{"id":2974,"date":"2014-11-18T11:00:00","date_gmt":"2014-11-18T11:00:00","guid":{"rendered":"https:\/\/mpulse.cloud.fruitionqa.com\/asset-management-and-cmms-why-should-i-care-blog\/"},"modified":"2025-07-30T06:30:44","modified_gmt":"2025-07-30T06:30:44","slug":"asset-management-blog","status":"publish","type":"post","link":"https:\/\/mpulsesoftware.com\/blog\/cmms\/asset-management-blog\/","title":{"rendered":"CMMS Asset Management: Why Should I Care?"},"content":{"rendered":"<p>If your maintenance team supports a large organization, you may already have a formal CMMS asset management plan in place. If you\u2019re in a small or medium-sized business, though, chances are you don\u2019t have one. So why use asset management? While you\u2019ve probably heard or read the term \u201casset management,\u201d you might not be sure how it differs from the maintenance management you\u2019re already doing. I mean, you are maintaining assets, right? Today I\u2019d like to try and clear up some of the confusion\u2014first by helping you understand what a CMMS asset management plan is, and second by explaining why it matters to you.<\/p>\n<p>Keith Mobley, a member of the <a href=\"https:\/\/smrp.org\/\" target=\"_blank\" rel=\"noopener\">Society for Maintenance and Reliability Professionals (SMRP)<\/a>, defines an asset management plan as a comprehensive strategic plan designed to help your organization get the maximum value from the assets it owns. Often, this is measured by financial professionals as Return on Net Assets (RoNA), and it\u2019s roughly calculated as total productive output minus total asset cost during an asset\u2019s lifecycle. And that\u2019s all well and good for the folks in finance and accounting, but you\u2019re probably thinking right now, \u201cWhy should I care?\u201d<\/p>\n<p>You should care because setting up your CMMS with an asset management frame of mind is a great way to get the most out of it as a maintenance manager. If you\u2019re thinking in terms of maximum uptime and total lifecycle cost, you\u2019ll move beyond using your CMMS as a simple work order tracker and PM scheduler. \u00a0Let me give you an example, a tale of two customers, Bill and John.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-flat ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/mpulsesoftware.com\/blog\/cmms\/asset-management-blog\/#Asset_Management_Repair_or_Replace\" >Asset Management: Repair or Replace?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/mpulsesoftware.com\/blog\/cmms\/asset-management-blog\/#Document_Your_Asset_Data\" >Document Your Asset Data<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Asset_Management_Repair_or_Replace\"><\/span>Asset Management: Repair or Replace?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Both Bill and John came to me on two separate occasions with the same question from their bosses: \u201cShould we keep repairing that sheet metal stamping press, or should we buy a new one?\u201d<\/p>\n<p>Bill called me in a panic. \u201cThe boss wants an answer today,\u201d he said, \u201cand I don\u2019t know where to get it. We\u2019ve been using MPulse for 8 years now. Can you help me figure this out?\u201d<\/p>\n<p>\u201cCalm down,\u201d I said. \u201cThat should be easy to calculate.\u201d We just needed to answer a few questions using the data in his MPulse database:<\/p>\n<ul>\n<li>What was the purchase price of the press?<\/li>\n<li>When did we acquire it?<\/li>\n<li>How much has it cost to maintain it, especially in the past year?<\/li>\n<li>How much downtime is the asset experiencing lately?<\/li>\n<\/ul>\n<p>By answering these questions, Bill could show how much the press was costing his company, currently, on an annual basis, as well as the average annual cost over the life of the asset. With a little help from the operations manager, we could also calculate the opportunity cost due to downtime. Comparing that to the estimated cost (and potential added productivity) of a new press would get us our answer.<\/p>\n<p>Unfortunately for Bill, that information wasn\u2019t available. To \u201csave time,\u201d he hadn\u2019t recorded the acquisition date and purchase price in MPulse. And, while he had recorded planned and unplanned maintenance, he hadn\u2019t bothered to record parts costs. It pained me to tell him, \u201cBill, I\u2019m afraid the best you\u2019re going to be able to do is SWAG it.