Asset management relies on a systematic approach to the care and organization of a company’s resources. The basic idea is simple. If an asset remains in production for longer than expected, then the company does not have to replace it as often, saving money over the course of its life. Likewise, if the asset is in use and functioning properly, the company is generating income. Production slams to a halt the moment a critical piece of equipment breaks down. This means forfeiting sales and potentially making customers unhappy. Maintenance typically prolongs the life of an asset, but it comes with its own costs.

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