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A Guide to Operational Efficiency with Enterprise Asset Management (EAM)

This guide highlights how EAM systems streamline asset management with real-time tracking, predictive maintenance, and lifecycle management. Essential for asset-intensive industries, EAM enhances efficiency, reduces downtime, and improves decision-making for long-term operational success.

#2024#EAM
3 min read

Imagine a world where every piece of equipment in your organization operates seamlessly, where downtime is a thing of the past, and maintenance is no longer a guessing game. The transformative power of Enterprise Asset Management, or EAM, can turn imagination into reality.

Enterprise Asset Management (EAM) software simplifies asset maintenance and management by streamlining various functions and providing a holistic view of assets from design to disposal; allowing for enhanced productivity, cost savings, and more efficient asset lifecycle management. EAM integrates seamlessly with ERP systems, improving data consistency and facilitating better decision-making. EAM software is crucial for asset-intensive organizations who benefit from centralized information, mobile access, and real-time monitoring.

In this blog, we'll explore how EAM software revolutionizes how businesses manage their assets. Whether you're new to EAM or looking to deepen your understanding, this guide will help illuminate the path to smarter asset management.

The Fundamentals of Enterprise Asset Management

Enterprise Asset Management (EAM) has evolved significantly since its inception. Tracing back to the 1960s, maintenance professionals used punch cards on mainframe computer terminals and analog pen-and-paper systems for maintenance activities. In the 1980s, the emergence of Computerized Maintenance Management Systems, or CMMS, initiated the transition toward digital systems. Over the coming years, the implementation of new modules, such as procurement and health and safety, among others, led to today’s comprehensive, cloud-based EAM systems. But what does EAM encompass?

EAM is an integrated business software package used to control and maintain operational assets (both property and equipment) across an organization’s facilities, departments, and geographical locations, designed to integrate seamlessly with organization-wide systems, facilitating the smooth flow of data and information interchangeably. In contrast to Computerized Maintenance Management Systems, or CMMS, which concentrates on standard asset management and maintenance for mid-market or smaller businesses, EAM primarily benefits mid-sized and larger enterprises with expansive asset portfolios. EAM’s wide range of tools and features can track costs, manage asset resources, optimize performance and efficiency, and streamline operations. As such, EAM offers greater business functionality and dynamism than a standard CMMS.

EAM software’s capabilities extend beyond CMMS’ basic asset management functions, including a wider range of maintenance and management functions such as procurement, labour, and accounting, as well as a more holistic perspective of company assets for a clearer sense of performance and heightened visibility. As a result, EAM helps to ensure:

  • Optimal and effective usage of assets
  • Efficient management of assets and asset lifecycles
  • Asset preservation and effective maintenance systems
  • Cost control and risk management

EAM software enables smarter planning, greater operational efficiency, and increased ROI. In today’s competitive market, particularly for asset-intensive industries, the adoption of modern asset maintenance and management strategies proves increasingly essential for survival, with most best-in-class enterprises implementing EAM into their operations. As the growing need for more interconnected, interoperable systems for asset management only projected to increase, the EAM market size is expected to grow 16.9% between 2023 and 2030 towards a market value of US$ 19,683.3 million.

Who uses EAM?

Delving into EAM’s capabilities raises the question: who uses EAM, and how do they use it? EAM’s robust capabilities make it suitable for a wide range of industry applications to streamline operations and enhance efficiency. Large, asset-intensive enterprises require more complex asset maintenance management tools, such as those in the following industries:

EAM systems are incredibly versatile, simultaneously offering different advantages across various roles and departments thanks to its wide range of functionalities. For example:

  • A Maintenance Technician uses EAM to view projects and planned work on-the-go, with quick access to work orders, tool and equipment information, and PDF manuals or instructions, all of which can be accomplished using online and offline mobile capabilities.
  • A Reliability Engineer values EAM’s real-time asset tracking functionality, which supplies them with alerts and data on tools, sites, and equipment, empowering them to make informed decisions on likely failure scenarios. This helps to avoid downtime, ensure spare parts and inventory availability, and manage work orders or contracts.
  • A Continuous Improvement Manager benefits from EAM’s ability to collect historical data from IoT tools, such as autonomous equipment and sensors, and information from data logs on work requests, asset downtime, and more. By providing a greater understanding of asset health, performance, reliability, availability, and utilization, EAM empowers them to make continuous improvement decisions that meet goals and initiatives.

