probably time to look into a maintenance and lifecycle management strategy for your assets. In the long term, this means less replacement, better performance of your equipment, controlled costs, and better productivity. To achieve this, CMMS software gives you valuable usage, status, and lifecycle insights, allowing you to optimize operational efficiency and drive growth for your organization. What Are The Benefits Of Asset Lifecycle Management? Here are some of the benefits you get from asset lifecycle management: Managing the lifecycle of assets will better account for your needs. The right system will help you make an informed buying decision. It will improve your motivation when it comes to resource recovery. Governance improves the quality of IT services in an organization. You always know the total cost of ownership of your assets. Managers can view the lifecycle of each asset, which helps them make informed decisions such as when the asset needs to be shut down or whether to sell it. Conclusion Asset lifecycle management helps organizations optimize the performance of assets throughout their useful life. Lifecycle management begins at the planning stage and proceeds sequentially until the product is no longer usable and must be discarded. Asset lifecycle can also help organizations properly maintain their assets through preventive maintenance. Asset management software will enable companies to understand the cost of ownership, frequency of use, and performance of an asset throughout its lifecycle. This allows comparisons with business figures to see how your property compares to business standards. Accurate asset lifecycle management is required to maintain a competitive advantage in the market.

Deducting the full cost of a machine in the first year doesn't make sense when the machine will be used for 8 to 10 years. To address this, the accounting field introduced the concepts of fixed assets and depreciation. This approach spreads the machine's cost over its useful life, reflecting its ongoing value and usage. Introduction: The Balance Sheet And The Fixed Assets Register It seemed difficult to us to approach the concept of fixed assets without introducing you to the documents in which they appear, namely the balance sheet and the register of fixed assets. The balance sheet is a mandatory accounting document for companies, which reports their assets at a given time. It is made up of two parts, assets and liabilities, which absolutely must be balanced (the sum of each part must be equal to each other). The fixed assets register is a simplified version of the balance sheet. The Liabilities Of The Balance Sheet Liabilities are a statement of the company's financial resources. It includes internal and external resources, in other words equity and debt. It is frequently said that liabilities have a negative economic value for the company. Liabilities are made up of three sub-parts that we will present to you in their order of appearance in the balance sheet: 1. Equity They relate to the company's long-term stable resources. Three key resources make it up: share capital, reserves and net income. Share capital is the money contributed by the partners of the company when it was created. They constitute the initial contribution of the creators of the company. Company reserves are the results of previous years not distributed to the company or its creators. They constitute its treasury. The net result is the difference between the income and the expenses for the financial year. It can be positive or negative and balances the balance sheet. Concretely, it is calculated by subtracting the total of liabilities from assets. It is always entered in the liabilities of the balance sheet, being considered as a debt of the company towards its partners. 2. Provisions for risks and charges Provisions for liabilities and charges show future events such as charges in the balance sheet, which must be precisely and reliably estimable and highly probable. 3. Company debts Consisting of the company's resources, debts are distinguished between short-term debts (less than one year), medium-long-term debts (loans) and operating debts (suppliers, VAT, wages, etc.). The Assets Of The Balance Sheet Assets represent all of your company's assets. It is in a way an inventory of the goods and rights that it possesses, presented in increasing order of liquidity (ability to be transformed into money). It is located in the left column of the balance sheet and the sum of all assets must be equal to the sum of all liabilities: what the company owns must be equal to its resources (equity + debt). To be considered as such, an asset must meet four criteria according to the General Accounting Plan: An asset must be identifiable; It must have a positive economic value, i.e. provide the company with an immediate or future economic benefit; It must be controlled by the company, which assumes the