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Asset Management using a Hierarchical Linked Component Structure Underperforming assets can have far-reaching consequences on the overall health of an organization, causing asset downtime and affecting productivity. Moreover, inadequate or improper asset management can expose organizations to compliance violations. Therefore asset management has now become an indispensable function, and enterprises are attempting to improve their asset monitoring and managing capabilities with strategic solutions. While the formal definition of asset management remains the same across industries, its scope varies widely and is determined by two important parameters: The scope of assets to which the asset management function would apply The policies, procedures, processes and strategies that govern asset management in an organization And, for those organizations which are physical plant intensive, establishing a structure of how this infrastructure is defined within their enterprise is not a trivial task, yet one that is critical to establishing a solid asset management foundation. A hierarchal model for defining organizational entities can prove immensely helpful, since every business or operation can be represented by a structure that defines relationships between different areas, roles, or groups. Extending this hierarchy to define physical assets and infrastructure forms the foundation for asset management, a flexible model that also supports a linked component structure is an ideal strategy. A hierarchal management model enables organizations to track all assets and their associated locations using a ‘family tree’ which helps in forming relationships between physical locations, departments, production lines and the machinery or equipment itself. This in turn facilitates data collection and subsequent reporting and analysis of incidents such as maintenance, movement, usage, and associated costs. Therefore, developing an accurate asset hierarchy is the foremost step in this strategic framework and facilitates organizing data for utilization. Asset hierarchies are usually developed based on functional block diagrams, instrument loop schedules or electrical diagrams. This also helps determine the operational structure of an enterprise. Asset categorization also plays a key role in this strategy. This refers to the classification of assets based on the different classes and types of equipment or machinery into categories and sub-categories. Categorization not only helps in developing the asset hierarchy, but also helps maintain a complete account of assets, thereby facilitating tracking and reporting. Using a linked component structure for asset management adds another level of granularity to this strategy. This refers to giving visibility to those components or devices linked to assets that are critical to the operation or are key points of potential failure. This framework gives better control over assets by offering insights required for effective preventive maintenance management. These strategies combined with an efficient enterprise asset management software solution can offer a robust platform for an efficient maintenance management system. Since high maintenance costs, inventory costs and asset downtime may impact business operations, it is essential that all enterprises are equipped with suitable technology to quickly respond and take corrective action. And therefore, a CMMS (Computerized Maintenance Management Software) solution that is scalable, can be upgraded or modified and is adaptable to changing demands is a prerequisite for every business.

Asset Management using a Hierarchical Linked Component Structure