Facility Management vs. Asset Management

Asset management and facilities management are two terms that people often use interchangeably. Integrating both into business practices helps to produce a more effective maintenance operation. However, the two management processes hold key differences. This article will dive into those distinctions to help you make more informed decisions regarding your organization’s facilities management practices.

What is Facility Management?

Facilities management involves using tools to manage assets, services, and practices important to a building’s regular operations.

Objectives of Facility Management

Facility management objectives focus on elements that are essential to a workplace. Facility managers ensure that all aspects of the structure adhere to OSHA (Occupational Safety and Health Administration) regulations. Certain areas, such as parking lots, may also need to maintain ADA (Americans with Disabilities Act) compliance. Some key facilities management objectives include maintaining safety and security and keeping internal systems such as HVAC units and lighting. Outdoor areas, such as lawns and landscaping, are priorities as well. Facility management also seeks to decrease maintenance costs through optimal energy and space utilization.

Activities of Facility Management

Facility management tasks involve all duties related to a building’s upkeep and operations. Some essential facilities management tasks include overseeing building maintenance, ensuring security systems are properly working, and planning space utilization. A facilities manager will also ensure areas are kept clean and evaluate more cost-effective energy use.

A CMMS facilities management solution is an excellent tool for facilities managers to keep track of all necessary facility maintenance duties from service order submission to task completion.

What is Asset Management?

Asset management oversees the acquisition, maintenance, and disposal of facility equipment and inventory. It ensures supplies are stocked, and high-value assets retain as much value as possible and possess a long and useful life.

Objectives of Asset Management

The primary goal of facility asset management is to track and maintain the reliability and life cycle of assets within a facility. Asset management employs processes that simplify budgeting and planning while weighing opportunities against risks and costs to ensure the organization gets appropriate value for its investment. 

Activities of Asset Management

Asset management duties include a variety of tasks aimed at tracking and maintaining facility-related assets. From equipment maintenance to asset acquisition and disposal, everyone on staff is responsible for participating in asset management. Facilities managers take part in planning and acquiring assets and oversee the execution of asset maintenance duties. Maintenance teams and operators ensure equipment is used correctly to minimize downtime and keep machinery running optimally.

Key Differences

There is considerable overlap between asset and facility management, and a single facility or asset manager may oversee both aspects. While asset management and facilities management share many similarities, each has its own specific scope and purpose.

I. Scope

Facility management oversees and maintains the physical environment within the workplace. This aspect focuses on space utilization and processes for facility upkeep, as well as ensuring that structures meet all building codes and safety standards. Internal systems, such as HVAC and lighting, fall under the scope of facilities management. The management of facilities also prioritizes the safety and comfort of people within the space, from workers to customers. 

Asset managers focus on preserving effective asset performance and the long-term value of physical assets within a facility. Maintenance of manufacturing equipment and vehicles, acquisition of break room appliances, and stocking up on safety equipment are just a few examples of items that fall within the scope of asset management.

II. Primary Objective

The main goal of facility management is to focus on workplace needs and the building’s regulatory compliance. Facility management seeks to improve building efficiency and maximize the facility’s overall value through regular maintenance, upgrades, and process improvement. Many organizations also employ a sustainability team to guide the company in socially responsible and eco-friendly improvements while maintaining safety standards.

Asset management focuses on increasing an organization’s net worth over time through acquiring new assets while upholding their long-term value. A company’s value increases with prudent investment in high-value assets and seeing to their upkeep. 

III. Assets vs. Facilities

A facility refers to physical spaces and structures like office buildings, warehouses, or data centers. Facility managers oversee elements such as structural repairs, utility management, safety standards, and security measures to ensure that processes run smoothly throughout a facility.

Assets are intrinsically valuable items not part of the facility’s building or infrastructure. Some examples of facility assets include box-packing machines, safety glasses, and shipping pallets. IT-related assets, such as individual assets such as software licenses and data infrastructure, also often fall under asset management responsibilities.

IV. Track and Measure

Facility management tracks metrics that impact the building and its structure, such as energy usage, space utilization, and cleaning schedules.

Asset management monitors the conditions related to facility assets, such as total cost of ownership (TCO), maintenance costs, asset utilization, and equipment mean time between failures (MTBF).

Key Similarities

While the scope and objectives of asset management and managing facilities differ, the two aspects of organizational management share some important similarities. It’s essential to sort through related goals and tasks and clearly define the roles and responsibilities of asset management and facilities in operations. Strategically laying out the duties of each helps maintain a smooth workflow between the two.

I. Common Goal

Both facility and asset management aim to maximize a company’s value and optimize the performance of assets. Determine the role of each when laying out your organization’s management plan.

II. Maintenance Activities

Maintenance is a key task in both facility and asset management. A facilities maintenance management plan ensures the proper upkeep of structures and spaces. Asset management includes strategies to preserve the condition and extend the life of every asset as much as possible.

III. Lifecycle of Assets

Both aspects of management involve planning for the life cycle of assets. Asset management oversees asset acquisition, operation, maintenance, and disposal. Facility management ensures appropriate space to install or house an asset and makes sure areas are safe for implementation and removal.

IV. Risk Management

Asset management monitors asset performance and value risks, seeking to mitigate as much future physical and financial risk as possible. Management of facilities looks at mitigating or eliminating risks related to facility safety, security, and regulatory compliance.

Integrating Facility Management and Asset Management

Asset management is ultimately a subset of facility management. The two processes overlap in many areas. Effective management of a facility relies on good asset management and vice versa.

Computer-aided facility management (CAFM) and computerized maintenance management systems (CMMS) automate much of the tracking and scheduling of facilities and asset management tasks. Many organizations use CAFM or CMMS software to run or assist facilities managers in maintenance programs. Specialized software like ServiceChannel monitors and analyzes activity between the two.

Optimize Maintenance Operations with ServiceChannel

It’s clear that any operation, whatever the scale, benefits from a holistic approach to effective facility and asset management. A strong software solution will lower the total cost of asset ownership by simplifying scheduling, tracking, and maintenance tasks. Look to ServiceChannel and begin streamlining your organization’s approach to facilities management. Request a demo today.