risks and benefits. For example, it cannot credit the machine of a supplier, who is responsible for the risks associated with this asset; Finally, an asset must be able to be valued at its fair value and reliably. Examples of assets: goodwill, building, equipment, receivables, patents, etc. Fixed Assets Or Current Assets? The assets of a balance sheet have two distinct parts, and this is where we come back to the principle of fixed assets: there are fixed assets and current assets. Fixed assets are made up of durable goods, i.e. goods that can be reused in the medium to long term (more than one year), which the company owns and which are used in the exercise of its activity. As we will see later, a distinction is made between tangible, intangible and financial fixed assets. Examples of fixed assets: premises owned by the company, office furniture, computer, etc. On the other hand, current assets include all the other assets which do not remain permanently in the company's assets, and/or which are transformed (stocks transformed into product, receivables becoming cash upon settlement, etc.) or even the cash, intended to be reinvested in the company or to absorb hard knocks such as a breakdown of equipment. So now you have a better understanding of where an asset is and what it is used for in the balance sheet. But back to our sheep and see together what is, concretely, an immobilization. The Fixed Assets Register Easier to keep, the fixed assets register only provides information on fixed assets: durable goods owned by the company. The elements contained in the fixed assets register are: The date of acquisition of the property, The nature of the immobilization, The price, Details of the depreciation applied each year since the purchase of the property, The date of transfer if applicable, The transfer price if applicable. Definition Of A Fixed Asset The accounting fixed asset is the whole of the company's assets, and the depreciation makes it possible to deduct a portion of the initial investment each year. But concretely, what is an immobilization? Fixed assets are assets held and used by the professional in the course of his activity for more than one year. Indeed, the general chart of accounts considers them as goods or assets whose use extends beyond the current financial year. They allow the business to earn money or allow it to operate normally. There are three categories: tangible, intangible and financial assets. Fixed assets: all physical goods, which one can touch. Examples: vehicles, premises, equipment, etc. Intangible assets: the immaterial assets of the company. Very rare in private practice, they generally only concern the patients of a practice. Examples: patents, licenses, trademarks, software, goodwill, etc. Financial assets: intangible financial assets (shareholding, loan granted to other companies, etc.) Certain assets must be recorded in the company's fixed assets: goodwill, equipment specific to the professional activity (a doctor's table, a massage therapist's machine, a photographer's camera …). Other property can be used professionally and personally, such as a vehicle.  In this case, either the self-employed person brings the property into the company's professional assets and immobilizes it, or he brings it into his personal assets and therefore cannot immobilize and depreciate it. This applies to all major mixed pro/personal purchases such as computers or mobile phones. Whatever the nature of the fixed asset, it must be included in the fixed assets register or the company's balance sheet. The main advantage of fixed assets is to be able to deduct part of the purchase cost each year. What Is An Asset? Fixed assets are assets owned by a business that are used for the long term and not intended for resale. These fixed assets constitute a favorable potential economic value for the organization. Fixed assets are an integral part of an accounting practice. There are three main categories: Intangible asset: Intangible assets are non-monetary assets without physical substance, which represent a profit for the organization. This type of fixed asset includes assets such as software or patents. Tangible fixed assets: Property, plant and equipment, on the other hand, are physical assets owned by a business that can be used by the business or rented out to other organizations. This type of fixed asset includes assets such as machinery, tools, equipment or land. Financial fixed assets: Finally, financial fixed assets are durable assets also owned by a company. For example, financial loans to associates for a period of more than one year. Why Is It Essential To Manage Your Fixed Assets? For a business, it is important to track all of its assets with fixed asset management software. With this type of software, an organization can get an accurate idea of ​​its fixed asset stock and its book value. It can also manage: Census of assets and their