Asset lifecycle management can help property owners and facility teams control rising maintenance costs and unplanned downtime while improving operational efficiency. Unlike the reactive maintenance approach, asset lifecycle management tracks the equipment or product from its initial procurement until it’s time for recycling, disposal, or reuse. By monitoring the asset’s operational efficiency and maintenance history, facility teams can determine the true value of the product to make smarter decisions regarding future operational costs and maintenance needs. [1] [2]
At regular intervals, teams collect performance and
energy usage data, which is compiled with replacement parts and repair
frequency via an asset management program. This software centralizes the
collected data to streamline maintenance workflows and create real-time reports
to guide decision-making processes. Asset lifecycle management allows teams to
minimize maintenance and repair costs while maximizing ROI, operational
performance, and sustainability benefits.
Using a system of sensors to collect operational data
does require a flexible and robust data cabling system. However, much of the
built environment relies on a network of cable trays hidden above the ceiling
to run cabling from one point to another. Unfortunately, accessing the cable
trays for changes or upgrades is both expensive and time-consuming. To provide
quick and easy access to accommodate future cable changes or upgrades, many
facility teams and property owners are making the switch to raised access
flooring systems. These systems, like the Gridd® Adaptive Cabling
Distribution® System, can greatly reduce future construction and
maintenance costs for data and power cables and sensors.
Understanding the Asset Lifecycle in Commercial Buildings
Asset lifecycle management can be applied to almost any
company asset. For example, HVAC and production equipment can be tracked from
their original installation, including scheduled maintenance, repairs, and
inevitable replacement. Likewise, IT personnel can use a similar framework to
manage user licenses, software upgrades, hardware, and other digital assets.
According to MaintainX[3] [4]
1, a leader in the
maintenance and operations software industry, facility teams should consider
these six stages of asset lifecycle management for commercial properties.
Planning and
procurement: After
determining the client’s organizational needs, teams should evaluate potential
options based on the product’s total cost of ownership, performance specs, and
reliability ratings. A comprehensive review allows teams to avoid initially
cheaper options that regularly require more maintenance or frequent repairs.
Acquisition and
installation: This
stage involves the initial purchase and installation of the asset. Teams should
always follow the recommended installation process to help reduce future
maintenance and adjustment costs. Teams should also collect the asset
information, including serial numbers, warranty requirements, and maintenance
intervals for future reference. At this stage, teams can establish baseline
maintenance procedures and properly train employees or users to minimize
excessive or premature wear.
Operational use:
Facility
teams should regularly track asset data to monitor performance or maintenance
metrics. Reviewing the collected data can lead to process improvements for
extending the asset’s lifecycle. Teams should also consider training refreshers
to promote consistent operational practices that protect the asset’s integrity
and longevity.
Maintenance and
asset optimization: Facility
teams can utilize real-time monitoring data to identify potential problems or
issues before a failure occurs. This allows teams to move from a reactive to a
proactive maintenance schedule to reduce maintenance and optimization costs.
According to McKinsey 2, maintenance
analytics can reduce future maintenance costs by 18-25%.
Decommissioning
and replacement: Once
an asset reaches the end of its lifecycle or when replacement is more
economical than repairs, the decommissioning process begins. Facility teams can
evaluate the collected data, including maintenance costs and downtime
frequencies, to determine whether to replace or upgrade the asset to take
advantage of new technology. Decommissioning brings the team back to the
planning stage, where lessons learned can be applied to future asset purchases.
Disposal or recycling: Once the lifecycle is complete, it’s time to prepare the asset for one of two options.
- Decommission the product or materials by following any regulatory requirements for recycling or refurbishment.
- Uninstall the asset such as demountable partitions, Variable Air Volume (VAV) heating and cooling units, or raised access flooring system, and package the asset for transport and reuse at another location.
Teams
should consider the reuse requirements as part of the planning and procurement
phase. A preference for easily reusable systems and materials, including steel,
copper, and aluminum, helps promote circular economy goals.[5] [6]
The Role of Sustainability in Lifecycle Planning
With the advent of green building codes and
building certification programs such as LEED, BREEAM (Building Research
Establishment Environmental Assessment Method), and
WELL, sustainable materials are no longer an option for the built environment.
Compared to harvesting natural resources, products made from easily recyclable
materials typically use less energy to produce and transport. This allows
organizations to reduce their carbon footprint and the number of discarded
materials in local landfills.
Metrics That Matter
While each asset
lifecycle will involve a variety of metrics to evaluate, here are some of the
most common metrics tracked and assessed by facility teams.
● Total Cost of Ownership (TCO)
● Net Present Value (NPV) of
upgrades
● Asset Utilization Rate
● Mean Time To Repair (MTTR)
● Mean Time Between Failures
(MTBF)
● Return On Assets (ROA)
● Compliance Rate
● Overall Equipment
Effectiveness (OEE)
● Inventory Turnover Ratio (ITR)
● Total Unplanned Downtime (TUD)
● Planned Maintenance Percentage
(PMP)
● Total Cost of Maintenance
(TCM)
Most
organizations and facility teams implement a robust set of Key Performance
Indicators (KPIs) to create a holistic overview of their critical assets. As
teams review the collected data, bottlenecks and inefficiencies can be
identified and corrected to maximize stakeholders' Return On Investment (ROI).
Lifecycle management isn’t just about maintenance—it's a strategic lever to
maximize asset longevity, performance, and sustainability.
As facility teams and property owners align their capital and operational
planning around a lifecycle mindset, changing technology needs must also be
evaluated and included in the planning phase. Data and power flexibility across
a facility or campus is critical for lifecycle management success. Raised
access flooring like the Gridd Adaptive Cabling Distribution System relocates data and power cables from
above the ceiling to a 3” airspace above the existing floor.
As
cabling changes become necessary, the cabling can be quickly accessed by
removing the modular floor finish to gain immediate access. Gridd is
manufactured from 100% U.S. Steel for superior strength and durability and
meets green building codes and LEED standards for sustainability. Contact a
Gridd advisor to learn how Gridd can improve asset lifecycle management.[7] [8]
Resources:
- https://www.getmaintainx.com/learning-center/what-is-asset-lifecycle-management
- https://www.mckinsey.com/capabilities/operations/our-insights/digitally-enabled-reliability-beyond-predictive-maintenance
