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CMMS
CMMS Best Practices for Facility Management
Facilities management is a milestone in the successful functioning of any organization. So it’s important to understand what it does, and getting it right can have a big impact on your business. Like any other maintenance process, facility management can be greatly simplified and improved through proactive measures and modern CMMS solutions with CMMS best […]
Facilities management is a milestone in the successful functioning of any organization. So it's important to understand what it does, and getting it right can have a big impact on your business. Like any other maintenance process, facility management can be greatly simplified and improved through proactive measures and modern CMMS solutions with CMMS best practices.
Computerized Maintenance Management Systems (CMMS) are software programs that help facility managers and maintenance professionals track and manage maintenance data.
A CMMS best practices can help you track work orders, preventative maintenance schedules, inventory, and more. It also helps you plan and budget for future maintenance projects.
What is Facility Management?
The International Organization for Standardization defines facility management as "the organizational function that integrates people, places, and processes in the built environment to improve people's quality of life and the productivity of a company's core business".
While the main objective of facilities management is to support the management of structures, including residential buildings, the definition emphasizes the importance of this process as a business discipline aimed at coordinating the physical workplace with human resources and activities carried out within the company.
In short, facility management represents an integrated approach to managing a given organization's buildings, systems, and resources to ensure that the physical environment meets the needs of users and supports the core functions of the organization itself.
Why Is Facility Management Important?
The most important aspect of facility management is health and safety. Above all, people must be protected. Hazards may include unsafe ventilation or toxic air, excessively high or low temperatures, outdated machinery that may malfunction or fail, inadequate fire detection and protection systems, and poor signage showing exits and directions. Insufficient emergency exits and infrastructure.
In addition to health and safety, operations and costs can be threatened if facilities are not managed properly. For example, it may be easier to replace or repair obsolete equipment before it fails completely, which could disrupt or delay operations and result in lost revenue or productivity.
Facilities managers also provide support to people in an office environment, which can affect productivity and morale. Certain aspects, including office organization, are subject to rules and regulations that can significantly impact security. Business continuity plans and contingency plans are also critical to maintaining operations, continuous collection and analysis of information, and protection against disruption. It is also important to monitor the design of the office, including access to toilets and water fountains, seating arrangements, possible damage to infrastructure, and management of space use.
What Is The Task Of Facility Management?
Facilities managers are responsible for managing people and organization as well as space and infrastructure. People and organizations include roles such as marketing, accounting, hospitality, human resources, ICT, and cleaning. Facilities managers are also responsible for overseeing space and infrastructure accounts for workplaces, buildings, leases, occupancy, maintenance, and facilities.
Facility managers require a variety of business functions. Your job is primarily to protect everyone's safety and integrity. Facility managers must act on two levels. At the tactical level, it starts with understanding space, business risk, cost, and service. Another level is the operational level, which oversees the profitability of the business environment for its residents.
Read also LED Lighting Upgrades for Facility Managers
What Is The Difference Between CMMS And Computer Aided Facility Management (CAFM) Software?
CMMS is also increasingly referred to as CMMS/CAFM, emphasizing the essentially identical nature of the two types of software. Both find their main fields of application in facility management and maintenance work management.
The main difference between CMMS and CAFM has to be traced back to the purpose and way of using the software.
However, there are still some nuances to consider when choosing between a CMMS and computer-aided facility management software. CAFM software focuses more on room management, with modules for room booking or access monitoring, while CMMS focuses on managing maintenance operations within the facility.
However, it is important to emphasize how today's CMMS, at least the higher-level CMMS, bridge this difference by implementing functions that, while still related to maintenance, are more of the so-called soft services: from On-demand supplies for stationery, handling tools and movers to manage mail flow, lockers, separate waste collection or access within the facility.
Another example where a better understanding of how this gap can be successfully bridged concerns the management of suppliers, which today can be controlled in exactly the same way through CMMS and CAFM, whereas in the past it was reserved only for the latter.
CMMS Best Practices for Facility Management
As an invaluable tool for effectively and efficiently implementing a facilities management strategy, CMMS best practices can benefit professionals in many ways.
CMMS Best Practices:
CMMS software improves workflow
Adding another thing to your to-do list can be challenging. But implementing a CMMS can streamline workflows, improve the way facilities and maintenance operations are managed, and provide many features that will benefit facility managers in managing day-to-day tasks.
Higher visibility
A CMMS gives facility managers more visibility and control when working with maintenance teams. It helps identify one's tasks, their due dates, and what still needs to be done and ensures that nothing is missed.
Automated planned maintenance
Shifting the focus to regular maintenance can reduce downtime and disruption, so mastering it is crucial. Instead of trying to rely on storage, the CMMS automatically notifies the facility manager when the system needs maintenance.
Longer asset life
By performing preventive and predictive maintenance over the long term, the availability, and reliability of equipment can be greatly improved and extended.
Accessible asset history
Relying on human memory is impossible. Therefore, a CMMS details the work that has been done on the system in the past. Each factory has its own unique records detailing the parts used, labor hours spent, reliability, and downtime. By tracking maintenance activities in the CMMS, this knowledge is retained when employees leave the company. This information is maintained in the CMMS and can be used as a reference when new employees resolve incidents. It reduces the time lag required for new employees to be fully onboarded.
Track expenses easily
Because parts, labor, and other expenses are recorded as maintenance jobs are performed, the CMMS becomes the central database for all maintenance-related expenses. Instead of looking at receipts and invoices at the end of the year, facility managers can simply create expense reports in the CMMS to see how budgets are being spent.
Purchasing
Most CMMS systems have a procurement module that allows tracking of purchased parts and shipments in one system to ensure that redundant parts are not purchased twice and made redundant. Procurement documentation also helps facility managers quickly reorder parts should they be needed again.
Instant notification
Real-time alerts can be sent from the building control and monitoring system via the CMMS when operating limits are exceeded. As the alarm escalates, the CMMS triggers corrective maintenance and immediately notifies the facility manager for proactive inspections before the problem becomes a more serious problem.
Transparency
A mobile working CMMS helps managers track and coordinate the behavior of other employees and consider past and future interventions when making key decisions.
Increase productivity
The solution can schedule and track employee availability.
Scheduled notice
A notification is sent when the next scheduled maintenance is due.
Improve internal communication
All organizational levels can access mobile work and enter new work requests or track the progress of existing work.
Reporting and Analysis
CMMS can store a variety of data, from plans and upscaled images to condition monitoring data and asset history. This is an invaluable source of information that can be used to refine extremely critical decisions and create predictive maintenance algorithms.
Spare parts management
Purchased parts and deliveries can be tracked in one system.
Audit and compliance
CMMS software can help facility managers prepare facilities for upcoming audits and track regulatory and professional certifications to maintain legal and safety aspects.
How to Choose the Right CMMS for Your Needs
When choosing a CMMS, you should make sure it is right for your facility. You want to make sure the software supports your team's needs and industry. Make sure it is compatible with your company's IT systems. Also, make sure it's easy to use and has the features you need. Here are some steps you can take to choose the right CMMS for your facility:
Assess your current workflow – Before deciding on a CMMS, you should evaluate your current workflow. You want to understand how your team currently tracks data and makes decisions. This way you can determine which features are important and what type of CMMS you should use.
Research – Once you've assessed your workflow, it's time to do some research. You should research potential CMMS vendors. Check review sites or ask your peers for advice. Make sure you choose the right CMMS for your setup. You'll also need to make sure it's compatible with your company's IT systems.