characteristics, Visibility on the use of software & hardware to better predict investments, Depreciation management: calculation, depreciation plan, Automatic amortization schedule update, revaluation, Make the link between equipment acquisitions and the current state of the capital stock (functional, lost, broken, etc.), The end of the asset lifecycle, Determine the capital gains or losses of fixed assets to see which are the most profitable for the company. This makes it possible in particular to apply the tax regulations in force and to limit the risk of error linked to the calculations of depreciation, which are done manually. What Is Amortization? Depreciation is the distribution of the amount of a fixed asset for the total period of its use. This technique is based on the use that the company makes of an asset. The duration for which a fixed asset is operated is determined by the company so that it can provide for a depreciation schedule. Depreciation allows a company to reduce certain costs and to know exactly when an asset needs to be replaced. Accounting Depreciation Of Fixed Assets Accounting depreciation consists of deducting a portion of the purchase cost of fixed assets every year in order to amortize this cost over several years. The fixed asset is effectively intended to remain in the professional heritage for a long period. Its purchase price can therefore be divided. Please note that only tangible fixed assets can be subject to depreciation. You must also be in the actual tax regime to be able to deduct depreciation, micro regimes are excluded. Depending on the nature of the asset, we opt for more or less long amortization periods. Examples: 4 to 5 years for vehicles and other means of transport; About 10 years for furniture (desk, professional table, etc.); 8 to 20 years for specific arrangements and installations (creation of a photographic studio, a gym or rehabilitation room, etc.); 3 years for computer equipment (computer, printer, telephone, etc.); 20 to 50 years for locals; About 5 years for electrical equipment. All these goods are to be depreciated in proportion to their professional use, regardless of the purchase price. There is, however, an exception for the purchase of small equipment and office furniture not exceeding 500€, in which case you can have this expense transferred directly to professional expenses. [cta title="Improve your business and optimize it with WorkTrek!" text="Monitor your fixed assets to avoid unnecessary losses!" link="https://login.worktrek.com/Account/Register?_gl=1*fpersd*_ga*MTcwMjE1OTkzNy4xNjU0NTA3NTI2*_ga_8N6446P9LX*MTY3Mzk2ODEzNS4yNi4xLjE2NzM5Njg4MDAuNDguMC4w"] What Are The Challenges Of Good Fixed Asset Management? The challenge of managing fixed assets lies in their effects on your income statement. When your company incurs an expense, for example the purchase of cartridges for your printers, these costs are deducted from your result. They constitute expenses of the exercise. Mechanically, the result decreases by the amount of the charge. But when your business acquires property or makes an expense that will be capitalized, in accounting terms, this produces two effects. On the one hand, this investment is value-neutral to your business. This property is included in the company's assets as we have seen above. The outflow of cash is offset by the entry into the asset side of an asset of the same value. This nevertheless contributes to the constitution of the company's assets. But, in some cases, the investment may give rise to the calculation of amortization, that is to say that we will take into account its loss of value over time, either related to its age, or to its obsolescence. This amortization will therefore also have an effect on your results, but over time, over several accounting years. However, amortization can be calculated in different ways (linear or decreasing in particular), each having advantages and disadvantages that should be identified according to the situation, the company not always having the choice of the mode of amortization. Example Example of the linear depreciation of the machine tool purchased on January 1, 5000 euros: The company decides to amortize it over 5 years. It will therefore incur a depreciation charge each year. We are talking about depreciation charges. This will therefore be equal to the acquisition value divided by the duration in years of the amortization, i.e. 5000/5 or 1000 euros per year. In other words, the result of each financial year will include a depreciation charge of 1000 euros for five years. Conclusion To sum up, the accounting fixed asset is the fact of integrating goods into the professional assets of the company. Tangible assets are depreciable over several years, depending on the nature of the asset. When reselling a fixed asset, its book value must be taken into account in order to treat any capital gain or loss as revenue or expense.

