Fixed assets are required by some asset-intensive organisations, such as energy, transportation, and infrastructure firms. Capital expenditure is an essential risk for these organisations because it is a vital core requirement. However, because money is locked up in long-term capital equipment, these equipment-dependent businesses are constrained to monetise and spend on operational operations like sales and marketing, staff training, and research and development.
Meeting these difficulties may be very complex and time-consuming without the correct technologies, depleting resources and impeding corporate agility. With effective asset management, you can uncover new revenue growth, operational agility, and better innovation by reinventing how you service your assets. You will need to address three critical shortcomings to grow.
The Industrial Shortcomings That Are Commonly Faced by Asset-oriented Organisations
Shortcoming #1: Recognising That A New Business Model Is Required
If you cannot change the fixed asset, modify the business model around the fixed asset. Asset managers increasingly change how they want to use and pay for these assets. While fixed-term lease contracts offer fixed costs and level depreciation over 10-year periods, asset managers are progressively altering how they wish to use and pay for these assets. As a result, demands for usage and payment flexibility are increasing, putting financial risk back on the user’s shoulders.
Shortcoming #2: Over Or Under Maintenance
There might be a problem with both over and under maintenance during the operational phase of the asset life cycle. The fundamental problem with over-maintenance is that it causes two issues that make the asset management system useless. To begin with, there is usually a significant expense associated with performing non-value-added maintenance. Cost can be utilised as a loose guideline in this case because there are well-documented industry benchmarks for maintenance spending to follow.
The problem of under-maintenance and how it obstructs good asset management is more apparent. Maintenance is sometimes considered a business expense that may be decreased like any other to increase profitability. Maintenance departments continuously attempt to balance cost and asset performance criteria like dependability and uptime with these challenges. On the other hand, cost-cutting frequently wins out in the shape of postponed preventative maintenance and maintenance professionals that lack the essential expertise and tools to execute accurate jobs.
Concerning both over and under maintenance, strategies to identify the optimum maintenance requirements of critical and suboptimal assets, modern technologies will always facilitate asset-centric organisations. Technologies such as IoT, AI, predictive and prescriptive analytics, simulation and visualisation tools like digital twin, GIS maps and real-time models and curves on smart dashboards can be utilised by asset specialists and can be executed for asset maintenance processes of asset-centric organisations.
Shortcoming #3: Not Knowing What You Have
This is called the FDH (Fat, Dumb, and Happy) approach to asset management in the manufacturing business. While it may seem self-evident, many companies either do not recognise the need to know their assets with a high level of certainty or do not want to take the effort to do so. This must be the first big step toward ensuring the effectiveness of one’s asset management program. If a corporation is serious about its program, it should set the framework by doing the following:
- Create a list of all the assets owned by the organisation and compare it to what is in the field.
- Create a physical asset hierarchy and customise it.
- Develop the business’s criticality evaluation criteria and apply them to the verified asset base. Individual assets are related to how they affect the organisational strategic strategy in this section.
- Develop and implement a Change Management or Configuration Management procedure to ensure that any future changes to the asset are correctly examined and documented.
New-age Technologies To Tackle Asset-Centric Severe Shortcomings
Artificial Intelligence (AI)
It is, however, still early in the game. AI and machine learning are being used in every sector, but the Asset and Wealth Management industry has a long way to go. One thing is certain: AI will play a big role in asset and wealth management innovation. “It is Artificial Intelligence that can foretell the future.” The area of asset management deals with vast amounts of data. After all, asset managers are responsible for maintaining and evaluating data relating to their assets, such as industrial products, investment portfolios, and so on. For companies, that is a lot of data to keep track of.
Geographic Information System
The digital twin in asset management puts multiple assets and their related data together in one place, allowing for enhanced operational efficiency. Asset information that is organised and clearly presented allows for easy data access and ensures that data is always available to all key stakeholders. A digital twin may be used to imitate processes and compare old data to new data in order to anticipate future changes. When the solution is cloud-based and user-friendly, there is no need for extra software installations or specialised knowledge to allow the digital twin to act as a maintenance system platform and maximise asset maintenance.
When it comes to real-world scenarios, organisations struggle with how to build a digital twin that behaves with actual and predicted conditions. Especially in the extreme conditions, Water asset managers are challenged with Monitoring hydrographs of floods such as Peak Rainfall, Peak Discharge, Lag Time, Rising Limb, Falling Limb, Base Flow, and Sea Tidal Level is difficult due to the complexity of parametric analysis in severe rainfall scenarios across a vast area. Due to the tiny and dense population accommodating a big region, it is difficult to estimate or simulate the downstream (city, state or whole country) effects. Also, there are Limitations in establishing a digital twin system for flood modelling and simulating real-world dam conditions in order to gain actionable insights. In addition, for the entire water supply, separate systems are used. Dam operators, engineers, treatment plant operators, maintenance engineers, environmental scientists, and the leadership team must all work together to achieve the same goal.
Therefore, the right digital twin should be able to help asset managers overcome these shortfalls.
Why Is Tigernix is The Right Partner For You?
Tigernix is a renowned asset solution enabler for effectively building user-defined asset solutions using cutting-edge technologies. Tigernix Smart Asset Solutions provides industrial asset users with various technological innovations to fulfil dynamic demands, organisation-specific operational excellence, and asset OEE requirements, all from a single console. Tigernix’s expertise in Digital Twin, Simulation, AI and ML Models, IIoT, Predictive Analytics, and other cutting-edge technologies ensures that our asset technology suites remain unrivalled and our competition at bay. Connect with us to know more solutions for your asset-centric organisations.