Struggling to manage your CAPEX? Are you facing unforeseen expenses? Are people telling you that ‘this is going to last for a very long time’? These are only a few reasons why it’s become essential for businesses to have a Long – Term Asset Management Plan in place.
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.
At VIZIO Consulting, we also understand that Asset Retirement Obligation (ARO), is also an important component of Asset Management Planning. For this reason, our Asset Management Planning is divided into ARO Qualified Assets & Non – ARO Qualified Assets.
(ARO)
(Non - ARO)
Much time has been put into thinking about the practical aspects behind why asset management is required, and the consequences of delaying asset replacement.
Using VIZIO’s planning solution, we can help you plan several parameters which makes the entire process straightforward, logical, and quantifiable. Our Asset Management Planning Life Cycle contains the following components:
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.
The following illustrates the high-level steps and activities involved in VIZIO’s planning process.
VIZIO’s Asset Management Obligation planning template is fully integrated within our Global CAPEX Planning as well as our OPEX Planning template if the funding is coming from OPEX.
Each application comes with two planning roles:
