What Is Enterprise Asset Management (EAM)?
Enterprise asset management (EAM) is a practice that’s critical to many businesses in an array of industries, from manufacturing to healthcare. In this article, we’ll cover everything you need to know about EAM, including what it is, why it matters, what to look for in an EAM solution, and how different industries can make the most of EAM.
What Is EAM? Overview and Meaning
Enterprise asset management (EAM) is a practice that businesses use to integrate software, systems, sensors, and other measurement devices, and services to help their staff oversee and maintain the operation of physical assets, equipment, and infrastructure. The primary goals of the practice include maximizing the quality of and utilization of assets and ensuring those assets see optimal performance throughout their lifecycle. By implementing EAM, organizations can establish a more proactive maintenance strategy, increase productive uptime, reduce operational costs, ensure compliance, and make informed decisions for better asset management and efficiency.
The different facets of EAM include:
- Gestão do ciclo de vida dos bens
- Work order management
- Planeamento e calendarização
- Relatórios e análises
- Optimização da cadeia de fornecimento e inventário
- Iniciativas de segurança
- Gestão financeira
What Is the Difference Between EAM and CMMS?
To some, an EAM system and a Computerized Maintenance Management System (CMMS) might seem to be essentially the same thing. Though there is some overlap in their capabilities, there are some distinct differences, too. The primary difference between an EAM and a CMMS is that while an EAM system centers on asset lifecycle, a CMMS is a tool that centralizes and optimizes the information integral to EAM.
For instance, an EAM system helps track data and tasks related to every stage of the lifecycle of an asset or piece of infrastructure, from procurement and regular maintenance to repairs and disposal. This includes capabilities related to accounting and expense management, planning and scheduling, reporting and analytics, supply chain and inventory optimization, management of safety initiatives, and much more.
Meanwhile, a CMMS is more focused on record-keeping for items and tasks like tracking and ordering spare parts and inventory, measuring continuous asset health, and planning maintenance schedules. CMMS can help optimize and streamline these tasks — which can apply to anything from machines to fleets to even entire facilities — via automation and by improving transparency and communication. However, all of these benefits and tasks revolve around the active portion of an asset’s or piece of infrastructure’s life.
In short, an EAM is a more holistic system that touches every aspect of infrastructure and asset management, while a CMMS can fall under the umbrella of an EAM strategy, since it specifically focuses on maintenance management while an asset operates within your facility.
The Benefits and Importance of EAM Systems
Organizations can have hundreds, if not thousands or millions, of assets to keep track of and maintain. Managing each of these assets through its lifecycle requires implementing a robust strategy to efficiently and transparently manage them from every stage of that lifecycle, from purchase to disposal. An enterprise asset management system benefits companies by providing these capabilities and more. Let’s review some of the most critical benefits of implementing a strong EAM strategy and system into your facility operations.
Centralize Asset Data
One of the most vital benefits of using an EAM strategy and EAM software is that the system can automatically pool data from disparate systems and multiple facilities and sites. By having a single source of truth, operations managers and facility crews can more easily monitor and maintain assets through their lifecycle — regardless of where that asset is located. This centralization has a ripple effect, too, leading to many other benefits such as better communication, improved transparency, and enhanced Root Cause Analysis (RCA) and other critical decision-making.
Easily Track and Manage Assets and Infrastructure
Another strong benefit and capability of EAM is better, more efficient asset tracking and Asset Lifecycle Management (ALM). Facility staff and decision-makers can get real-time reports on current performance health and expected state of infrastructure and assets. They can also receive alerts from the system when they need to take actions like scheduling and performing routine maintenance. And AI-powered EAM systems further enable predictive maintenance by automatically gathering real-time condition data about each asset and using machine learning algorithms to determine when and where maintenance is required.
Resolve Issues Before They Happen With Predictive Maintenance
With centralized data and AI-powered asset management comes predictive maintenance. Predictive maintenance is especially important for facilities’ operations, because it allows organizations to avoid unnecessary downtime and thoroughly plan any necessary downtime so that it’s as short as possible. By knowing which assets will need repairs and when, facility managers can ensure the staff and crew can stay on track for hitting production and operations goals and minimize any impact on revenue and costs.
