Reducing the cost of test through strategic asset management

For most aerospace and defense companies, test and measurement equipment is one of the largest, if not the largest, capital expenses on their balance sheets. With that said, few companies have a comprehensive, corporate wide program to effectively manage and maximize the utilization of test and measurement equipment over its projected lifetime. Other industries, such as power generation, airlines and foundries, have been able to master optimization and utilization of their capital to maximize their return on investment. This paper will explore the balance of the three fundamental aspects that make up asset management and will focus on how to implement strategies to lower the total cost of ownership for test. The three areas addressed in this paper are: 1. Management of the “real” asset profile - the number and capabilities of assets across an enterprise. 2. The ability to maximize the optimization and utilization of the assets on a continuous basis. 3. Schemes to develop and implement life cycle strategies for test and measurement assets. The implementation and usage of an asset management program can have huge positive implications, not only on reducing capital costs, but on faster throughput, lower operational expenses, shorter time to market, and even better quality; all of these allow a company to be more competitive in the new firm fixed contract world.