The Benefits of using an EAM System

Looking at contextual examples of EAM’s application provides insight into the role of advanced asset maintenance and management software in modern operations. However, considering the cost and challenges associated with integrating EAM into full-scale operations, you might be wondering: is it necessary?

The simple answer: yes.

In a competitive landscape, optimizing efficiency and adopting strategic asset maintenance and management processes are key to survival. A study conducted by the Aberdeen Research Group found that 4 hours of equipment downtime costs the average company a staggering $2 million, meaning that unplanned downtime, often due to reactive maintenance strategies, is among the most detrimental costs for modern enterprises. EAM systems reduce asset downtime through several key outcomes:

Centralized Asset & Maintenance Data

Serving as a hub, EAM software enables all divisions to quickly locate asset performance information. For businesses managing numerous assets across various locations, this visibility is crucial. Accurate asset data aids maintenance planning by helping managers allocate the correct tools for repairs or installations.

Asset Tracking and Monitoring

For companies with fixed assets, knowing precisely which equipment is used, how, and where, is crucial. Tracking assets across locations relies on RFID and GIS technology as well as data from manufacturers and asset hierarchies. EAM also provides up-to-date information on asset conditions, usage, and availability, helping to track how assets are being used and their current operational status.

Optimized Lifecycle Management

EAM simplifies asset management, whether it's central or peripheral to your business. It tracks asset condition and progression, enabling you to schedule updates, prepare for potential issues, and budget for replacements. EAM systems maintain detailed records of each asset's lifecycle, including acquisition, maintenance history, upgrades, and eventual disposal. This data helps in making informed decisions about asset management and planning.

Enhanced Maintenance Practices and Increased Equipment Uptime

Preventive and predictive maintenance features in EAM systems help technicians maintain equipment, extending asset life and reducing failure risk. EAM software tracks and maintains equipment, ensuring compliance with safety, health, and environmental standards, while also eliminating maintenance backlogs that reduce productivity and increase costs. EAM can prevent emergency repairs and automatically produce prompts when maintenance and repairs are needed. It can also automatically generate purchase orders, work orders, and RFPs based on schedules to ensure timely completion.

EAM Features & Capabilities

In addition to the numerous benefits, here are some of the most important features and capabilities of standard EAM software:

  • Work order management
  • Spare parts and inventory management
  • Labor management
  • Linear asset management
  • Financial management
  • Health and safety adherence
  • Compliance and regulation adherence
  • Analytics and reporting capabilities
  • IoT sensor real-time data monitoring
  • Artificial Intelligence for predictive maintenance planning

EAM and Enterprise Resource Planning

Large and asset-heavy organizations are also likely to use Enterprise Resource Planning (ERP) Systems. ERP systems are software designed to manage daily business processes and activities such as accounting, risk management and compliance, project management, inventory, procurement, and supply chain management, facilitating the seamless flow of data and information between each function.

This integration marks a key distinction from EAM systems: while ERP systems support asset management, they are primarily designed to centralize critical business information and manage daily operations through task automation, especially where data is the key asset. In contrast, EAM systems are specifically designed for asset management, with modules for monitoring and analyzing asset performance. AlthoughEAM and ERP are related in several ways, companies seeking optimal efficiency can and should integrate both systems together. While integration often requires the use of an API (Application Programming Interface) to enable seamless data-sharing, the benefits of combining systems far outweigh the challenges. Some complementary functions include:

  • Greater data consistency from a single source of information
  • Enhanced workflow and productivity
  • Increased cost awareness and accurate cost information
  • Heightened flexibility and advanced analytics

Summary

To summarize, Enterprise Asset Management (EAM) software enhances operational efficiency by providing a comprehensive approach to asset management, from procurement to disposal. It can integrate with ERP systems for improved data consistency and decision-making, all while helping organizations manage assets effectively, reduce downtime, and streamline maintenance through preventive and predictive features. Essential for a wide range of industries from renewable energy to manufacturing, EAM is expected to see significant market growth in the coming years and will continue to expand its offerings as demand increases.

The Asset Guardian (TAG), A Comprehensive EAM Solution

Meet The Asset Guardian (TAG), the most flexible EAM solution on the market, available in  Microsoft 365 Business Central or as a standalone application. TAG is a comprehensive cloud-based software solution for asset maintenance and management with offline functional capabilities. To learn more about how TAG EAM can boost your operational efficiency, contact us for a discovery call – we’d love to help.