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What is Enterprise Asset Management?

Enterprise asset management (EAM) is a combination of tools, sensors, software, and services used to optimize assets throughout their lifecycles. The goal of EAM is to maximize asset performance, availability and longevity. Effective Enterprise Asset Management increases asset capacity and uptime while reducing expenses.

Enterprise Asset Management is a strategy that includes:

  • Asset lifecycle management

  • Work order management

  • Planning and scheduling

  • Reporting and analytics

  • Supply chain and inventory optimization

  • Safety initiatives

  • Financial management

As the industrial internet of things (IIoT) grows, organizations should include connected reliability principles in their enterprise asset management. Connected data, systems, and teams allow for advanced analytics, increased communication, and expansion of IIoT initiatives.

When teams make data-driven maintenance and management decisions, they improve asset efficiency and performance. This transforms maintenance into a business value driver.

Why is Enterprise Asset Management important?

EAM strategizing allows organizations to ensure reliability by tracking asset health, performance, and efficiency across its lifespan. Every organization has assets by the hundreds, if not thousands or millions. Business is an asset game, and managing those assets effectively is key.

An ‘asset’ can be anything that a business needs to complete their purpose. If it’s critical to performing production, services, or operations, it’s an asset. EAM strategies and best practices allow maintenance and reliability teams to control their complex, asset-filled environments.

What are the top five benefits of an EAM?

  1. Digitization of assets – By combining your EAM strategy with a CMMS, you can centralize information and monitor assets through a single screen. The best solutions offer condition monitoring, automation of work orders, and mobile-friendly software to keep your workers on-the-go.
  2. Maximize asset life – When combined with an IIoT-enhanced EAM software, historical and real-time asset data can be used in decision making. Not only does this improve asset efficiency, but it allows teams to include aging assets in IIoT programs.
  3. Align maintenance and operations – Maintenance teams use data to determine when actions are performed, while operations and reliability engineers can gain meaningful insights from metrics. A properly set-up EAM strategy considers other departmental needs that support MRO and business goals.
  4. Move toward Predictive Maintenance and IIoT – An EAM strategy is in line with the expansion of IIoT technologies into spaces. More teams see the value in connected condition monitoring technologies to gain real-time insights.
  5. Maintenance as a business value driver – Leveraging an EAM strategy in your operations will ensure that you’re ready for anything that comes your way. When maintenance is planned and controlled, operations run more smoothly and efficiently.

What is the difference between EAM and CMMS?

Enterprise Asset Management is an asset lifecycle strategy. Computerized maintenance management system (CMMS) software is a tool that centralizes and optimizes the information integral to the successful execution of an EAM strategy.

CMMS is a software solution that automates tasks, streamlines processes, and increases communication and transparency. CMMS software helps maintenance teams effectively manage assets from machinery to fleets to facilities.

To learn more, visit our What is a CMMS guide.

What is the difference between EAM and ERP?

Enterprise Resource Planning, or ERP, is the practice of integrating and organizing business data in one centralized system. An ERP software covers core organizational functions such as production, inventory, sales, accounting, and more. The visibility that comes from centrally collected, managed, and shared data can drive efficiency and improve the decision-making process.

Enterprise Asset Management encompasses many of the same core functions, but it is a strategy — not a software.

How do EAM and SaaS work together?

Cloud-based, SaaS (Software as a Service) EAM programs let organizations customize their experiences. And cloud-based applications allow teams to connect with EAM actions from anywhere. Meter readings, electronic signatures, work order processing, and more can be accomplished from a smartphone, tablet, or laptop.

Today’s workplaces are highly mobile, with fewer workers sitting at desks and more workers on site getting things done. An enterprise asset management strategy fits into the move toward predictive maintenance practices.

Learn how to put SaaS into your CMMS or EAM system.

How is Enterprise Asset Management used in manufacturing?

Manufacturers need to optimize asset health so that production losses from downtime don’t hurt the bottom line. Leveraging the principles of EAM keeps production lines up and running.

Using real-time data and analytics, teams can act to maximize asset availability and extend asset life. An Enterprise Asset Management strategy also makes it easier to optimize inventory management, scheduling, and more.

Which other industries use Enterprise Asset Management?

Any asset-intensive organization can use Enterprise Asset Management to improve its operational effectiveness. EAM can help different industries address their specific challenges.

Food & Beverage: Prepare food & beverage facilities for audits, make meeting compliance standards simpler, and decrease budgetary burdens with EAM.

Oil & Gas: Keep upstream and downstream assets in optimal working condition to ensure a safe, productive, and efficient oil & gas operation.

Automotive: Standardize operations across production lines and facilities and meet strict International Automotive Task Force (IATF) regulations by implementing EAM.

Fleet Maintenance: EAM helps manage the maintenance and repairs of fleet assets while also making it easier to track metrics such as total cost of ownership (TCO).

Healthcare: By streamlining recordkeeping, an EAM strategy helps teams keep spaces clean and safe, meet strict compliance regulations, and more easily pass audits.

How much does Enterprise Asset Management cost?

Click here to speak to one of our specialists.

The top benefits of Enterprise Asset Management

  • Digitization of assets: By combining your EAM strategy with a CMMS, you can centralize information and monitor assets through a single system. The best solutions offer condition monitoring, automated work orders, and mobile-friendly software to keep your workers on the go.
  • Maximizing asset life: Historical and real-time asset data can be used to improve decision making, boosting asset efficiency and longevity.
  • Aligning maintenance and operations: Maintenance teams use data to determine when actions are performed, while operations and reliability engineers gain meaningful insights from metrics. An effective EAM strategy considers other departmental needs that support MRO and business goals.
  • Moving toward predictive maintenance and IIoT: An EAM strategy aligns with the expansion of IIoT technologies. More teams see the value in connected condition monitoring to gain real-time insights.
  • Maintenance as a business value driver: Leveraging an EAM strategy in your operations will ensure that you’re maximizing the return on your asset investment. And when maintenance is planned and controlled, operations run more smoothly, safely, and efficiently.

How Enterprise Asset Management helps maintenance teams optimize operations

Having a centralized location to manage the scheduling and execution of work boosts transparency and efficiency. EAM is also about balancing asset needs with labor availability. Tracking, scheduling, and organizing employees and contractors, including their training and certification, is vital to a robust EAM strategy.

Assets, parts and components, and materials used to maintain equipment are all supply chain or contracting efforts. Effective EAM solutions integrate supply chain and contract management.

Departments or business functions that benefit from Enterprise Asset Management

EAM can draw on and impact all departments. For example, improving asset data can give finance better information on spending, helping to align maintenance with organizational goals.

Analytics are the backbone of data-driven decisions. Providing analytics in dashboards and reports allows stakeholders to gain insights into tasks, track maintenance KPIs, and more.