Published on 25 September 2006

When looking to acquire new assets, NHS Trusts have a dependable source of specialist knowledge across a wide range of asset types through the NHS Purchasing and Supply Agency (PASA). Where large-value assets — scanners, pathology analysers, etc. — must be procured, PASA executes a rigorous tender process to ensure that the best choice is made from the available vendor options, at the best price. For assets with a long life, the benefits of finance are compelling and PASA has an established capability in support of the Trusts for the leasing of assets.

While PASA encourages the Trusts to make use of its leasing database to track contracts, there are always ways in which assets, both financed and purchased, can be better managed. Reducing costs is the main incentive for this but, when the asset information is held centrally and the governing processes are managed and automated, additional benefits are realised in terms of control and, increasingly, satisfying legal compliance requirements such as duty of care.

Actively managing assets following their procurement can generate significant cost savings. Assets with maintenance requirements, and those under finance with usage terms and return conditions, are sure candidates for financial pain at disposal time if they are not managed well. Processes that ensure the timely upkeep of assets, and monitor their usage with respect to any contractual agreement, can mitigate against the poor valuation that can occur when it is time to sell the asset or return it to a lessor.

Disposal routes to market for assets that have served their useful life (or completed their term under finance) are well defined for the NHS, but improving the efficiency of the disposal process can enhance cost management. With a centralised inventory of detailed asset information (including a full service history), proactive marketing, the ability to bundle assets for sale back to trade and the ability to target overseas markets where appropriate, you have a powerful tool for maximising disposal revenue. Where the asset has been under finance, your careful management can ensure you avoid the potentially expensive return condition charges.

The commercial sector has long since applied these techniques to achieve this payback in certain asset sectors such as vehicle fleet management. However, broad range asset finance institutions are now enhancing their mixed asset portfolios through the application of centralised asset management tools. The techniques, understanding and technology are now sufficiently mature that they present an enormous opportunity for both PASA and the NHS Trusts to realise the end-to-end benefits of asset management.
The promise of asset management technology

Managing your inventory of key assets from within a single data repository provides a powerful basis for centralised and common control. By capturing key information such as asset specification data and asset location you can, at any point in time, know everything about what you have and where you have it.

One of the step-changes in modern software solutions is the rise of integrated workflow as a means of managing tasks. For asset management, this can automate and drive the processes surrounding those assets ordinarily managed by hand. Work lists provide individuals registered on the system with useful reminders for asset related activities, such as a requirement to organise the maintenance of an asset, to consider a warranty renewal or, perhaps in the case of vehicles, confirm that the duty of care requirements are met for both the vehicle and its end users. These work lists can take the form of a list of tasks when accessing the system, or a series of emailed reminders.

Automating the production of documentation and email at various points in an event driven workflow can also streamline the management of assets. Automatically notifying a maintenance provider that a service is required; issuing invoices for maintenance charges to an appropriate NHS Trust cost centre associated with an asset; emailing asset users when their usage levels are approaching the maximum in the agreement: all of these cost-cutting processes are automated and deliver an immediate cost benefit.

When considering the results of these processes over your asset inventory, key performance data can be extracted. With the addition of modern data mining tools, and the growth of information ‘dashboards’ as a means of gathering data in a single view for rapid visual communication, the month-on-month efficiency of your asset portfolio can be assessed easily.

With the maturity of the Web — both internet and intranet — the technology is already available to push out these asset-related services, not just to NHS staff but to vendors, maintainers, buyers and so on. By promoting the use of such a solution to central users as well as asset managers within each NHS Trust, along with the integration of trusted business partners, the utopia of joined-up asset management is realised. Providing incentives to all parties to use the solution can be achieved through targeted information related to local cost savings and revenue — letting them know when they are winning.
Consulting support for asset management

Critical to the success of any asset management solution implementation is having the experience on hand to ensure that it is implemented correctly, that the benefits can be realised from day one and that they can continue to be seen as a result of reacting to relevant performance measures and regular review by experienced consultants.

Through experience of numerous implementations of asset management solutions like ALFA Asset Management, companies like CHP Consulting can provide a view of what is considered to be industry best practice in terms of the processes that are used to govern an asset's lifecycle. The business goal of asset optimisation is achieved through business process optimisation.

Typically, the personalised configuration of any asset management solution results in a bespoke set of training requirements. Training from experienced professionals, with knowledge of the business concerns as well as the asset management solution and its technology, can ensure that your staff have the best appreciation of how to maximise the productivity and efficiency of your operations.

Making use of data to provide meaningful information in the form of reports and, in a more sophisticated way, visual dashboards, is as much an art as it is a science. Crucially, it is again the experience of previous deliveries that enables companies like CHP Consulting to support these efforts.
Conclusion

Holding your asset inventory in a single data repository can ensure you know what assets you have and where they are kept, at all times. Through automated processes that manage the in-life care of assets, we can prevent cost drain through devalued assets at the end of their useful life. Asset management solutions help track the asset both physically and financially through its lifecycle, providing the governance of operation necessary to minimise the associated costs. This can extend to all parties related to the life of your assets, including external agents.

With all of your information in one place, your view of the whole is greater than the sum of its parts. Performance monitoring across your asset portfolio directs you to the view of the data that matters, and modern reporting technologies can ensure that view is clear.

By making good use of both internal and external expertise in asset management processes and tools, you can ensure that your new processes last just as long as your assets.