Enterprise Asset Management (EAM) is a combination of tools, sensors, software, and services that helps teams maintain assets, control costs and repairs, and maximize the asset lifecycle.
What is EAM?2022-03-31T18:45:16-04:00
Read Time: 5-10 minutes
Enterprise asset management (EAM) is a strategy that combines 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 EAM 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
As the industrial internet of things (IIoT) grows, organizations should include connected reliability principles in their enterprise asset management plans. 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?
Organizations have assets by the hundreds, if not thousands or millions. If something is critical to performing production, services, or operations, it’s an asset.
EAM best practices enable maintenance and reliability teams to strategically manage their complex, asset-filled environments by tracking asset health, performance, and efficiency.
Let us put our tools, sensors, software, and services to work for you.
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 EAM.
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.
Enterprise resource management, 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 put their EAM strategies into practice and customize their experiences. Cloud-based applications also 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 predictive maintenance practices.
When everything is tracked and monitored from inception to completion, leadership can gain better insights into business value. Providing reports and dashboards shows the benefits of enterprise asset management actions.
A focused enterprise asset management software is a specialized solution that allows users to put EAM strategies into practice to extend asset life.
With EAM software, teams can track asset health, gauge risk and expenses, and gain visibility into equipment performance across their entire organization. For example, one EAM software feature to look for is the ability to digitalize an entire facility. Gain a full view into asset health and performance with 2D and 3D renderings of facilities and assets, including details such as schematics or historical records.
Thoroughly track and monitor critical assets in EAM software helps companies boost productivity, optimize processes, and promote sustainable, safe practices. Preventing asset breakdown using integrated condition monitoring improves worker safety. When assets don’t reach critical levels, work environments are safer.
Most organizations contend with several layers of regulations. OSHA, EPA, GMP, ISO, FDA, and others can all impact EAM software decisions. EAM solutions should help organizations comply with strict quality, environmental, energy, safety, and other regulatory standards. Using EAM software, organizations can:
Compile detailed documentation on work performed
Attach SOPs, instructions, LOTO, and other safety information to work orders
Capture start/stop times of inspections, attach inspection sheets, and track pass/fail
EAM software can also connect with other departments within an organization, such as finance. From commissioning to decommissioning, including all of the documentation generated in between those stages, EAM software helps organizations make data-backed capital spending decisions.
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 EAM strategy also makes it easier to optimize inventory management, scheduling, and more. Tracking contracts, supply and inventory costs, and labor provides insights into expenditure management. Finance departments and maintenance teams can work together to improve an organization’s bottom line.
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 assets in optimal working condition to ensure a safe, productive, and efficient oil & gas facility.
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 Can I Find Out the Cost to Implement Enterprise Asset Management?
1. What are the top five 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 screen. 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 ready for anything. When maintenance is planned and controlled, operations run more smoothly, safely, and efficiently.
2. How does Enterprise Asset Management help maintenance teams optimize their 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.
3. What departments or business functions 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 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.