Revolutionizing Asset Lifecycle Management with RevLogix: The Importance of the Build of Material Passport

Asset management is no longer just about tracking inventory; it's about maximizing value, minimizing waste, and driving sustainability. Revlogix introduces the Build of Material (BOM) Passport, a groundbreaking tool that tracks every aspect of an asset’s lifecycle, from its creation to its responsible recycling or reuse. Here’s how the process unfolds in seven critical steps.

Step 1: Product Manufacturing, Acquisition, and Recirculation

The lifecycle journey begins at the manufacturing stage, where the product is created and acquired. This initial phase sets the foundation for the product's entire lifecycle, which may involve multiple customers and various use cases. The Revlogix BOM Passport is created during manufacturing, documenting every detail of the asset—from the raw materials used to the components and design specifications. This information forms the core data set used throughout the product’s life.

Once the asset is in the hands of a customer, the BOM Passport remains active, capturing real-time data on its state, usage, and condition. This involves gathering metrics such as usage telemetry, device health indicators (like hard drives, memory, and battery statistics), and other operational data. The passport provides a comprehensive view of the product's performance in the field by continuously monitoring these factors.

At any point in its lifecycle, the passport generates a daily scorecard that quantifies the asset's value, considering days in use, amortized value, and quality metrics. This dynamic tracking lets businesses decide when to refurbish, upgrade, or retire the product. By maintaining a transparent and up-to-date view of the asset's condition, the Revlogix system ensures that every decision regarding the asset is data-driven, supporting both financial and environmental sustainability goals.

Moreover, the passport’s continuous monitoring facilitates proactive asset lifecycle management. It helps companies determine the optimal time to recirculate the asset to new customers or utilize it for alternative purposes, thus maximizing its value and extending its life. The data collected also supports warranty management and helps identify trends that could inform future product development, enhancing overall product quality and customer satisfaction.

Step 2: Product Deployment and Lifecycle Building

After the product is sold and begins its journey with one or more customers, the Revlogix system leverages the BOM Passport to build a complete and secure record of the product's lifecycle. This record is structured around three critical areas, ensuring that every aspect of the asset's life is tracked, analyzed, and optimized:

1. Proprietary Build of Material: This portion of the passport contains a detailed and confidential record of all materials, components, and sub-components that make up the product. It includes specific details such as part numbers, material grades, and supplier information. By maintaining this proprietary data, businesses can ensure that the asset is managed in alignment with its original design specifications, allowing for more accurate maintenance, refurbishment, and eventual de-manufacturing.

2. Proprietary In-Field Usage and Ownership: As different customers use the asset, the passport captures a wealth of in-field data, including usage patterns, environmental conditions, operational hours, and maintenance histories. This data is critical for understanding how the product performs under various conditions, enabling predictive maintenance and extending the asset's useful life. Additionally, it records changes in ownership, providing a clear history of the asset’s usage and transfer between parties, which is invaluable for warranty and service contract management.

3. Open and Public Revisions from Day Zero: Transparency maintains trust and maximizes asset value. The passport includes an open, publicly accessible log of all revisions and updates made to the product from the moment of manufacturing. This log captures design changes, field performance data, and consumption patterns, all while sanitizing sensitive proprietary data. By providing a high-level value and quality score, this transparency enables all stakeholders to make informed decisions regarding the asset’s use, refurbishment, or recycling.

By integrating these three areas, the BOM Passport provides a holistic and transparent view of the asset's entire lifecycle, from the initial build through multiple stages of use and ownership. It allows businesses to optimize the asset’s deployment, monitor its performance in real time, and make strategic decisions about its future, ensuring that each step maximizes both economic and environmental value.

Step 3: The Return Event

When an asset reaches a point where it is returned—whether due to the end of its use, an early failure, or other reasons—the Revlogix BOM Passport plays a crucial role in managing this transition efficiently because the system continuously monitors the value and quality score of each asset based on its serial number, it can provide immediate insights at the time of return. This enables companies to quickly assess the current state of the asset and decide on the most appropriate course of action.

Revlogix employs several decision trees to guide the next steps at this stage. For instance, the system helps determine if the return is categorized as "No Trouble Found" (NTF), where the asset functions correctly and does not require further intervention. Alternatively, it can identify assets that are out of warranty, where the repair cost might not be justified based on the remaining value of the product. It can also detect early-life failures where the cause of the failure is not immediately known, requiring further investigation.

