Total control: Plant & Equipment management
Discover how IFS Enterprise Asset Management (EAM) provides centralized visibility to manage leased, hired, and owned plant and equipment inventories, averting costly idle resources.
Total control: Plant & Equipment management
Controlling project-based leased, hired or owned Plant & Equipment inventories is a critical challenge for modern firms. Estimates suggest between 90-95% of all plant and equipment machinery used in construction and engineering projects is leased or hired. Whilst this business model provides attractive financial advantages to contractors, it can result in unnecessary costs if assets become unavailable, underutilised or idle, surplus to requirements, damaged, or stolen.
The cost savings and flexibility afforded through renting or leasing equipment versus the high capital cost of buying are compelling. Rental agreements allow contractors to access resources without high depreciation costs, maintenance obligations and insurance expenses.
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A unified platform for data powered decision-making
Data powered decision-making with IFS Enterprise Asset Management (EAM), part of IFS Cloud, helps by planning and scheduling usage, highlighting equipment that is running idle, and understanding where, when and how equipment is run. By replacing disparate systems with a single platform, IFS Cloud offers both hirers and asset owners alike the visibility to plan, manage and maintain fleets, maximising profitability and minimising downtime.
Unlike traditional ERP software, EAM capabilities in IFS Cloud deliver a combined project lifecycle and asset management solution—a truly ‘cradle to grave’ approach rarely found in one single solution. The solution also embeds the ability to manage changes whilst ensuring margins are not reduced.
Business benefits: IFS Cloud Enterprise Asset Management
Optimize asset availability: Manage and visualise all aspects of a lifecycle. Ensure assets or component parts are available where and when they are needed for maximum production and resource utilisation.
Ensure asset reliability: Manage the health and performance of your assets. Boost asset uptime, reduce costly equipment failures and unplanned downtime related to assets and plan for decommissioning.
Drive asset utilization: Improve utilisation by understanding asset usage and availability to positively impact productivity and raise profit margins.
Improve customer satisfaction: Meet deadlines at each stage of the lifecycle to reduce downtime, fulfil customer expectations and remain profitable.
Managing Complexity and Diverse Assets
The range of plant and equipment typically hired and leased is diverse and evolving to embrace new technologies, such as electric and autonomous options. Managing these mixed asset fleets spans several dimensions:
Location: Assets may be deployed remotely across multiple project sites and shared between concurrent projects.
Maintenance: Assets require routine or condition-based maintenance to prevent costly breakdowns.
Labour: Equipment may require the hire of skilled third-party or subcontract labour to operate it.
Security: Plant and equipment is subject to damage and theft; for example, the Australian construction industry loses $1.4 billion a year in damaged tooling and equipment.
Conclusion
In summary, preventing revenue and value leakage, and optimising the use of hired and leased plant and equipment, can only be achieved by removing information siloes between departments, assets and resources. By informing quotation accuracy, scope management, revenue management and resource management, EAM capabilities in IFS Cloud maximise project value whilst ensuring on time, on budget delivery.
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