Integration finance and asset management

When is it useful for an organization to replace or overhaul an asset? The financial department uses a certain way of debiting. Operations has changing needs of capacity or quality that the asset can deliver. More efficient models of the asset reach the market through innovation. Wear and tear increases the maintenance costs.

A good asset management system connects the aforementioned aspects in processes. ISO 55000 even requires so. The processes of different departments, including finance, are integrated. This allows you to make decisions and take all relevant aspects into account.

Good integration with finance can result in various practical things:

• The maintenance department uses the same value of an asset as the financial department;
• Investment decisions are explicitly made based on life cycle costs;
• The expected lifespan of assets is harmonized over different departments. Technical lifespan, overhaul, required maintenance, innovations, expected production volumes, market development, migrating legislation and regulations and a changing environment are examples of matters that are taken into account;

Risk management considers both financial risks as other risks related to the organizational objectives.