Asset register

Is record of all physical fixed asset in the company exceeding a certain value e,g machine, plant and
vehicle.

It is required for:

Asset control/ asset management

Allocation expenditure

Maintenance history

Forms of main parts of CMMS

Asset hierarchy

Asset need to be placed or grouped logically to accumulate expenditure and maintenance history by
make, type of item. This will make the reporting possible when it is required to obtain the
expenditure for asset or item for part analysis

Hierarchy has 3 levels

Cost centre- this is where all the cost will be attached

Units- is composed items that are collectively perform the factions

Items- these are components that are independent wheatear electrical or mechanical.

Asset numbering

Is the method of developing the asset identification, this is by means of using unique numbering
system attached to the asset.

How is it done?

 Vehicle use registration

 Fixed asset: generate the number set to easy identify the asset
 New asset numbers are generated by using bar code system. That enhance the asset
tracking
 The vehicle registration numbers are displayed on the number plate and licence disk
 The engine and some other components have unique stamped numbers
 The number take can be affixed by plate and reverts
 Bar codes can be affixed by glue strips ideal for small asset
Numbering system

 Numerical numbers
 Alphabets
 Alpha numbers
 Any numbering

Numbering techniques

 Tags
 Rivets
 Weld
 paint
 punch

Life cycle costing

Is a process of estimating and assessing the cost of ownership, operation an maintenance of an item
equipment during it projected

It is used to compare alternating equipment design or purchase in order to maintain the most
appropriate option

LCC= C + M + E +R –S

 capital cost of the project includes the capital expense of equipment, the system design,
engineering and installation
 Maintenance is the sum of the yearly scheduled operation and maintenance costing
 Energy costing of the project is sum of the yearly fuel costing
 Replacement costing of the system is the sum of the repair and replaced equipment
anticipated in the life cycle system
 Salvage costing is the net worth of its final year costing of the life cycle costing

Direct cost

 Labour hours
 Out work
 Materials or spares

Indirect costing

 Supervision
 Hire premises
 Electricity or water
 Depreciation
 administration
sossources of general revenue

Sources of general revenue

 same company
 in the same group of the company
 outside group
 across company boarders

Methods of generating the revenue

 do consulting work
 do monthly condition monitoring for smaller cost
 use spare capacity
 spacing of machine

Inventory management

Is extremely dependent on the properly managed stock of maintenance spare and materials

Basic characteristics of inventory management

 economic parameter- the inventory management problem is primarily

- Acquisition cost K this involves the fixed charge associated with a placement of order

- holding cost h per unity time this includes the interest invested capital, storage cost, handling cost
and depreciation

- shortage cost per unity time this is the pernalty incurred or exposed as a result of running out of
cost when the spare is needed

 demands- this is the rate where the stock items are required for maintenance work
 ordering cycle- this is the time between successive placement of orders, which includes:
- continuously review the inventory level is updated until a certain lower level is reached ,the
new order is then placed and this is called a two bin system
- periodic review- orders are placed in a regular intervals
 leading time- the time between placing of order and delivary’

ABC analysis

is the technique used to decrease the workload without materially affecting the cost of stockholding.

Classification of stock into three groups bases on values

A item- those item with high value (price*quantity) but which constitute or make up a small
proportion of stock Items. Typically A item category includes 10 to 15% of stock items but contribute
70 to 75% of purchased values. For these items the tight control will be exercised with regular stock
review. The objective of this is to keep the investments for these Items at an absolute minimum.

B- item: Those items with medium stock purchased values and moderately law number of
commodities. 25 to 35% of items fall in this category at a cost of 15 to 20% of stockholding. Normal
the inventory control with good records and regular attention should suffice in this category

c- items: the remaining items ( those items with low values and high volumes) fall in this category.
They constitute 50 to 65% of stock values at a cost of 5% of total purchased values. For such items
sample controls are necessary. It is a common practice to establish the simple procedure for such
items which can be administrated by clerical employees.

Failure- a loss of function under state conditions

Failure mode- the specific manner or way in which the failure occurs in terms of failure state of the
item function under investigations

Backlog

 be used to arrive at an acceptable level backlog that can be used as a standard comparison
purposes
 backlog must be reported monthly and immediately and effective steps must be taken if it
increase above the accaptble level
 it should be effective and result in the relative low and suitable level of backlog