Does Asset Hierarchy Drive Better Maintenance History?

A well-structured asset hierarchy is more than just a CMMS requirement. It is a foundational element of effective asset management.

When the hierarchy reflects how front-line teams actually work, it enables accurate data capture and consistent transactional input. This, in turn, supports better maintenance practices, improved reliability, and smarter business decisions.

Many organizations invest significant time and resources into designing an “ideal” hierarchy, often led by engineering or finance teams. The goal is usually to support reporting, budgeting, or analysis. However, this can lead to structures that are difficult for end users to navigate. When technicians struggle to find the correct asset tag for a work order, they may select the wrong one or skip the entry altogether.

The result is unreliable maintenance history and data gaps that undermine reliability efforts.

What can be done differently?

Design the asset hierarchy with the end user in mind. Technicians, operators, and planners are the ones entering the data. The structure needs to make sense to them. It should act as a communication tool that helps clearly identify where a problem exists within the plant or system.

It is also essential to validate the hierarchy with front-line users before rolling it out. Provide minimal explanation and observe whether they can locate asset tags quickly and accurately. If they cannot, the structure likely needs adjustment.

A helpful analogy is your home address. With just a few elements—country, city, street, building number, and apartment—anyone in the world can find your location. This level of clarity and hierarchy should be the target for your asset structure.

When users can easily and consistently enter data, it builds trust in your CMMS. The data becomes a valuable source of insight, helping reliability engineers analyze trends, prevent failures, and drive continuous improvement.

In short, a better asset hierarchy supports better maintenance data, which leads to better decisions.