Major Challenges for the Manufacturing Industry & How Asset Management Assist?

The manufacturing industry is one of the biggest industries across the world. The manufacturing business is one of the significant wealth-creating areas of the worldwide economy and accounts for a huge portion of the worldwide workforce to create materials required by associations across different enterprises. However, the manufacturing industry has several challenges that we have discussed below.

Challenges of Manufacturing Industries

1. Risk of Asset Theft

In the manufacturing industry, there are huge organizations and lots of employees working in multiple shifts. Checking each and every employee is an exhausting & long task. Hence, an employee can steal especially small assets.

Usage of the spreadsheet because spreadsheet usage is done manually, so you will have more chances of inaccuracy which will result in asset loss & misplacement.

Solution - Asset tracking is the process of tracking the asset location and is part of asset management. The main objective of asset tracking is to detect asset theft and loss, gain valuable business insights, and maximize operational efficiency.

Asset Tracking Management Software provides complete information on all the assets, where their exact locations are, and in what working conditions, they are in.

2. Unexpected Breakdown

When an unexpected breakdown happens it not only costs you a lot of money, but it also decreases the productivity of your organization. For some time, your workers cannot work properly because of the machine.  

Those assets which are not maintained generally ends in unexpected breakdowns, expensive repair and frequently change in parts of a machine.

Solution - Asset management software emphasis on preventive maintenance. It is also known as planned & proactive maintenance because it is scheduled in advance. This is the most popular and used practice for maintenance activity.

Preventing the potential problem is the objective of preventive maintenance activity. Through this software, you can detect any kind of potential issue.

Maintaining Inventory Levels

Inventory is considered one of the most important assets. A shortage of inventory will definitely affect business, especially in peak season. When the manufacturing of products is done continuously.

In business, it is crucial to maintain the right level of stock at the required place. However, inventory management is not only important in terms of maintaining the right stock but it also saves you overstock.

Knowing when & how to reorder, which warehouse location needs reorder. This is where things get chaotic & messed up.

Solution - With the help of Inventory tracking software, any manufacturing organization can keep precise and updated stock records. Especially those inventory & equipment that are necessary for running daily operations. It is one of the most significant jobs for any manufacturing organization.

Inventory is important for productivity. The software notifies the responsible person that inventory is low & needs refilling. It alerts about inventory stock on a regular basis.

Audits Problem

Audits are essential in order to know that all departments are following the documented system and recording each and every transaction.

Manufacturing organizations have lots of assets including machines, equipment, vehicles. Moreover, there is no proper records are maintained. The audit is performed to check the accuracy of financial statements. The objectives of a business organization and report on its operations, prevent fraudulent use.

Solution - Auditing is very important for verifying what assets your organization owns and where they're located. Auditing part plays a crucial role while calculating the taxation. The auditing software let you schedule your own audit timeframe, receive status updates on the process.

Also Read: 7 Ways to Improve Efficiency of Your Manufacturing Plant

What Is Asset Management? What Advantages Does It Provide?

Asset Management is simply a process for managing, tracking, and monitoring the company's fixed or movable assets. It helps in various ways such as in financial accounting, implementing preventive maintenance, and avoiding theft deterrence, missing assets.

It has several advantages:

1. Finding Ghost Asset

Ghost assets are either they are missing/stolen or those assets which are mentioned in your books. But physically they are not available. They occurred because of non-efficient asset management practice & both effect in taxation. However, with asset management software, you would never lose assets again.

2. Extend Life Cycle

If your asset such as machine, the vehicle performs heavy work then you might know the importance of maintenance. With Asset tracking, you get regular updates for an asset for its maintenance. As a result, life is extended to an asset.

3. Minimizing Asset/Equipment Loss

When you have all the information about an asset or equipment on your system. Then asset theft or loss chances are reduced.

4. Precise Asset Information

Tracking the asset can get you crucial information such as Who has the asset? What is the current state? Where is it located? When you have precise information, it helps you in making a better decision.

5. Save Time & Money

If a machine does not work properly that means it required maintenance and it can take a lot of time & money. As a result, it can dis-organize your workflow and lack productivity.

6. Schedule Maintenance

You get alerts & notifications for the asset maintenance which means you do not have to worry for maintenance. & no need to write it manually in the record as this asset management system does it for you.

7. Maximize Asset Efficiency

Proper maintenance of an asset not only leads to asset efficiency but also a reduced risk of sudden maintenance. The life cycle of an asset is also increased.

8. Establish Compliance

According to Investopedia, it is a set of internal policies and procedures of a company to comply with laws, rules, and regulations or to uphold the business reputation. A compliance team examines the rules set forth by government bodies and asset management assist in achieving that.

Conclusion

The manufacturing industry has a lot of assets. Asset management helps you in managing your organization's assets and their tracking.

Asset tracking and management are important as it will help a company in monitoring and managing its assets. Because it uses a systemized approach.

Also Read: Importance of Asset Tracking in Manufacturing Industry

The advantages of asset management include improvements in the productivity and efficiency of assets. It will ultimately place a business in a better position to increase their return on investment.

Overall, asset management assists in asset optimization and help in making an appropriate decision about assets.