Assume that your day-to-day profession as a maintenance manager involves generating reports, performing evaluation of maintenance status and managing the procurement of spare part. You would know these tasks are crucial to ensuring the maintenance department operates smoothly. Here is where enterprise asset management plays an integral role.
Continue reading if you know next to nothing or very little regarding enterprise asset management (EAM). Insight into what this is and why it is essential is outlined below. However, it’s important to first ensure we are on the same wavelength.
A Basic Explanation of Enterprise Asset Management
EAM is essentially a software designed to assist asset-intensive organizations in tracking assets across their whole lifecycle, from the time they were installed to disposal. In contrast to CMMS or computerized maintenance management system, which concentrate more on mid-market and small businesses, EAM is primarily beneficial to mid-sized and large enterprises that control a wide variety of assets by offering comprehensive tools to track costs, manage asset resources and optimize performance. As such, EAM software offers more business functionality and is more dynamic than a CMMS.
This software gets asset management beyond CMMS by including maintenance and managing other asset-related functions like procurement, labor, and accounting. Therefore, large businesses seeking out software to assist them in managing a wide range of assets and managing a variety of business functions should consider using EAM software. This software solutions provides businesses with a more holistic perspective of company assets and a clearer sense of their performances.
As previously stated, the enterprise asset management software is meant to keep physical assets working optimally, from purchase to disposal. This entails any form of asset the company may use, from heavy-duty construction equipment to a fleet of delivery vehicles. This level of tracking fosters smart planning, better efficiency and maximizes ROI.
Due to the wide range of tasks addressed by EAM solutions and because they most frequently serve large enterprises, they are typically loaded with features to manage this demand. There are some solutions with capabilities that reach beyond physical resources to associated operations like managing utilities or IT service management.
The EAM is designed to ensure:
- Optimal and effective usage of your company’s assets
- Management of the entire lifecycle of assets
- Preservation of assets while controlling expenses at the lowest
To understand the popularity of these systems, it is projected that between 2020 and 2030, the EAM system market will grow by 14 percent to reach approximately $21.5 million. This sort of software is sometimes compared to a CMMS; however, the EAM software has much more advanced features.
Who uses EAM Software?
If the ROI of your organization is concerning and you wish to ensure the assets are accurately tracked, persevered and enhanced, using an EAM system can assist with these procedures. A wide range of companies are using EAM and some of the industries that are taking advantage of it include:
- Energy and utilities
- Oil and gas
- Healthcare and life sciences
- Transportation and logistics
- Government and public sector
Notable advantages of using an EAM
Centralized Asset & Maintenance Data
The EAM system will outline the assets available, highlight what they need, when they should be worked on and by whom. It presets asset management workflows, which makes accessing and auditing them easy. Additionally, from a centralized place, you can view repair history, audit trails, purchase orders, energy consumption and asset lifecycle costs.
It acts as a hub for all divisions within an organization to rapidly locate information on the performance of the different assets. For businesses that oversee many assets across different locations, this type of visibility is crucial to understanding the status and performance of assets in the field. In addition, precise asset data assists in maintenance planning by helping managers to allocate the correct tools for each operation like repairs or installation.
With asset tracking software, managers are provided with the tools needed to track equipment, inventory and resources. Asset tracking solutions provide a centralized system designed for the company to manage the usage, performance and warranties of assets. Often, the applications include barcoding capabilities and can reduce asset downtime and improve repair timelines.
It is important for companies that use fixed assets to know precisely which equipment is being used, how and where. This functionality depends on asset data supplied by equipment manufacturers and the previously-mentioned asset hierarchy. Tracking multiple fixed assets across different locations relies on radio-frequency identification (RFID) and geographic information system (GIS).
Decreased Asset Downtime
EAM is intended to provide a preventive strategy that enables you to be on top of asset management and maintenance and progress toward a PM approach. The system has the capacity to prompt when maintenance and repairs are needed. After it has been set up, the system can generate things like purchase orders, work orders and RFPs automatically based on established schedules, thus enabling on-time completion of work order. It essentially provides a better concept of the projected cost of unplanned downtime, and you will always be aware.
EAM lowers administrative burden by digitally monitoring all assets, removing data entry errors and enhancing maintenance activities. Asset monitoring is critical for companies that use tools and equipment in multiple locations like warehouses, production facilities, retail stores and distribution centers. Additionally, monitoring involves tracking the usage of assets, not only their location. Improper use of assets should be restricted by businesses as this action could damage equipment, cause accidents and disrupt operations.
Management of Aging Assets and Infrastructures
Equipment naturally becomes worn, even when efficiently maintained. A vigorous EAM system can assist you with running more efficient maintenance policies, which will help to expand the lifecycle of the equipment. It provides another technique to get better return on your investment as well.
Manage Assets through Lifecycle
Depending on the industry in which you operate, managing assets can be the bulk or a side note of your company. EAM makes asset management easy, regardless of the scope or size of your company. Tracking the condition and progression of an asset along its lifespan allows you to schedule updates, prepare for changes that could hinder function and budget for replacements.
Improve the Usage of Assets
Historical and real-time data are collected by the EAM system via IoT tools your business use, such as smart factory equipment, connected appliances and autonomous equipment. The accessible data will assist you in seeing how reliable and performing an asset is to effectively manage its usage.
Asset Value and Uptime Optimization
Unexpected repairs or asset failures can be destructive to a business. Features designed for preventive maintenance assist technicians in remaining in control of equipment upkeep, which helps extend asset’s useful life and reduces the probability of asset failures or full breakdowns.
Enhancement of Maintenance Practices
The software assists with tracking equipment and maintaining it. Additionally, is assists in satisfying safety, health and environmental requirements. Moreover, the software helps eliminate maintenance backlogs. A runaway maintenance backlog decreases productivity, boost operating costs and result in regular downtime. This has crippled many businesses that could operate at full efficiency otherwise. With an EAM system, maintenance backlog could be a nightmare of the past.
The software assists companies in keeping a balance between resources and maintenance costs, enabling them to clear backlogged work. Also, it captures small glitches that might otherwise have been overlooked, avoiding emergency maintenance and issues with compliance.
Mobile Maintenance Enabled
Mobile technology is playing a huge role in revolutionizing asset and cost management. Thankfully, for many EAM systems, there’s are corresponding mobile EAM applications to ensure the possibility of asset management and maintenance on the go for facility managers, maintenance technicians, and staff. To name a few, specialists can check history of repair, manage MRO inventory, audit trails, place purchase orders, as well as request and dispatch work orders. A mobile EAM platform is a revolution in organizational practices.
Below are some of other features you can expect to find in an enterprise asset management system:
- Capital project management
- Procurement and expenses management
- Labor management
- Resources tracking and management
- Multi-site management tools
- Health, compliancy and safety tools
- Preventive Maintenance
- Predictive Maintenance
- Warranties and contracts management
- Fleet management
- Fixed asset management
- Linear asset management
Hopefully, you have gained a better concept of enterprise asset management and how it can assist your business to operate asset and maintenance activities as efficiently as possible. If you would like to have more information, you can contact us for a casual no-obligation chat; we will be happy to help.