The Importance of Managing the Entire Lifecycle of Your Assets

Aug 17, 2021

Mindi Mitchell

Mindi Mitchell

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We all know that a key purpose of an enterprise asset management system is to extend the lives of your assets through proper maintenance, but how does your EAM/CMMS system help when your assets are nearing the end of their useful life? Most maintenance management systems specialize in the operation and maintenance phase of the asset lifecycle only. A truly robust EAM/CMMS helps owners and managers manage all 4 stages of an asset’s lifecycle; planning, purchase & acquisition, operation & maintenance, and renew or dispose.

Planning
Determine the current state of the equipment and how it is performing. Establish a budget for capital replacement based on expected useful life, condition, and performance.   

Purchase and Acquisition
Help your company specify the right equipment, determine potential suppliers, and negotiate the best possible price for purchase and installation.   

Operation and Maintenance
The longest stage of the equipment. Ensure equipment is properly maintained and operating at a high level of performance.   

Renew or Dispose
All equipment will eventually wear out, become obsolete, or degrade to a point of low performance. Determine if equipment should be renewed or, if the cost to repair exceeds the cost to replace, dispose of the asset.   

Transcendent is unique in that it can track assets from cradle to grave. It not only has powerful capabilities to strengthen operational and maintenance practices, Transcendent also offers a fully integrated capital expenditures planning module which provides owners and managers with the tools and the data they need to plan, budget, forecast, approve, and implement capital expenditures faster and more accurately than ever. Equipment condition assessments can be built into annual PMs and performed by the technicians who know the most about that equipment. Alternatively, condition assessments can be achieved by creating a separate annual CAPEX inspection performed by a supervisor or a manager. In either case, high quality short-term and long-term capital budgets can then be prepared using this data, all from within the same system.

If you are the owner or manager of a portfolio of hotels, you probably know how hard it is to get similar or comparable data in the same format from multiple properties. This may be most evident during capital planning and budget preparation. If all properties are using Transcendent, life becomes easier as you are able view and compare the data in the same format from different properties. Being able to compare the capital needs of multiple properties enables an above-property manager or owner to ask educated questions about the age, condition, and cost of equipment up for replacement.

Furthermore, Transcendent’s EAM/CMMS software enables the auto-generation of each property’s 10-year budget forecast, saving its users a ton of time and frustration. By streamlining the capital planning process from the way projects and budgets are created to they way they’re approved and reported on, Transcendent allows users to manage the short/long term capital process, work in the real-time needs of the properties, and dramatically improve a process that – for many hotel management companies and owners – is extremely cumbersome.

Another advantage of consistent and consolidated capital planning and budget reporting across the whole portfolio is that it provides the insights needed to create buying power. If, for instance, two or more of properties in the portfolio need parking lots re-sealed or replaced, the owner or management company could package the work from multiple hotels under one request for proposal (RFP) and have multiple contractors bid for the business. This is significantly more efficient than bidding the projects separately and can lead to a considerable savings. Transcendent reporting enables you to identify and take advantage of these opportunities. Furthermore, with Transcendent, you can compare the cost and reliability of manufacturers and vendors across all of your assets and properties, giving you the insights you need to make smarter capital investments.

Transcendent not only helps maintenance technicians and property managers protect their assets through good preventive maintenance and capital planning, but it also helps add value to the owner of the property as well. In the event the owner chooses to sell the property, any knowledgeable buyer will do their due diligence, having experts verify the condition of the building and the major assets. If they have been well maintained, and equipment and building components have been replaced on schedule, the value of the property will be greater than if they were not. Furthermore, the information and documentation existing in Transcendent is extremely helpful in demonstrating the value of the property. A potential buyer, knowing that a property has been well maintained and that all major equipment and building components are accounted for in future capital plans, would have greater confidence in the purchase and less fear of the risks involved.

Schedule a personal consultation with one of our experts today.

Mindi Mitchell

Mindi Mitchell is the Content Marketing Manager for Transcendent® Solutions, LLC. She helps Transcendent grow by building brand awareness through content and product marketing efforts. She's focused on developing a deep understanding of our customers, product, and building a data-informed performance marketing system.

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