The maintenance of fixed assets is a type of periodic maintenance where the equipment that the company acquires to be used in the long term (that is, for more than one year) is attended to. Companies can keep a record of the conservation and maintenance of fixed assets by following simple steps such:
– Update the file containing the asset information, entering the date of new repair services. Manuals like Datalogic Falcon X3+ Mobile Computer Manual are very important.
– Record all the information related to the type of failure or maintenance task performed.
To learn more about what asset maintenance is and how to design a schedule, take a few minutes to read this article.
What is Fixed Asset Maintenance?
The first step to understanding the concept of fixed asset maintenance is to know what fixed assets mean. The term fixed assets refers to possessions that a company holds on to for the long term with the intention of generating income. These assets cannot be easily liquidated, and are expected to bring money to the business for a long time before the end of their useful life. Seen in this way, the maintenance of fixed assets is the set of preventive, predictive, corrective, or mixed activities that ensure the operation of a company’s fixed assets (such as trucks and infrastructure) for the time that it is expected to have them.
Characteristics of the Conservation and Maintenance of Fixed Assets
– Fixed assets often represent a large percentage of the total value of companies.
– Ensuring its maximum efficiency is much more important to the organization than investing time and money in disposable assets.
– The maintenance of fixed assets directly influences productivity and profitability.
– By comparing the value of an asset with the costs of repair and maintenance, a company can determine whether the money invested exceeds the money the asset provides. In this context, information such as Atlas Copco GA 55 Parts List and Manual can’t be ignored.
– The conservation and maintenance of fixed assets not only includes the costs of repair or preventive tasks to equipment and machinery, but also the costs of renovating a building.
Types of Maintenance of Fixed Assets
The conservation and maintenance of fixed assets are normally carried out on the following categories of acquired goods:
– Machinery. Transport systems, elevators, rollers, printing machines, boilers, fans, etc.
– Tools. Hammers, screwdrivers, wrenches, etc.
– Equipment. Tractors, forklifts, material forklifts, excavators, dump trucks, etc.
– Buildings and plants. Factories, offices, departmental areas, canteens, etc.
– Land. Areas surrounding the company’s facilities, such as roads and parking lots.
– Furniture. Chairs, tables, beds (in the case of hotels and hospitals), desks, etc.
Formula to Determine Maintenance Costs of Fixed Assets
As we said before, a company can use fixed asset maintenance cost calculations to tell when a piece of equipment is no longer profitable.
This is achieved by applying the formula:
Repair Costs + Maintenance Costs
Total Value of Fixed Assets
Caution: A too-low rate of maintenance and repair of assets could indicate that the company is not investing enough in the maintenance of its machinery and that the equipment a) Is in poor condition; b) Soon will be.
In other words, it is about dividing the total cost of repairs and maintenance of fixed assets by the total value of the assets that are being repaired or maintained. A high repair and maintenance ratio may be a bad sign at first glance, but a low number doesn’t mean the company is doing things right either.
The key is to interpret the result by looking at the type of assets that are in inventory, and honestly asking whether the organization’s assets are receiving the recommended preventative fixed asset maintenance.
To design maintenance programs for fixed assets, you will need professional Maintenance Software. Without one, you will not be able to keep an orderly and automatic record of the number of times an asset has undergone repair or other conservation tasks. Also, you need special software to monitor multiple costs at the same time and do accounting analysis.
– Fixed asset maintenance deals with assets that the business acquires to generate long-term income.
– Fixed assets include machinery, buildings, equipment, etc.
– To keep track of the upkeep and maintenance of fixed assets, companies use professional Maintenance Software, where data can be automatically stored, processed, and updated.