How to Create an Asset Management Policy (+Free Template)

A comprehensive asset management strategy can help a company navigate the challenges of maintaining expensive infrastructure and equipment. Whether you’re a seasoned maintenance manager looking to improve your strategy or new to streamlining organizational processes, this guide will provide the tools and information you need to create an effective asset management policy.

It will also highlight the importance of using advanced asset management software, like LLumin’s Computerized Maintenance Management Software (CMMS+), to support your new policy. 

Why You Need an Asset Management Policy

Managing assets without a clear policy covering risk, cost, compliance, and performance objectives can be risky. It’s like going on an expensive journey to acquire assets without a solid plan for acquiring, managing, and retiring those assets.

Here are the top reasons why your company requires an asset management policy:

• Operational Clarity: An asset management policy provides a clear picture of your assets, state, and criticality.
• Cost Savings: It helps reduce unplanned downtime and streamline maintenance schedules, saving your organization money.
• Compliance: With a well-structured policy, you can meet regulatory requirements and hold your team accountable for asset management tasks.
• Improved Decision-Making: Your policy will help you make more informed decisions about investments, replacements, and repairs.

Preparation for Asset Management Policy

Establishing your company’s objectives and goals is the first step in laying the groundwork for an asset management policy. Decide whether you want to reduce downtime, increase asset lifespan, ensure compliance, or accomplish other particular goals. Your objectives will guide you as you develop the policy.

It’s also important to understand that asset management is a team effort involving multiple parties, such as maintenance managers, engineers, and other financial decision-makers. A new policy should be developed, implemented, and maintained with their input and participation.

How to Create an Asset Management Policy

We’ve provided a series of sequential steps, each building on the previous, to help you create an effective asset management policy. By following these steps, you can lay the groundwork for comprehensive asset management practices within your organization.

1. Define Your Assets

Defining your assets is the first step of the process. It’s important to categorize assets based on their type, function, and criticality. For example, you could categorize assets as production machinery, IT equipment, or facilities. Also, assign priority levels to assets based on their criticality to your operations.

2. Risk Assessment

After you’ve created an inventory of your assets, it’s time to assess the risks associated with them, such as equipment failure, safety hazards, or compliance issues. Risk assessment is the process of identifying potential risks and assessing their impact. This is an important step that will enable you to make informed decisions and properly allocate resources.

Consider using a risk assessment methodology, Risk-Based Asset Management (RBAM)  to evaluate risks systematically. This provides a more structured approach to risk assessment.

3. Establish Maintenance Procedures

Effective maintenance procedures are critical for ensuring that assets operate at peak performance and have a longer lifespan. To achieve this, it’s necessary to establish a well-structured schedule for routine maintenance tasks, inspections, and servicing. 

Within your procedures, provide precise, step-by-step instructions, and emphasize the importance of preventive maintenance. Proactive maintenance can identify and resolve issues early, preventing costly problems down the line. 

4. Compliance and Regulations

Compliance with relevant regulations is essential for avoiding penalties and ensuring safe and ethical asset management practices. To accomplish this, start by identifying the specific regulations that pertain to your operations and industry. 

Create a compliance checklist that will allow you to systematically monitor compliance with these regulations. Because regulations change over time, make sure to review industry updates on a regular basis.

5. Document the Policy

Properly documenting your asset management policy is crucial for transparency and accountability. To make the policy easily understood by everyone involved, use plain language and avoid complex jargon. 

Include a clear executive summary highlighting key points and objectives, and define roles and responsibilities within the policy. Ensure that all relevant personnel can easily access the policy, and use version control to track updates and keep it current and relevant.

Monitoring and Continuous Improvement

Your asset management policy is a living document that should be updated on a regular basis. To ensure its relevance and effectiveness, it must be continuously monitored and evaluated.

To keep your asset management practices at their best, consider the following:

• Utilize an Advanced CMMS+: Leverage cutting-edge software like LLumin’s CMMS+ to streamline asset management tasks. Its real-time data analytics and reporting capabilities enable users to identify areas of improvement. 
• Regular Audits and Inspections: Schedule routine audits and inspections to evaluate asset conditions, maintenance procedures, and compliance. 
• Employee Feedback: Encourage your maintenance team to share their opinions on the effectiveness of the policy. Their insights can result in better processes.
• Training: Invest in continuous training and development for your asset management team. Equip them with the latest skills and knowledge needed to support your policy.
• Benchmarking: Compare your asset management practices to industry benchmarks and best practices. 
• Key Performance Indicators: Use data and key performance indicators (KPIs) to guide decision-making. Analyze trends and patterns to address issues proactively.

LLumin’s CMMS+ & Asset Management Policy (Template)

A well-designed asset management policy can empower your organization to navigate challenges, optimize performance, and ensure compliance. With continuous monitoring and improvement, you can ensure many years ahead of sustained success. 

LLumin’s CMMS+ software is a valuable asset in this process, providing tools and insights for continuous improvement. It serves as a centralized hub for asset inventory and maintenance history data. This cloud-based, mobile-ready platform can be accessed from anywhere with an internet connection and provides access to real-time machine-level data.

Don’t let inefficient processes hold you back from experiencing the benefits of effective asset management supported by the right tools and procedures. Join the increasing number of happy maintenance management professionals who are using LLumin today!