Enterprise Asset Management
What is Enterprise Asset Management (EAM)?
Enterprise Asset Management (EAS) refers to the systems, services, and software that organizations use to manage the complete lifecycle of physical assets. These assets can include everything from machinery, tools, and computers to buildings, trucks, and ships.
Enterprise asset management software is an ideal solution for detailed asset tracking as well as inventory control, cost accounting, maintenance management, and labor tracking.
What Are The Benefits of Enterprise Asset Management?
Improved scheduling
In many industries, asset maintenance management can resemble a high tech juggling act. Equipment, vehicle, or infrastructure limitations are continually challenged to meet customer demands. Enterprise asset management uses business intelligence and analytics to prioritize maintenance tasks and maximize availability.
Reduced manual processes
Paper-based processes can cause hidden inefficiencies. This is also true for manual scheduling and accounting functions. Enterprise asset management software can automate these tasks. The IoT and Industry 4.0 have further accelerated the adoption of wireless technology and barcoding to streamline EAM work order and inventory tracking.
Proactive maintenance
Without strategic asset management, organizations can be forced into reactive maintenance due to a lack of visibility and resources. EAM allows for a more proactive maintenance approach by streamlining purchase orders, work orders, and maintenance processes. Preventive and predictive maintenance plans can be implemented to detect problems before they occur.
Employee health and safety
An enterprise asset management system enhances health and safety by automating safety inspection practices, monitoring certifications and training, and reducing unplanned breakdowns. Dangerous conditions and workplace violations can be addressed immediately before compromising an employee’s health and safety.
Audit preparation
Access to centralized, real-time asset information makes it easier to prepare for safety or compliance audits. Intuitive dashboards and report generation features can be used to produce objective evidence based on historical data.
Why is Enterprise Asset Management Necessary?
Regardless of the industry or size of the company, every organization has important assets to protect and maintain. Enterprise asset management provides a valuable tool for maximizing asset useful life.
Asset tracking. The age, location, condition, and performance of all physical assets must be tracked to make informed decisions and improve efficiency. Without employing strategic asset management, this is nearly impossible. Asset tracking also helps an organization create automatic alerts when maintenance is required, warranties are expiring, or assets are due for replacement.
Centralized information. Maintaining spreadsheets, trackers, and databases in multiple locations can be time-consuming and introduces errors. Enterprise asset management software provides a central repository that makes the same real-time information, historical data, and documents readily available to everyone. Consolidating information also prevents duplication of tasks and promotes collaboration and best practice sharing.
Reporting metrics. Organizational goals and continuous improvement plans are based on key performance indicator (KPI) performance. By combining asset data with powerful analytics, asset maintenance management can support robust KPI tracking and reporting. Instant access to metrics also allows an organization to proactively plan for downtime, expansion, and future investment.
Maximizing ROA. Improved profitability is the fundamental reason why EAM is necessary. Capital expenditures, operating costs, and asset lifespan influence return on asset (ROA) results. Enterprise asset management helps maintenance teams make informed decisions on new capital purchases as well as optimize maintenance, repair, and utilization to dramatically improve ROA and bottom-line performance.
Other EAM Resources
EAM Best Practices
All assets should be viewed as investments that are managed to maximize returns. Enterprise asset management best practices apply this philosophy throughout the asset and EAM system lifecycles.
Obtain accurate information
No enterprise asset management system can be effective without accurate, timely information. The initial deployment should focus on collection of historical data and establishing systems for future real-time data integrity. Even the best enterprise asset management software provides little benefit if decisions are based on incorrect or out of date information.
Customize workflows
All assets are not created equally. Maintenance, procurement, and disposal strategies are likely to be dependent on asset type, value, usage, and location. This means a mixture of preventive, condition-based, and run-to-failure strategies might be appropriate. Different processes might be in place based on the location or division. EAM workflows require careful planning to ensure strategies align with the needs of the organization.
Find the right EAM software
Since enterprise asset management software forms the core of the EAM system, software selection should be given careful consideration. While some software packages are tailored to specific industries or company sizes, others are more flexible and scalable. Software support and the associated personnel and training needs should also be evaluated.
