Fixed Asset Management

Whether we realize it or not we have all seen a Fixed Asset ID Tag. It may have been on a piece of equipment at work or on the chair you are sitting in right now or even on the vending machine in your employee break area - all of these are key elements which make up a company's Fixed Asset Management Program.

Fixed Asset Management FAQ

• What is a Fixed Asset Management Program?
• What are the benefits of implementing a Fixed Asset Management Program?
• What kinds of costs are associated with implementing a Fixed Asset Management Program?
• Where can I get assistance in implementing a Fixed Asset Management Program?

What is a Fixed Asset Management Program?

A Fixed Asset Management Program involves tracking of such physical assets as furniture and fixtures found in the office, laboratory, classroom, plant, and expensive machinery and equipment as well as returnables such as containers and pallets. Most often this process is performed by scanning a bar code on a Fixed Asset ID Tag that has been affixed to the asset; however, Fixed Asset Management may also involve a Fixed Asset ID Tag with a human readable number only that is documented by hand.

What are the benefits of implementing a Fixed Asset Management Program?

Benefits derived from implementing a Fixed Asset Management Program include tax reductions as companies are able to reduce unnecessary capital expenditures as well as correct valuation for insurance purposes thereby minimizing premiums and rates.

What kinds of costs are associated with implementing a Fixed Asset Management Program?

The cost of the labor involved in affixing Fixed Asset ID Tags is much higher than the actual cost of the tags themselves, especially in regard to the labor to actually implement the initial Fixed Asset Management Program and subsequently affix the tags. That is why permanent Fixed Asset ID Tags are generally less costly in the long run.

In order to optimize cost-effectiveness a Fixed Asset Management Program needs three elements:

1. A host system that includes a PDCD (portable data collection device) and PDCD software to maintain the master record of all items.
2. A bar code scanner that "reads" the identifying Fixed Asset ID Tag.
3. Fixed Asset ID Tags. Typically, these will contain a "bar code" number and the human-readable equivalent.

Also, keep in mind if your company is not ready to implement a Fixed Asset Management System that utilizes bar code consider purchasing Fixed Asset ID Tags that have both the bar code and human-readable equivalent number on them. That way you already have the bar codes in place when you are ready to implement a Fixed Asset Management System that utilizes bar code but you can also utilize the human-readable equivalent numbers in the meantime.

Where can I get assistance in implementing a Fixed Asset Management Program?

Metalcraft President Waldo Smeby has written a booklet entitled "Property Management Guide" which serves as a manual for companies thinking about implementing a Fixed Asset Management Program. To receive a free copy click here or call 800-437-5283 (641-423-9460). Also, organizations such as the National Property Management Association (NPMA) and the American Society for Testing and Materials (ASTM) can assist you in implementing your Fixed Asset Management Program and can also provide excellent training programs for the person(s) within your organization responsible for Fixed Asset Management.