What Every Shop Floor Leader Should Know About Manufacturing Asset Management

"The project ground to a halt" — no one wants to hear that. Yet, it's a phrase we all know too well in business. It's a way of saying that progress has come to a standstill, but it actually comes from the image of a machine slowly stopping when its gears get clogged. This scenario is all too real in industrial settings, but the good news is that it can be avoided with efficient manufacturing asset management.

What is Asset Management in Manufacturing?

In short, asset management involves keeping track of the equipment and tools that manufacturers use to make the goods they sell to customers. The assets can include everything from large drill presses and conveyor belts to tiny crucial parts such as bearings, springs, and those infamous gears that could cause production to grind to a halt. Manufacturing asset management is a critical focus for shop floor managers because it directly impacts the bottom line.

Say, for example, a company specializes in additive manufacturing custom components for an aerospace customer. They have invested in an industrial 3D printer, and a purchase order has come in, but the floor manager discovers they don't have enough thermoplastic material to get the job done. Now the order can't be fulfilled, even though there's staff, a 3D printer, and an order from the customer.

Key Aspects of Manufacturing Asset Management

Effective asset management isn't just about tracking machines and inventory — it keeps the business moving forward and helps manufacturers stay competitive. While there's constant pressure to innovate and keep up with new tech, many manufacturers are also juggling the challenge of maintaining older equipment and, of course, the ongoing need to get products out the door as efficiently as possible. It's a balancing act, but the right approach to asset management can be a game changer.

Maintenance

Keeping equipment and machinery in good working order is essential, especially when you're relying on machines with longevity. An industrial-grade milling machine, for example, can cost tens or even hundreds of thousands of dollars, and manufacturing executives expect their investments to last decades. Much like maintaining a car, taking care of factory equipment can make a huge difference in performance and equipment lifespan. There are a few different ways to approach maintenance.

Reactive Maintenance

This style of maintenance is all about short-term results. It involves putting out metaphorical fires — waiting until something fails and then fixing it. It's a bit like driving a car until you run out of gas. Sure, you might make it to your appointment on time, but later, you're stranded on the side of a highway on the way home. Reactive maintenance in a factory can get really expensive, especially when unexpected repairs bring the whole production line to a halt. Those unplanned fixes not only cost money but can also cause major delays.

Preventative Maintenance

This approach is definitely a step in the right direction. With scheduled maintenance — like cleaning machines or lubricating chains on the first Monday of every month — you're taking a proactive approach to prevent breakdowns and minimize disruptions. Regular maintenance helps keep equipment in good shape, saving you from bigger headaches down the road.

That said, preventive maintenance isn't perfect, and it can be a bit of a guessing game. For example, staff might be spending time maintaining equipment long before it's needed, which means they're not using their time as efficiently as they could be, like focusing on actual production. On the flip side, you might miss the fact that a machine is aging and needs more attention than before, which could lead to unexpected breakdowns and the stress of last-minute repairs.

Predictive Maintenance

As the Internet of Things (IoT) continues to grow, more manufacturers are jumping on the smart factory bandwagon, where data is at the heart of everything they do. Predictive maintenance software is a big part of this shift, as it can analyze patterns and spot any anomalies in the data. For example, if a CNC machine is starting to show signs of trouble, vibration sensors can catch the issue before it affects the quality of the parts being produced. It might detect that a bearing is wearing out and, by looking at past data, predict that the machine could fail during the next 100 hours of operation. With this kind of insight, a floor manager can plan ahead — scheduling maintenance during off hours, for instance — so the repair doesn't disrupt the production line.

Asset Lifecycle Management

Although we've been focused on maintenance, asset management also involves the entire lifecycle of machines and their related parts and supplies. IBM explains that many organizations are turning toward digital twin technology to help provide insight into all lifecycle stages. This involves bringing together all the data from equipment sensors to provide a virtual representation of the physical world. Whether you have adopted digital twin technology or not, you can break down asset lifecycle management into four stages:

• Acquisition is all about making smart decisions — figuring out what you need, weighing the upfront costs against the expected lifespan, and balancing price with reliability.
• Then there's operation, which is when the equipment is actually doing its job and keeping everything running.
• Maintenance comes next, and as we said earlier, it involves keeping things in good shape to avoid major problems down the line.
• Decommissioning is the final stage, and it should be proactive. You don't want to wait until a piece of equipment completely fails to replace it. IoT and preventive maintenance software can help you forecast and track frequent issues, so you can make the call to upgrade or replace equipment before things go south.

And, of course, inventory and supply chain management plays a huge role in making sure everything runs effectively across all these stages. It's important to have the right parts at the right time to keep everything moving without delays.

There is an important distinction between inventory management, which focuses on keeping track of the components and items that a company sells to customers, and inventory in the context of asset management. In this case, we're talking about managing the flow of the spare parts and materials that manufacturers use to produce goods and services, such as screws, wheels, and other components that need regular replacing.

