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Ghost Assets which exist in Account books but are not available on ground.

Assets lying unused and re-ordering of Duplicate Assets takes place.

Present location not traceable.

Assets changed many hands-so no idea who has it presently.

Present condition of Asset not known.

Maintenance issues- delay in repairs.

Multiple disconnected lists at offices/departments.

Scraped items being shown as Assets in the balance sheet and higher Tax being paid.

Apart from the above there is a statutory requirement in Company’s Act 2013 that “Physical verification of the assets is the responsibility of the management…” Also in case of any accident, Insurance companies reduce the Fixed Asset Value substantially if regular Physical Verification has not been done. The difficulties in maintaining a proper Fixed Asset Register (FAR) and carrying out physical verification are as under:-

a) Most of the time the FAR is generated from the Accounts Software / Accounts Register. So for example if ten Laptop computers are purchased, a single invoice is entered in the Accounts software which becomes a single entry in the FAR. But the ten laptops are issued to ten different persons, so ten records have to be made, which is not possible in most Accounting Packages. If done manually the task is difficult and error prone.

b) This is further compounded by the fact that the laptop would change hands when one person leaves the job and the same laptop is issued to another person; or the person gets transferred to another location; or the laptop goes for repair or is upgraded. Timely updating of the record requires lot of discipline.

c) Also keeping track of the maintenance schedule and AMC of the laptop is an issue if done manually.

d) Carrying a Fixed Asset Register or a printout and doing Physical Verification is very laborious and time consuming, so most of the time not done.

To solve the above FAR issues use of BARCODE (or RFID) integrated Fixed Asset Management Software (FAMS) is the solution. Following are the advantages of FAMS :- a) Comprehensive list of Assets avail in the organisation which can be made available to any one authorised whenever required, b) All movable and non-movable assets can be tracked easily, c) Accurate mapping of Book Data & Ground Assets, d) Easy calculation of financial value of existing assets. e) Manage Issue/Return of assets f) Easily manage AMC & Warranty period g) Generate Alerts -Insurance due date, AMC due date, etc. h) Manage Multiple sites i) Centralized Database j) Even Sub-assets of an asset can be tracked k) Easy and frequent Asset verification can be done l) Asset optimization m) Inter Branch transfer of assets can be done easily n) Reduce maintenance cost o) Major cost Saving p) Tax benefits q) Time Saving r) Powerful Search Engine s) Import from MS Excel t) Export to any ERP u) Save Asset Images

Fixed Asset Management software helps with this task by maintaining a record of all the assets you need to screen. It can hold points of interest of their maintenance schedules, upkeep records, depreciated value and schedule for replacement. The software can be set to trigger notices for any of these occasions, so you keep up general cycles of repair and reestablishment.

FAMS maintains details of company assets, everything from PCs to machine devices, to work area and seats, to rolling mills. It’s of most utilize when managing with assets which have a short, fixed service life, and depreciate in quality over that life. FAMS helps with this task by maintaining a record of all the assets you want to monitor. It can holds their service schedules, support records, depreciated value and planned for substitution. FAMS tracks where your assets are, what state they are in, and who they are at present assigned to.

Key Results of Fixed Asset Management system

1) Comprehensive control over Assets

Number
Type
Location
Issued to
Monitors warranties
AMC, Scheduled Maintenance, Insurance
Coordinated Asset Replacement

2) Asset Analytics

Fulfils Government Compliances for subsidies
Complete control of Unit wise Assets
Tracking of Capitalised and Non-Capitalised Assets
Correct cost calculations of assets individually as well in block

3) Assets Management

Complete record of transfer from one to another
Periodically physical Asset verification
Even sub-assets of an asset can be tracked
Complete history of an asset including life

4) Alerts

Insurance due date
AMC due date
Warranties etc.

5) Provides High Level of Data Integrity

Data input through Barcodes/ RFID

6) Increases Efficiency

Reading Barcode/RFID takes less than a second to be captured.
The data captured is 100% accurate
Assets can be scanned at random making the scanning faster and easy.

