Asset Management System Unleashed: A Client’s Journey Through Strong Process Flow 

Quixy Editorial Team

October 11, 2024

Do you know ? Organizations using Asset Management System (AMS) reduce operational costs and find 25% more improvement in asset utilization.Here, let’s dive in to find out what Asset Management Systems are and understand various applications of Asset Management Systems through a process flow in client’s journey.

What is an Asset Management System? 

It is a process of monitoring the assets used by the organizations to run and manage their business. The asset management system consists of tools and techniques employed to achieve the management objectives; in many cases,  software solutions are also used to support these efforts. This helps minimize the losses and maximize the return on investments. Also, it ensures the overall performance of assets while the company uses them.

Also Read: This is why you must use No-Code for IT Operations

Uses of Asset Management System

The aim of an asset management system varies from industry to industry.  The use of it can be decided based on the type of organization or the industry. However, they have common goals for achieving an asset management system.

Asset Tracking

It is used to track and record the status of the assets across the organization and ensure that assets are correctly accounted for and easily found when needed.  

Inventory Management

Asset Management System helps in monitoring assets & inventory of the organization. One can find the available stock using an inventory management and determine what needs replacing.

Maintenance Scheduling

Regular Maintenance Scheduling is done for huge equipment to avoid breakdowns. Organizations can regularize maintenance by Maintenance scheduling automation to help extend asset lifespans.

Lifecycle Management

It is used to analyze and check the lifecycle process. From acquisition to disposal, it helps manage organizations to procure assets, replacements, and upgrades.

Compliance Management

It is used to update and manage compliance policies related to industry standards and regulations and manage inspections, certifications, and audits effectively. 

Financial Reporting

AMS controls the financial aspects of assets, including budgeting for asset-related expenses, asset value and depreciation.

Asset Allocation

Organizations use AMS software to allocate resources efficiently, ensuring the right assets are available for the proper departments or projects

Risk Management

Risk management in AMS is used to manage risks associated with asset failure or underperformance. It is done by monitoring the condition and performance of critical assets. 

We have inferred the meaning of an Asset Management System and the uses of it. Now, it’s time to understand the concept of asset management systems with real-world examples.

In the following case study, we will find how Quixy has empowered clients to streamline their Asset Management process. 
In reality, Telangana State Warehousing Corporation (TSWC) aims to modernize its operational process and introduce automation for managing agricultural produce within Telangana’s warehouses.

Telangana State Warehousing Corporation (TSWC) is essential in providing advanced storage facilities for the agricultural industry. Their mission is to enhance rural liquidity, reduce storage losses, and stabilize market prices for farmers. However, the assurance of manual processes presents significant challenges like Manual Data Entry, Lack of Visibility, Communication Challenges and Tedious Reporting.

Introduction of Asset Management System at TGSWC

At TSWC, assets are categorized into movable and immovable types. Movable assets include furniture, office equipment, and vehicles, capitalized upon purchase and procuring through a tender and bidding process. Immovable assets, such as buildings and land, undergo a two-step procurement process, initially classified as “Capital work in progress” until completed, after which they are marked as “Capitalized.”
All asset management is paper-based and tracked through Excel spreadsheets, making retrieval and oversight cumbersome. Expenditure and payment records are managed in the Quixy system, but procurement processes for both asset types operate outside this system, highlighting the need for improved integration and efficiency.

Also Read : Enhancing Efficiency and Security: Tracking IT Assets in Banking Branches

Process Flow of Asset Management System

Capital Work

Here, we Create New Capital work, Update New Capital Work Details, View the Capital work Details and Capitalize the Assets after completing the Required Operations.

Capital Work in Progress

I. CWIP represents the cost incurred in the under-construction of fixed assets, such as light machinery, buildings, and other long-term projects. 
II. These assets still need to be operational and can only be recognized as fixed assets once completed. 

Create New Capital Work

Update New Capital Work 

Upon further progress or changes in the project, the engineering department will access and update the CWIP screen. 
They select a specific CWIP record to update. 
The user updates the Revised Capacity and Revised Budget and Adds new Invoice details for different financial years based on the latest project developments or revised estimates.

Capitalized Work 

• The “Capitalized Work” module is a critical component within TSWC’s asset management system, particularly for Immovable assets. This module serves as the final stage in the life cycle of assets, indicating that a project or development related to an Immovable asset is completed and the asset has transitioned from the “Capital Work in Progress” phase to a fully capitalized state. 
• In the context of Immovable assets, “Capitalized Work” signifies that the asset is now a part of the organization’s fixed asset inventory, and its costs have been fully recorded and accounted for.
• The added Assets are Considered for Depreciation Calculation against the Financial Year after financing. 

