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CAPEX – Asset Management Planning

Does this sound familiar?

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.

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

At VIZIO, 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.
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Asset Management

(ARO)

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Asset Management

(Non - ARO)

VIZIO’s Asset Management Planning Summary

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:
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Physical Condition

Consequences

Likelihood

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Impact

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.

High-level Planning Process Flow

The following illustrates the high-level steps and activities involved in VIZIO’s planning process.

Integration

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.

Highlights of VIZIO’s Capital Expense Planning Processes

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If you have any questions, we would love to help!

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