Machinery, equipment and other physical assets are the foundation of industrial enterprises. Factories, plants and similar organizations depend on many pieces of equipment to support their day-to-day operations. Because of this heavy reliance on physical assets, unplanned downtime, outages and equipment failure can cause enormous setbacks for these organizations, resulting in decreased productivity and profits. It’s understandable that industrial enterprises strive to protect their assets to prevent equipment breakdowns and sunk costs.
Physical assets are a huge investment of time and money, and maximizing them for all they are worth involves proper equipment lifecycle management. Through strategic management of the equipment lifecycle, plants and similar organizations can optimize their assets for long-lasting performance and improved ROI.
“Equipment lifecycle” describes the overall lifecycle of a physical asset such as a piece of machinery or equipment. An asset can be as small as a power drill or as large as a jet plane. Regardless of size, every physical asset plays a critical role in supporting the overall productivity of an organization. Therefore, enterprises that heavily rely on physical assets for their operations understand just how important it is to optimize these assets for success. Part of this optimization process involves maximizing the equipment lifecycle so companies can reap the benefits of their assets for as long as possible.
The equipment lifecycle consists of four phases: planning, procurement/acquisition, operation/maintenance and disposal. Each equipment lifecycle phase is critical in supporting the longevity and performance of an asset.
Thanks to modern technology, equipment lifecycle management has never been easier to harness. With tools such as enterprise asset management software (EAM software), CMMS maintenance software and other intelligent solutions, organizations can take better control of the enterprise asset management process to maximize equipment performance over time. Here are just a few examples of asset management solutions that help support asset lifecycle management:
For plants, factories and similar enterprises, the performance of their physical assets is directly correlated to profitability. The longer a physical asset can be used, the greater the return on investment. However, utilization only goes so far without optimization, which is where equipment lifecycle management comes into play.
Strategic asset lifecycle management requires analyzing equipment performance and making adjustments accordingly to optimize assets for results. By taking advantage of tools such as EAM software and other asset management solutions, companies can take a proactive, hands-on approach to asset management and gain a better understanding of how to effectively support the equipment lifecycle.
What is equipment lifecycle?
The term “equipment lifecycle” describes the lifespan or longevity of a physical asset, including equipment and machinery. Equipment lifecycle is an important factor in productivity and throughput because the longer a piece of equipment can be used effectively, the better its return on investment. Therefore, companies who rely on physical assets often prioritize maximizing their equipment lifecycle through strategic enterprise asset management.
What are the four phases of the equipment lifecycle?
The four phases of the equipment lifecycle are planning, procurement/acquisition, operation/maintenance, and disposal.
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