Asset management is one of the most significant key players in case of any organization. The concepts of an asset are not something that needs a further introduction. Almost every individual who has some basic senses is aware of what role assets play in the case of any organization. However, it is also important to maintain the assets in a proper manner to maximize their utilities. All of these factors will be discussed in the below sections.
Asset management can be considered as a procedure through which an organization or an individual can maintain or organize their assets in an effective and efficient manner. In general, asset management allows an organization or an individual in order to monitor all the monetary system related aspects along with maintaining those properly. This assignment includes a brief about the asset management by taking a food manufacturer company ABC Pvt Ltd and the necessary aspect related to this asset management is also described in this assignment effectively.
Background information about the asset network
The asset network as the name suggests identifies the whole set or rather the combination of assets that are being possessed by the different organizations operating in a particular sector. The asset network mainly helps in establishing an effective network among the assets that are being possessed by the organization. In the case of the chosen food manufacturing organization, ABC Pvt. limited the assets are quite many in number. The typology of the assets also varies from each other. However, the most important and significant thing of the assets is that the valuation of these increases greatly with the passing time. The proper network of assets that are possessed by the organization include the food processing machines in the different types, the manufacturing plants (2 in number) , the trucks, and the vehicles that are needed for transporting the food as well as the raw materials from one place to another. The asset network also involves the series of cutting machines as well as the packing, labeling and canning machines that are used by the organization. As put forward by Garleanu and Pederson (2018), the asset network thus possessed by the organization is also effective enough in providing the required benefits.
The asset life cycle
Need distinguishing proof: Here, an appraisal should be made of what kinds of assets are accessible and what they will convey by method for returns on the speculation made in them. What sort of asset is required, and should it be purchased, rented or leased are exceedingly vital contemplations at this stage.
Arranging: At this stage a chose asset is precisely assessed as far as its arranged usage, implying that the obtaining group needs to design precisely how the asset is to be utilized and what objectives for use should be set (Campbell et al., 2016).
Outline: Any alteration to the standard plan of a given asset are resolved at this stage by the gaining group, which are frequently considerably more financially savvy here than endeavouring to make change after the buy and charging stage.
Acquirement or Acquisition: At this stage, the asset is either bought or rented/leased and introduced/constructed/conveyed to its expected area (Garleanu and Pedersen, 2015). This is additionally the time when any cost transactions can occur, including any assurance, warrantee or other legally binding terms that might be essential.
Authorizing or Implementation: Some assets might be finished and prepared for utilize when conveyed/amassed however numerous will require establishment or charging (particularly in the event that they are substantial or complex). In this stage, the association ensures the asset is fit-for-reason and that any establishment does not harm the asset, introduce it inaccurately, or guarantees that it is not feeling the loss of some of its guaranteed highlights.
Activity and Maintenance: At this stage, the asset is utilized or worked and after that kept up as essential (and expenses are gathered to guarantee the full life cycle costs are by and large legitimately caught). Contingent upon the asset, this stage may go from months to years or even decades and the business hence needs an extremely arranged utilize and support approach.
Change or redesign: During their life a few assets might be able to be updated or adjusted to make them speedier, less expensive, better quality creating and so on (PC gear with new hard drives are a case for a little asset here). This is frequently less expensive than supplanting the asset totally, albeit inevitably another adaptation of an asset will end up being the better general alternative (Love et al., 2014).
Mothballing and Disposal: At the finish of their valuable life or when the cost of working or keeping up them turns out to be too high, assets should be playfully resigned and appropriately discarded. This ought to be done in a composed way and covering with another asset being gained.
In case of ABC Pvt Ltd, the method to control associates is an action of talking with partners as well as commerce with their requirements in addition to worries to meet the companion wants, cultivate for the problems, relaxing strife conditions, in addition to accomplish the project aims. The process is in case of the most crucial portion in the view of farming the correspondences plus taking amendment solicitations to collect condemnation and create informs to spread certification.
A influential partner management procedure is the certification that auspicious and pertinent criticism is given and that the controlling of the alteration exertion can be made through the spouse management methodology (Love et al., 2014). The undertaking chief assumes liability for overseeing partner desires, settling clashes and distinguishing and settling any issues emerging amid the task course. When all is said in done, the way toward overseeing partners is included the accompanying key components:
- Managing partner desires: when desires of the partners are effectively dealt with, the task gets a higher probability for progress. The undertaking administrator ought to ceaselessly arrange and influence wants of the partners to accomplish strict similarity of venture objectives and desires and keep up the task administration exertion.
- Managing partner discernment: it is critical to the undertaking achievement to guarantee, “the partners are locked in with the undertaking on a booked premise and they know about status of the task work” (Ellul et al., 2017). Irregular public partner discernment develops the chance, which the associates offer the energetic help level as well as the responsibility can be actualized of course.
