What Is an Asset Management Plan and Why Is It Important?

An asset management plan is critical for organizations. These tactical documents put asset management strategies in motion. And allow institutions to manage their resources to meet long-term operational goals.

Asset management plans provide an operational playbook for broader asset management strategies. Whether it’s maintaining physical equipment or tracking digital assets, asset management plans are essential. They keep assets in top condition and extend their useful life. 

What is an asset management plan?

An asset management plan (AMP) details how a department turns its organization’s broader asset management strategy into actionable, measurable steps. 

Unlike broader policy or strategy documents, which provide a high-level vision for asset management, an AMP focuses on tactical actions. It outlines short-term, dynamic, and functional tasks professionals use to maintain, monitor, and improve assets.

Organizations have one overarching asset management strategy but may create multiple AMPs tailored to departments’ needs. Public universities develop separate plans for managing HVAC systems, IT infrastructure, and transportation fleets. Each plan focuses on specific assets and gives day-to-day guidance to employees.

Why do you need an asset management plan?

An AMP guides teams in meeting an organization’s broader asset management strategy. Here are some of the ways it benefits an organization: 

Provides actionable steps

An AMP breaks down high-level asset management goals into tasks. It provides teams with a road map to meet organizational goals. Often, these documents will include detailed maintenance processes. 

Enhances accountability

AMPs allow cross-functional teams to increase accountability and maintain assets according to organizational standards.

Optimizes resource management

With an AMP, organizations allocate resources more effectively. They ensure critical assets receive proper prioritization and that non-critical assets receive less urgency.

What to include in an asset management plan

Developing a comprehensive AMP requires several key components. Below are the elements that should be included in an asset management plan:

Asset inventory

An accurate and detailed asset inventory acts as the foundation of any asset management plan. The inventory should include:

Descriptions of each asset

This includes everything from building equipment and infrastructure to software licenses and fleet vehicles.

Locations

Clearly define where each asset is located.

Unique identifiers

Planners should assign each asset a unique identifier like serial numbers or asset tags.

Grouping 

Assets are classified into critical or non-critical, and grouped by type (e.g., equipment, buildings, IT systems).

Asset condition assessment

An asset’s current condition is a critical part of a plan. Part of a broader facility condition assessment, an asset condition assessment details the current performance, age, and remaining useful life of each asset. This section should include:

Age and performance metrics

Data on when the asset was acquired and how well it’s performing.

Condition ratings

A grading system (e.g., good, fair, poor) to indicate the asset’s current state.

Replacement schedules

Based on the asset’s condition and performance, determine when it will likely need to be replaced.

Asset performance requirements

Establishing performance standards is important. Employees determine optimal performance for each asset category. They also outline key performance indicators (KPIs) to monitor.

Performance standards

Set clear benchmarks for how assets should perform.

KPIs

These indicators include things like asset uptime, energy efficiency, and maintenance cost.

Maintenance and operational strategies

Leading organizations develop detailed maintenance schedules and operational strategies to ensure that assets perform as expected and meet lifespan projections. 

Well-performing teams leverage regular inspections, preventive maintenance, and corrective actions when necessary.

Preventive maintenance schedules

An AMP should include regular maintenance schedules to avoid unexpected failures.

Real-time monitoring

If your organization has the capability, IoT sensors effectively track asset performance and detect problems ahead of time.

Capital planning

Capital planning is critical for any asset management plan. Departments forecast future asset investments, budget for maintenance, and conduct cost-benefit analyses. These processes help make informed decisions about asset lifecycles.

Asset renewal vs. replacement

Analyze if it is more cost-effective to repair or replace an asset.

Capital forecasting

Plan for asset maintenance and replacement capital expenditures.

Monitoring requirements

AMPs include regular review and monitoring processes. Leading organizations create baseline reporting cadences and define plan performance standards.

Reporting cadences

Schedule departmental reviews of an asset management plan’s performance.

Assessment standards

Set clear guidelines for plan standards and updates. 

How software can help with asset management plans

Asset management plans require extensive time to develop and implement. However, with fixed asset management software, organizations can streamline this process. Here are a few ways these solutions help: 

Asset inventory management

Organizations can store detailed asset information in a centralized platform. This provides easy access to asset descriptions, locations, condition ratings, and maintenance schedules.

Condition assessment

By integrating IoT sensors and tracking mechanisms, asset management software can provide real-time condition assessments. These ensure teams maintain assets according to their current state, reducing downtime and prolonging lifespans.

Performance monitoring

Customizable dashboards allow users to track KPIs like uptime, energy efficiency, and costs in real time. The visibility helps organizations make data-driven decisions about asset performance and capital planning initiatives.

Leverage FMX for your asset management planning

FMX’s fixed asset management software helps organizations create, manage, and monitor asset management plans. By consolidating asset data, developing maintenance schedules, and tracking performance in real time, organizations maximize asset value and reduce operational costs.

With FMX, users can:

Centralize asset data

Keep all asset-related information in one place for easy access and reporting.

Monitor lifecycle performance

Track each asset’s lifecycle from acquisition to disposal, ensuring timely maintenance and replacements.

Enhance compliance 

Stay on top of industry regulations with automated inspection schedules and documentation tracking.

By partnering with FMX, your team can focus on maintaining assets more efficiently and effectively, helping you to meet both operational and financial goals.