By applying these decision trees and leveraging the detailed data provided by the BOM Passport, Revlogix optimizes the return process. It ensures that assets are either returned to the field, recycled, or retired based on their actual condition and value. This approach reduces unnecessary returns by up to 20%, minimizes the cost of processing returns, and enhances overall operational efficiency. Moreover, it provides a feedback loop that informs future product development, helping to identify and address common failure modes and improve product reliability.

Step 4: Asset Recovery

The asset recovery phase begins once an asset has been assessed and a decision is made regarding its potential for continued use. The BOM Passport is the foundation for determining whether the asset retains enough value to justify further recovery efforts. The system evaluates the economic and functional value remaining in the asset, considering factors like serial number, component condition, historical performance, and the overall state of the product.

If a value proposition is identified that justifies additional recovery efforts, the asset is earmarked for processes such as refurbishment, repair, or upgrade. This decision is informed by a combination of historical data, SKU analysis, and cost-benefit assessments that determine the optimal path for maximizing the asset's value.

The BOM Passport also ensures that any economic change orders (ECOs) or asset condition change orders (ACCOs) are properly documented and followed throughout the recovery process. This helps to align repair or upgrade efforts with the most cost-effective and value-driven strategies, reducing waste and enhancing profitability. By leveraging the passport’s data, companies can confidently invest in recovery activities, knowing that they are supported by accurate, real-time insights into each asset's condition and potential.

Step 5: Reverse Operations

If the asset recovery analysis indicates that refurbishing, repairing, or upgrading the asset is economically viable, the product enters the reverse operations phase. During this phase, the asset undergoes a detailed evaluation to determine the most efficient path for restoration, enhancement, or reconfiguration, depending on its condition and potential value.

The data contained within the BOM Passport guides the reverse operations phase. This data includes a complete history of the asset's performance, usage patterns, and component wear, allowing technicians to identify the most cost-effective repair or refurbishment strategies. Additionally, the passport provides a framework for adhering to all relevant economic change orders (ECOs) and ensuring that the asset is restored or upgraded to maximize its remaining value.

Throughout the reverse operations process, the system continuously assesses the asset's condition and adjusts the repair or refurbishment path accordingly. This dynamic approach ensures that costs are minimized. At the same time, the asset’s utility and market value are maximized, allowing companies to extract the greatest possible return from each asset before it reaches the end of its life.

Step 6: End-of-Life and Commoditization

The end-of-life (EOL) decision gate is employed for assets that are no longer viable for repair or refurbishment. At this stage, the BOM Passport comprehensively evaluates the asset’s remaining value based on its serial number, material composition, and historical usage data. This evaluation helps determine whether the asset should continue in the reverse operations process or be directed toward responsible recycling.

The EOL decision gate ensures that only assets with genuine potential for further use continue down the recovery path. At the same time, those who have reached the end of their useful life are prepared for deconstruction and commoditization. The passport's detailed tracking of each component allows for the precise dismantling of the asset into individual parts that can be sold or recycled. By assessing each component's value and condition accurately, the Revlogix system ensures that every part of the asset is utilized to its fullest potential, minimizing waste and maximizing economic returns.

Step 7: Value Generation through Dismantling and Recycling

When an asset is determined to be at the end of its lifecycle and no longer suitable for repair or refurbishment, it enters the final stage: dismantling and recycling. In this stage, the BOM Passport provides a highly granular view of the value of each component, allowing companies to strategically dismantle the asset and sell its parts on the open market.

The detailed genealogy and lifecycle scoring captured in the passport allows for precisely identifying parts that can be commoditized, ensuring high-quality and marketable components. This process minimizes buyers' risk and maximizes the asset's residual value. Additionally, elements such as battery cells tracked down to their build material level and estimated lifespan are strategically deconstructed and prepared for sale or recycling. This approach stabilizes commodity prices and supports remanufacturing efforts, contributing to a more sustainable circular economy.

By ensuring that every component is used to its fullest potential, Revlogix provides a comprehensive and responsible approach to asset management. It ensures that assets are not only managed efficiently throughout their lifecycle but also contribute to broader sustainability goals by minimizing waste and maximizing economic value.

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Author: Michael Beale