Enterprise Asset Management (EAM) refers to the strategy used by an organization to manage its physical assets across their lifecycle, from acquisition to decommissioning. The typical EAM program is composed of systems, software, and procedures that are designed to track asset health, analyze performance issues, and schedule maintenance activities. Indeed, Enterprise Asset Management can provide a valuable framework for building an effective preventive maintenance program.
Enterprise asset management software, in particular, can help to streamline essential preventive maintenance functions including routine inspection scheduling, asset health tracking, and performance data analysis. But what is enterprise asset management software, and how can the right enterprise asset management solution help your organization?
In the discussion below, we’ll take a deeper dive into the role that enterprise asset management software can play in improving the performance of your physical assets, your preventive maintenance program, and your organization as a whole.
What is enterprise asset management?
Enterprise asset management is the approach that your organization takes to managing physical assets such as equipment, facilities, and infrastructure. Enterprise asset management refers specifically to the program deployed to manage your critical assets across their lifecycle, which includes acquisition, maintenance, disposal, and replacement. This makes EAM a critical component of your facilities management program as well.
Your organization’s EAM program will typically be built on a combination of compliance obligations, manufacturer recommendations, safety regulations, standard operating procedures (SOPs), and software-based solutions.
The typical EAM program will include the following components:
- Asset lifecycle management procedures including the business process for acquiring assets, an outline of required maintenance activities, and protocols for proper disposal of equipment
- Work order management procedures for scheduling, assigning, tracking, and completing maintenance work
- Inventory management systems for tracking inventory levels and ensuring spare parts, tools, and materials are available as needed for maintenance activities
- Asset performance management strategies including the establishment and tracking of Key Performance Indicators (KPIs) such as mean time between failures (MTBF) and mean time to repair (MTTR)
- Compliance and risk management guidelines to ensure that asset management procedures comply with current regulatory conditions, safety standards, documentation requirements, and audit schedules
- Financial management procedures for tracking the costs associated with asset acquisition, operation, maintenance, and disposal
What is enterprise asset management software?
As the section above demonstrates, Enterprise Asset Management includes several interdependent functions. Coordination between these components is critical. Many organizations rely on enterprise asset management software to help streamline and coordinate these functions.
Enterprise Asset Management (EAM) software is designed to help organizations manage their physical assets throughout their lifecycle by providing a centralized platform for tracking, maintaining, and optimizing the upkeep of these assets. Below, we take a closer look at the key features typically included with enterprise asset management software.
Key enterprise asset management software features
Key features of EAM software typically include:
- An asset registry in the form of a comprehensive database with records detailing the location, status, maintenance history, and specifications of each asset
- Work order management tools designed to automatically generate, assign, and track work orders to streamline the workflows around preventive maintenance tasks
- Inventory management capabilities for tracking inventory levels, triggering reorders, and ensuring necessary components are always available when needed
- Compliance management tools for ensuring compliance with regulatory requirements, including scheduling inspections, tracking certifications, and generating documents for audit
- Mobile applications, allowing maintenance teams to access asset information, update work orders, and perform inspections in the field
EAM integrations with other business solutions
EAM software is particularly valuable when it integrates with a wide range of other software-based business solutions. The leading enterprise asset management solutions offer seamless integration with:
- Enterprise Resource Planning (ERP) Systems, synchronizing financial data, procurement processes, and human resources information
- Geographic Information Systems (GIS), allowing organizations to visualize asset locations, optimize maintenance routes, and manage geographically dispersed assets
- Internet of Things (IoT) and Sensor Networks, enabling real-time monitoring of asset conditions, predictive maintenance, and automated alerts for potential issues
- Supply Chain Management Systems, improving the coordination of spare parts procurement, inventory management, and supplier relationships
- Computerized Maintenance Management Systems (CMMS), enhancing maintenance management capabilities, improving work order management, and streamlining maintenance scheduling.
EAM vs. CMMS
Enterprise asset management software and Computerized Maintenance Management Systems (CMMS) are both critical tools when it comes to managing physical assets. There are some similarities between these two valuable software solutions, particularly as they relate to building effective preventive maintenance programs. Some organizations may even use the terms EAM and CMMS interchangeably.
However, there are a few critical differences between enterprise asset management software and CMMS software, particularly in their overarching focus and scope. In short, EAM programs are more all-compassing and include the acquisition, disposal, and maintenance of physical assets. As such, asset maintenance is just one component of an EAM program. This means a CMMS may function as one part of a broader EAM program.
