Managing the physical assets for any organization holds a lot of importance because better health and functioning of machines and equipment results in an increase in work productivity. Thanks to technology, the human effort has significantly reduced; however, this has also increased the dependency of humans on machines and technology. Hence, it is important to maintain the health and usability of machines. This is where Enterprise Asset Management (EAM) comes into play.
The Enterprise Asset Management system can be defined as the process of managing the lifecycle of physical assets and equipment to increase their life, reduce maintenance costs, and improve the quality and health of the assets resulting in enhanced productivity. When we say enterprise, it means the entire setup of departments, locations, facilities, and support systems within an organization. EAM implementation helps to plan, organize, execute, and keep a track of planned and unplanned equipment maintenance, MRO inventory, MRO data classification, and material procurement. It helps to optimize the quality and efficiency of the physical assets of the company.
Enterprise Asset Management helps to monitor the maintenance costs and schedule the maintenance activities of different assets regularly. It is a more robust system that allows you to set goals and achieve company objectives by considering important aspects such as company finances, HR, accounting budgets, and asset information. With an efficient EAM system, the maintenance costs and effort can be significantly lowered, allowing the company to focus on other important issues such as component engineering services, procurement services, etc.
The EAM software works effectively in combination with a Computerized Maintenance Management System (CMMS) or a Maintenance, Repair, and Operations (MRO) software. The main functions of EAM software include:
The EAM software comprises of various applications that enable diverse functions like Preventive Maintenance, Reactive Maintenance, Cost Control, Work Order Systems, Scheduling, and Planning Maintenance, and so on. Preventive maintenance means that the system gives an alert whenever there is maintenance pending. The software automatically creates work and purchase orders. This reduces additional costs in case the machinery fails.
The software also helps to manage the environmental regulatory compliance services of the enterprise. Manually keeping a track of all these maintenance and compliance activities can be a tedious job; however, EAM software makes it simpler and faster. It can track the assigned jobs and completed ones, giving a clear picture of the status of enterprise assets.
The benefits of EAM are:
Maximizing return on assets (ROA)
Reducing costs and risks
Making informed decisions about assets
Reducing total cost of ownership (TCO)
Improved asset reliability and predictability
The ability to track and improve maintenance KPIs
In addition to maintaining the health of an enterprise’s physical assets like tools, machinery, and equipment, maintaining the health and safety of employees is equally important. One must not forget that employees are also the company’s assets. Bad or no maintenance of employees can result in unfavorable consequences, which can affect the company’s reputation over the long run. EAM system helps to design a safe environment for the employees that comprise of right health and safety practices.
EAM system automates the supply chain of the enterprise. It can set a minimum and maximum stock limit to set easier re-ordering criteria and enable faster MRO procurement. Moreover, the manager can receive timely notifications in case of an inventory shortage situation. This means it can ensure optimal inventory management, thus avoiding last-minute expenses and mismanagement of suppliers.
EAM is known to boost business value by identifying and supporting different business opportunities. EAM maximizes the efficiency and usage of physical assets by improving their overall quality, health, and safety. For the same reason, companies are making large investments in establishing an efficient EAM system for proper asset management.
Are you looking for an EAM or CMMS system implementation or support for your business, but don’t know where to start, call us today and talk to our EAM consultants. Our experts will be able to provide you the right feedback based on your business needs and assist you with the steps to enhance the asset management of your organization.