7) Lowers Costs Increases Accuracy

AIDC (Barcodes/ RFID) make data entry 100% accurate

8) Assets Visibility

Frequent Asset verification helps in keeping track of location-wise Assets, their
readiness, Availability

9) Real time Traceability of asset.

With updated records, FAMS can provide lists location-wise assets; Asset wise
locations, etc

Easy to get Asset current value as per IT Act & Companies Act.

Table of Contents

Introduction

Asset Management Systems are vital for organizations across diverse industries, as they ensure efficient asset management. Whether dealing with equipment, machinery, vehicles, or other valuable resources, proper tracking, maintenance, and utilization significantly impact operational efficiency and cost savings. To attain these objectives, businesses depend on comprehensive software solutions known as Asset Management Systems. These systems are designed to track, manage, and maintain assets throughout their lifecycle. In this article, we will delve into the concept of an Asset Management System and explore how it optimizes asset tracking and maintenance, providing a robust approach to asset management for businesses.

The Importance of an Asset Management System

Assets are vital to the success of any organization, and effectively managing them is crucial for maximizing operational efficiency and reducing costs. An Asset Management System plays a critical role in achieving these objectives by providing a centralized platform for tracking, monitoring, and maintaining assets. It enables organizations to have real-time visibility into their asset inventory, streamline maintenance processes, optimize asset utilization, and ensure compliance with regulations and standards.

Understanding an Asset Management System

An Asset Management System is a software solution designed to track, manage, and maintain assets throughout their lifecycle. It encompasses various aspects of asset management, including asset tracking, inventory management, maintenance scheduling, and reporting. An Asset Management System typically utilizes barcode, RFID, or other identification technologies to capture and record asset information, such as location, condition, maintenance history, and depreciation.

Key Features and Functionality of Asset Management Systems

Asset Management Systems offer a range of features and functionality to optimize asset tracking and maintenance. Some key features include:

Asset Tracking: Asset Management Systems enable organizations to track assets in real-time, capturing essential data such as location, status, and custodian. This facilitates accurate asset inventory management and reduces the risk of loss or theft.
Maintenance Management: Asset Management Systems help organizations schedule and track maintenance tasks for assets. They provide alerts for preventive maintenance, manage work orders, and track maintenance history to ensure assets are properly maintained and serviced.
Depreciation and Lifecycle Management: Asset Management Systems allow organizations to track asset depreciation, calculate their value over time, and manage asset lifecycles effectively. This helps organizations make informed decisions regarding asset retirement, replacement, or upgrades.
Reporting and Analytics: Asset Management Systems generate reports and provide analytics on asset performance, maintenance costs, utilization rates, and other key metrics. This enables data-driven decision-making and facilitates continuous improvement in asset management processes.

Benefits of Implementing an Asset Management System

Implementing an Asset Management System brings several benefits to organizations:

Asset Tracking and Inventory Management: An Asset Management System provides real-time visibility into asset location, status, and custodian, enabling accurate asset tracking and efficient inventory management. This reduces the risk of asset loss, improves asset utilization, and minimizes the need for unnecessary asset purchases.
Streamlined Maintenance and Repair Processes: By automating maintenance scheduling, work order management, and tracking maintenance history, an Asset Management System streamlines maintenance and repair processes. This ensures timely maintenance, reduces downtime, and extends asset lifespan.
Enhanced Asset Utilization and Cost Control: With an Asset Management System, organizations can optimize asset utilization by tracking asset availability, utilization rates, and performance. This helps identify underutilized assets, avoid over-purchasing, and reduce maintenance and repair costs.
Improved Compliance and Reportings: An Asset Management System facilitates compliance with regulatory requirements and industry standards by providing accurate and up-to-date asset information. It also generates comprehensive reports and analytics on asset performance, maintenance costs, and compliance status, aiding in audits and regulatory reporting.