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Tips for Using a CMMS
A CMMS can be an invaluable tool in keeping your maintenance team running smoothly, but only if you use it correctly and take full advantage of the benefits it has to offer. When implementing a CMMS in your maintenance plan, make sure to complete these tasks to reap the full benefits.
Proper staff training
Your employees can only get the most out of a CMMS if they use it thoroughly and understand its capabilities. When implementing a new CMMS, conduct detailed hands-on training, teaching each employee the details of the new system.
Your CMMS vendor may have training materials to support this process. Regardless, make sure every team member gets a chance actually to use the system during training. Remember to provide detailed training to new hires during onboarding.
Monitor employee usage
After your team starts using a new CMMS, observe how they use it for the first few months. If you find errors, such as categorizing them incorrectly, forgetting to provide some information, or using certain features correctly, please correct them as soon as possible. Otherwise, these mistakes become habitual and new employees are misled by experienced employees when they join the team.
Measure and make improvements
A CMMS offers unparalleled data tracking and automated reporting options, so it can be a way to spot gaps and errors in the system. Invest time in learning and using the reporting features in your CMMS. These reports are then periodically retrieved and analyzed for opportunities for improvement.
Use the customer service team
It's easy to lose access to a feature of your CMMS and then decide to ignore and avoid it. However, if you do this, you will miss out on a huge advantage of a CMMS best practices. If your CMMS includes customer service availability, use it. Contact us and ask for advice on features or menus you don't understand to help you get more out of your software.
Invest In A CMMS
The decision to invest in a CMMS tool challenges the habits of the different departments of the company, which for historical reasons differ according to the respective field of activity (procurement, approach, new projects, maintenance or operations). CMMS product ranges and markets are shifting towards the use of wearable technology, which will lead to new questions about habits formed after the first installation.
It is always difficult for business decision-makers to make decisions that are sustainable over the long term and that are right for their companies. Many companies that decided to invest in specific products a decade ago are now changing tack and adopting software packages that are becoming the de facto standard: a situation that some see as unfortunate compared to traditional office software.
A CMMS is a useful tool that helps facility managers become more organized by reducing their reliance on memory and automating many day-to-day activities. A CMMS best practices will help facility managers have more time to focus on improving reliability and further reducing maintenance-related costs. It makes facility management more efficient and effective, reducing costs and increasing additional revenue for the company.
Make sure you take advantage of CMMS best practices after you invest in CMMS software.
CMMS
How Much Does A CMMS Software Cost?
The CMMS allows the complete management of the machine park, the organization and planning of regulatory preventive and curative interventions, the analysis and management of the stock and purchases of spare parts, the overall analysis of the activity through reporting, dashboards and statistics, while taking into account the reality on the ground and its constraints.
Tools that aim to improve the performance and traceability of interventions in real time. But it is also a turnkey analysis tool that can provide information to experts, cross-reference data from other systems to make better decisions and thus optimize maintenance costs. In some cases, it acts as a social network, specifically associated with industrial maintenance, which then makes it possible to share knowledge, good practices or spare parts, between experts from the same factory, the same group or between companies.
It also makes it possible to exchange with the official suppliers of the platform to recover technical information in order to fight against the obsolescence of machines. CMMS software is therefore the key to simple and connected maintenance management.
But how much does CMMS software cost and why is it not good to rely on free ones?
What is CMMS Software: Definition
CMMS software helps organizations track the maintenance of their assets and the costs associated with work, with the ultimate goal of extending the life of an asset at minimal cost. This could include maintaining assets at a single facility or a range of facilities, or maintaining a group of equipment such as a fleet of vehicles or other types of machinery. Computer-aided maintenance management software (CMMS) assists maintenance departments in their missions: management of a machine park, preventive interventions, etc.
Why Use Computer-Aided Maintenance Management Software (CMMS)?
Computer-Assisted Maintenance Management Software (CMMS software) makes it possible to manage the maintenance tasks of a company or a public administration. There are several types of maintenance:
Preventive maintenance: it aims to solve problems before they appear and cause a production interruption. In IT, for example, it is in our best interest to prevent viruses with antivirus software, antimalware software, or even with a firewall, because an infected computer system can be very difficult, very long, and very expensive to repair. If we also take into account the risks of data loss, the risks of this data being disclosed publicly, and the risks to the reputation of the company, it is far better to do preventive maintenance!
Corrective maintenance: aims to return to working order following a failure, for example by replacing certain defective parts. It can be planned (the machine is left running until a breakdown occurs) if the replacement of the broken part is easy to do and inexpensive. Unscheduled corrective maintenance, on the other hand, occurs when there is a problem that is difficult to solve.
Curative maintenance: when a machine or computer breaks down, it is sometimes impossible to replace a part or make a repair. In this case, all the defective equipment must be replaced with new equipment.
CMMS Software: An Essential Tool For The Performance Of Your Company
In recent years, CMMS software has established itself as essential tools for the proper functioning of maintenance activities.
Their advantages are indeed numerous:
Optimization of team productivity.
Increased security of interventions.
Improved customer and production performance.
Centralization of information and knowledge sharing.
Traceability of operations.
Choosing a CMMS software adapted to the nature of your activities will therefore greatly contribute to the sustainability of your business. This is why the tool should be considered as a long-term investment, and not as an unnecessary financial constraint. The CMMS is without a shadow of a doubt one of the most effective solutions for optimizing all maintenance processes and for developing its activities over time.
Free IT Maintenance Management Software?
Here is a list of free software that has interesting performance in terms of computer maintenance:
Excel: All companies have Excel, so this solution is used by many of them. Managing maintenance with this software means you don't have to invest in additional software. Then above all, if you already have spreadsheet practice, it's child's play.
What are the benefits of Excel?
Creation of intervention plans.
Data crossing.
Establishment of lists of supplies, equipment and speakers.
Production of dashboards.
Reporting generation.
Free tutorials on the net to deepen your knowledge and use.
Mastery of Excel by your employees.
Time saving and fluidity.
Nevertheless, Excel is fine to start with, but can be time consuming and data traceability is not present.
Fiix Lite: Fiix Lite is the free version of the Fiix software. Of course, it offers fewer features than the paid versions, but it allows you to discover the main features of the software. Fiix Lite is often used by companies in the tertiary and service sectors.
What are the benefits of Fiix Lite?
Quick and easy handling.
Professional features.
Mobile app.
Purchase order management.
No credit card required.
You may already have some sufficient knowledge if you are a small business.
MaintenanceCare: MaintencanceCare is an online software that offers maintenance management in a free version. It is the best known in its category, but it is only available in English at the moment. The free version is available for one entity and one user.
What are the benefits of MaintenanceCare?
Mobile app.
Purchase order management.
Asset management.
Preventive maintenance.
Functional coverage.
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What Are The Limits Of Free CMMS Software?
If you decide to go with computer-based automated maintenance management, the freeware option can help you get started. However, in the long term, it may be less attractive. Free CMMS software comes with limited features.
Although free CMMS software has the advantage of almost zero acquisition cost, the features you have access to are limited. Indeed, if you want to benefit from software adapted to the growth of your activity, you will have to pay for additional functionalities. Free CMMS software only offers an overview of the features of a complete software to encourage you to subscribe to the paid solution.
Also, the number of users for free CMMS software is limited. As a result, it will be difficult, if not impossible, for all of your technicians to benefit from a free CMMS solution.
Moreover, the freeness of a CMMS software is intrinsically linked to the fact that it meets a specific need. For example, to bill your customers, you will opt for precise accounting software. But an additional tool will be required to plan or monitor your interventions in real time.