For several years now, the infrastructure community has been talking about sound management of municipal infrastructures, sustainable management and more recently, asset management. ​Generally, fixed asset management is a set of practices that facilitate rigorous decision-making based on knowledge of assets: their condition, associated risks and costs in order to achieve the organization's objectives. In the case of a municipality, the organizational objectives are to provide services to citizens in a safe and sustainable manner while demonstrating responsible management of revenue from municipal taxes. The implementation of an asset management process allows elected officials to have all the elements in hand to make the best decisions and to effectively manage the assets of their municipality. The investment lifecycle may be streamlined with the help of modern technology, which also makes managing deals from start to finish simpler. Teams can cooperate, and all stakeholders can access the same data and insights from a single centralized data repository. Asset Management: How Can It Be Defined And What Are Its Principles? We can define asset management as this operation which consists of managing funds from one or more partners with the aim of making them grow as much as possible. Of course, capital gains will be realized over a long period following this operation. Thus, in order to maximize profits, one must invest not only in stocks but also mutual funds. Of course, investing in open-ended investment companies will also maximize profits. It is important to take into account certain obligations in order to be able to increase the yield. Portfolio management is based on four principles. These 4 principles of Asset Management are the main values ​​on which its practice is based in order to achieve the various objectives. These include value, leadership, alignment and collateral. The value – The role of assets is to give value to the organization that owns it. So, asset management mainly focuses on the value that the asset could bring to the said organization. Leadership – Very important to create value, the role of leadership is to set up asset management, but also to ensure its effective use in the organization itself. Alignment – The different objectives of an organization manifest themselves not only in activities and plans, but also in technical and financial decisions. The smallest decision that will be taken will count a lot to achieve the various objectives of the organization. Warranty – It is certified by the asset management that the assets will perform their function. The guarantee concerns not only the assets, but also their management and the management system. Why Do Asset Management And What Are The Asset Management Solutions? While investing their funds in productive assets, asset managers allocate capital very efficiently. Note that these funds come from  private and institutional investors. The advantages of asset management are numerous. However, to benefit from these advantages, the assets in question must be entrusted to an effective manager. The latter must be able to put in place a good inventory management strategy. Thanks to the latter, the asset manager will be able to have a look at all the assets in his possession. Businesses will be able to make the most of their resources without wasting their funds on bad investments. Also, with the main objective of  making the assets of clients prosper, some managers opt for the use of software. By opting for the use of software, they offer themselves many other possibilities such as: the ability to manage resources anywhere; keep track of all assets; forecasting risks, whether legal, operational or financial; the implementation of asset management operations more efficiently with much more effective monitoring; optimization of management time; determination of service levels; monitoring and measuring the life cycle of an asset; and the management of active portfolios. The software in question is an asset management solution through which investors can structure their assets. Two options are available to them, namely: internalize or outsource. [cta title=" Manage assets with the latest technology!" text=" Manage assets quickly and easily with WorkTrek!" link="https://login.worktrek.com/Account/Register?_gl=1*fpersd*_ga*MTcwMjE1OTkzNy4xNjU0NTA3NTI2*_ga_8N6446P9LX*MTY3Mzk2ODEzNS4yNi4xLjE2NzM5Njg4MDAuNDguMC4w"] In sourcing Buying and using software internally. The objective for the investor is to carry out, analyze and carry out an effective management of the investments. To do this, he may use computer products or software. These are easily available in the market. It is also very important that the investor regularly expands his knowledge given the continuous development of products. Outsourcing Involves the use of software made available by others. This software is offered by a service provider and makes it possible to avoid the independent exploitation of computer products. While accessing the investor's data, the service provider provides assessments, analyzes and any other necessary information to the investor while taking into account his needs. To determine that management software is effective, it must be able to focus on the condition and performance of assets. It is also considered efficient