Asset Management & Productivity
Asset management encompasses a wide range of management focus such as capacity allocation, asset purchase/lease decisions and pricing. In high-fixed-cost businesses such as manufacturing and most types of service provision, asset management is often one of the most powerful levers in determining relative profitability.
iServiceX's Experience in Asset Management
iServiceX has worked to develop asset management solutions with many clients in such high-fixed-cost environments. We strive to identify the unique economic aspects of each industry that drive allocation decisions. Using tools such as activity-based costing, relative cost position analysis and yield management models, iServiceX delivers clear recommendations and frameworks that you can use to make investment and allocation decisions going forward.
What sets our solutions apart from traditional enterprise asset management approaches is our unique ability to significantly reduce costs while simultaneously boosting performance of key physical assets
ASSET VALUE CHAIN CONFIGURATION
Value Chain configuration improves return on invested capital by building cost and efficiency advantages into plant configuration, shedding poorly utilized assets and capacity, and enhancing growth options.
To accomplish this, companies can either outsource or aggregate commodity manufacturing to create the highest value for shareholders. They can also consider moving productive capacity offshore or to other low-cost settings.
We believe the most effective networks will include strategic alliances (where the percent of volume is less than 50 percent) and joint ventures (minority equity where assets are not on books) to lower invested capital and offset weaknesses. This is often referred to as unbundling or de-assetization.
ASSET “CURRENCY” INVESTMENT MANAGEMENT
The money (currency) invested already in assets is a major value lever for many companies, especially in capital-intensive industries where typically the investment employed is renewed every 3 to 5 years. It is also often possible to improve the return or yield on minor capital, defined as equipment already in the plant, without new purchases. We look at how to improve overall equipment effectiveness using a number of levers
Major new projects such as; implementation of automated controls, installing a new assembly lines, and inventory count/flow monitoring represent an important part of capital spend and are often defining moves in the development of the total business. Experience demonstrates that we can help you achieve savings while simultaneously improving operating and maintenance costs.
Maintenance is a key factor, including increasing uptime by decreasing cleaning cycles and preventing minor stoppages. By increasing the availability and reliability of the assets, maintenance excellence in a currency-intensive environment can be a leveraged to be a competitive advantage.
In today's business environment, the bottom line is relevant to everyone in an organization—from the CEO to the plant manager. Companies are seeking new ways to manage costs and improve individual and collective performance. Our approach to asset management has strong appeal. Some typical targets for results:
Return on Assets
|Increased maintenance productivity||23%-27%|
|Improved equipment availability/reduced downtime||15%-18%|
|Reduced excess inventory||18%-22%|
|Reduced stock shortages||25%-30%|
|Increased planned maintenance||70%-75%|
|Reduced emergency work||25%-30%|
|Reduced waiting time||25%-30%|
|Reduced emergency purchasing||20%-25%|
|Received better pricing from vendors||12%-20%|
The opportunity for cost reductions for your business with iServiceX is significant and real. But, iServiceX delivers more than a return on your investment. Our long history of successful implementations helps us understand your vision of your business, the future and your success. The focus is to develop interventions that drive returns on your investment, on your assets, and on your vision. In the end, it's those returns that have the most impact on your bottom line.