Lifecycle in Asset Management Process

Asset management is the systematic process of planning, purchasing, operating, maintaining, modernizing, and disposing of assets most efficiently, considering costs, risks, and other performance characteristics.

Asset management also involves developing and making favorable investment decisions for investors. 

Definition of asset life cycle

What is the asset life cycle? It is a term used to describe managing an asset's physical and financial aspects from its acquisition to its disposal. During its life, an asset goes through the following stages: planning, acquisition, operation, maintenance, and disposal.

Applying methods to track and manage an asset's costs, risks, and benefits throughout its lifecycle allows you to optimize your asset management strategy and make informed decisions.

Asset management lifecycle:

• Helps extend the life of an asset and maximize the value of its use;
• reduces the risk of downtime or shortens its duration by planning and carrying out preventive maintenance;
• prevents the potential for damage to the asset as a result of improper maintenance;
• helps to improve plant efficiency and maximize profits.