What are the main limitations of free CMMS software?
Features are restricted.
The number of users is limited.
The configuration can be complicated if you have no skills in the field.
Lack of customer service or support to help you with any issues.
Should I Opt For A Professional CMMS Tool?
Switching to a paid professional CMMS tool offers many advantages, starting with much more advanced features than free software. The configuration is much more advanced and allows you to precisely adapt the tool to the needs of your company.
In addition, opting for a paid solution allows you to benefit from the support and expertise of the publisher. The advisors help you choose the best offer and provide support in the installation of the software and support throughout the duration of use. This represents a considerable saving of time and you will be able to take advantage of it to improve your internal processes and benefit from the feedback from the editor if he has encountered cases similar to yours.
Finally, a paid solution allows you to benefit from regular updates to guarantee the security of your data and take advantage of the publisher's latest innovations. In addition, user feedback is regularly taken into account and helps developers to improve the CMMS software continuously and iteratively. The goal of paid CMMS software publishers is to always offer great ease of use and optimal efficiency.
CMMS, A Quickly Profitable Investment
The CMMS is a tool generally considered essential in large industries, but often underestimated in small and medium enterprises, because the return on investment is not always clearly perceived. The product is then considered out of reach...
And yet, its profitability - even for small companies - is a tangible reality and quite easy to estimate, as we will show you.
To calculate the return on investment (ROI) of the CMMS, simply relate the costs and the net gains (gains-costs), according to the following equation:
For example, if the CMMS costs 2500 euros per year to the company, but allows it to save 13250 euros, the ROI is 12.8 for its CMMS. This result is obtained by dividing the net gain (€32,500 – €2,500) by its costs (€2,500).
Identifying the gains may prove to be the only difficulty in this estimation. These must be well identified for the calculation of the ROI of its CMMS platform to be efficient.
How Much Does A CMMS Cost?
Since most maintenance workers are in the field, CMMS solutions, are usually deployed via the cloud with mobile-friendly interfaces. As a result, CMMS vendors charge businesses on a software-as-a-service (SaaS) pricing model. In a per-user-per-month subscription plan, companies only pay for the number of employees who actually use the software.
These plans often come in multiple tiers based on feature level and user types, such as technicians, managers, and system administrators. For example, a technician might need work order management functionality, but not business analytics functionality. A manager, on the other hand, may need both functions.
This option is best for small businesses with basic operations and a limited number of users. Some plans also provide a maintenance portal where anyone can submit a work order request.
Here you can see CMMS software prices and book a free demo version on WorkTrek.
How To Choose A CMMS Software?
Several solutions exist and can meet varying expectations. Thus, it will be necessary, first of all, to clearly define the expectations of the maintenance team and the expected depth of field.
It will be necessary to be vigilant on the user experience and the adaptability of the maintenance software to your operating modes.
In addition, you will need to ensure the quality of customer service to deal with possible problems and know that your request will be handled in the shortest possible time. It's when you need it most that you realize the need for a good partnership.
Be sure, then, to choose a scalable solution so as not to end up with a tool that will not evolve over time.
Operations & Maintenance
What is maintainability? – Definition & Explanation
What is maintainability?
Maintainability or "maintenance according to design" is the requirement of the maintenance technical personnel team directly from the design stage to promote its tasks. The optimization of design can reduce time and intervention costs.
The maintenance department usually takes its turn at the end of the cycle. This means that after the products are designed and distributed, the maintenance team is trained to maintain them without requiring in advance.
Architects often require the restrictions and requirements of operators and maintaining agents by mistake, and ignore the restrictions and requirements of collecting feedback.
The concept of maintainability is to reverse the order of things. Starting from the design stage, the maintenance team has their views on the correlation of decisions. For example, can we easily access the subsystem, disassemble and assemble it?
According to the definition, maintainability is the ability of equipment to be repaired, in a given time, at a lower cost, and under specified conditions. Its initial reliability must also be obtained again.
What is Maintainability?
What is the meaning of maintainability? Maintainability refers to the ability of your manufacturing or maintenance team to swiftly identify and locate a problem, fix it, and reinstate the functionality of the asset, minimizing any downtime.
If we searched for the meaning of the word "maintainability", we mainly found technical academic articles for internal personnel, not easy to understand. However, between data, numbers, and formulas, the meaning of the term can escape, which seems to be almost in line with a real task.
The concept of maintainability has been used from the early stage of product design. We have begun to consider how to maintain assets or investment tomorrow, and how to simplify maintenance activities.
The purpose of maintainability is to measure the possibility of restoring assets to normal operating states after maintenance.
In short, the concept of maintainability includes the entire life cycle of more or less complicated assets, so considering that sooner or later, maintenance and intervention measures are required. For example, for this reason, the main part of the operator cannot be unavailable, otherwise there will never be too many complicated key components. These components may make intervention difficult and more difficult. Consider reading, what is preventive maintenance and how it is done.
How is Maintainability Measured?
In order to measure the maintainability of assets, systems, or machines, you must be able to quantify the efforts of implementation and maintenance.
If this sounds known, this is because the most common and simplest way to analyze this is to measure the mean time to repair or MRI.
To calculate it we simply need to take the actual repair time of the asset and divide it by the number of failures that the asset has reported.
Another important metric to consider when talking about the maintainability of a plant is that relating to the average time between two maintenance interventions (preventive or breakdown), i.e. the MTBM.
This metric does not take into consideration the downtime of the machine or of the plant including the fault, but it is a statistical average of the times of availability between one maintenance intervention and the next, i.e. the unproductivity due to the fault but also the induced from scheduled maintenance.
The calculation of the MTBM allows the Maintenance Engineering to carry out an analysis regarding the design of the machinery, precisely considering the scheduled downtimes and therefore the possibility of reducing them.
In a nutshell, the study of the construction of a machine or a plant must have as its cardinal principle that of creating an asset that potentially may not require maintenance interventions due to breakdowns, and that scheduled maintenance becomes less and less necessary. Read next, the top 5 maintenance metrics you should always have in mind.
The Maintainability Of The Systems
The term maintainability in the industrial field can mean on the one hand the ease with which it is possible to intervene on an asset and on the other the probability that corrective action will be necessary for a given period of time.
Design And Maintenance
During the design phase, the designer, through the definition of the constructive and functional characteristics of an asset - such as accessibility, safety, and ergonomics - verifies the aptitude of a plant to be maintained, thus making maintainability an intrinsic characteristic of the project.
To ensure correct maintenance management, it is also necessary to carry out a maintenance check each time a change is applied to the resource, i.e. it is necessary to verify whether the standard intervention times envisaged are actually respectable.
The Parameters Of Maintainability For Plants
In order to be defined as maintainable, a plant or asset in the design phase must comply with the specifications of 7 parameters:
It must be accessible, i.e. be designed in such a way that each of its parts allows easy inspections and repairs. The verifications of these characteristics can be carried out through the BIM system.
It must be possible to disconnect and remove each component or in any case the most important ones, without there being the need to remove others.
The components subject to disassembly for maintenance operations must be designed so as to be easily transportable.
The parts of the asset must be designed to facilitate cleaning activities as much as possible.
It is good practice to standardize the type of components and diversify the equipment as little as possible in order to have a higher level of interchangeability.
Each component must be able to be replaced by an equivalent one, without making technical installation modifications.
Tests and data readings must be easy to do.
See also, the guide to plant operations management.
Maintainability In Design
In addition to these parameters that are to be considered basic for the design of the main assets, it is also necessary to consider the characteristics relating to operability, reliability, availability, and safety, present in the RAMS analysis.