if it manages to create a rapid return on investment, improve operational efficiency, reduce costs, raise the level of compliance, reduce various administrative tasks, etc. Making Use Of Current Technology For Asset Management Asset management involves a great deal of activity, making the manual workflow tiresome and ineffective. It will undoubtedly be challenging for a firm with many assets to manage and make use of them. Fortunately, most corporate operations can now be automated in the digital age, which makes it easier for firms to remain flexible. What Technologies Are Employed in Asset Management? Analytics of Data One of the most crucial elements of asset management is data analytics. Due to its value in analyzing asset performance, which aids the company in making decisions that are well-informed. It can offer essential data that aids companies in establishing baselines and future targets in order to calculate the performance of an asset. Tags & Labels Labels and tags can be extremely important for efficient asset management. Since they constantly give real-time information and asset locations. Each asset has a label that is fastened to it, and the asset management software records the label's special identifying number. This tag automatically provides all the information associated with it once it is scanned. The tag offers precise information. There are numerous asset tracking technologies available that come in label chips, tags, etc. Artificial intelligence Particularly in the manufacturing sector, artificial intelligence is crucial for enhancing daily operations and maximizing asset performance. Numerous methods, including troubleshooting, locating, and eliminating bottleneck problems, are employed in order to do so, but artificial intelligence is primarily used. You can learn more about asset behavior using artificial intelligence, which can aid you in making wiser decisions. Additionally, by using this information, you can enhance asset performance and, in the event that unexpected failures happen regularly, you can find the source and effectively resolve the problem. Cloud technology One of his most important technologies in asset management is cloud technology. Cloud-based asset management software allows businesses to access it from anywhere in the world. Changes during operation and maintenance work are also possible. Additionally, work  orders can be created based on priority or based on requirements to maximize productivity. Apart from that, you can get a customized report according to your requirements in just a few clicks. See the real-time location of all your assets on your device. Contribution Of Technology To Asset Management The use of technology assets has improved office functions and client relationships in fund administration, as in other industries, and money managers are quick to adopt technology. Executives across all lines of business emulate some of the principles wealth managers use to manage elements of their business in terms of asset performance and use technology to measure and monitor progress. The Covid-19 pandemic has accelerated the development of all these technologies. In addition, the increased automation of various wealth manager-specific tasks such as data management, risk assessment, market research and analysis, asset trading, and customer service is a result of the use of technology in wealth management. Why Technology Matters For wealth managers to evolve and grow, they must embrace change and integrate next-generation technology stacks into their daily processes. It helps you excel: Keep regulators happy – Since the 2008 financial crisis, regulators around the world have gradually tightened their transparency and reporting requirements. Wealth managers have no choice but to comply. The European Union has done it. In September 2020, the European Securities and Markets Authority introduced new liquidity stress testing guidelines. This requires fund managers to stress test the fund's assets and liabilities to address liquidity risk. In March 2021, the Sustainable Finance Disclosure Regulation came into force. Asset managers are required to be more transparent about the sustainability of their financial instruments and to disclose how sustainability risks are integrated into the investment process. Stay competitive in a rapidly changing market – In recent years, the pressure to generate exorbitant returns has pushed wealth managers up the risk curve towards more illiquid asset classes and more complex investment strategies. The investment climate is now becoming increasingly unpredictable, with resurgent geopolitical volatility, the end of globalization legitimacy, the threat of climate-related shocks, and doubts about the strength and sustainability of the “Fed put.” Meeting Investor Service Expectations – Investor demand for transparency is also increasing. Allocators (especially institutional investors) want detailed and understandable insight into the level and sources of money her managers' performance, as well as sophisticated risk indicators on a variety of factors. Conclusion Modern technology and CMMS software streamlines the investment lifecycle, simplifies end-to-end deal management, team collaboration, and access to the same data and insights for all stakeholders and from one central data location.

