Glossary
What is Asset Management?
Asset management is the systematic practice of managing physical assets over their lifecycle to achieve the best value—balancing cost, risk and performance. It includes planning, acquisition, operation, maintenance and disposal. Maintenance is a core part of asset management.
What it means
Asset management is broader than maintenance alone; it covers the full lifecycle. Maintenance data (work orders, costs, failures) supports asset management decisions.
Why it matters
- Asset management spans plan, acquire, operate, maintain and dispose.
- Maintenance affects reliability, cost and useful life.
- EAM (Enterprise Asset Management) software often supports full lifecycle.
- CMMS focuses on maintenance execution; it feeds data into asset management.
Example in maintenance operations
A utility manages transmission assets: it plans investment, runs maintenance programmes, tracks failures and costs, and decides when to replace or refurbish based on lifecycle analysis.
Related concepts
Frequently asked questions
What is the difference between asset management and CMMS?
CMMS focuses on planning and executing maintenance work (work orders, PM, history). Asset management covers the full lifecycle including acquisition and disposal; it uses maintenance data for decisions.
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