28 May 2024 16 min


Last update 28 MAY 2024

The Importance of Asset Management in Today's Manufacturing Landscape

Navigine - The Importance of Asset Management in Today's Manufacturing Landscape
28 May 2024 16 min


Last update 28 MAY 2024

Img Source - Dmytro Novitskyi

Effective manufacturing asset management is decisive for enterprises aiming to maintain competitive advantages. Faced with the utilization of complex and costly equipment, constantly growing production demands, and the need to optimize costs, manufacturers need to prioritize this area in their daily operations. Skillful asset management ensures uninterrupted organization operation, allows for quality process optimization, and leads to increased profitability.

What is a Tracking-based Asset Management System?

Asset management in the manufacturing industry is based on location identification and object tracking. Special sensors (tags, labels, beacons) are placed in facilities or on tracked equipment. They periodically emit signals, captured by readers, processed on servers, and delivered as ready information to users' PCs or smartphones. Various technologies can be utilized for system implementation, the most popular being Bluetooth® Low Energy, Wi-Fi and UWB.

Not all modern manufacturers are familiar with manufacturing asset management hence they do not utilize such systems in their operations. As a result, company executives regularly face numerous issues, such as untimely preventive equipment maintenance, frequent equipment losses and theft, and a high rate of accidents in production.

Integrating the system into the infrastructure minimizes the likelihood of these issues. The system simplifies asset management and performs several vital functions:

  • Precise indoor positioning;
  • Tracking equipment movements across the territory;
  • Geofencing, access control to specific areas;
  • Digital mapping of production workshops and buildings with route planning for vehicle movement;
  • Warning signals and message distribution in case of emergencies;
  • Collection of detailed analytics on asset movement and operation.

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Asset tracking plays a crucial role in any industrial sector. The system can be equally effectively used in machinery manufacturing plants, pharmaceutical production, food processing, etc. The platform is versatile in application and plays a significant role in business development.

Indoor Object Positioning

Real-time asset tracking

What Types of Assets are Important to Track in Enterprises?

With asset management software, enterprises can track any valuable assets. The most important assets for any organization include:

  • Vehicle – represented by loading and unloading hardware, trucks, trolleys and various types of heavy mobile machinery.
  • Equipment – includes machines, production lines, generators and steam engines.
  • Tools – constitute a broad category of assets, including regulatory and measurement devices, laboratory equipment and production inventory.

Key Benefits of Effective Asset Management in Manufacturing Industry

Asset management in the manufacturing industry offers companies vast opportunities to optimize production processes. This system enhances competitiveness and operational efficiency ensuring personal safety, reducing costs, and improving the quality of finished products.

Enhanced Efficiency of Production Operations

Asset management allows enterprise leaders to optimize production processes, promptly identifying and addressing operational bottlenecks. Asset performance monitoring, coupled with predictive analytics, proficient servicing, and hardware monitoring, minimizes unplanned downtimes, thus enhancing the efficiency and profitability of production operations.

Ensuring Employee Safety

Manufacturing sector personnel must deal with equipment and heavy machinery daily. The lack of proper control over machine operations can lead to safety rule violations, non-compliance with regulations, and workplace accidents. Asset management helps to avoid these issues. Implementing the system makes the workplace safer and opens up the following opportunities:

  • Reducing the number of accidents;
  • Increasing the visibility of assets and personnel;
  • Instant alerts about emergencies, potential vehicle collisions, or pedestrian accidents.

Monitoring System for Industrial Equipment and Personnel by Navigine

Monitoring System for Industrial Equipment and Personnel by Navigine

Cost Savings and Return on Investment (ROI)

Effective asset management enables leadership to optimize asset utilization, reducing unnecessary expenses associated with repairs, replacements, or maintenance. The system facilitates the swift identification of underutilized equipment, resource reallocation, and proactive maintenance, extending machine lifespans. Rational asset management also decreases the likelihood of costly equipment breakdowns, ensuring significant cost savings for the enterprise and fostering a more efficient ROI.

Ensuring Competitiveness and Adaptability

Utilizing asset management software makes a company more adaptable, flexible, and responsive to market changes. Accurate hardware operation data empowers leaders to make informed fleet and equipment maintenance decisions. The ability to swiftly respond to market demands ensures high competitiveness, enabling the company to remain resilient even in challenging economic circumstances.

Improved Product Quality

Proper asset management ensures that all equipment is in optimal working condition. Identifying potential real-time hardware issues can minimize manufactured product defects resulting from machine breakdowns or malfunctions. Consequently, the enterprise consistently delivers high-quality goods, attracting more customers and fostering their loyalty to the company.

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Best Practices for Efficient Manufacturing Asset Management

Let's delve into some exemplary practices for enterprises that aid in enhancing the efficiency of factory asset management:

  • Utilization of asset tracking and maintenance planning systems: Through asset management systems, enterprise personnel can create schedules for preventive equipment maintenance. This ensures that machines and hardware undergo regular and timely maintenance, thereby extending their service life and minimizing the risk of breakdowns. A digital tracking platform from Navigine can be utilized to implement this strategy.
  • Risk-oriented approach to asset management: Employing such a platform assists organizations in adhering to production regulatory requirements. Asset tracking combined with regular inspections enables the creation of a safe working environment and minimizes the risks of emergencies.
  • Data-driven decision-making: Enterprises can leverage the system's analytics capabilities to obtain data on usage, performance, and equipment efficiency. Insights into Key Performance Indicators (KPIs) help identify trends and take measures to enhance equipment capabilities.

Future Trends in Manufacturing Asset Management

The development of IoT and AI technologies in manufacturing asset management presents vast opportunities for enterprises to improve their operations and enhance competitiveness. With the rapid advancement of the Internet of Things (IoT) and Artificial Intelligence (AI) technologies, future trends in manufacturing asset management are set to transform. Implementing IoT in manufacturing processes allows for collecting vast amounts of real-time data, facilitating prompt, informed decision-making, process optimization, and preventing operational failures.

Many companies are also beginning to adopt AI-based monitoring and forecasting systems, as potential benefits include increased productivity, reduced equipment maintenance and repair costs, minimized downtime, and improved product quality. However, there are potential risks associated with adopting new technologies, such as cybersecurity threats and the need for personnel training. Nonetheless, companies can significantly enhance their manufacturing operations and ensure business stability and growth with a reasonable approach and careful resolution companies.

Overall, the prospects of utilizing IoT and AI in managing manufacturing assets promise to be revolutionary, fostering the creation of more flexible, efficient, and competitive manufacturing systems.

Therefore, asset management plays a crucial role in maintaining the competitiveness of an enterprise. The ability to control operations facilitates manufacturers in addressing any day-to-day challenges, including those related to improper inventory management or cybersecurity threats. By implementing a tracking system-based platform, significant cost savings on asset utilization can be achieved, extending equipment lifecycles and maximizing return on investments.

Navigine is ready to offer you efficient asset management software for manufacturing. Our meticulously designed indoor tracking platform will assist in monitoring hardware, machinery, and other valuable assets in production. For more detailed information about our products, please fill out the feedback form or contact our company representatives to schedule a free online call.

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