The Role of Maintenance in Asset Management
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, 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. It is the responsibility of all departments or functions within a company to measure and control their costs, since they ultimately will impact the ROFA calculation. It is only when all departments or functions within a company work together that the maximum ROFA is achieved. However, it is beyond the scope of this article to deal with all those areas in detail. So, the maintenance function is the focus here.