Asset Tracking and Inventory Management

Asset Management Systems excel in asset tracking and inventory management. By utilizing identification technologies such as barcodes or RFID tags, organizations can accurately track assets and maintain an up-to-date inventory. Asset Management Systems provide real-time visibility into asset location, status, and custodian, making it easy to locate assets when needed and reduce the risk of loss or misplacement.

Streamlined Maintenance and Repair Processes

Effective maintenance and repair are critical for maximizing asset lifespan and minimizing downtime. Asset Management Systems streamline maintenance processes by automating scheduling, work order management, and tracking maintenance history. Organizations can set up preventive maintenance alerts, track asset service history, and ensure timely repairs and servicing. This helps extend asset lifespan, reduce downtime, and improve operational efficiency.

Enhanced Asset Utilization and Cost Control

Optimizing asset utilization is key to controlling costs and maximizing return on investment. An Asset Management System provides insights into asset availability, utilization rates, and performance. By identifying underutilized or idle assets, organizations can make informed decisions regarding asset allocation, retirements, or reallocation. This optimizes asset utilization, reduces unnecessary purchases, and minimizes maintenance and repair costs.

Improved Compliance and Reporting

Compliance with regulatory requirements and industry standards is a priority for many organizations. An Asset Management System ensures compliance by maintaining accurate and up-to-date asset information. It enables organizations to track asset maintenance, calibrations, and certifications, ensuring assets meet regulatory and safety standards. Asset Management Systems also generate comprehensive reports and analytics on asset performance, maintenance costs, and compliance status, facilitating audits and regulatory reporting.

Challenges and Considerations in Implementing an Asset Management System

Implementing an Asset Management System requires careful consideration of the following challenges:

Data Collection and Integration: Organizations need to ensure that asset data is accurately collected and integrated into the Asset Management System. This may involve initial data collection, data cleansing, and integration with existing systems such as ERP or CMMS.
User Adoption and Training: Effective implementation of an Asset Management System requires user adoption and training. Employees must be trained on system usage, data entry, and proper asset tracking procedures to ensure accurate and consistent data.
Scalability and Integration: Organizations should consider the scalability of the Asset Management System to accommodate future growth and evolving asset management needs. Integration with other systems, such as procurement or finance systems, should also be evaluated to ensure seamless data flow.

Industries Utilizing Asset Management Systems

Asset Management Systems find applications across various industries, including:

Manufacturing and Production: Managing equipment, machinery, and production assets.
Transportation and Logistics: Tracking vehicles, containers, and shipment assets.
Healthcare: Managing medical equipment, devices, and facility assets.
Energy and Utilities: Tracking infrastructure assets, such as power generation equipment or pipelines.
Education: Managing educational assets, including computers, laboratory equipment, and facilities.

Future Trends in Asset Management Technology

The field of Asset Management Systems is continuously evolving, and future trends include:

Internet of Things (IoT) Integration: The integration of IoT sensors and devices with Asset Management Systems allows for real-time asset monitoring, condition-based maintenance, and predictive analytics.
Artificial Intelligence (AI) and Machine Learning (ML): AI and ML algorithms can analyze asset data to predict failures, optimize maintenance schedules, and identify patterns for improved asset management.
Augmented Reality (AR) and Virtual Reality (VR): AR and VR technologies enable remote maintenance, virtual training, and visualizations of assets, enhancing asset management and maintenance processes.
Mobile and Cloud-Based Solutions: Mobile apps and cloud-based Asset Management Systems provide flexibility, accessibility, and real-time updates, making asset tracking and management more efficient.

An Asset Management System plays a vital role in optimizing asset tracking and maintenance for organizations. By implementing such a system, businesses can streamline asset tracking, enhance maintenance processes, optimize asset utilization, and ensure compliance with regulations. With real-time visibility into asset information and comprehensive reporting, organizations can make informed decisions, reduce costs, and maximize the lifespan of their assets. for organizations looking to improve efficiency and profitability, an Asset Management System is an essential tool.