A business that works perfectly is a business organized from A to Z. And optimized inventory management plays a key role in this organization. Perfectly controlled inventory management makes it possible to cope with sales peaks, especially during commercial operations. But in addition to saving you money, inventories can save you money: goodbye to goods that end up perishing and dead stocks! Read also 10 Easy Steps To Successful CMMS Implementation What is Inventory Management? Inventory management consists of keeping track of the goods stored by your company and controlling their weight, dimensions, quantities, and location. The goal of inventory management is to minimize the cost of holding merchandise by helping you know when it's time to restock products or repurchase your raw material to manufacture them. As for inventory control, which closely resembles inventory management, it specifically refers to when you control your inventory, usually through effective management tools or methods. It's much easier to maintain control of your inventory with centralized management. Why is inventory management important? Effective inventory management is essential to ensure that a business has sufficient merchandise to meet customer demand. If inventory management is not properly managed, the business can either lose money on potential sales that cannot be realized or waste money by storing too much product unnecessarily. Inventory management can serve you in several other ways: 1. Avoid waste - If you sell products that have an expiration date (like food or beauty products, for example), you will run into difficulties if you fail to sell your merchandise on time. Optimized inventory management will allow you to prevent your products from going out of date. 2. Avoid deadstock - A deadstock can no longer be sold, but for reasons other than the expiry of the products. It could be that your products are out of fashion, not suitable for the coming seasons, or simply obsolete. By effectively managing your inventory, you can avoid this problem. 3. Save storage costs - Storage costs are variable costs, which means that they evolve according to the number of products stored. If you keep too many products in stock or fail to sell certain items, your storage costs will increase… 4. Improve cash flow - Proper inventory management not only saves you money but also optimizes cash flow in a number of ways. As mentioned before, you've probably spent some money acquiring your stock, and you're going to resell it for a profit. But, until you resell it, your stock costs you more money than it earns you. That's why it's important to consider inventory as part of your cash flow management. Inventory affects both sales enablement and expenses since you rely on it to know how much product you can sell and need to order. This therefore significantly influences the amount of available cash. In short, good inventory management allows for better cash flow management. A good inventory management system will allow you to know exactly the quantity of products you have and, based on sales, you will be able to make projections in order to know when you will have to reorder certain items. You will avoid losing sales and you will have enough cash available to better plan your future orders. The different types of inventory Now that you know what inventory management is, let's review the types of inventory you'll be dealing with: Raw materials, Products in process, finished products, Maintenance, repair, and operating goods. Raw materials - Raw materials are materials or substances used at the start of the production or manufacture of goods. We think in particular of wood, metals, plastics, or fabrics used in the creation of finished products. A business owner or manufacturer acquires these materials from one or more suppliers or producers. Products in progress - Work-in-progress products are unfinished products that can only be sold after processing by your company. In a balance sheet, finished goods include all production costs: labor, machinery, raw materials, and other equipment. At this stage, its value is only that of the materials, time, and labor invested. Finished products - Finished goods inventory is the number of in-stock products available to customers. Once a work in process is processed and finished, then it becomes part of the finished goods inventory. Finished goods are subject to a markup, which means that the price at which they are sold is higher than what the items cost you. Maintenance, repair, and operating products - Here we refer to the materials and various equipment used in the production process, but which are not, however, part of the final product. Read also 6 steps to implement the work order process. Here are some examples of maintenance, repair, and operation products: Personal protective equipment like face masks, gloves, and safety glasses, Cleaning supplies like sanitizers, brooms, and buckets, Office supplies like notebooks, pens, and tape Technical equipment such as laptops, printers, scanners, etc. Laboratory equipment for any test and any research aimed at creating products, Repair tools. Inventory Management Techniques How to manage inventory varies with each business. However, all contractors should do their best to try to eliminate the risk of human error from the inventory management process. This means that it is best to use inventory management software. Establish a minimum stock level Simplify your inventory management process by establishing, for each of your products, a minimum stock level. In concrete terms, this consists of holding only the minimum quantity of products necessary for the proper functioning of your business, at all times. When the quantity of a product drops below the predefined quantity, the replenishment order must then be placed. Calculate your order point The reorder point tells you the level at which it's time to restock. Once you know your safety stock level, you can consider your supply chain lead time to determine the best time to place your order. Perfectly manage your relationships with your suppliers The ability to adapt quickly is essential to effective inventory management. Whether it's returning a slow-selling product to replace it with a new item, quickly recommending a high-selling