The Good Data: How efficient asset management can minimize life cycle costs Life Cycle Costing is a crucial asset tracking tool that evaluates all possible costs incurred in the life of an asset. It includes all ownership and maintenance costs including concept, design, development, installation, support and disposal cost. That is why Life Cycle Costing is also referred to as Total Cost of ownership. Though, some of these costs can be projected, and estimated with some accuracy such as energy cost but some costs are subjective. Maintenance and repair costs are the biggest variables in LCC.
Variable costs are a hugely dependent on the type of asset, initial investment and the efficiency of asset management software or system. With the help of an efficient asset management platform, a company can track its time and money being spent on maintenance and repair. This provides a robust data for life cycle costing and prepares a schedule for proactive regular maintenance. In the absence of such a system, there is no data to review and hence it becomes difficult to be prepared for hardware or software failures. Thereby, increasing overall cost of the asset. An additional benefit of an efficient asset management tracking system is that a well-maintained equipment or software becomes easier to dispose of at the end of its life-cycle. Since, all expenditures are being recorded regularly, this data also identifies problem equipment