Why Asset Management is Essential for Field Service Businesses
- Heather Dewing
- Apr 10, 2024
- 2 min read
Updated: May 15, 2024
Field engineers are often the unsung heroes, working tirelessly across the country to maintain and service various assets like machinery, fridges, pumps, and critical infrastructure.
They ensure that customers receive excellent service when needed, while also delivering cost-efficient solutions for their organizations.
The Traditional 'Fix on Fail' Approach
The 'fix on fail' method is simple and effective. When an appliance breaks, the customer calls for an engineer to fix it. This approach works well when customers are willing to wait for repairs.
Why Change if 'Fix on Fail' Works?
In today’s 24/7 on-demand world, customers are more demanding and less willing to wait for repairs.
Delays can lead to commercial penalties and significant reputational or financial damage, especially for critical assets like power plants or broadcast services.
Customers now expect adherence to strict Service Level Agreements (SLAs), making the 'fix on fail' approach costly due to fines, rebates, and temporary fix costs.
To run an efficient operation and meet customer expectations, proactive asset management becomes essential. The goal is to minimize or avoid service interruptions rather than just reacting to failures.
3 Key Principles to Minimize Service Interruptions
Finite Asset Life Management: Components have limited lifespans. Implement key processes to ensure service continuity during asset downtime:
Identify components needing frequent replacement.
Stock critical spares.
Have a contingency plan for components with long lead times.
Servicing and Preventative Maintenance: Regular replacement and servicing of components:
Keep assets in good running order.
Provide a cost-effective alternative to waiting for failure.
Identify problems before they occur.
Data-Driven Decisions: Use data to understand asset performance, rather than relying on past performance.
When to Replace vs. Maintain
As assets age, they become less reliable and more prone to breakdowns. Understanding asset reliability and the whole-life cost of ownership is crucial. There is a tipping point where replacing an asset is more cost-effective than continuing repairs. Data plays a key role in determining the optimal time for replacement.
Advancing Asset Management
Establishing fundamental asset management capabilities allows for advancements in remote monitoring, automated alarm handling, job creation, and predictive analytics. Investment in asset performance monitoring can provide insights into asset health and performance, identifying faults before they impact service.
Leveraging Technology and Data Management
Effective asset management relies on robust technology and data. Key information needed includes:
Asset details (makes, models, age, condition).
Completed work history (what was done, when, cost).
Asset availability (downtime, utilization).
Cost profile (maintenance expenses and effectiveness).
A focus on asset data and a suitable asset management system is essential. Having a good volume of data (typically 3-5 years) ensures statistical robustness and supports informed decision-making.
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