Maintainability In The Start-Up Phase
The purpose of this phase is to verify how much the design has taken into account the needs of maintenance.
The longer duration of the interventions is reflected in the maintenance plan, leading to an increase and lengthening of the workload.
The analysis has as evaluation requirements the parameters of accessibility, extractability, manipulability, cleanability, and testability seen previously and as specifications the calculation metrics and predefined evaluation levels. Consider reading also, how to develop a facility maintenance plan.
FMA method
The concept of maintainability became part of the design criteria when it became necessary to consider the entire life cycle of the costs of an asset (Life Cycle Costing). To do this, in addition to the Capital Expenditure (CAPEX, i.e. the initial investments), it was also necessary to take into consideration the most substantial part of the costs, i.e. that relating to operating, maintenance, and disposal costs (OPEX, Operating Expenditure).
However, these studies, even if carried out from the early design stages, led to results that were far from the specific purposes of maintenance, providing only qualitative indications.
For this reason, the FMA Method (Field Maintainability Analysis) aims to evaluate the negative impact of design on maintenance and to identify the equipment that needs improvement interventions to increase the maintainability rate with the related costs. Read next, 5 ways CMMS will save you money.
To carry out the FMA analysis it is useful to define a preventive maintenance plan in which the following activities are defined:
Plant configuration,
Implementation of work instructions for maintenance activities,
Definition of the preventive maintenance plan (i.e. associate the relative instructions and MTTR to each asset subject to maintenance).
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Subsequently, to develop the FMA method it will be necessary to implement the following steps:
Define the characteristic parameters of maintainability (PCM),
Identify the most significant types of equipment (TAS),
Associate each key equipment (TAS) with its own parameters (PCM),
Carry out a field evaluation of the intervention times on the TAS,
Compare the results of the tested times with what is described in the standard instructions,
Calculate any times to correct,
Identify difficult-to-maintain equipment and price it against standard equipment,
Determine the improvements to be made,
Evaluate the feasibility of these improvements.
On Which Assets To Use The FMA Calculation
As mentioned, the FMA calculation method is to be considered suitable for those assets that are fundamental within the production plants.
They must therefore be the equipment that we find most widespread within the plant, which has significant preventive maintenance times and which requires frequent interventions during the year.
The choice of these features for the implementation of the FMA calculation is necessary to ensure that the annual workload is consistent with the economic commitment that could derive from any extra maintenance activities. Next, read how and why should you track fixed assets.
Analysis Of The Results
The impact of maintainability, therefore, plays an important role in maintenance in terms of hours necessary for execution where the evaluation is to be entrusted to the standard timing of preventive maintenance.
Ultimately, the goal of the maintainability calculation is to give a clear and concrete view of the extra work hours required to maintain the assets due to poor engineering from a maintenance perspective.
To these costs, however, we must also add those due to the hours dedicated to checks and corrective actions, as well as those incurred for the use of means and equipment.
The application of this method is particularly significant if carried out before the start-up of a large plant. Greater precision in the definition of the maintenance plan in fact leads to a better estimate of the maintenance budget which is the fundamental tool for the technical-managerial choices of maintenance. The FMA method can also form the starting point for defining the economic terms of comparison for the possible costs of the works for improvements and modifications to the plant that one intends to carry out. In this case, the application of the method represents an investment that produces immediate benefits. Finally, the FMA method can be used to define the technical specifications of maintainability of the various types of equipment that the engineering, in the plant design phase.
The application of the method represents an investment whose benefits are deferred but extended along the entire time span of the plant's life cycle. Consider reading the maintenance report and why is accuracy important.
How CMMS Can Help Improve Maintainability
As we have seen, the study of the maintainability of a plant or machinery concerns many aspects of Maintenance Engineering and of maintenance itself.
In order to collect and analyze data and monitor maintenance metrics, it is, therefore, necessary to have a tool capable of returning reliable analyzes and facilitating the work of maintenance personnel.
A Computerized Maintenance Management System (CMMS) is a tool that can help monitor and track the metrics seen so far.
The real-time acquisition of data relating to everything that happens to machinery and plants such as the tracking of working hours, the number of maintenance interventions, the mean resolution time between failures (MTTR), the mean time between two failures (MTBF) or the hours devoted to scheduled or preventive maintenance, make the CMMS software the key tool for making data-driven decisions, contributing to the reduction of intervention times, machine downtime and consequent reduction of costs incurred by the company. Learn more about the best CMMS software & platforms.
Operations & Maintenance
Hotel Maintenance – Here Is What You Need To Know
The job of the hotel maintenance department is to ensure that all facilities and equipment are in good condition and running smoothly to reduce the risk of disruption to hotel operations. Access to high-quality information gives every company a competitive advantage, as it is the key to all decision-making, the basis for a company's knowledge acquisition, and the driving force behind new business ideas. Likewise, well-organized data is critical to good hotel maintenance.
What Is Hotel Maintenance?
There are various hotel maintenance duties. Maintenance includes maintenance of the hotel, its premises, operational functions, facilities, etc.
Therefore, we can define hotel maintenance as the various operations and processes that optimize hotel operations. This also includes providing your guests with good facilities and good hotel services. If you have heard of building maintenance, you can easily understand the duties and responsibilities of hotel maintenance. Various functions such as plumbing and power management fall under the umbrella of hotel maintenance.
There is a saying that happy customers mean happy business. We cannot deny that this is true. A streamlined hotel building with impeccable functionality is sure to delight your clients. This can be achieved with proper hotel room maintenance. Other aspects also belong to hotel maintenance, such as management excellence of food quality, standard mattresses, hygienic spaces, etc.
However, figuring out the exact maintenance responsibilities of a hotel is certainly a challenge. Since each hotel has a different working structure, its maintenance functions are also different. A luxury Miami hotel will have top-notch maintenance duties and responsibilities, although hotels near you will have different hotel maintenance practices. For both companies, however, the approach plays a crucial role.
Due to the increasing demand in the hospitality industry, various hotel companies hire hotel room maintenance companies. The practice of setting up separate hotel maintenance departments is also common. A variety of hotel maintenance software helps these departments work efficiently. See how to develop a facility maintenance plan.
What Are The Types Of Hotel Maintenance?
Hotel maintenance can be done in several ways. Most hotel maintenance departments include preventive hotel maintenance and reactive hotel maintenance.
Hotel Preventive Maintenance
Such maintenance in hotel operations includes managing hotel assets in accordance with its policies. This measure is applied if the device type is still in working condition. While tools and equipment are in use, they are maintained to check for damage. The main reason for this type of maintenance is to improve equipment types and related processes. Fundamental insights and fundamental observations are used in this hotel maintenance practice.
Hotel preventive maintenance can be divided into three categories. These are as follows:
According to the Time – This precaution includes performing maintenance operations based on time. Choose a different time interval to perform maintenance tasks. Pipeline installations are performed every six months and set at different intervals such as quarterly, monthly, yearly, etc.
According to the Usage – The next category depends on the use case. When equipment is used frequently, the probability of failure increases, so the frequency of use also affects preventive maintenance measures. There is a fixed usage level that determines performance for maintenance operations.
According to the Condition – This is a proactive form of maintenance. If equipment appears to be in poor condition, maintenance actions will be taken as needed. With this care, various indicators indicate the need for maintenance. Health indicators can show performance degradation.
Hotel Reactive Maintenance
This type of maintenance is performed in the final stages of equipment use. The word "reactive" means taking action every time an obstacle is encountered. This means that a device or type of device fails, followed by repair measures.