Extend Asset Lifecycle
Staying on top of an asset’s maintenance and repair needs with predictive maintenance via EAM means there’s less unnecessary mechanical stress on assets. Of course, less mechanical stress on assets means they last longer. These extended lifecycles lead to replacement budgets and operational costs going down by minimizing costly operations like emergency maintenance, helping companies keep a healthy bottom line and helping them keep operations more sustainable.
Optimize Maintenance, Repair, and Operations (MRO) With Work Order Automation and Scheduling
A modern, powerful EAM system can also automatically create work requests and display the progress of each work order to help simplify Maintenance, Repair, and Operations (MRO). This sort of real-time, centralized data and automation eliminates tedious administrative work and lets staff get updates autonomously. Together, these functions streamline maintenance processes and eliminate communication bottlenecks.
Additionally, a modern EAM system makes it easy for operations managers and other users to optimize work schedules for employees and contractors to ensure the right people complete maintenance activities at the right time.
Streamline Supply Chain and Inventory Management
Of course, by optimizing MRO, a holistic EAM system also facilitates a more efficient supply chain and inventory management strategy. How and when parts are purchased and whether critical spares arrive on time to solve production line shutdowns can make a powerful difference in reducing downtime. And top EAM solutions work alongside Enterprise Resource Planning (ERP) and financial systems to provide all kinds of inventory management and stock controls such as purchasing and managing spare parts, predicting the demand for materials, and automatically reordering stock that is running low.
Eliminate Supply Shortages and Minimize Downtime
Through improvements in supply chain operations and via other functions and benefits of a strong EAM system, like preventative maintenance, data centralization, and automations, organizations can also get insights into exactly when they’ll need to take assets offline for repairs and can keep accurate records of supplies and spare parts for operations. These insights help organizations keep downtime to a minimum and ensure asset utilization remains high.
Make Audits Easier
In addition to all of the other benefits of using EAM software, good EAM systems also make it easier for organizations to get through audits and maintain regulatory compliance.
For instance, in the food and beverage industry, an EAM solution can help prepare facilities for FDA audits by centralizing critical data like inspections, when machines and other infrastructure were last serviced, and more. And in healthcare, organizations that utilize an EAM strategy have streamlined, digital records that make it much easier for teams to keep their machinery and equipment safe and provide maintenance and upkeep records for audits.
Applications and Industry Uses of Enterprise Asset Management Software
O EAM é o pináculo da qualidade e da eficiência na gestão dos activos físicos de uma organização. Muitas indústrias utilizam-no para gerir a manutenção, programação, reparação, conformidade e funcionamento de activos complexos para prolongar a sua vida útil, poupar dinheiro em inventário e criar políticas de saúde e segurança ambiental.
Any asset-intensive organization can use enterprise asset management to improve its operational effectiveness by automating and optimizing tasks related to maintenance, scheduling, repairs, compliance, and more. These benefits aren’t localized to any specific industry, yet there are some industries where enterprise asset management software might be more helpful. Some of those industries include:
EAM solutions have been accepted by the life science, healthcare, petroleum, and railway industries because of their potential to transform the future of manufacturing through AI, the Internet of Things (IoT), and SaaS integrations. Curbing the cost of upkeep and extending the longevity of assets allow for greater transparency and accountability among enterprise distributors.
- Life sciences and pharmaceuticals: EAM software can help companies operating in the life sciences and pharmaceutical space with compliance and with better managing and maintaining precision equipment like centrifuges and manufacturing assets like tablet presses.
- Food and beverage manufacturing, storage, and distribution: An EAM solution can help prepare food and beverage facilities for FDA audits, simplify meeting compliance standards, and decrease budgetary burdens.
- Automotive manufacturing: Implementing EAM software can help standardize operations across production lines and facilities and meet strict International Automotive Task Force (IATF) regulations.
- Fleet maintenance: Leverage an EAM to manage fleet asset repair and maintenance and track key metrics such as total cost of ownership (TCO).
