5 Biggest Risks to Effective
Asset Management
© Life Cycle Engineering

There are five common risks that
contribute to an organization’s
failure to optimally manage
their assets.
© Life Cycle Engineering

1. Not Knowing What You Have
© Life Cycle Engineering

While it might seem intuitively obvious,
many organizations either don’t appreciate
the need to know with a high level of
confidence the assets that they have, or they
choose not to take the time to do so.
© Life Cycle Engineering

2. Over or Under-Maintenance
© Life Cycle Engineering

The typical organization that is accustomed
to over-maintaining its assets will most
likely be performing intrusive maintenance
tasks more frequently, reducing uptime.
© Life Cycle Engineering

The typical organization that is
accustomed to under-maintaining its
assets often views maintenance as a
business expense open to cutting like
any other in order to maximize profits.
© Life Cycle Engineering

With these pressures, maintenance
departments are constantly struggling
with how to balance cost with the
performance requirements for the assets
such as reliability and uptime.
© Life Cycle Engineering

3. Improper Operation
© Life Cycle Engineering

The best guidance we can give
with respect to this issue is to:
1) find out how your assets
should be run; 2) understand
the effects of operating outside
of design ranges; and 3) if you
can’t operate within the ranges,
understand the risks or mitigate
the risk.
© Life Cycle Engineering

4. Improper Risk Management
© Life Cycle Engineering

The basic tenet of best practices for
asset management dictates that a plan
is implemented that not only manages
the operation and maintenance of an
organization’s assets but also manages
the risks associated with the ownership
and use of the assets.
© Life Cycle Engineering

5. Sub-Optimized Asset
Management Systems
© Life Cycle Engineering

This generally stems from
shortcuts taken during the
EAM implementation. The
way to fully address this
issue is to either do it right
the first time or pay more to
do it later.
© Life Cycle Engineering

True excellence in asset
management performance lies
not only in avoiding the pitfalls
but also in turning every
opportunity to fail into an
opportunity to excel.
© Life Cycle Engineering

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For more resources and to learn more about Life Cycle Engineering visit: www.LCE.com

About Life Cycle Engineering
Life Cycle Engineering (LCE) provides consulting, engineering, applied technology and
education solutions that deliver lasting results for private industry, the Department of Defense
and other government organizations. The quality, expertise and dedication of our employees
enable Life Cycle Engineering to serve as a trusted resource that helps people and
organizations to achieve their full potential. Founded in 1976, LCE is headquartered in
Charleston, South Carolina with offices across North America and experience around the globe.
Got a specific problem you’re trying to solve?
Chances are that we have helped someone solve a similar problem. Email info@LCE.com
and we’ll explain how we helped. Or visit our website www.LCE.com.
The Life Cycle Institute’s Risk-Based Asset Management course steps
you through the fundamental building blocks to create a strategy for
implementing a successful asset management program from cradle to
grave. Learn more.
Life Cycle Engineering's experts have written serveral articles on
Asset Management. Learn more.
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