Reactive maintenance is cheaper and has low resource consumption. But not suitable for a longer breastfeeding period. Read our blog post where we compared reactive vs. preventive maintenance.
Why Is Hotel Maintenance Essential?
Now that you are familiar with hotel maintenance and its types, let us try to understand the importance of maintenance in the hotel industry. Hotel maintenance is all about making sure all the behind-the-scenes activities are in order and running smoothly.
Sometimes hotels have all the necessary resources and manpower to carry out various maintenance jobs. However, the interruption still occurs. Sometimes even tasks are wired and cannot be completed on time. The reason for this is the lack of proper management. Hotel maintenance management ensures the implementation and execution of all hotel maintenance tasks without restriction. Not to mention it also leads to reduced hotel revenue.
Proper maintenance management ensures that such situations never occur and there are no obstacles to maximizing revenue.
4 Benefits of Hotel Preventive Maintenance Management
While most of the essential management procedures that keep a hotel running smoothly are hidden from guests' sight, few of them are as important as preventive maintenance.
When guests go home satisfied and realize that "nothing went wrong" during their stay, in most cases, effective preventive maintenance management is responsible for that impression.
The concept of preventive management (PM) is very simple. It involves the routine and periodic management of hotel maintenance. This means your maintenance staff can effectively keep an eye on all of your hotel's vital equipment and assets to keep everything running as it should.
Let's take a look at some of the key benefits your property can enjoy when you have an excellent preventative maintenance system. See preventive maintenance services and repair program.
1. Budget better and reduce costs dramatically
If your team has installed and uses some type of hotel maintenance software or platform, hotel managers and authorized maintenance personnel can maintain much-needed visibility into the status of all maintenance programs and procedures. This includes the status of your equipment and how it works, associated work orders, and important notes and data left by maintenance personnel on all of your property's critical assets that require regular maintenance.
This allows your hotel to maximize its budget and reduce unexpected and often very expensive expenses. When regular maintenance is scheduled, your engineers and other maintenance personnel will have a better understanding of how your equipment is functioning. This allows them to more accurately estimate each piece of equipment and when it is expected to require repair or eventual replacement.
This foresight enables hoteliers to properly and accurately plan their future spending. The better you budget throughout the year, the better equipped you are to deal with the inevitable unplanned outages that require immediate repairs. Proper preventive maintenance will help you reduce the likelihood of such failures and make them easier to deal with when they do occur.
Preventative maintenance management goes beyond looking after your equipment and extends to asset tracking. This enables you to identify what you're missing and replace anything missing promptly before an inventory shortage ruins your guest experience. This type of inventory management can also have a positive impact on your budget as you can buy what you need on time, in bulk, and at better prices. Read how and why should you track fixed assets.
2. Eliminate maintenance staff idle time
What does "free time" mean when running a hotel? Idle time is the period when a worker (or machine) is unable to perform the tasks it needs to perform or is not doing anything productive at all.
For example, a maintenance worker's free time might be waiting for parts to be delivered or tools to be available before they can perform tasks.
Every minute of free time costs your hotel money. While brief periods of idle time are unavoidable in any work area, the goal is always to minimize idle time and increase the efficiency of our people and equipment. Maintenance is about streamlining employee workflows, enabling instant employee communication, creating more balanced workloads and schedules, installing clear operating procedures, delegating routine tasks, and providing checklists and auditing tools.
Preventive maintenance management helps you ensure that maintenance personnel always know what they have to do and, most importantly, always have something to do.
Of course, it's not about making them work for work's sake. It's about developing a plan that allows them to regularly and systematically perform all the inspections and maintenance necessary to keep your property running like clockwork. See also a beginner's guide to plant operations management.
3. Improve maintenance staff efficiency and productivity
One of the many unfortunate circumstances of the ongoing COVID-19 pandemic is that many hotels are currently reducing staff numbers. One of the best ways to address staffing shortages is to install a preventative maintenance management program. This can automate many of your maintenance processes and help you get more work done with fewer people.
Today's modern hotel management solutions allow maintenance staff to receive their tasks via mobile phones and keep checklists and preventive maintenance procedures at hand. This enables them to work on the go, check off completed tasks, and even take notes, equipment measurements, and analytics on their phones, increasing efficiency and team-wide visibility.
Employers are often afraid of introducing new technology and automation to their employees, thinking it might confuse their workers. However, the reality is that most workers prefer automation and software as job aids. According to a recent Zapier survey, nearly 40% of employees surveyed said that automation software helps them get their jobs done faster. They also claim that automation can help them be more organized, improve their overall work, and help them focus on the most important tasks.
Preventive maintenance is about working smarter, not harder. Having a system that provides checklists and reporting capabilities to your maintenance team will help them become more organized. Not only does this make it easier and more efficient for them to complete their scheduled tasks, but it also makes them better able to resolve urgent issues when needed.
Your PM staff may need to check many things throughout the day. No matter how long they've been at the job, some are easy to forget or accidentally skip.
Hotel management can be confident that all routine tasks are completed, and the preventive maintenance checklist prompts your staff to sign off on each completed task. You can even see when they were completed and if employees left notes about the status of hotel amenities and assets. Check out also most important maintenance metrics you should have in mind.
4. Higher guest satisfaction
At the end of the day, nothing is more important to owners and managers than happy guests. By increasing transparency and ensuring greater employee productivity and efficiency, your preventive maintenance system can significantly reduce guest complaints.
An automated PM program can help your staff spot small problems before they become big problems and pinpoint problems before they spread. Just as preventive maintenance reduces the chance of accidentally affecting employees, it can do the same for guests. This results in a peaceful and enjoyable experience, which increases customer satisfaction, positive reviews, and the likelihood of future bookings.
Routine maintenance of a hotel's air conditioning, plumbing, ventilation, electrical, and all other customer-facing systems can greatly reduce the likelihood of problems requiring costly and immediate fixes. Consider reading 5 ways CMMS will save you money.
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CMMS In Hotel Maintenance
Managing the maintenance of hotels and resorts with hundreds of rooms, multiple floors and numerous facilities is no easy task. Facility managers need to be organized and efficient in providing their guests with a comfortable stay to do business with them in the future.
But it doesn't stop there. Research shows that 72% of guests share their positive experiences with six or more people, which increases credibility and positively enhances the resort's reputation when guests have a good time. Good maintenance is key to making this happen.
When assets are properly maintained, guests experience fewer problems and enjoy their stay more. The last thing anyone wants to worry about while traveling is sub-standard equipment or amenities.
To improve employee productivity and better focus on maintenance needs in all areas of a hotel or resort, maintenance managers should use a CMMS to perform preventive maintenance (PM). A CMMS is maintenance management software that provides real-time updates of facility equipment for greater accuracy and organization. When hotels and resorts implement a CMMS, they improve the quality of service they provide to their guests and visitors.
Read on to learn three ways hotel and resort managers can improve maintenance management by using a CMMS.
Reduced maintenance costs and requirements
When it comes to hotels and resorts, there are few success factors higher than customer satisfaction. However, when there is equipment downtime in rooms, hallways, or common areas, expect customer satisfaction to drop.
To reduce the risk of asset downtime, maintenance managers can use the CMMS to prepare for replacement or upgrades. The organization should track the current condition of parts when it was last repaired or replaced, and whether replacement parts are available. Not only does this keep the facility organized, but it also helps track their budget and avoid inventory later on.
Hotels must consider the number of areas on their property where downtime is likely, including:
Hotel rooms may include kitchenettes, bathrooms, and laundry facilities.
