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Understanding Asset Maintenance Management Solutions: CMMS vs. EAM

Two industry engineers standing inside a manufacturing factory using CMMS or EAM system, The Asset Guardian (TAG), on a digital tablet device.
Verosoft Design

Understanding the dynamic role of CMMS and EAM in modern business operations empowers

3 min read

In today’s competitive industrial landscape, the complexity and scale of operations underscore the need for effective asset tracking, monitoring, and management. As organizations modernize their enterprise applications, they deploy more modular, intelligent systems as part of broader digital transformation initiatives, leading to advanced asset maintenance and management software.

Two of the most widely used asset maintenance and asset management solutions are CMMS and EAM. These tools empower technicians, facility managers, engineers, and maintenance teams to make informed decisions based on accurate real-time information. In a saturated marketplace, choosing the right solution that aligns with business operations and organizational goals can be challenging. This guide explores the similarities and differences between CMMS and EAM to help organizations determine which solution best fits their needs.

What is CMMS?

CMMS, short for Computerized Maintenance Management System, is designed to simplify maintenance management by optimizing workflows, tracking work orders, and managing inventory and assets.

Typical features include:

  • Preventative maintenance scheduling
  • Equipment history tracking
  • Inventory management
  • Reporting capabilities

In practice, CMMS helps track maintenance tasks and monitor asset locations or operational status. Its straightforward approach prioritizes ease of use while enhancing resource utilization and streamlining maintenance operations.

What is EAM?

EAM, or Enterprise Asset Management, is an asset lifecycle management solution that enables organizations to manage the entire lifespan of physical assets. EAM’s comprehensive management capabilities monitor assets at every stage, from purchase and repair to decommissioning. EAM enables preventative and predictive maintenance based on performance analysis, streamlining scheduling processes and optimizing spare parts management. EAM integrates closely with broader business operations such as procurement and finance, using advanced analytics to align asset management with business objectives.

Typical features include:

  • Asset tracking
  • Maintenance planning
  • Risk management
  • Financial management functionalities

Benefits of CMMS & EAM

Both CMMS and EAM boost operational efficiency by:

  • Prolonging and improving asset performance
  • Reducing costs through more productive uptime
  • Lessening downtime
  • Lengthening asset lifespans

However, the varying functions and features of CMMS and EAM make them ideal for different applications. For small and medium-sized businesses with smaller asset portfolios or maintenance teams, CMMS’s focus on maintenance operations and simple asset tracking can significantly improve equipment reliability and maximize utilization.

EAM, originally reserved for asset-intensive or fast-growing organizations, has become popular across various sectors due to its cost-management and performance optimization capabilities. While EAM systems typically include core CMMS functions, their advanced analytics, comprehensive tracking, and holistic integration work to bolster efficiency, cost savings, and asset performance.

Some of EAM’s benefits include:

  • Improved asset lifespan through preventative maintenance
  • Cost savings resulting from better maintenance practices and inventory management
  • Reduced downtime thanks to predictive maintenance
  • Informed decision-making with comprehensive data for smarter asset management

EAM solutions can also be integrated with other enterprise management systems like ERP (Enterprise Resource Planning), providing a single source of asset intelligence and aligning asset management strategies with organizational objectives to achieve long-term goals.

Differentiating CMMS & EAM

Though CMMS and EAM may seem similar, they differ in scope, integration with business processes, and organizational impact. Choosing between them depends on factors like asset type, business size, and scale of operations.

For example:

  • CMMS typically does not include features such as high-level financial accounting or costs associated with procurement and decommissioning, while EAM provides data on lifetime costs, helping businesses understand the total cost of ownership of assets.
  • EAM is designed for multi-site support across various geographies, whereas CMMS often supports single-site or limited multi-site operations.
  • EAM also covers broader functionality, such as contract management, warranty tracking, energy monitoring, and industry-specific applications.

Occasionally, CMMS can be viewed as a subset of EAM or as a pathway to more robust enterprise management, as EAM tends to be more costly due to its greater complexity and customizability.

Real-World Applications

The benefits of both asset management and asset maintenance solutions are reflected in real-world case studies, highlighting the impact of CMMS and EAM on cost savings and increased efficiency.

A study carried out in the manufacturing industry revealed that the implementation of a CMMS resulted in a significant improvement in productivity, overall cost optimization and positive effects on safety, health, and the environment.

Another study, conducted by Aberdeen Research, showed that EAM integration greatly impacted asset health and operational efficiency through reduced downtime.

As CMMS is mainly focused on maintenance operations and adapted to less complex industrial environments, it is particularly beneficial in these sectors:

  • Manufacturing: Improving equipment reliability and optimizing spare parts inventory.
  • Healthcare: Supporting regulatory compliance and cost containment
  • Transportation and Fleet Management: Monitoring asset performance and ensuring compliance and safety

Thanks to its more comprehensive functionalities and advanced analysis capabilities, EAM has been deployed in industries such as:

  • Utility and Energy Sector: Enhances operational resilience and critical asset lifecycle management.
  • Facilities Management: Optimizes resources and supports sustainability initiatives
  • Aviation Industry: Supports aircraft maintenance planning and compliance management
  • Municipal Infrastructure: Maintains budgetary efficiency and maximizes community impact

Summary

CMMS and EAM are essential tools in asset maintenance and asset management, each offering unique benefits tailored to different organizational needs. CMMS simplifies maintenance management for small and medium-sized businesses, focusing on optimizing workflows and resource utilization, while EAM provides a holistic approach to asset lifecycle management, integrating tightly with broader business processes and offering advanced analytics to improve decision-making.

The choice between CMMS and EAM depends on several factors, including the scale of operations, the size of the asset portfolio and the company’s specific objectives. By understanding the features and benefits of each system, companies can choose the solution that best matches their operational needs and long-term objectives. Ultimately, the effective implementation of CMMS or EAM can lead to improved asset performance, reduced downtime, cost savings and better-informed management decisions, all of which support the company’s overall success.

Meet TAG, The Asset Guardian: A Powerful CMMS/EAM Solution

TAG, The Asset Guardian is a flexible, scalable, and highly configurable asset management software. Once your team is comfortable with TAG CMMS, you can activate more functionalities in your license to transition TAG EAM—the next step for advanced automation for asset management and asset maintenance. If you’d like to take a comprehensive approach to managing your assets, one that tracks your assets from installation to end-of-life, then an EAM system is the best option for you.

Whether you need a CMMS or an EAM, or if you’re unsure which solution would suit your business needs, contact us for a discovery call and we’ll be happy to guide you towards the perfect solution.