Difference Between EAM and CMMS
Enterprise Asset Management (EAM) and a Computerized Maintenance Management System (CMMS) have many common features and benefits. However, there are also some distinct differences between these two important systems as outlined below.
A computerized maintenance management system (CMMS) is used to streamline and automate maintenance processes during the working life of the asset. CMMS objectives include efficient maintenance scheduling, reduced downtime, and extended asset life. Similar to an EAM, a CMMS can be utilized to manage production equipment as well as facilities, vehicles, computers, and many other commodities.
Enterprise asset management is also intended to maximize the value of assets but takes a broader view which considers the total cost of ownership (TCO). This means the entire lifecycle of the asset, from design and purchase through retirement, is optimized. Asset procurement, accounting (e.g., depreciation), and disposal practices are part of this more holistic approach.
CMMS software functionality has expanded over time to include more advanced features usually associated with an EAM. At the same time, CMMS remains a central element of an enterprise asset management system. For this reason, a CMMS is sometimes viewed as a component or subset of an EAM with more direct focus on maintenance strategies and goals.
Key Industries That Use EAM Software
Enterprise asset management software benefits companies with numerous assets requiring procurement, maintenance, repair, and disposal. As EAM software has evolved, these advantages are realized by smaller organizations as well.
Agriculture, construction, education, and hospitality are just a few of the industries that benefit from improved asset planning, organization, and tracking.
Manufacturing
With a wide variety of complex tools and equipment, dynamic scheduling, and demanding workloads, the manufacturing industry is ideally suited for enterprise asset management. Regulated manufacturing sectors like automotive, aerospace, and medical device also integrate EAM into continuous improvement programs and bolster their audit response and reporting capabilities.
Healthcare
The assets managed by hospitals and other healthcare organizations provide critical services with a delicate balance between efficiency and readiness. Strategic asset management helps monitor and maintain equipment while ensuring patient and healthcare provider safety. Pharmaceutical, PPE, and disposable consumption can be analyzed to prevent expiration and shortages.
Public Sector
Public sector entities such as law enforcement, corrections, and the military are among the most asset intensive in the world. These assets are more likely to have unique security and maintenance considerations that require strict control and frequent reporting. Automated tracking and reporting features allow public sector organizations to securely maintain their assets without redundancy or manual intervention.
Important Features of Enterprise Asset Management Software
A consolidated database makes it easy to track large numbers of assets and maximize return on assets (ROA) throughout the lifespan of the assets. This includes every lifecycle phase from design and procurement through decommissioning and disposal.
Work order management
EAM software can be used to automate work order generation, track part consumption, and capture technician notes. When unplanned issues arise, asset maintenance management can be used to assign new work orders and document processes and results.
Labor tracking and management
Time spent on maintenance and other activities provides valuable insight into employee performance, best practices, and bottlenecks. Training, certifications, and work schedules can also be tracked to maintain a qualified and coordinated workforce.
Supply chain management
Strategic asset management streamlines capital equipment, spare parts, and consumable procurement. Analytical capabilities are used to optimize inventory turns, pricing, and lead times. Automatic triggers can also be set for reordering important assets and parts.
Reporting and analytics
The tracking and reporting of KPIs allows organizations to make informed decisions and detect problems before they occur. The best enterprise asset management software can be used to customize reports on asset location, utilization, and financial performance.
Why You Need EAM Software
Optimized ROA, reduced maintenance and procurement expenses, and improved asset visibility and safety are some of the numerous benefits leading to the rapid adoption of enterprise asset management across industries. EAM software provides the platform and intelligence to make this possible. The best EAM software solutions support the tracking of virtually unlimited assets in multiple locations and languages.
The visibility enabled by asset maintenance management software is the key to improved collaboration, reduced downtime, and consistent KPI reporting. Asset data including maintenance history, warranty information, model and serial number, and spare part inventories are stored and recalled easily for all asset types.
MicroMain offers industry leading EAM software with features designed to maximize the asset lifecycle. This includes real time reporting, flexible work order management, preventive and predictive maintenance, and automatic alerts and notifications. Bar code scanning and wireless connectivity are also supported. With an intuitive user interface and tools and support available for streamlined implementation, MicroMain’s enterprise asset management software is helping organizations of all sizes and types manage their assts more effectively.
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