10 Signs You Dont’ Have Adequate Enterprise Asset Management Control in Place
Enterprise Asset Management is an operational function that involve People, Process, and Technology. But in most businesses, they are handled in one department, by people who dont’ have sufficient training, using tools that are not a good fit.
Here are the 10 signs indicating that your businesses or organizations don’t have adequate control in place to manage your physical assets efficiently.
- Microsoft Excel sheets or Microsoft Access database are used to keep track of equipment: what, where, who check in and out, when these action take place. The information there is at least a couple of months out of date.
- The Accounting Department spent many hours at the end of each month, and more hours in the end of the fiscal year to reconcile the equipment inventory, assigning funding codes to equipment, calculate depreciation.
- No periodic inventory audit checks. Only Wall to Wall audits are performed every few years.
- It is a struggle to provide accurate information about equipment, their cost and residual/replacement value, the maintenance history, their location and usage condition to the insurance provider to provide accurate coverage.
- There is no dedicated owner of the equipment management function in the organization. That function should cover all the physical and IT equipment.
- The organization believes that its fixed asset management software will be enough to support the tracking of equipment throughout their life cycle
- The organization only tracks all items with >$5000 in purchase value, while not tracking the other items.
- The organization doesn’t have the business process and procedures in place to describe how to record the purchase, receiving, tagging, transferring, and disposal of each equipment.
- The organization hasn’t conducted a training to its staff on the equipment management business process and procedures in more than 6 months.
- The organization has just failed the most recent financial audit on inventory control.
If you want to learn more about how to manage physical assets efficiently, please check out our Resource Library here.
If you want to understand the “Key Critieria in choosing an Enterprise Asset Management”, you can download the white paper here.