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What is Enterprise Asset Management and Its Benefits?

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What is Enterprise Asset Management and Its Benefits
31
January

What is Enterprise Asset Management and Its Benefits?

January 31, 2024
In Blog
Enterprise asset management refers to the process of managing and maintaining physical assets of an organization throughout the entire lifecycle of an asset, from planning, procurement, installation, maintenance, through to disposal. An efficient and high-performing enterprise asset management software or tool helps any organization to carry out the necessary asset-related activities to prevent unplanned downtime and optimize asset performance.

What is Enterprise Asset Management?

To manage hardware and other physical assets, enterprise asset management (EAM) integrates systems, procedures, and software. Businesses in asset-intensive sectors utilize Enterprise Asset Management (EAM) as a business tool to control expenses, supervise maintenance and repair, and maximize capital investments. Business assets from manufacturing lines, vehicles, back-office buildings, and front-line equipment that serve customers are all considered part of an enterprise, spanning divisions that support operations. The amount, nature, and value of the actual assets tracked differ significantly depending on the vertical.
EAM should maximize the utilization of every asset during its whole lifecycle, from retirement and disposal to refresh planning and deployment. The goal is to obtain a more comprehensive view of all owned assets and maintenance activities carried out to lower CapEx and OpEx. Asset upkeep, inventory control, task management, financial planning, and management are typical EAM functions.
Analytics and artificial intelligence (AI) systems can be integrated into enterprise resource management (EAM) with the assistance of devices connected through the Internet of Things (IoT), such as machines, cars, and sensors. Gaining knowledge in this way facilitates the development of improved procedures, well-informed decisions, enhanced productivity, and successful condition-based preventive maintenance.
An asset’s related actions, priorities, skills, materials, equipment, and information can all be planned, optimized, carried out, and tracked with the use of EAM software. Poor asset performance, unscheduled downtime, and supply shortages can result from a failure to manage and maintain company assets. Additionally, some organizations rely on EAM systems to show regulatory body compliance to avoid culpability in the event of a failure.

How are EAM Systems Operated?

Despite the fact that conventional EAM systems were set up on-site, technology has advanced to the point where contemporary solutions operate in the cloud. Greater data storage capacities, enhanced security, and more straightforward integration with supplementary applications like GPS, Internet of Things (IoT) sensor systems, supply chain management systems, mobile workforce management systems, and other apps are just a few advantages that come with utilizing a cloud platform.
Gather and keep asset data on the cloud

Gather and keep asset data on the cloud

Utilize the cloud's agility to gather and monitor asset data in a single, centralized location. To determine where attention is needed and how healthy assets are working, use robust analytics to extract specific insights.

Make use of the data to inform asset planning and increase output

Make use of the data to inform asset planning and increase output

Use machine learning, digital twin technologies, and predictive analytics to assess risk and spot possible equipment breakdowns before they happen. To maximize asset availability, identify and complete maintenance tasks ahead of time.

Make proactive plans for maintenance and inspections

Make proactive plans for maintenance and inspections

Plan, schedule, and carry out maintenance tasks and inspections using integrated procedures and data. Set essential assets in order of importance to save downtime. Issues should be promptly identified, reported, and resolved.

Give field personnel and assets access to the EAM system's capabilities

Give field personnel and assets access to the EAM system's capabilities

To manage work orders and asset operations both online and offline, make use of location services and sophisticated visualizations. Provide remote employees and assets with a map-based user experience by integrating GIS data. Work orders, data, and maintenance procedures can all be tracked and managed remotely.

What Makes EAM Crucial for Companies?

Using an enterprise asset management system, organizations can evaluate, monitor, optimize, and manage assets, including their quality and utilization, which is critical to operations and financial performance. A corporation can manage an infinite variety of assets, such as fleets, devices, machines, pipelines, buildings, consumables, leased equipment, and mobile things. Transportation, healthcare, and retail are just a few examples of industries where specific goods are industry-specific. There are best practices that teams can use to operate more effectively and in control in a complicated setting.
Businesses are always searching for more effective ways to manage their enterprise assets, particularly as the assets’ value and interest grow. The administration of assets must adhere to strict laws and regulations that address issues of accessibility, privacy, and safety. The high risk of failing to account for assets, their expenses, their locations, and their documentation is a compelling argument for implementing Enterprise Resource Management (EAM) at all levels of asset management operations. With EAM, businesses can obtain up-to-date knowledge about their assets in relation to their revenue and operational requirements. EAM benefits companies in the following ways:
Optimize asset utilization

Optimize asset utilization

Real-time data from IoT and analytics tools can be used to report on any condition-based maintenance that is required, as well as to prolong the useful life of physical assets.