Similarities between EAM and CMMS
Core similarities between EAM and CMMS software solutions include:
- Maintenance planning, with both systems providing features for managing and optimizing preventive, corrective, and predictive maintenance activities
- Work Order management, with both systems including functionalities for creating, assigning, and tracking work orders
- Asset tracking, with both systems including capabilities for tracking asset location, condition, and maintenance history
- Inventory management, with both systems providing tools for tracking, managing, and triggering reorder points for spare parts, materials, and tools
- Compliance management, with both systems helping organizations schedule inspections, perform preventive equipment upkeep, and document maintenance activities
Differences between EAM and CMMS
Core differences between EAM and CMMS software solutions include:
- Focus: EAM systems encompass the entire lifecycle of physical assets and CMMS systems focus specifically on maintenance management
- Scope: EAM systems provide insights into asset performance, lifecycle costs, and long-term needs while CMMS systems focus instead on day-to-day maintenance tasks
- Financial management: EAM systems typically including features for tracking the costs of asset acquisition, operation, maintenance, and disposal while CMMS systems typically limit financial features to those tracking maintenance costs and labor expenses.
EAM and ERP
Like enterprise asset management (EAM), Enterprise Resource Planning (ERP) describes a strategy for streamlining the management of essential business functions. However, ERPs are even broader. EAM systems are focused on managing the lifecycle of an organization’s physical assets. Enterprise Resource Planning (ERP) is instead focused on creating coordination between the full scope of an organization’s operations.
We can get a better idea of the similarities and differences between EAM and ERP by taking a closer look at their key features:
Key EAM features:
- Asset lifecycle management
- Preventive and predictive maintenance
- Work order management
- Spare parts and inventory management
- Compliance and risk management
- Performance monitoring and analytics
Key ERP features
- Financial management including accounting, budgeting, payroll
- Human resources management including recruitment, training, and retention
- Supply chain management including procurement, inventory, and logistics
- Manufacturing and production planning
- Sales and customer relationship management (CRM)
- Reporting and analytics
It’s important to note that EAM and ERP systems can be integrated to leverage the strengths of both platforms. While EAM and ERP systems serve different purposes, their integration can significantly enhance an organization’s ability to manage assets efficiently while maintaining overall operational coherence.
Benefits of enterprise asset management software
EAM software provides a framework for managing your organization’s critical assets. This is vitally important because these assets can be costly to obtain, repair, and replace. Moreover, your ability to maintain these assets can significantly improve your organization’s efficiency, consistency, regulatory compliance, and productivity.
The right enterprise asset management solution can provide your organization with a wide range of invaluable benefits including:
- Enhanced asset performance, with EAM software helping to facilitate preventive and predictive maintenance and ultimately maximizing uptime
- Monitoring, with IoT sensors and real-time data analytics enabling timely maintenance, repairs, and parts replacement
- Cost reduction, with proactive maintenance strategies minimizing unexpected breakdowns, preventing unplanned downtime, and reducing the frequency and cost of repairs
- Improved risk management, with EAM software helping organizations track compliance with industry regulations, schedule inspections, maintain certification records, and generate compliance reports
- Data-driven decision-making, with EAM software providing powerful analytical tools, generating insights from asset data, and offering a comprehensive view of asset health and performance.
EAM in action: industry examples
Enterprise asset management systems are critical to a wide variety of organizations and asset-intensive industries. EAM solutions can play an important role in guiding the work of acquisitions personnel, maintenance teams, accounting departments, and more.
Below, we take a closer look at how EAM systems provide value in a wide range of industries:
- Manufacturing operations may use EAM software to prevent equipment breakdowns by scheduling preventive maintenance, tracking equipment health using IoT sensors, and analyzing performance data to predict failures.
- Oil & gas refineries may use EAM systems to mitigate elevated safety risks and equipment failures by monitoring asset conditions in real-time, managing compliance with safety regulations, and optimizing maintenance schedules to prevent catastrophic failures.
- Healthcare facilities may use EAM systems to manage medical equipment maintenance, track compliance with health standards, and ensure timely inspections and certifications.
- Food & beverage producers may use EAM systems to schedule regular sanitation and maintenance tasks, track equipment performance, and ensure compliance with food safety regulations
- Transportation and logistics firms may use EAM systems to manage the maintenance of vehicles and equipment by tracking usage, scheduling maintenance, and optimizing spare parts inventory.
Manage assets with a CMMS
One of the core value propositions of a good EAM is its ability to integrate with a wide variety of operational software solutions. While EAMs generally include components for maintenance management, the best way to truly unleash the maintenance management power of an EAM is to integrate it with a leading-edge CMMS solution.
To explore the full range of capabilities and benefits that cloud-based CMMS platforms have to offer, check out our comprehensive Guide to CMMS Software.
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