- Solving issues as well as settling clashes: In case of ABC Pvt Ltd, the undertaking manager in associated with the peacemaker must identify the partners concerns and survey dangers to anticipate problems and clatters. The venture director might create preparations by referring to modification hassles.
The outcomes you want to achieve at the end of the five and ten year periods
In each and every financial year the existing plans are modified or rather they are discussed to make sure that these plans are able to provide the required benefits for which these are designed. The five years as well as the ten years plan are proposed by the ABC Pvt. Ltd. Based on the current stature of the organization and the goals that can be achieved within the next estimated time. It was decided in the last meeting that was conducted by the board members of the organization that the immediate objective of the organization that is to be achieved in the next 5 years plan is creating a good brand image of the organization (Gergely and Rozsa, 2018). In case of ABC Pvt Ltd, it has been estimated that in spite of being in the sector for quite an appreciable period of time the organization has failed to create a long lasting impression in the mind of the individuals. It has been decided that within the next 5 years the organization will use a combination of both the above the line as well as below the line techniques for reaching out to the customers. They will also use the different social media platforms in this regard (Peter, 2018).
However as part of the 10 years plan it has been decided that attempts will be taken on the part of the organization to enhance the overall market share of the organization by approximately 20% and to witness an overall profit of 70% approximately. But as described in the earlier sections the success of the 10 Years plan completely depends on the success of the 5 years plan that has been proposed by the organization
Performance and serviceability requirements and indicators
It is quite an obvious fact that proper and effective performance indicators can be useful in this regard. The different performance indicators that are useful in this regard should be selected accordingly and wisely to maximize the effectiveness of the advantages that are to be obtained from them. The AIDA is a significant tool that may find its effectiveness in this regard. The different parameters that are to be considered by the application of the tool are the Attention, desire, interest and action. Before any of the advertisements have been promoted and the organization starts the promotion it should be analyzed that whether they can attract the attention or not. There are a number of advertisements that pops up on the social media. But ABC Pvt. Ltd. Should designs their advertisements in such a manner that it catches the attention of the viewers quickly (Wallace, 2018). Lucrative colors as well as lucrative offers can prove to be useful in this regard. It is expected that this will greatly attract the interest of the viewers and they may develop the desire to have a more in depth idea about the organization and of course its product line. If all the above steps goes pretty well then it may inspire the viewers and hence the potential customers to be attracted towards the product and hence rise their interest to buy the products. The above model will be useful for the 5 years plan thus devised by the organization (Setiawan and Oude Lansink, 2018).
However, in case of the 10 years plan the organization ABC Pvt. Ltd have to rely solely on the market share reports and the finance reports that are produced by the organization at the end of each and every financial year.
Development of a reliable asset inventory
Asset administration designs frame the foundation of a compelling asset administration framework. The as of late discharged ISO 55000 arrangement of norms for asset administration obviously characterizes the significance of asset administration designs: they give the guide to accomplishing an incentive from physical assets by enhancing cost, hazard and execution over the asset lifecycle (Weidner et al., 2017). Asset administration designs (AMPs) characterize the execution exercises important to understand an association’s asset administration targets, which decipher the key expectation of the organization. The association and interdependencies of asset administration approach, system, destinations, and wanting to accomplish those goals obviously exhibits how vital hierarchical arrangement is to the production of AMPs.
Consistence versus Performance
Numerous associations are choosing to enhance how they oversee assets keeping in mind the end goal to accomplish execution picks up while putting off the consistence choice. Most organizations as of now keep up other ISO confirmations and completely perceive the level of responsibility important to look for affirmation. Shy of a convincing business case for putting resources into the consistence travel they are substance to procure the execution picks up without essentially tending to all the administration frameworks angles. This choice may affect the general way to deal with making AMPs and ought to be viewed as at an early stage.
Asset Definition and Selection
Characterizing assets that would then be able to be sifted through a determination procedure may not be as direct as it appears. From an extended perspective of asset administration, there are distinctive levels at which an asset can be overseen (Haynes et al., 2017). At a foundational level assets are seen separately. This is the least complex and most effortlessly comprehended approach. Assets can likewise be characterized and seen as far as frameworks. Cases of asset frameworks can incorporate systems, generation lines or offices frameworks.
From an unadulterated procedure point of view, asset definition and choice is in all likelihood a result of the key asset administration design and the foundation of asset administration targets. The fact of the matter is to keep up the linkage for accomplishing hierarchical targets inside the AMPs.
