A Strategic Asset Management Model: Determination of Corporate Strategy for Physical Assets

Companies have begun to recognize the untapped strategic potential of their physical assets as far as the competitiveness, flexibility, productivity and strategic risks of the enterprises are concerned. The corporate level Asset Management is clearly strategic in nature and focuses on the long term perspective. Corporate asset strategy is based on corporate business objectives and three main analyses: company, market and technology. These analyses help to determine the future requirements for physical assets. The tool introduced in this paper utilises both quantitative and qualitative data in order to determine requirements in relation to the assets' capability, capacity, flexibility and effectiveness. Once the requirements are compared to the existing assets and their performance potential, a future action plan may be developed as the basis for the corporate level asset strategy taking into account various asset management options available. Corporate Asset Strategy has a direct influence on the maintenance strategy of various plants.