Asset Management Compliance 101: challenges, strategy and technology
Asset management aims to increase the return on each investment and make companies more compliant and competitive.
In a public transport company, for example, a “non-compliance” would be a cancelled journey or a delay. In the case of CP – a portuguese trains company, breakdowns of vehicles are the main reason for complaint.
It is not by any means implausible to assume that preventive maintenance could avoid some non-compliances. In CP’s specific case, EMEF (the company owned by CP that is dedicated to the manufacture, rehabilitation, maintenance, and repair of trains) is “unable” to perform all the recommended periodic maintenance tasks.
On one hand, CP’s trains are, on average, 50 years old (twice the European average). The assets are at a stage of their lifecycle where they need a lot of maintenance. On the other hand, EMEF is facing a lack of human resources. This explosive cocktail decreases compliance with maintenance plans and compromises the quality of public transport.
Compliance is essential to ensure the smooth operation of assets, provide a good user experience, and avoid costly repairs.
What are the biggest challenges to compliance?
The case of CP – which owns the company responsible for the maintenance and repair of its equipment – is rare. As asset management and maintenance do not always generate immediate gains, most companies resort to outsourcing. Therefore, it becomes challenging to manage all suppliers, and ensure that they maintain compliance with all standards.
A potential solution to this problem is establishing service level agreements, or maintenance SLAs. In these types of agreements, you define performance indicators and the level of service quality you expect, as well as penalties for non-compliance. So, if there is non-compliance, the supplier also has something to lose.
As mentioned in the case of CP, lack of human resources is another challenge. In maintenance, companies are constantly competing for manpower. Here are some tips to try and reduce maintenance technician turnover.
Another challenge is the constant changes in regulations and laws. During the pandemic, facility managers had to quickly get used to new regulations and demonstrate their resilience. However, as science and technology advance, there are always changes in indoor air quality requirements and laws about gas emissions, for example.
Any professional engaged in asset management needs to be constantly up to date. As for technicians, they need to be receptive to adopting new technologies. Robotics, automation, and artificial intelligence will dominate the future of asset management.
On the other hand, Deloitte points out that increasing costs to improve compliance – whether with human resources or technology – can be a challenge for companies that need to invest in the core business. Still, as we will see, perhaps here lies the solution to automating processes and increasing compliance in asset management.
Internal vs. external compliance
It should also be said that there are two types of compliance. “Internal” compliance concerns internal processes and the quality of the product or service. An internal audit is very useful to ensure standardisation of processes and to create a momentum for continuous improvement. If you detect a non-conformity during the audit, you can apply reactive actions and resolve the issue internally.
On the other hand, “external” compliance refers to compliance with state standards and other regulations. When a non-compliance is detected, it will most likely have serious (and public) consequences for the company. For example, if a company is not GDPR compliant, it risks paying a fine of up to €20 million. Not to mention the consequences of Volkswagen’s non-compliance when it comes to pollutant emissions.
Therefore,compliance management is not only important for the company to achieve the goals set internally, but also to manage its reputation in the market.
How does technology transform asset management compliance?
Using an asset management software or intelligent maintenance management platform dramatically changes the way you monitor plan compliance.
Digitise information
Without data, you can’t do good asset management. That’s why it’s important to digitise information. Plus, if you record some of that data automatically, with the help of sensors, you reduce human error.
Automate audits
Audits are very effective in detecting non-conformities and applying reactive measures. With asset management software, you can set up automatic audits and prevent errors from being perpetuated over time.
Asset visibility
Advanced asset management software provides visibility of assets, which benefits both managers and technicians.
Asset management tools can be used to track equipment life cycles, anticipate maintenance requirements and manage inventory effectively.
Compliance monitoring & surveillance
You can also use data to generate reports and ensure that you are complying with all requirements. Without an organised system to keep records and documents, it is very easy to evade protocols.
Supplier management
Through various integrations, you can bring together all the information from different suppliers on a single platform. This facilitates the risk management associated with outsourcing services.
Predictive and preventive maintenance
Timely maintenance is considerably more cost-effective than waiting until units break down.
This is correct for both newer and older assets. For instance, a study by Istanbul University found that preventive and predictive maintenance vastly reduced breakdown rates in older equipment.
Managing assets from a central platform
Managing all assets from a central platform is crucial for optimising maintenance operations, ensuring compliance, and improving overall control.
Infraspeak is the ideal solution as an Intelligent Maintenance Management Platform (IMMP) with a user-friendly interface that streamlines asset management across any facility.
Its adaptability, integration capabilities, and artificial intelligence-driven insights empower all kinds of organisations to make data-driven decisions about their assets. That leads to enhanced safety, performance, and compliance with laws and regulations.
To learn more about how Infraspeak can augment your asset management responsibilities, schedule a demo here.
