Underperforming assets can have negative impacts on the overall health and success of a company and drive profits into the ground. Asset downtime can disrupt production and lead to lower customer satisfaction. Also, an ineffective preventive maintenance program can increase the running cost of assets and equipment. This, in turn, can force companies to make untimely investments in new equipment that could have been avoided or at least delayed. Another impact of underperforming assets and inadequate asset management is that it can expose companies to safety violations and even cause the death of employees.
While executives might look at other areas that can drag down a company’s profitability, asset performance management is often overlooked. What many executives fail to realize is that assets running at peak performance increase sales and therefore increase revenue and profitability.