Handle aging assets and infrastructure

Handle aging assets and infrastructure

Better business procedures and plans for equipment renewal cycles result from the data produced by EAM.

Prevent problems before they arise

Prevent problems before they arise

EAM software can incorporate equipment maintenance preventative measures to maintain operations steady and uninterrupted in the case of unforeseen disruptions.

Keep an eye on your assets wisely

Keep an eye on your assets wisely

AI-powered monitoring can provide information on the condition of your assets, and data can be combined across departments for more efficient alerts and decision-making.

Unite asset data

Unite asset data

For consistency and convenience of use, managers may view the location of an asset and automate workflows for vital assets.

Unify operational apps

Unify operational apps

By managing all resources from a single technological platform, procedures may be standardized for optimal performance by various teams and the company as a whole.

Key EAM Attributes and Capabilities

  • Lifecycle management of assets: It is possible to document and save all assets and related data in a convenient spot for reporting or modification. This flexibility comes from being able to manage the assets at every stage of the asset lifecycle.
  • Organizing: Businesses need to decide which assets to lease or purchase, as well as how and when to use them. Asset planning typically comes in two flavors: one focused on fresh cycles to replace aging assets that are currently in use and the other on new assets for company expansion. Finance and operations must collaborate on asset decisions that increase profitability and provide better services or experiences for these planning activities to be successful.
  • Work order administration: Give the work order to the appropriate team so they can create a deliverable, promptly assess needs, and closely monitor and diagnose work orders and related problems. Moreover, it manages scheduling, acquires parts, involves workers and contractors, and monitors the progress of the job.
  • Materials management for maintenance, repair, and operations (MRO): The term “materials management” in EAM describes the supplies, equipment, and consumables that employees require to maintain assets in good working order. This might be anything from lightbulbs in the neighborhood tack room to a specialty tool needed to tighten a machine bolt during a monthly inspection. Make sure there are no stock outs or missing parts causing delays in the process.
  • Labor administration: When it comes to field service and asset management, employees and contractors might undergo certification, assessment, and training. They can also be distributed across maintenance duties, related assets, and appropriate work orders.
  • Accounting for finances: To control the expenditure of company assets, evaluate labor expenses and select appropriate financial software. Work orders, operational costs, downtime costs, emergency scenarios, and equipment refresh cycles for outdated machinery can all be analyzed by EAM systems.
  • Analytics and Reporting: It is possible to identify asset problems before they become more serious and to carry out predictive maintenance. By gathering essential performance indicators from the whole asset estate and examining the reports for a comprehensive analytical perspective, a corporation may make better-informed decisions.
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The Development of EAM

In the past, asset management systems were installed on-site, and each kind of asset needed its management system. These systems functioned independently, producing data that was compartmentalized and preventing an organization from providing a coherent picture of its whole functioning.
Instead, the company relied on employees in the field, on the floor, and in the back office to oversee and report on the state of every asset. Paper-driven procedures were typical because this job was manual, which led to outdated and erroneous data.
It was only possible to anticipate and provide proactive asset maintenance with real-time data. Because of this, maintenance and repair activities were reactive, resulting in equipment failures, disruptions to operations, and decreased productivity.
Modern EAM technology gathers data in real-time from many assets and systems, usually housed in the cloud. More effectiveness and efficiency are now possible thanks to new and complementary technology and techniques, as mentioned below:
Algorithms for artificial intelligence (AI) and machine learning

Algorithms for artificial intelligence (AI) and machine learning

Deliver insight and creativity instantly.

Systems for managing supply chains

Systems for managing supply chains

Establish a relationship between asset performance, productivity, and supply chain logistics.

Location tracking

Location tracking

Determines an asset's location using map-based logistics, such as GPS and GIS.

Imaging technology

Imaging technology

Such as drones, satellites, LiDAR, and others, supports requirements for visual inspection and linear asset management.

IoT asset sensors

IoT asset sensors

Gather and send data in real-time from assets.