product, fixing issues with the manufacture of goods, or temporarily increasing your storage; it is important to maintain a good relationship with your suppliers. Thus, they will naturally be more understanding and accommodating in the event of a problem. Maintaining good relationships with your suppliers will provide you with other benefits, especially when negotiating minimum order quantities. Don't be afraid to negotiate lower minimum quantities so you don't have to carry too much stock. Maintaining a good customer-supplier relationship is not only about being friendly, it is also about being professional. You need to let your suppliers know when you expect sales to increase so they can ramp up production as soon as possible. If you can't sell a product, discuss it with them; this will allow you to pause your promotions or seek an interim substitute. Also, keep in mind that a bad supplier can very quickly create big problems in your business. If they are consistently late with their deliveries or send the wrong amount of items, it can disrupt your operations. A supplier audit is an opportunity to identify areas for improvement and determine when to stop them. Have an emergency plan Poor inventory management can lead to a few problems, here are the most common ones you may face: You find yourself in a budget deficit and do not have enough budget to order a product you really need, Your warehouse does not have the space necessary to store your goods, A poor estimate of your inventory levels affects your sales projections, Your supplier stops manufacturing a product without notice. It is therefore important to be able to predict when a problem could arise. Identify risky activities and develop a contingency plan. How are you going to react? What steps are you going to take to solve the problem? How will this impact other aspects of your business? Remember that a well-maintained customer-supplier relationship can have a significant positive impact on your ability to deal effectively with the unexpected. Do frequent inventory checks It is essential to regularly perform reconciliation operations between your actual and theoretical inventory quantity. To do this, there are several methods: Physical inventory - Carrying out a physical inventory means counting all your products at once. Several merchants carry out a physical inventory at the end of the year; since they prepare their accounts and the payment of income taxes at the same time. Although physical inventories are usually only done once a year, they can be laborious, especially if you find a discrepancy, as finding out the cause can be a complex task. Spot checks - If you are used to taking a full physical inventory at the end of the year, and often have problems or have a lot of product in stock, you should start doing spot checks during the year. It would be like comparing the actual quantity of a given product to what you would normally have. You can perform these checks at any time. However, we recommend that you perform these spot checks in addition to physical inventory and not as a substitute. When doing spot checks, focus especially on products that sell out very quickly or that often cause problems. The rotating inventory - Instead of counting all the products at the same time during a physical inventory carried out at the end of the year, the rotating inventory makes it possible to spread the reconciliation operations throughout the year. Every day, every week or every month, check a different product. There are several methods to identify the items that should be counted first, but in general, it is the high-value items that are counted most frequently. Use ABC analysis Some products require more attention than others. Use the essential ABC analysis to determine your priorities for managing your inventory. Separate the products that sell the most and those that sell the least. To do this, you can assign each item on your product listing to one of these three categories: A = % of the stock that represents 80% of your income B = % of inventory that represents 15% of your revenue C = % of the stock that represents 5% of your revenue As you will have understood, your stock A represents your most profitable and valuable products. Make sure you always have them on hand so you don't miss out on sales. Your C stock is your slow-moving or dead stock. This is a stock that you can offer at a reduced price as part of a promotional operation, in order to be able to offload it. Think about a safety stock Safety stock is like an emergency fund. It is actually a stock that you "set aside" to use in an emergency. It is more concretely a threshold from which you must reorder goods before drawing on your emergency stock reserve. Here is an example of a safety stock formula for some industries: Safety Stock = (Max Daily Usage x Max Lead Time) - (Average Daily Usage x Average Lead Time) It's a good idea to incorporate safety stock into your inventory management strategy in case your supply chain is disrupted, your goods are damaged, or something else prevents you from receiving or handling goods. Update stock cards in real time Maintain product information for all items in your inventory. Access to regularly updated and correct data is essential to move products quickly and efficiently. Remember to record information such as barcodes, suppliers, lot numbers, and the dates of the last transactions. Entrust inventory management to a single person If your business continues to grow and inventory management starts to become too complex, it might make sense to assign the role of inventory manager to one person. His role will thus be to monitor all products and be in charge of managing restocking, negotiating with suppliers, and paying invoices. Read also 10 steps for choosing the right CMMS. Conclusion Remember that with an effective inventory management tool, you can help reduce your costs, maintain the profitability of your business, analyze sales trends, and forecast future sales but also prepare for the unexpected.. With good inventory management, a business has a better chance of profitability and survival. Then it's time for you to take control of your inventory management! Choose the right inventory management techniques and tools and start implementing them today.