Common recreational areas include a swimming pool, changing rooms, gym, and restaurant.
All behind-the-scenes equipment, including mechanical and electrical equipment throughout the property.
Implementing a CMMS system can save the hotel and guests money in the long run. By tracking equipment maintenance needs and repairs, hotels can better assess which purchases they need to make. In addition, having a CMMS extends the useful life of assets, enabling hotels and resorts to offer more competitive rates and save money for guests. See also a step-by-step guide to choosing and using the right CMMS.
Keep all your data in one place
On average, each hotel has nearly 300 rooms. Additionally, there are multiple floors or wings, and various technicians throughout the facility. When you add up the number of rooms, floors, wings, facilities, and technicians, you're left with a disjointed mess of data about maintenance operations and the health of the facility.
With a CMMS, maintenance, and facilities managers can quickly and easily update the current status of equipment or an entire property. A CMMS provides a snapshot of the entire facility with layer-by-layer data on replacements, repairs, equipment needs and orders, and more.
Ultimately, with everything in one place, maintenance teams can increase their productivity by minimizing reporting back and forth, as the CMMS allows managers to see the status of all projects in real-time.
Provide a higher level of service to guests
Due to the number of assets in a hotel or resort (think HVAC equipment, elevators, fitness equipment, etc.), power outages are bound to happen from time to time. But the job of the maintenance team is to respond to ticket requests quickly and efficiently to keep guest morale up.
More powerful equipment and quick responses to work order requests leave a positive, lasting impression on guests, encouraging them to stay again.
And what's better than responding quickly to requests? How about repairing machines before your preventive maintenance (PM) program breaks down?
PM planning helps predict asset failures before they occur. This means welcoming guests into their rooms with all their assets in working order, rather than calling the front desk for a work order. For more, read what is the work order.
Since a PM program that supports a CMMS can help save money, resorts, and hotels should consider investing in higher-quality materials in their guest rooms and common areas, which are often more expensive to repair or replace. This helps resorts save on maintenance costs and provide higher-quality accommodations to their guests.
A CMMS can also help your resort or hotel better track which rooms require maintenance and can respond to maintenance requests more quickly. All of these contribute to a higher quality experience in your stay.
Conclusion
The hospitality industry is in uncharted territory right now, but one thing remains constant: guests want a safe, predictable, and comfortable travel experience. Hospitality facilities can take advantage of this post-Covid period to modify existing maintenance strategies, safety procedures, and standard operating procedures.
The easiest way to organize maintenance work is to use CMMS software. Hotel maintenance software is critical to the success of any resort or hotel. As a member of the hospitality industry, you know the importance of keeping your rooms and facilities clean and free of damaged or broken equipment. A string of bad reviews due to these issues can cause lasting damage to your booking. Using a CMMS as your hotel management software, you can streamline all projects, stay abreast of compliance issues, and save time and money with inventory tracking. In the end, your guests will be happier and ready to come back and tell all their friends about the great experience they had at your resort or hotel.
CMMS
Building Maintenance – Everything You Need to Know
Building maintenance - Introduction
Building maintenance includes cleaning common areas, regular trash removal, and repairing damaged items. This may include inspections, repairs, and maintenance of electrical systems, heating and air conditioning systems, and other utility services.
Facility and building maintenance are critical to ensuring the safety, efficiency, and longevity of buildings. Managing a multi-unit building or home that requires regular maintenance can present landlords with new problems that you may not be familiar with. Preventative maintenance is critical to a building's long-term viability, but not all landlords know how to manage these tasks effectively. To be successful at this, what you need is a quality building maintenance guide.
Leaving a building without regular inspections and repairs can result in costly repairs. By proactively checking for failures before they occur, you can save your business a lot of time and money. However, it can be hard to know where to start.
Learn about today's building maintenance processes and how to create an effective preventative maintenance program.
What is Building Maintenance?
Building maintenance involves a variety of tasks, depending on the company or organization. It involves a lot of work "behind the scenes" to ensure that a facility or building remains functional and comfortable for its occupants.
In some cases, building maintenance extends to outdoor campuses, including sprinkler management, lawn maintenance, and landscaping.
Types of Building Maintenance
Most building maintenance falls into three categories.
Preventive Maintenance
Preventive maintenance is routine maintenance performed on a regular basis to proactively address maintenance issues before they occur. It includes inspection, handling, replacing parts, and other tasks that prevent damage to building interiors and exterior structures. Plan and schedule preventive maintenance tasks on appropriate dates or at usage-based intervals.
Corrective Maintenance
When the damage becomes apparent, corrective maintenance measures restore the building to its optimum condition. The nature of these tasks depends on the type of building and the needs of its occupants. Unlike planned preventive maintenance, for example, corrective maintenance is performed in response to a problem reported through a service call.
Protective Maintenance
Protective maintenance protects building structures from harsh environmental conditions and deterioration. It involves the application of protective paints, sealants, coatings, and films to exposed surfaces such as columns, awnings, and other architectural surfaces. Depending on the climate, these areas of the building may need protection from ice, snow, salt, heat, humidity, and extreme weather conditions.
Types of Building Maintenance Workers
Maintenance personnel is critical in almost every operation to ensure that mechanical and electrical systems are functioning properly. They can work in a wide range of jobs, including plumbing, carpentry, and electrical repairs, while some specialize in the maintenance of certain types of machinery or equipment. Someone who enjoys doing things and is dexterous is likely to find work as a maintenance technician in a variety of fields and specialties. Cleaners, site managers, mechanics, and industrial machine operators make up the majority of maintenance jobs.
Maintenance managers manage maintenance programs and schedules for buildings. Supervisors supervise maintenance personnel and ensure that maintenance work is performed correctly. In some cases, building maintenance job descriptions include hiring and training maintenance personnel.
Janitors: A janitor is responsible for the overall cleanliness of a building: cleaning floors, cleaning bathrooms, cleaning doors and windows, and sweeping carpets. In residential buildings, they only clean shared areas.
Maintenance Engineer: Maintenance engineers work on tasks that require specialized knowledge. They inspect, maintain, and repair a building's HVAC and utility systems. Maintenance technicians typically assign work orders in a computerized maintenance management system (CMMS).
Maintenance Manager: The roles and responsibilities of a maintenance manager include overseeing and managing maintenance programs and other activities within the organization. Also known as maintenance supervisors, they oversee activities related to structure maintenance, landscaping, and offices. They are responsible for tracking expenses, reporting progress, and setting timelines.
Why Building Maintenance Matters
Building maintenance is important because it ensures the safety and comfort of everyone in the building, whether they live or work there. From a business standpoint, proper regular maintenance can save homeowners money in the long run and help increase the value of the property.
For those in the field service industry, building maintenance is critical to extending service life and reducing repair costs. As part of your customer responsibility, you must ensure that there is a work schedule for repairs and maintenance.
With proper building maintenance, you can prevent major equipment and asset failures. Preventive maintenance allows you to catch any defects before they become serious problems. Regular maintenance also gives you more confidence in the quality and safety of your work. Buildings or construction sites that are not regularly maintained are at greater risk of hazards and emergency failures that could result in serious injury.
Benefits of Building Maintenance
Safety
A poorly maintained building is an accident waiting to happen. It's not "if", it's "when" something will happen.
A recent example is the 2021 collapse of the Champlain Tower in South Florida:
Reinforced concrete structures are corroded and damaged by water.
When the tower collapsed, 98 people were killed, and 11 injured, and property damage totaled nearly $1 billion.
