The Role of Maintenance in Asset Management – A Terry Wireman Blog

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The Role of Maintenance in Asset Management – A Terry Wireman Blog
role of maintenance in asset managementIf your organization calculates return on fixed assets, you should be aware of the impact maintenance has on that indicator.

The investment a company makes in its assets often is measured against the profits the company generates. This measure is called return on fixed assets (ROFA). This indicator is often used in strategic planning when a company picks what facility to occupy or the plant in which to produce a product.

Asset management focuses on achieving the lowest total life-cycle cost to produce a product or provide a service. The goal is to have a higher ROFA than your competitor, so as to be the low-cost producer of a product or service. A company in this position attracts customers and ensures greater market share. Also, a higher ROFA will attract investors to a company, ensuring a sound financial base on which to build further business.
role of maintenance in asset managementIf your organization calculates return on fixed assets, you should be aware of the impact maintenance has on that indicator.

The investment a company makes in its assets often is measured against the profits the company generates. This measure is called return on fixed assets (ROFA). This indicator is often used in strategic planning when a company picks what facility to occupy or the plant in which to produce a product.

Asset management focuses on achieving the lowest total life-cycle cost to produce a product or provide a service. The goal is to have a higher ROFA than your competitor, so as to be the low-cost producer of a product or service. A company in this position attracts customers and ensures greater market share. Also, a higher ROFA will attract investors to a company, ensuring a sound financial base on which to build further business.
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