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Document_Your_Asset_Data\"><\/span>Document Your Asset Data<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Thankfully, my experience with John had a better outcome. Like Bill, John had been using MPulse for many years. But John had taken the time to better document the assets he wanted to track\u2014recording each one\u2019s acquisition date and purchase price. John didn\u2019t track every asset his company owns; instead, he focused on the important ones that he knew would take a significant investment to replace.<\/p>\n<p>Over the years, John tracked each asset\u2019s planned and unplanned maintenance costs, just like Bill. But John also recorded parts costs by automatically linking the inventory used with assets, which allowed him to calculate how much money his stamping press had cost to maintain. With a quick phone call to his ops manager, John compiled a report in about 30 minutes that showed his boss the old stamping press was pretty cost effective\u2014even though it needed more frequent repair. And John saved his company thousands of dollars.<\/p>\n<p>Bill and John were using the same MPulse Software, Inc, yet their outcomes were completely different. By taking just a few extra steps\u2014and thinking about things with an asset management mindset\u2014John created a wealth of asset information that allowed his company to make more informed decisions, eventually saving it a lot of money thanks to our asset management software.<\/p>\n<p>I know you\u2019d rather be in John\u2019s position than Bill\u2019s. Keep an eye out for a <a href=\"https:\/\/mpulsesoftware.com\/blog\/cmms\/support-asset-management-cmms\/\">future post<\/a>, where I\u2019ll explain how John set up MPulse to form the basis of an asset management plan\u2014and how you can too.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If your maintenance team supports a large organization, you may already have a formal CMMS asset management plan in place. If you\u2019re in a small or medium-sized business, though, chances are you don\u2019t have one. So why use asset management? While you\u2019ve probably heard or read the term \u201casset management,\u201d you might not be sure how it differs from the maintenance management you\u2019re already doing. I mean, you are maintaining assets, right? Today I\u2019d like to try and clear up some of the confusion\u2014first by helping you understand what a CMMS asset management plan is, and second by explaining why it matters to you. Keith Mobley, a member of the Society for Maintenance and Reliability Professionals (SMRP), defines an asset management plan as a comprehensive strategic plan designed to help your organization get the maximum value from the assets it owns. Often, this is measured by financial professionals as Return on Net Assets (RoNA), and it\u2019s roughly calculated as total productive output minus total asset cost during an asset\u2019s lifecycle. And that\u2019s all well and good for the folks in finance and accounting, but you\u2019re probably thinking right now, \u201cWhy should I care?\u201d You should care because setting up your CMMS with an asset management frame of mind is a great way to get the most out of it as a maintenance manager. If you\u2019re thinking in terms of maximum uptime and total lifecycle cost, you\u2019ll move beyond using your CMMS as a simple work order tracker and PM scheduler. \u00a0Let me give you an example, a tale of two customers, Bill and John. Asset Management: Repair or Replace? Both Bill and John came to me on two separate occasions with the same question from their bosses: \u201cShould we keep repairing that sheet metal stamping press, or should we buy a new one?\u201d Bill called me in a panic. \u201cThe boss wants an answer today,\u201d he said, \u201cand I don\u2019t know where to get it. We\u2019ve been using MPulse for 8 years now. Can you help me figure this out?\u201d \u201cCalm down,\u201d I said. \u201cThat should be easy to calculate.\u201d We just needed to answer a few questions using the data in his MPulse database: What was the purchase price of the press? When did we acquire it? How much has it cost to maintain it, especially in the past year? How much downtime is the asset experiencing lately? By answering these questions, Bill could show how much the press was costing his company, currently, on an annual basis, as well as the average annual cost over the life of the asset. With a little help from the operations manager, we could also calculate the opportunity cost due to downtime. Comparing that to the estimated cost (and potential added productivity) of a new press would get us our answer. Unfortunately for Bill, that information wasn\u2019t available. To \u201csave time,\u201d he hadn\u2019t recorded the acquisition date and purchase price in MPulse. And, while he had recorded planned and unplanned maintenance, he hadn\u2019t bothered to record parts costs. It pained me to tell him, \u201cBill, I\u2019m afraid the best you\u2019re going to be able to do is SWAG it.