Asset Management

Research for Asset Management Do's and Don'ts

When you are trying to manage other people’s assets, there are things that you must and mustn’t do. Asset management is a very tricky job, since it involves having to go through sometimes private details of the person’s life.

Asset management research doesn’t have to be for other people. It is far easier to do asset management research for yourself. To begin with, you will have no qualms whatsoever in getting your own details together.

Asset Management Research Tip 1: Understand the Scope

The very first challenge for a researcher in asset management is to understand not just your goals for conducting research, but also the scope under which you are allowed to operate. Avoid taboos from the very beginning by inquiring the degree of penetration that you can have as far as the pertinent information are concerned. This is very crucial because it will dictate the depth of your research. The purposes of the research must also come to mind: is it to confirm existing sets of research or to start entirely from scratch? These questions may seem minor but they are important to having a productive set of research.

Asset Management Research Tip 2: Make an objective inventory and update it

When you are trying to make an inventory, make sure that it is updated. The inventory will help you show what’s there to begin with. Having an inventory is a handy tool that will help you address the issues that might come up in an individual’s asset management program. Remember that it is usually on a case to case basis, and what might work for one may not necessarily be as effective for another. The objectivity in inventory is also important for it will be a good basis of facts only if it is not selective in nature.

Asset Management Research Tip 3: Deal only with the recent sources

The recent sources will tell you the present state. This is the very first thing that you have to inspect and incorporate in your research. If you have to backtrack more for establishing credibility, read the next tip.

Asset Management Research Tip 4: Observe past circumstances as well for patterns

Patterns may only be found from past recurring experiences. Now, if you are after some intense research on asset management, trailing the past will also be as effective. Pair the findings of the past with the present situation and know its implications for your overall efficiency as a researcher.

Asset Management Research Tip 5: Have a working set of recommendations

The purpose of research is not just simply to report what’s out there. It will also be helpful if there are solutions offered in form of recommendations. Researching for asset management is not just about outlining a list of things that are present in one’s asset bin. It also involves giving the initial directions under which effective asset management may thrive.

Asset Management Research Tip 6: Be flexible for changes that may happen

Research will not tell everything, especially if it is just preliminary research. Changes may still be introduced. A new event may actually challenge your assessments. While there is a limit to editing research works, you may have to design your research in such a way that it will accommodate changes as they come along.

Physical Asset Management

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Physical asset management is the practice of effectively using the physical assets of the company. Many companies have an in house department taking care of that but in some cases, an outside party is called in to help them out.

For this to work, the team has to know first hand the assets of the company. To prevent duplication, it should point out the depreciation value and the utility in the process of production. This process is better known as cost analysis as this will increase economic life and reduce component failures such as the incidence of theft and mistakes in the procurement of supplies and equipment.

It can also assist management in tax planning and forecasting business solutions which could save the company millions of dollars.

For instance, production suffers if machines break down frequently. This is normal if the machine being used is already old. The company can try to repair it but if the cost is much higher than a brand new one, then perhaps they should try to sell this at a reasonable price then use the money to buy a new one.

The same goes if a company has hundreds of stores and only a few of them are making a profit. Since the unprofitable ones are not really bringing in revenue, perhaps it will be a good idea to close them.

This is something that a lot of companies are doing now due to rising costs of fuel and the economic slowdown. Rather than filing for bankruptcy, they would rather slash a few thousand jobs and close down stores. Some companies that have done so include Starbucks, American airlines, JP Morgan and a lot more. The other option is for some companies to merge just to stay afloat.

The bottom line is that physical asset management gives the company an idea as to what they actually have. This will prevent them from missing out on opportunities which they could have jumped to when this presented itself.

One way of keeping track of the company’s assets instead of doing it by hand is by investing in asset management software. This will allow those in management to gain access to it whenever it is needed via the company’s intranet.

This can be done by bar coding everything similar to what is done in the supermarket. This will enable the in house team to just scan the item which not only increases accuracy but helps to save time on repeated inventories.

There are four stages which make up the physical asset management cycle.

First is planning and procurement. Here the company sees what is available and then assess what is needed. They will look at various suppliers and then buy the machine that is affordable and efficient.

In the second stage, those who use it have to use the equipment in order to maximize its productivity.

Third, is called financial management. Here, the company will see if it was worth getting the equipment. It also includes ensuring accurate tax, depreciation and other costs.

Fourth is disposal. If the machine is obsolete, it has to be replaced in compliance with environmental regulations.

Companies will be able to practice effective physical asset management by following the life cycle. Sometimes tough decisions have to be made in order for the company to survive.