- Healthcare: An EAM strategy streamlines and digitizes recordkeeping, which helps teams keep healthcare facilities safe and healthy, meet compliance regulations, and more easily pass audits.
Seven Key Features To Look for in an Effective EAM Software
Not all enterprise asset management solutions are created equally. In fact, some are tailored for specific industries. Regardless of industry, though, there are some must-have components, features, and functions that any good, modern EAM software should have.
1. Work Order Management
Maintenance work is crucial to asset health and longevity — and ultimately, an organization’s bottom line — making work order management an essential feature in EAMs. You should be able to automatically generate work requests or orders, schedule PMs, and view work order history for all of the assets in all of your facilities, no matter their location.
2. Asset Lifecycle Management (ALM)
If you don’t know how your assets are performing, you risk costly, unnecessary downtime. You can be at a financial disadvantage when it comes to procurement and disposal, too. For instance, if you know you’ll need to purchase multiples of the same type of asset soon, you’re in a better position to save with a bulk purchase.
The best EAM software should have an asset database that gives you the ability to quickly and easily determine how far into its lifecycle an asset is. It should also help you manage and keep records of all of the administration involved in procurement, active maintenance and repairs, and disposal of an asset.
3. Supply Chain Management
Just as it helps you manage the lifecycle of an asset, a robust EAM should also help you keep track of your supply chain. By integrating with other critical systems like accounting software and ERP systems, EAM software should give you purchasing and inventory management capabilities. Features like searchable inventory counts and abilities like submitting requests for spare parts from other facilities in your network can help ensure your supply chain remains agile and lean.
4. Remote Monitoring of Assets
It’s not uncommon for a business to have a sizable network of facilities and assets spread across large geographic areas. In these cases, it’s nearly impossible to effectively monitor and manage assets without remote capabilities. Any EAM system you use should give you the ability to see how any asset, at any facility, is performing — even if you’re not nearby. This remote monitoring allows organizations to seamlessly plan, execute, and analyze maintenance or production activities in one centralized system.
5. Mobile and Cloud Functions
In addition to remote monitoring capabilities, the best enterprise asset management software should offer mobile and cloud capabilities. Cloud capabilities mean critical data is available whenever staff members need it — not when they’re hardwired into the local network. And an app that runs on tablets or smartphones lets facility staff and other relevant workers get updates and have access to the data and functions they need, like work order requests and inventory levels, while they’re on the go on facility sites.
6. Audit-friendly Features Like Audit Trails
Finally, an EAM system should make audits easier than ever. Look for features and functions such as time-stamped audit trails, password-protected e-signatures, data encryption, and more.
7. Analytics and Reporting
Finally, any EAM worth implementing should provide you with powerful, real-time analytics capabilities. With a centralized data source to assess, your EAM should be able to identify critical patterns and create easy-to-read, actionable reports and dashboards. From information like maintenance KPIs and supply chain data to maintenance and labor costs, a modern EAM should help you understand what’s working and what isn’t.
Get Started With Implementing EAM Software
Now that you know all of the many benefits of, applications for, and features to look for in an enterprise asset management software, it’s time to start considering which solution will work for your business.
Fluke Reliability’s eMaint software offers all the best of an EAM solution, with CMMS, EAM, and condition monitoring capabilities. Organizations across a wide array of industries — from automative manufacturing and food and beverage to healthcare and oil and gas facilities— can benefit from eMaint’s deep, holistic capabilities and features.
Customizable dashboards and reporting from eMaint EAM give you a comprehensive, easy-to-digest view of complex operations and assets. Plus, automations and real-time, centralized data lets your team work swiftly and accurately. Together, providing the data and visibility you need to identify bottlenecks, improve efficiencies, and ensure maximum uptime for all of your assets.
The award-winning eMaint CMMS allows users to develop multi-asset work orders, inspection-round work orders, and work orders that automatically trigger based on condition monitoring data.
And eMaint’s mobile app, Fluke Mobile, lets your team members capture critical data even if they’re offline; once they’re back online, Fluke Mobile automatically syncs that work, so your crew can do their work when they need to and move on to the rest of their to-do list.
To learn more, take a tour to explore all the ways that eMaint can help your business.