When costs are reduced and important maintenance tasks are pushed into the background, the consequences can be dire. By maintaining your buildings on a regular basis, you can increase the safety of your facility and easily avoid such tragedies.
Save money
It's much easier (and it's also much cheaper) to create and maintain a budget for regular maintenance than to suddenly find money when something breaks down.
Some ways you can plan ahead are:
Use a CMMS to track the lifecycle of your assets and get notified when a machine has exceeded its useful life.
Schedule preventive maintenance tasks so they don't go unnoticed and end up costing more to fix than simple maintenance.
Increase productivity to save money. By automating some maintenance tasks, such as scheduling work for your team, you can increase productivity and get more done in less time.
Check for deficiencies in energy efficiency, such as ventilation or leaks. By tracking assets and spare parts, you can identify where you are losing money, or which assets could benefit from installing more energy-efficient solutions.
Feature
Like any machine, a building and its assets will age if it is not inspected and maintained on a regular basis. Vulnerabilities go unnoticed; day-to-day operations begin to crumble.
Think of a leaky pipe that goes unnoticed until it bursts and turns into a flood that destroys everything behind it. Regular maintenance, on the other hand, provides consistent building function by:
Regularly maintained building components are less likely to fail, causing breakdowns and outages.
Regularly reviewed assets ensure they are up to date and in sync with code.
Obey
Regular building maintenance is critical to ensuring you comply with ever-changing building and safety codes, as well as state and federal regulations.
Maintaining permission is important to eliminate security risks and reduce your liability exposure.
Industries that Perform Building Maintenance
Facilities that rely on building maintenance include:
Apartments: Apartments require maintenance both indoors and outdoors. Regular inspections, maintenance, and repairs are carried out to ensure everything is in perfect condition.
Business Premises: Every building needs maintenance services. In fact, most smaller sites outsource maintenance services, while larger companies have in-house maintenance departments to oversee maintenance.
Government Facilities: Government buildings such as post offices, city buildings, and libraries require maintenance to remain in good condition for public use and safe use.
Top Building Maintenance Tips to Follow
While every business has its own unique maintenance needs, there are a few key points to consider. When it comes to build and order management, you need consistent and understandable workflows. Here are the 5 most important things you need to know to improve your building and facility management.
Keep your maintenance technician informed
Communication is key to maintenance planning and management. For maintenance technicians, maintenance supervisors, tenants, and management, you need to ensure that you need to communicate on a regular basis. Without consistent communication, you may find that you are dealing with outdated information, which creates errors in your schedule.
Have you ever turned up at a location for maintenance only to find out the customer isn't home and you can't visit? With real-time updates and SMS alerts, you can easily keep your business and customers in sync.
Research if your repair service is up to specification
For your building and equipment maintenance program, you must ensure that all requirements of the manufacturer's warranty are met. Researching your warranty and manufacturer requirements will give you details on what maintenance is required and at what intervals. This information is key to planning proper maintenance work, so you can be confident you are delivering quality work to your clients.
Make sure your service technicians are properly trained
When it comes to equipment maintenance, your team needs to have the right skills before going on-site. Without the right skills and training, your business can suffer from job deficiencies, poor quality, and lack of consistency.
There are countless certifications, internships, and apprenticeships that can help improve and expand a technician's skills and knowledge.
Security is essential
Every industry professional knows that safety is paramount on any job site. If your workplace does not have proper PPE or risk assessments, you risk injury and breaches of health and safety regulations, leaving your business vulnerable to lawsuits.
When you have a building maintenance system that allows you to easily follow safety checklists and conduct on-site risk analysis, SWMS, and documentation, you can ensure your team always keeps safety a priority.
Checklists make your life easier
One of the most important tips for your facility and building maintenance is a comprehensive checklist system. Without checklists, you'll find that your work is often inconsistent and your field technicians are likely to make more mistakes. In this case, you may find that your tests and reports also become redundant.
If you have a preventative maintenance checklist, your technician can easily check each step. This type of maintenance work helps to improve the quality of work. Your list doesn't have to be overly complicated, either. Simple steps are often more effective, such as checking your lighting system or checking your smoke detectors, or cleaning your air conditioner filters.
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What's on the Building Maintenance Checklist?
External Structure
Check the exterior of the building. Walls, masonry, foundations, arches, roofs, canopies, and all other exterior components should be regularly inspected regularly.
A landlord inspection checklist usually includes:
Inspect roofs, roof gutters, downspouts, and gutters
Check roof panels for cracks
Pay attention to external hazards such as standing water
Secure all exterior stairs and railings
Check the condition of driveways, parking lots, and sidewalks
Windows and Doors
Windows and doors don't need to be replaced often, but minor repairs may be needed. Locks and hinges wear out over time and keeping them in good condition is necessary for tenants' safety. Check the small components of all windows and doors annually to make sure they are still strong and safe.
Lighting
Make sure all exterior and interior lights are safe and working. In addition to replacing light bulbs, you'll want to make sure switches, transformers, and all other controls are working properly. Lighting surfaces should be cleaned regularly, but additional inspections can be done quarterly.
When checking to light, don't forget to make sure the exterior lights are working properly and illuminating the designated area. For example, tenants will feel safe in a lighted parking lot, so don't neglect this area.
Pipes
Unexpected plumbing problems can be an absolute nightmare for landlords. It's often difficult to spot plumbing problems before they erupt, but there are a few things to check. Landlords often check the following when performing preventive maintenance on a facility:
Replace valves at recommended intervals
Check all couplings for leaks
Check water heaters and boilers; recommended service
Change and top up oil, lubricant, and refrigerant as needed
An annual inspection of the sump pump and sump pump
It's best to have a specialist inspect particularly critical areas, such as a swimming pool, annually or prior to heavy use. Otherwise, make sure to include sanitation inspections on your quarterly checklist.
Fire fighting equipment
Many areas require fire protection equipment to be serviced at least annually. Ensure that all fire fighting equipment is properly stored, displayed, and maintained in accordance with applicable regulations. Buildings with crawl spaces, fire escapes, and sprinkler systems should also be inspected regularly.
Air Conditioning
All HVAC systems require regular cleaning and maintenance. It's best to schedule regular visits by experts to make sure these pieces of equipment don't break down without warning. Tenants and staff can be very uncomfortable if an HVAC system fails, so checking it is a high priority, especially before heavy use. It is recommended to do this twice a year.
Inside Danger
Internal hazards in common areas and even rental units should be checked regularly to avoid injury. Damaged floors, peeling paint, or loose lighting fixtures can pose a safety hazard. When performing preventive inspections, closely monitor high-risk areas.
Additionally, you should make sure that all smoke detectors, sprinklers, and carbon monoxide monitoring systems are working properly. Change batteries regularly and make sure all emergency exits are functioning properly.
Electrical
As with plumbing, checking electrical systems can be a challenge unless something is wrong. Plan to have your building's electrical installation inspected by a professional every four years. Some areas may have requirements on when to do this, so check your local laws to plan your electrical equipment preventive maintenance program.
Building Maintenance Software
Building maintenance management can be overwhelming without a system in place to coordinate and organize maintenance activities. Computerized Maintenance Management System (CMMS) software provides a single platform for managing the building maintenance. Using a CMMS, maintenance, and facilities managers can get a bird's-eye view of all maintenance activities, track building and equipment maintenance costs, and schedule preventive maintenance tasks.
How to Improve Building Maintenance Using CMMS Software
Building Maintenance System is an all-in-one workplace management tool that helps you manage equipment, schedule maintenance, create work orders, and track inventory.