Deterioration and condition monitoring
The conditions of the machines as well as the promotional strategies that are devised by the organization should be monitored in a daily basis so as to determine the efficiencies and the efficacies of these. The customer feedback and the reactions of the customers against the advertisements that have been designed by ABC Pvt. Ltd will be monitored to determine the effectiveness of these in all ways possible. In any case if any negative results are obtained then the existing policies should be revised and modified to enhance the overall advantages that are estimated to be obtained from them. The monitoring and the evaluation process should be maintained and continued throughout the life span of the organization for maximizing all the advantages that are obtained from them (Setiawan and Oude Lansink, 2018).
Optimum performance from the asset network
The responsibilities of the organization does not end abruptly after just designing the asset network it is also important to maintain them in a proper manner so as to experience optimum performances from them. It has been noticed that in case of the ABC Pvt. Ltd the food manufacturing machines one of the principal assets are maintained in a proper and effective manner. These are serviced in a proper and effective manner at the end of every 6 years to maximize their utilities in the organization. However, similar cases are not witnessed in case of the trucks and the other transportation vehicles that are possessed by the organization. There are a number of cases where the vehicles and the trucks that are used by ABC have suffered from a breakdown and have failed to reach to the desired destinations within the estimated time. However in the current times proper steps are taken on the part of the organization to keep the trucks and maintain them in a proper order. Apart from these the manufacturing units are cleaned on a daily basis and it is assured that the hygiene of these places are maintained in an effective manner (Setiawan and Oude Lansink, 2018).
Current and future technologies
As a food manufacturer company, ABC Pvt ltd tries to adopt all the modern technologies; those are available into the marketplace in order to make their product more effective and efficient. For example, in the present day, as the company mainly keeps its entire focus in order to manufacture dry foods and therefore it is necessary for the company to maintain their refrigerators and preservation system more effective and in working condition.
The focus of the company is to provide more delicious and testy foods (e.g. dry and liquid both), which can be used and will last at least for 3-4 weeks. Therefore, the company tries to develop their storage system
Development of a corporate asset management plan
Asset Management Plan Overview
The review segment recognizes the assets inside the arrangement, how execution of the assets interfaces with hierarchical targets, the partners, and availability to different plans or guidelines. A short rundown of secured assets is likewise prescribed.
Levels of Service
In case of ABC Pvt Ltd, a key part of asset administration arranging is to coordinate the level of administration that assets give to client desires. It gives the harmony between the cost to convey and the level required. Particular levels of administration incorporate cost, proficiency, quality, amount, unwavering quality, security and responsiveness (Witte et al., 2015).
The level of administration area may incorporate a depiction of how authoritative objectives and administrative necessities affect benefit levels. Current levels of administration and focused on levels of administration are important to distinguish holes that must be tended to in different areas of the AMP.
Future request gives points of interest of anticipated development and asset usage. This area likewise depicts request drivers, how request changes may affect assets, request possibility arranging, and speculation arranging important to take care of the demand gauge (Mueller, 2015).
Use of appropriate asset management systems
As put forward by Ellul et al.,(2018), the term asset management in the wider sense identifies the different steps that are adopted for assuring that the assets are being maintained in a proper and effective manner. It is important for the organizations to adopt proper and effective asset management techniques. However, it needs to be mentioned in this regard that managing the assets in an effective manner is never an easy nut to crack.
Since technology is the only weapon that helps in solving probably all the problems that are being faced there are also a number of asset management software that find effective application in this regard. The different software that find its applications I n this regard are the Manage Engine, Asset Panda, Go codes, Pulseway, Landesk etc. Reviewing all of the above it can be estimated that the Manage Engine is the most effective tool that may find its application in this regard. The manage engine is applicable and available in a number of language variants and more over it is also an extremely user friendly software that can be utilized effectively by almost all the ,managerial levels that are present in an organization (Setiawan and Oude Lansink, 2018).
The above section have proved to be effective enough in analyzing all the factors that are related in case of the asset management in a particular organization. For understanding the importance of asset management ABC pvt Ltd. Organization from the food manufacturing sector have been chosen. It has been estimated that the different assets that are used and hence possessed by the organization includes a wide range of food processors, trucks as well as the manufacturing units and firms. The project has also pointed out that the assets that are possessed by the organization are also maintained in a proper way and steps are taken by the organization to maximize the utility of the machines that are used by the organization. The different asset management software that can be used by the organization have also been introduced and discussed in the above sections.
From the above discussion, it can be recommended that;The organization (ABC Pvt Ltd) needs to monitor all the organizational activities in an effective manner so that they can manage as well as organize all the assets of the company efficiently.The company also requires to make proper strategies and planning for maintaining and enhancing its assets in such a way that the company can be more profitable and beneficial from the market.
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