Adding Assets 

Maintaining accurate and up-to-date asset data is crucial for effective asset management. A centralized repository offers a comprehensive view of the organization’s asset inventory, enabling efficient tracking, maintenance, and reporting. This approach promotes transparency and accountability while ensuring compliance with asset management procedures. Additionally, it supports data-driven decision-making, allowing organizations to maximize the value of assets and help control their inventory. Ultimately, robust asset data serves as a vital resource for optimizing asset management practices.  

Movable Assets

Here, the Movable Assets that are directly purchased are added for different financial years.

The added assets are visible on the list screen, and the actions were provided against each asset to update, deactivate, and view asset data and QR Codes for each asset. 

Asset Scanner 

• The asset scan feature allows users to scan the QR code affixed to an asset at any given moment. 
• This functionality offers a suitable and efficient way to promptly access detailed information about the asset. 
• Users can retrieve essential data such as asset specifications and current status by scanning the QR code. This provision enhances the overall asset management process, enabling quick identification and tracking of assets, which is particularly valuable for operational efficiency and timely decision-making. 

Asset Transfers 

Asset transfer refers to the process of moving ownership or responsibility for an asset from one entity or location to another. This could involve the transfer of physical assets, such as equipment or property, as well as digital or financial assets. The primary goal of asset transfers is to ensure that assets are appropriately accounted for and managed throughout their lifecycle. 

Here, the transfer of Assets is Initiated, and the Transferred Asset Details are given for viewing using View Action. 

Scrapped Assets 

The scrapping of movable assets is a significant process that involves the removal and disposal of assets from the company’s inventory.

Postconditions:  

• Asset scrap request is initiated and recorded in the asset management system with a “Pending Approval” status. 
• The selected asset’s scrap quantity and value are updated in the system. 
• GM of the F&A section will receive the task notification once the F&A section has initiated the request.

The GM of the F&A Section reviews and approves or rejects the asset scrap request initiated by the user in the F&A Section. 

Consumables 

Consumables Data

The consumables in the warehouse play a crucial role in maintaining operational efficiency. The consumables do not experience depreciation, and their lifespan is considered at a flat rate of 4 years. .  

The Added Consumables are shown here. Details also can be seen by using the view action.  

Consumable Transfer

Consumable transfer involves transferring ownership or responsibility for consumables from one entity or location to another, ensuring proper accounting and management throughout their lifecycle. This process includes detailed documentation, associated costs, condition reports, unique identifiers, and receiving parties. Effective management of consumable transfers is essential for maintaining control, ensuring efficient usage, and accurately reflecting assets in inventory. Proper tracking and documentation enhance financial transparency and regulatory compliance and help prevent loss or misuse, ultimately contributing to effective asset utilization and cost management.

Once the Consumables are transferred, the recipients receive an email notification from the sender. And they can check the details by using the “View” action.      

Scrap Consumables

The Consumables Can be Removed from the warehouse. 

Utilization of Buffer Quantities

The Head Office will send a buffer quantity to the Regional Office. The Regional Office can use this buffer with the Head Office’s permission. When they need to utilize the buffer, they will initiate a request to the Head Office. The Regional Office can only use the approved buffer quantity if the Head Office approves.

Reports 

Depreciation 

• Depreciation is referred to as the decrease in the value of an asset over some time. Depreciation rates are standardized for various categories of assets and their expected lifespans. Consequently, specific depreciation rates are established for each category. 
• Currently, at TSWC, we are using the WDV method for calculating the asset depreciation.
• The Asset depreciation is done on the last day of the current financial year

Consumables Report 

This report displays the usage of consumables for each warehouse every month.

Consumables Part 1 

Consumables Part 2 

 Capital Work In Progress Report 

This capital work-in-progress summary report shows the budget/invoice details for all the projects against each financial year. 

Why Integrate Buiness with Quixy Assest MAangemt System ?

Quixy no-code platform streamlines asset management by offering customizable workflows, real-time tracking, and automation. Key features include:

• Asset Tracking: Monitor asset location, usage, and status with ease.
• Inventory Management: Track stock levels, automate replenishment, and avoid shortages.
• Maintenance Scheduling: Automate maintenance tasks to extend asset lifespans.
• Lifecycle Management: Manage asset acquisition, upgrades, and disposal seamlessly.
• Compliance: Ensure regulatory compliance with automated inspections and audits.
• Asset Transfers & Scanning: Simplify asset transfers and use QR codes for quick access to asset details.

With Quixy, organizations can tailor their AMS to meet evolving needs, improving efficiency and maximizing ROI

Conclusion

Effective asset management goes beyond just tracking, enhancing value, cutting costs, and driving operational efficiency. As demonstrated by the Telangana State Warehousing Corporation, automating asset management through an Asset Management System (AMS) streamlines the process brings greater visibility and control over resources. With tools like Quixy’s no-code AMS, you can easily track inventory, automate maintenance, and stay compliant—all without the need for complex coding.

Ready to optimize your assets and streamline your operations? Schedule a call now and discover how Quixy’s no-code AMS can transform the way you manage your assets! Let’s build smarter together.

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