Why Asset Hierarchy Order is Important

Asset hierarchy structure is often overlooked, unfortunately, but when utilized correctly, it can significantly improve the organization and accuracy of maintaining and managing assets and equipmenCapturet.  When the hierarchy is not structured properly, it is much more difficult to track assets and manage their maintenance. This can often lead to unnecessary use of time and money for the company, so it is important to have the right hierarchy order to best maintain the assets.

ReliablePlant.com’s article “Is Your Asset Hierarchy Out of Order?” points out some common problems that occur when dealing with asset hierarchy structure.  It also explains why asset hierarchy order is so important for maintenance management.  We’ve included some of the highlights from the article in this blog post, or you can read the full article here.

How is the information being managed and what is being tracked?

In order to keep good records of which assets really exist, Management of Controls (MOC) is necessary.  If these are not completed, the CMMS will read lots of retired or inactive equipment still marked as active.

Conducting random audits of information in the system is advised in order to get accurate equipment information.  The MOC guidelines should specify engineering controls to ensure the equipment assigned maintenance actually exists and is active.  This will also verify that equipment information is correct and matches what is in the CMMS.  The more audits that are conducted, the more accurate asset information you will have.

When was the last time your hierarchy was validated or optimized?

In order to keep good records of which assets really exist, Management of Controls (MOC) is necessary. If these are not completed, the CMMS will read lots of retired or inactive equipment still marked as active.

Conducting random audits of information in the system is advised in order to get accurate equipment information. The MOC guidelines should specify engineering controls to ensure the equipment assigned maintenance actually exists and is active. This will also verify that equipment information is correct and matches what is in the CMMS. The more audits that are conducted, the more accurate asset information you will have.

Is your CMMS hierarchy structured properly?

When CMMS hierarchy is not passetroperly structured, it causes the inability of the company to track equipment history.  This can lead to unreliable preventive maintenance and corrective work history as well as incorrect maintenance expenses and budget reports for managers and supervisors.  Equipment maintenance may also be scheduled improperly or not scheduled for the equipment that needs it.  A structured, tiered hierarchy allows you to assign proper divisions, systems, parent equipment, and parts for each asset.

Once your asset hierarchy information is in order, your engineering and maintenance teams will be able to find correct history so they can schedule and perform applicable maintenance.  More accurate data will shift the focus to continuous improvement activities that yield performance gains.

For more information about what asset hierarchical structures are and why they’re important for your organization, watch the webinar “Understanding Hierarchical Structures in CMMS.”

2018-06-28T09:30:51+00:00February 3, 2017|Best Practices, eMaint Blog Posts|