EAM System Advantages

Companies may centralize all of their asset information in one location with an EAM system, making it simpler to proactively inspect and repair assets as well as monitor and optimize them. Task and labor scheduling are simplified and automated, increasing production and protecting the environment and workers at the same time. Principal advantages consist of:
Coordinated Data Repositories

Coordinated data repositories

Every kind of asset’s data, regardless of its location or source, is included in a centralized perspective of the operational process. With just one blueprint, asset performance can be logically tracked, maintenance and inspection schedules can be made, and productivity disruptions can be kept to a minimum.
Making Decisions In Real-Time

Making decisions in real-time

Real-time data replaces laborious, paper-based reporting as well as outdated or erroneous information. Proactive maintenance and repairs are supported by predictive analytics, which automatically schedules the necessary work. Resiliency is increased while responding to or managing emergencies and unforeseen events, and critical assets can be prioritized to maximize production.
Making Decisions In Real-Time
Complete Lifecycle Supervision

Complete lifecycle supervision

Asset lifecycle management encompasses the whole lifecycle. The integration of asset data with maintenance procedures enables the prediction and visualization of asset behavior and condition from birth to death. Performance benchmarks are well-defined, indicating when underperforming equipment needs rapid correction.
Enhanced Safety, Health, And Environmental Protocols

Enhanced safety, health, and environmental protocols

It is possible to foresee possible consequences and take proactive measures to address them before an asset breakdown results in worker accidents and injuries. It protects the environment by preventing spills, fires, and other negative consequences. Reducing the amount of resources required in maintenance cycles, such as truck rolls and other heavy equipment, and operating equipment as efficiently as possible would help minimize carbon footprints. It is simple to demonstrate that adherence to regulatory agencies abates responsibility.
Enhanced Safety, Health, And Environmental Protocols
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What Distinguishes Computerized Maintenance Management System (CMMS) from EAM?

The management of asset uptime is the primary emphasis of an automated maintenance management system, or CMMS, which is composed of operating and maintenance tasks. The only people who can make decisions about these systems are the maintenance and operations staff. Industries reliant on assets can concentrate on increasing asset uptime with the help of a CMMS.
An EAM system is made to handle all aspects of an asset’s life cycle, including capital planning, acquisition, installation, performance, maintenance, compliance, risk management, and asset disposal. Financial, production, compliance, and other business stakeholders are users in addition to maintenance and operations. Because of their wide range of skills, decision-making teams from senior leadership and the C-suite participate in addition to the maintenance and operations teams. Industries that rely heavily on assets can manage an asset’s complete lifecycle with the help of an EAM system.
Examples of EAM in the corporate world

Examples of EAM in the corporate world

The following list of business sectors is where EAM solutions are most commonly employed. The future of these industries and the achievement of goals like these depend significantly on a more proactive and wise approach to asset management.

Oil and gas

Oil and gas

These multinational companies are responsible for overseeing assets in a variety of locations, including densely populated urban areas and highly isolated field sites, refineries, and plants. Oil and gas firms install, buy, and maintain their assets using Enterprise Asset Management (EAM) methods that leverage sensor data, IoT, edge computing, and advanced analytics.

Railways

Railways

The railway sector is moving from outdated systems to digital enterprise asset management (EAM) solutions as a result of a technological revolution. Rail operators may handle the entire lifetime of assets, obtaining improved mechanical efficiency, asset availability, and lower maintenance costs, with a specialized analytical platform for asset data administration, analysis, visualization, and decision-making.

Facilities

Facilities

Utilities have a combination of fixed and linear assets, so they have to make sure that workers and equipment are protected while providing services to their communities. Facilities include power plants, plants, and isolated, inhospitable outdoor areas where assets are dispersed. By offering continuous data management and documentation, benchmarking capabilities, and cooperation on planned and operational asset performance, EAM supports the industry's reliability-centered maintenance paradigm.

Industrial equipment and parts

Industrial equipment and parts

The manufacturing sector is growing more and more competitive as more businesses vie for the same clientele. These companies can reach the market more quickly, run more effectively, offer better customer service, and possibly even enter the "as-a-service" sector thanks to EAM.

Mid-Market companies

Mid-Market companies

The success of midsize enterprises is mainly dependent on their resilience and adaptability. With the use of EAM, these businesses are able to make timely adjustments and reduce overall inventory and local labor costs while improving spare parts turnover, equipment utilization, and maintenance efficiency.

Smart Factory MOM: The Perfect Enterprise Asset Management Solution for Manufacturing

Smart Factory MOM seamlessly transforms into the ideal Enterprise Asset Management (EAM) solution for manufacturing organizations. With unified asset visibility, proactive maintenance strategies, end-to-end lifecycle management, streamlined workflows, and real-time data-driven decision-making, it addresses manufacturing challenges with precision. This transformative synergy positions Smart Factory MOM as the catalyst for operational excellence and sustained success in the dynamic manufacturing landscape.
Contact us today to learn more about how we can help you implement, train, and maintain the Smart Factory MOM solution and count on us to help you overcome any hurdles along the way.
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