Asset Management + Benefits – Costs = ?
During this module while we were working on creating a plan for a company about its asset management, the financial aspects were at the back of our minds. Of course we knew that we were dealing with a SME, thus we didn't consider anything extravagant. It is true that some things in improving AM may cost nothing in terms of money.
Nevertheless, it is natural that some suggestions will require spending certain amounts of money. But on the other hand, it is not advisable to companies to spend more money on things that cannot afford. So, can a company do both? Improve significantly its current practices and spend as little money is possible?
To my mind, this in not always easy. A certain budget needs to be allocated for improving the asset management activities, but it needs to be flexible. Because, if companies want to improve their AM, but they have only financial criteria during their decision-making process, instead of the potential long-term benefits, then excellence seems impossible.