\u201d Document Your Asset Data Thankfully, my experience with John had a better outcome. Like Bill, John had been using MPulse for many years. But John had taken the time to better document the assets he wanted to track\u2014recording each one\u2019s acquisition date and purchase price. John didn\u2019t track every asset his company owns; instead, he focused on the important ones that he knew would take a significant investment to replace. Over the years, John tracked each asset\u2019s planned and unplanned maintenance costs, just like Bill. But John also recorded parts costs by automatically linking the inventory used with assets, which allowed him to calculate how much money his stamping press had cost to maintain. With a quick phone call to his ops manager, John compiled a report in about 30 minutes that showed his boss the old stamping press was pretty cost effective\u2014even though it needed more frequent repair. And John saved his company thousands of dollars. Bill and John were using the same MPulse Software, Inc, yet their outcomes were completely different. By taking just a few extra steps\u2014and thinking about things with an asset management mindset\u2014John created a wealth of asset information that allowed his company to make more informed decisions, eventually saving it a lot of money thanks to our asset management software. I know you\u2019d rather be in John\u2019s position than Bill\u2019s. Keep an eye out for a future post, where I\u2019ll explain how John set up MPulse to form the basis of an asset management plan\u2014and how you can too.<\/p>\n","protected":false},"author":6,"featured_media":2975,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[12],"tags":[],"class_list":["post-2974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cmms"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>CMMS Asset Management: Why Should I Care? | MPulse Software<\/title>\n<meta name=\"description\" content=\"Thinking in terms of maximum uptime and total lifecycle cost will move you beyond using CMMS as a simple work order tracker and PM scheduler.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mpulsesoftware.com\/blog\/cmms\/asset-management-blog\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CMMS Asset Management: Why Should I Care?\" \/>\n<meta property=\"og:description\" content=\"Thinking in terms of maximum uptime and total lifecycle cost will move you beyond using CMMS as a simple work order tracker and PM scheduler.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/mpulsesoftware.com\/blog\/cmms\/asset-management-blog\/\" \/>\n<meta property=\"og:site_name\" content=\"MPulse Software\" \/>\n<meta property=\"article:published_time\" content=\"2014-11-18T11:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-30T06:30:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/mpulsesoftware.com\/wp-content\/uploads\/2019\/07\/asset-management.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"540\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Michelle Nicolson\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Michelle Nicolson\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/mpulsesoftware.com\/blog\/cmms\/asset-management-blog\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/mpulsesoftware.com\/blog\/cmms\/asset-management-blog\/\"},\"author\":{\"name\":\"Michelle Nicolson\",\"@id\":\"https:\/\/mpulsesoftware.com\/#\/schema\/person\/bd92353973a29542ef16cd8c623465cd\"},\"headline\":\"CMMS Asset Management: Why Should I Care?\",\"datePublished\":\"2014-11-18T11:00:00+00:00\",\"dateModified\":\"2025-07-30T06:30:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/mpulsesoftware.com\/blog\/cmms\/asset-management-blog\/\"},\"wordCount\":818,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/mpulsesoftware.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/mpulsesoftware.com\/blog\/cmms\/asset-management-blog\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/mpulsesoftware.com\/wp-content\/uploads\/2019\/07\/asset-management.jpg\",\"articleSection\":[\"CMMS\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/mpulsesoftware.com\/blog\/cmms\/asset-management-blog\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/mpulsesoftware.com\/blog\/cmms\/asset-management-blog\/\",\"url\":\"https:\/\/mpulsesoftware.com\/blog\/cmms\/asset-management-blog\/\",\"name\":\"CMMS Asset Management: Why Should I Care? 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