CMMS building maintenance tool that helps you spot issues with your building maintenance data in real-time. It also has built-in workflows to notify your team of maintenance issues or automatically trigger resolution. Built-in reports give you a complete view of savings opportunities, existing issues, and everything you need to keep your building efficient.
CMMS
Cloud-hosted vs. On-premise Software – Which is better?
The widespread adoption of the cloud has led many vendors to shift their focus from on-premises solutions to cloud delivery models. This raised the question "what is best for my business?". If you're wondering which option is more secure, accessible, and affordable, explore our handy comparison.
Comparison Of Cloud And On-Premises Software
Essentially, the fundamental difference between cloud-hosted and on-premise software lies in their location. On-premises software is installed locally, on your company's computers and servers. In contrast, cloud-hosted software is hosted on the provider's server and accessed through a web browser.
Besides accessibility, there are many other things to consider when making a decision. These include software ownership, cost of ownership, software updates, and additional services, such as support and implementation. In the next few lines, we explore all the pros and cons of these two different solutions.
Cloud-Hosted Software
With cloud computing and SaaS, users now have other options for using software: instead of purchasing the program once, installing it on their PC, and using it, you can opt for a subscription principle. A supplier thus hosts the software in a data center and gives access to its users. The computer then simply establishes a connection via the browser, and the actual computing power is exercised in a perfectly matched data center. So all you need is internet access.
Not only is the hardware maintained by qualified personnel, but the software is also always kept up to date. Updates are installed without user work and are available immediately. As the software is PC independent, you can access the program from anywhere; you are not limited to your device or location. On the other hand, without Internet access - and this is the big drawback of cloud-based software - nothing works. This can be especially critical for professionals: if the effectiveness of the software struggles due to poor internet connection, you can find yourself in very uncomfortable situations.
Cloud-Hosted Software Cost
Professional on-premise programs can be expensive. It is then not always possible for small businesses and entrepreneurs to make such a large investment. Also, if the business changes and the needs increase, the purchased program may not adapt as quickly as you thought at the time of purchase. With most SaaS providers, on the other hand, users can choose between monthly or annual payments and switch to another product within a relatively short period of time. Additional functions or additional access for employees can be configured easily and often inexpensively.
Opting for cloud-based software means trusting the supplier who offers the program and the control. This relationship of trust is essential because you will certainly be required to transmit sensitive information. These will then be stored in the provider's data centers. If the cloud program maker does not take data protection seriously, it becomes critical. On the other hand, if the supplier decides (by personal choice or by constraint) to end the offer or to take a break for maintenance work, these stops can have negative consequences for the users.
Cloud Software: Advantages And Disadvantages
Advantages
Anytime, anywhere access: You can access your apps anytime and anywhere through a web browser from any device.
Affordable: The cloud requires no upfront cost. In contrast, you make regular payments, making it an operating expense (OpEx). Although the monthly cost adds up over time, maintenance and support services are included, eliminating the need for annual contracts.
Predictable costs: Enjoy predictable monthly payments covering software licenses, upgrades, support, and daily backups.
Managed computing: Because the cloud-hosted software is hosted for you, you don't have to worry about maintaining your software or the hardware it resides on. Compatibility and upgrades are handled by the cloud service provider.
High levels of security: Data centers use cloud monitoring and employ security measures beyond the means most businesses can afford given increasing observability costs. Therefore, your data is often safer in the cloud than on a server in your offices.
Rapid deployment: Cloud-hosted software is deployed over the Internet in hours/days. However, on-premises applications must be installed on a physical server and on each PC or laptop.
Scalability: Cloud technologies offer greater flexibility because you only pay for what you use. Additionally, you can easily scale to meet demand, for example, by adding and reducing licenses.
Reduced energy costs: When you move to the cloud, you no longer have to pay for electricity to power on-premises servers or maintain their environment. This significantly reduces the amount you pay for your energy bills.
Best Cloud Hosting Services Reviewed by Jayprakash Prajapati
Disadvantages
Connectivity: Cloud solutions require reliable internet access to keep you productive.
Long-term costs: Although they require a lower initial investment, cloud applications can be more expensive throughout the life cycle of the system. This increases the total cost of ownership (TCO).
Less customizable: Cloud-hosted software is generally configurable. But, depending on how it is hosted, a cloud solution may not be able to cope with complex development.
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On-Premise Software
Never change a winning team? Many users have been accustomed to the software in their computer systems for decades and have never had any problems with it. You buy a product, then install it on your personal computer, and then use it for many years. The advantage here lies in the possession of the software: once the product has been purchased, it can be used indefinitely. The costs are therefore one-off. But is it worth it? In business, in particular, we work with licenses. Programs cannot be used for an infinite number of workstations. Under certain circumstances, a separate license must be purchased for each employee - or multiple licenses can be purchased directly as a package. The on-premise solution ends up being expensive.
Good software should be constantly updated. These updates may improve program functions, and software stability or close security gaps. They, therefore, require regular installation by users, which takes time. Especially in large companies, installing updates and patches can be a huge effort. Moreover, these updates are generally not infinite. At some point, software publishers may stop developing the software to develop a new product. You then have two options: either you continue to work with an outdated version, or you invest in the new product.
However, one big advantage should not be overlooked: all data stays with you. While cloud solutions require information to be transmitted to a remote server in a data center, on-premise software keeps all data with you (unless the software is combined with cloud hosting). As a user of on-premises solutions, you have full control. You always decide for yourself how to use the software.
On-Premise Software: Advantages And Disadvantages
Advantages
The total cost of ownership: You only pay once for your user licenses. Therefore, an on-premise solution can have a lower total cost of ownership (TCO) than a cloud system.
Total control: Your data platforms, hardware, and software, belong to you. You decide on system configuration, upgrades, and modifications.
Availability: With on-premises systems, you don't need an internet connection or external factors to access your software.
Disadvantages
Large capital expenditure: On-premises systems typically require a large initial purchase. This means that capital expenditure (CapEx) is often required. Additionally, you should include maintenance costs for support and feature upgrades.
Responsibility for maintenance: With an on-premises system, you are responsible for maintaining server hardware and software, data backups, storage, and disaster recovery. This can be a problem for small businesses that have limited budgets and technical resources.
Longer implementation time: On-premises implementations take longer due to the time required to complete installations on servers and each individual pc/laptop.
Why Is Cloud-Hosted Better Than On-Premises Software?
Better than on-premises deployment due to its flexibility, reliability, and security, the cloud takes the hassle out of maintaining and updating systems. Cloud-Hosted allows you to invest your time, money, and resources in achieving your core business strategies. Also, it provides real-time access to systems and data from a variety of devices, regardless of location. Cloud-Hosted also offers a guaranteed 99% uptime. In 2018, the cloud became the number one choice for UK businesses, with adoption rates reaching 88%.
What Is Best For My Business?
There is no right or wrong solution to the dilemma between cloud-hosted and on-premises software. Each customer is different and has different requirements that will influence the choice of deployment strategy. However, there are a host of questions you will need to ask yourself before finalizing your decision between cloud software and on-premises software:
CapEx vs. OpEx: Can you afford the initial investment required in an on-premises solution?
Backup and disaster recovery: Do you have the tools you need to ensure high-level security?
The Upgrade Cycle: How important is it to you to have access to the latest feature and compatibility updates?
Enterprise Asset Management
Asset Lifecycle Management – 4 Key Stages & Best Practices
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.
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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.
Enterprise Asset Management
How And Why Should You Track Fixed Assets?
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.
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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.
Enterprise Asset Management
The Main Role of Technology in Asset Management
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.
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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.
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