Does this sound familiar?
What Is Asset Management Planning?
By having a Long-Term Asset Management Plan, corporations can understand the life cycle of various assets that are being used to achieve long-term goals. With this visual plan in mind, they can create investment strategies to project for necessary replacements. Through linking the replacement value to the life value of a piece of equipment it becomes easy to set up future investments.
Now, funds are gradually being allocated to focus on asset management and renewal with the goal of optimizing the life span of existing assets and planning for their replacement when required in the future. Doing this allows businesses to maximize their use of the assets and to have the necessary finances in place for when they are required. There are several industries where a long lead time is required to arrange for replacements. By having a plan in place, companies are prepared for timely renewals and avoid premature breakdowns.
Planning for ARO Vs. Non ARO Assets
VIZIO’s Asset Management Planning Summary
By understanding the necessary parameters, the solution can calculate to applicable risk level tied to the relevant asset which in turn helps to pinpoint the assets with the greatest returns if replaced.