{"id":1114,"date":"2023-05-22T13:44:33","date_gmt":"2023-05-22T17:44:33","guid":{"rendered":"https:\/\/assetworks2stg.wpengine.com\/eam\/?p=1114"},"modified":"2024-12-13T11:19:29","modified_gmt":"2024-12-13T16:19:29","slug":"eam-5-steps-building-asset-management-plan","status":"publish","type":"post","link":"https:\/\/www.assetworks.com\/eam\/blog\/eam-5-steps-building-asset-management-plan\/","title":{"rendered":"5 Steps to Building an Effective Asset Management Plan and Asset Planning"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1114\" class=\"elementor elementor-1114\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e9cd056 e-flex e-con-boxed e-con e-parent\" data-id=\"e9cd056\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ea2866e elementor-widget elementor-widget-text-editor\" data-id=\"ea2866e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"fusion-text fusion-text-1 fusion-text-no-margin\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><div class=\"fusion-text fusion-text-8\"><div class=\"fusion-text fusion-text-2\"><p>An <a href=\"https:\/\/www.assetworks.com\/eam\/asset-management-software\/\">asset management<\/a> plan serves as the cornerstone for an effective asset management system. These plans provide a road map for organizations to understand their objectives and long-term asset management strategy.<\/p><p>In this blog, you\u2019ll learn the five steps to effective asset planning, from completing an asset inventory to financial planning.<\/p><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-1 fusion_builder_column_1_3 1_3 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\">\u00a0<\/div><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0e1c515 elementor-widget elementor-widget-heading\" data-id=\"0e1c515\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">Step 1. Complete an asset inventory <\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-23c112b elementor-widget elementor-widget-text-editor\" data-id=\"23c112b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>You can\u2019t effectively manage your assets if you don\u2019t know what assets you have! Before constructing your plan, you must take a close look at your assets by conducting a complete asset inventory. This will serve as the basis of your plan. In the inventory, include:<\/p><ul><li>What assets you have<\/li><li>Where they are<\/li><li>What their values are<\/li><li>When they were built or bought<\/li><li>What their expected life-cycles are<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-795d849 elementor-widget elementor-widget-heading\" data-id=\"795d849\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">Step 2. Calculate life-cycle costs<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6eb8365 elementor-widget elementor-widget-text-editor\" data-id=\"6eb8365\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>In order for your plan to be as accurate as possible, you need to calculate your assets\u2019 entire life-cycle costs, not just how much they cost at initial purchase. During an average asset\u2019s life, there are many opportunities for added costs, like maintenance, capital, condition and performance modeling and even disposal costs. Remember: your asset management plan is only as accurate as your life-cycle costs.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7688906 elementor-widget elementor-widget-heading\" data-id=\"7688906\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">Step 3. Set levels of service\n<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-438f25a elementor-widget elementor-widget-text-editor\" data-id=\"438f25a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Use levels of service to outline the overall quality, capacity, function and safety of the different services your assets provide. The requirements of maintaining that service will dictate the operating, maintenance and renewal activities that need to occur moving forward. To access levels of service, think about:<\/p><ul><li>The level of service you\u2019re currently providing<\/li><li>How that level of service is expected to change<\/li><li>The annual cost of current service<\/li><li>If there is funding to support any change in service<\/li><li>If your current level of service is meeting to needs and expectations of users<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-67ed414 elementor-widget elementor-widget-heading\" data-id=\"67ed414\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">Step 4. Apply cost-effective management \n<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3224aac elementor-widget elementor-widget-text-editor\" data-id=\"3224aac\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Are you managing your assets in a proactive or reactive manner? In most cases, proactive management is more cost-effective in the long-run than reactive management. For example, if you wait until there is a bad pothole on one of your streets before performing road maintenance, you can end up spending more money than if you proactively conduct road maintenance over time. You\u2019re practicing cost-effective management when you do the most cost-effective maintenance, repair or replacement at the right time during the entire asset life-cycle.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1101118 elementor-widget elementor-widget-heading\" data-id=\"1101118\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">Step 5. Execute long-term financial planning \n<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-09617ec elementor-widget elementor-widget-text-editor\" data-id=\"09617ec\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Your asset management should naturally translate into long-term financial planning. A long-term financial plan will help you determine which of your objectives are feasible, which are important and which can maintain your priority assets over the long term.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a496301 elementor-widget elementor-widget-heading\" data-id=\"a496301\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">To see how an effective enterprise asset management software system helps construct asset management plans and support your asset planning processes, request a demo below: <\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>An asset management plan serves as the cornerstone for an effective asset management system. These plans provide a road map for organizations to understand their objectives and long-term asset management strategy. In this blog, you\u2019ll learn the five steps to effective asset planning, from completing an asset inventory to financial planning. \u00a0 Step 1. Complete&#8230;<\/p>\n","protected":false},"author":6,"featured_media":1041,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[20],"tags":[],"post_folder":[33],"class_list":["post-1114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>5 Steps to Building an Effective Asset Management Plan<\/title>\n<meta name=\"description\" content=\"Learn the 5 essential steps to build a successful asset management plan with EAM software. 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