Policy and Strategy
Assets in industrial environments generate or manufacture products for (internal and / or external) customers. The asset activity cycle describes the lifecycle of an asset, from concept to disposal.
Assets must be designed, operated, maintained and managed to satisfy the requirements of the supply chain (customer perspective: e.g. quantity, flexibility, quality), while meeting the requirements of safety and environmental regulation.
The entire range, from individual assets to a company’s complete asset portfolio, is part of the asset management scope.
Asset management covers all asset lifecycle related activities: asset creation, care, utilisation, improvement and disposal; and it incorporates decision-making processes and actions at the strategic (policy and strategy), tactical (concept and plans) and operational (service providing) levels.
The ultimate goal of a (private) company is creating value and generating profit in a short and long-term perspective. The way in which asset management contributes to the overall business objectives must be made explicit to the shareholders and to other stakeholders.
There is a strong link between asset management goals and financial indicators, such as EVA (economic value added) and / or ROCE (return on capital employed). The assets’ output and the total cost of ownership directly influence a company’s turnover, profit and capital employed.