Let's say a manufacturer relies on a specific motor for a key piece of machinery, and the supplier's lead time for that motor is six weeks. If that motor fails, production comes to a halt, and that could throw off the entire schedule. While predictive maintenance can help managers understand when to order a replacement for a motor that's so critical to the business, it might make sense to keep a backup part on hand — just as insurance against any unexpected breakdowns. The key here is keeping track of this type of inventory.

Technology in Asset Management

So, how are manufacturers keeping track of all these moving parts? Some are still using traditional methods, like manually counting inventory or jotting down maintenance tasks and entering everything into spreadsheets. The problem is that this approach comes with a lot of challenges. For one, it relies heavily on human input, which is becoming harder to manage as manufacturers face a labor shortage of nearly 2 million unfulfilled jobs. Put simply, there aren't enough people to waste time on manual tracking methods. Plus, humans are prone to errors such as typos, delays, and misinterpretation.

That's why some manufacturers are turning toward software solutions. For example, a computerized maintenance management system (CMMS) can help teams track their maintenance records, generate reports, and comply with regulatory requirements. Plus, IoT and automated asset management tools can capture real-time data directly from the machines. Enterprise Asset Management (EAM) software can integrate data from multiple sources and provide a way for manufacturers to take a proactive, strategic approach that just isn't possible with outdated tracking tools.

Manual methods are more like an archive that requires interpretation, while technology-based approaches offer a more dynamic and automated way to help manufacturers gain an edge over their competitors. Take this scenario: One manufacturer might have a team spending hours cross-referencing reports and fixing discrepancies, while their competitor just down the street has an automated system that captures data in real time and generates reports on the fly. The difference? The competitor is saving time, reducing errors, and ultimately staying ahead of the game.

Common Challenges With Asset Management

Managing assets in manufacturing isn't without its challenges, but the right tools and strategies can help you overcome them.

Upfront Costs

One of the big hurdles when thinking about improving asset management in manufacturing is the hesitation over the upfront cost of new tech. This is a fair callout, but it doesn't mean you are stuck with old-school methods forever. One smart option is to start small — maybe with a free trial or a pilot program — that lets you test out a new approach without fully committing right away. For example, you could try implementing predictive maintenance on just one type of equipment instead of every machine on the shop floor. By tracking things like downtime and measuring cost savings or productivity gains, you can decide if it's time to dive into more tech-driven solutions. Imagine realizing, for instance, that you got 100 orders out the door during a period when that same machine would've been down for repairs under your usual system.

You can also work on building a business case based on the potential outcomes, such as reducing unplanned downtime, decreasing maintenance costs, and extending equipment lifespan. There are also longer-term grains to consider, such as reducing carrying costs for backup inventory, or eliminating rush fees that can come with emergency part purchases (not to mention unfulfilled orders and unhappy customers).

Integration Hurdles

Another potential challenge is data silos or integration issues related to legacy systems. While this can be an initial barrier, middleware can help connect old and new systems, and cloud computing has greatly reduced integration issues in recent years. Again, you could start small and make incremental improvements. Start with the easiest system, such as your newest machinery (which is likely to be more connected and potentially equipped with sensors), or start with your most critical systems. Modern asset management doesn't have to be all or nothing.

Low-code tools like Quickbase for manufacturing can also help facilitate integration with tools you already use, such as ERP (enterprise resource planning) software, CMMs, and IoT platforms.

Learning Curves

Another big challenge is the fear of change or resistance to adopting new technology. One way to tackle this is by getting input early on and involving the teams who will be directly impacted by the change. Make sure they're part of the planning process from the start. Offering plenty of training, celebrating those early wins, and communicating the benefits right away — especially the ones that solve common pain points (like getting rid of a task everyone hates) — can help ease the transition. The more you highlight how the new system makes life easier, the more likely your team will get on board.

Establishing KPIs

Key performance indicators (KPIs) are helpful for measuring and improving equipment performance, and they can also help you tackle some of the challenges we've talked about — like proving the value of new technology. For example, Mean Time to Repair (MTTR) measures how long it takes to fix equipment on average. By tracking this, you can spot patterns and potential issues that might be slowing down production. Mean Time Between Failures (MTBF) is another key metric — it shows how reliable your equipment is and can help you gauge the success of new strategies like predictive maintenance.

Then there's inventory turnover, which measures how efficiently spare parts and materials are used. You don't want to end up with a ton of extra stock that ties up your cash when it's not needed, but you also don't want to be waiting on parts when something breaks. It's all about finding that balance. Like any KPI, set benchmarks for yourself and aim to improve year after year.

Nailing Production Targets

If asset management is handled well, field service leaders can ensure equipment is running smoothly so they can hit production targets while keeping their teams safe, efficient, and compliant with industry regulations.

With strategic, proactive asset management, you can spot potential issues before they cause big problems, which helps minimize unplanned downtime and keep production flowing. This means fewer delays, less stress, and a more predictable work environment. Plus, it creates a foundation for sustainable growth. As your business scales, having strong asset management in place ensures that you're not just keeping up with demand but staying ahead of it.