Property Management Standards – Part 4
Guest Contributor: Amanda Watkins
The Equipment Management Process Maturity (EMPM) standard covers the processes for both internal and external equipment management. The EMPM model does include all aspects of equipment management and was created for all equipment-holding companies however, it is worth noting that the EMPM may not be the only acceptable assessment model available.
The EMPM provides clear, easy to understand assessments of an organization’s internal property use. The model makes clear to property managers which departments and areas lack resources, and accordingly, help identify patterns in which fixed and mobile assets can be more efficiently utilized. In this respect, property managers can track and assess the improvement of their asset management system because the EMPM model draws attention to the processes of extensive maturity. Extensive maturity refers to departments in which changes or additional resources are required to achieve process improvements. Similarly, the EMPM standard is useful for external property management as it provides a basis to compare fixed and mobile asset management between organizations, which provide efficiency yielding, previously unavailable insights.
Next we’ll look into the Standard Practice for Determining the Life-Cycle Cost of Ownership of Personal Property. This standard establishes a consensus for Life-Cycle Cost (LCC) of mission-critical property that is used to accomplish the primary objectives of an organization. The service life of assets can be divided into four stages, each with several separate yet potentially interrelated sub-stages:
These four stages provide the frame work for the last standard we’ll discuss today, the Standard for Prioritizing Asset Resources in Acquisition, Utilization, and Disposal. This standard determines the Asset Priority Index (API) for prioritizing asset resources during acquisition, utilization, and disposal. The API provides property managers with a method for prioritizing asset resources based on their predefined criteria. API’s are used in a variety of ways, such as deferred maintenance approaches, security design and analyses, business continuity/risk analyses and decision making on disposition of assets. Overall the API is a metric that is used to communicate the importance of a company’s equipment in terms of mission criticality and security.
The standards we discussed today covered prioritizing assets, determining LCC, and EMPM for assessing and improving asset expenditures. How does your company prioritize assets? Do you track life cycle cost of ownership? If you’re managing equipment, do you follow the EMPM model to make sure you’re getting the most use out of your equipment as it matures? Leave a comment below and let us know how you’re measuring up to these models.