Property Management Standards – Part 5
Guest Contributor: Amanda Watkins
Let’s start off by addressing a change: the Standard Practice for Calculation of Equipment Movement Velocity (EMV) is now being revised to “Standard Practice for Calculation of Asset Movement Velocity (AMV).” It is generally accepted that the AMV is a measure of calculating how frequently assets are moving in, out of, and around an organization. If an asset is primarily stationary, it will have a smaller AMV than an asset that moves frequently. Tracking and calculating the AMV of assets enables property managers to make comparative insights to the operational aspects of their fixed and mobile asset inventory. Knowing the frequency of acquisitions, dispositions, and moves in a facility can greatly improve ROI, productivity, and the bottom line.
The next standard we’re going to look at is the Standard Practice for Classification of Equipment Physical Location Information. This standard reviews the terminology for classifying an asset’s location information. When it comes to classification, it’s a commonly held best practice to sick with pre-existing, easy-to-remember naming conventions. For example, if the offices in a given facility are numbered according to a preset system, fixed and mobile assets in that facility’s inventory should be labeled with the same naming convention. If, however, the locations have no existing naming structure, it is a good idea to determine, establish, and implement such a naming convention. Once accepted, property managers should label assets according to this structure and be consistent with how locations are categorized in the future. Keep in mind that changes in naming conventions can be confusing and result in inefficiencies that are detrimental to your fixed and mobile asset workflow such as misplaced property or misrepresented asset-data.
Tracking asset data for equipment is addressed in the Standard Practice for Data Characteristics of Equipment Records. While there is a set expectation of asset data for equipment that should be maintained, “optional,” or organizationally specific, data will also need to be maintained. By “optional” it is understood that every organization will have their own needs and specific data to track that may vary slightly or vastly from another organization. This equipment data will provide pertinent information on usage, condition, size, and even status, amongst other elements, that is useful and sometimes even mandatory for management and users.
Classification, move frequency, and characteristics terminology are three fairly obvious features of asset management. These standards will help you delve a little further into the reasoning and process behind each. In which area do you feel your asset management is the strongest? Do you have great AMV calculations, or are your data characteristics unparalleled in your industry? Leave us a comment below and let us know how great your doing!