Asset management and maintenance are crucial for SMEs (Small and Medium-sized Enterprises) as they rely heavily on their physical assets to generate revenue and compete with larger companies. It can also assist SMEs in lowering costs, boosting productivity, and strengthening their competitive position.
Any business depends heavily on its physical assets, such as machinery, buildings, vehicles, and equipment, and good management and maintenance can ensure their longevity and peak performance.
The systematic and strategic planning, procurement, deployment, operation, maintenance, upgrade, and disposal of assets are all included in asset management. It covers every facet of asset life cycle management and seeks to maximize asset performance while cutting costs and reducing risks. In order to facilitate informed decision-making and continual improvement, effective asset management necessitates the use of current technologies and techniques, such as asset tracking software, predictive maintenance, and data analytics.
Roodposhti et al.’s study from 2021 looked at the connection between asset management and company performance in Iranian SMEs. According to the survey, good asset management strategies helped SMEs perform better by boosting their profitability, productivity, and customer’s satisfaction.
On the other hand, asset maintenance focuses on making sure that assets are working effectively, reliably, and safely. Routine inspections, preventive maintenance, corrective maintenance, and predictive maintenance are just a few of the several tasks involved. It is the goal of asset maintenance to reduce downtime, lower repair costs, increase asset longevity, and enhance safety and environmental performance.
Organizations should create a thorough asset management and maintenance plan that is in line with their business goals and takes into consideration their particular asset portfolio in order to manage and maintain assets efficiently. The plan should specify the processes, procedures, roles, and duties for asset management and maintenance as well as the key performance indicators and metrics for gauging success.
Read – Why is Risk Management a great priority for SMEs?
The asset management and maintenance plan should also take into account the latest industry best practices, standards, and regulations, as well as the emerging trends and technologies in the field. For instance, the use of digital twins, machine learning, and artificial intelligence can help organizations monitor asset performance in real-time, predict potential failures, and optimize maintenance schedules.
To ensure the success of their asset management and maintenance programs, organizations should invest in the training and development of their staff, as well as the adoption of a continuous improvement culture. They should also regularly review and update their asset management and maintenance plan to ensure its relevance and effectiveness.
Moreover, asset maintenance is also essential for SMEs as it can help prevent unexpected breakdowns and downtime, which can be costly for small businesses. A study by Sartori et al. (2019) showed that preventive maintenance practices significantly reduced downtime and repair costs in Italian SMEs.
A thorough approach that includes the following elements can help SMEs (Small and Medium- sized Enterprises) manage and maintain their assets effectively:
- Conduct an inventory of all of your physical assets, including your buildings, cars, machinery, and equipment. This will assist them in locating and classifying their assets as well as estimating their value, age, and state.
- Asset prioritization: SMEs should order their assets according to their importance to business operations, age, and condition, using the inventory as a basis. This will enable SMEs to concentrate their maintenance efforts on the most important assets and prepare for their upgrade or replacement.
- SMEs should create a maintenance plan that details the upkeep procedures, timetables, and materials required to keep their assets in good shape. Routine inspections, preventive
maintenance, corrective maintenance, and predictive maintenance should all be part of the maintenance plan.
- Data gathering and analysis: Small and medium-sized businesses (SMEs) should gather and examine data on asset performance, including downtime, energy use, and maintenance costs. This information can be utilized to spot patterns, anticipate prospective problems, and improve maintenance plans.
- Asset tracking and monitoring: SMEs should put in place a system that enables them to monitor the location, health, and performance of their assets in real-time. By doing this, SMEs will be able to promptly recognize and address asset problems and maximize asset utilization.
- Staff training and development: SMEs should spend money on their employees’ education and training, especially in asset management and upkeep. This will make it possible for SMEs to develop a workforce that is aware and skilled and can efficiently manage and maintain their assets.
- Continuous improvement: To maintain the efficacy and applicability of their asset management and maintenance strategy, SMEs should frequently evaluate and update it. They should also develop a culture of continual improvement that promotes creativity and the use of fresh tools and procedures.
These actions will enable SMEs to efficiently manage and maintain their assets, cut expenses, and boost their market competitiveness. The efficiency and efficacy of SMEs’ asset management and maintenance programs can be further increased by using contemporary asset management and maintenance technologies and techniques, such as asset tracking software and predictive maintenance.
In order for SMEs to succeed in business and maintain a competitive edge, efficient asset management and maintenance are essential. These procedures can assist SMEs in lowering expenses, boosting production, and enhancing their general performance. SMEs may maximize asset performance and improve their competitive position in the market by implementing current asset management and maintenance technologies and practices.
References
Roodposhti, F. R., Zarafat, S., & Ghazi, M. A. (2021). Asset management and business performance in Iranian small and medium-sized enterprises. International Journal of Productivity and Performance Management, 70(2), 318-337.
Sartori, R., Cavazzuti, M., Corti, D., & Zanetti, M. C. (2019). Preventive maintenance practices in small and medium-sized enterprises. Journal of Quality in Maintenance Engineering, 25(1), 19-39.
This content was facilitated by CeFEnI/COSME and prepared by the University of Sri Jayawardenapura, Kotte
