In today's world of asset and facility management there a lot of acronyms for software programs such as CMMS, EAM, FMIS, IWMS, etc. This can leave asset and facility managers in a state of confusion when they try to find the best tools for their organization. This article explains what an Enterprise Asset Management (EAM) system is and what it does.
Understanding the Terms Enterprise and Asset Management
A good place to start is too understand what enterprise means. Enterprise refers to the organization as a whole and not just a single department, facility or location.
Asset management is the planning and care of physical assets during their useful lifecycle to an organization. This includes planning asset utilization, maintenance and performance with the goal of maximizing the return on assets (ROA). Asset management is accomplished through systematic care that extends the asset's lifecycle, reduces operational costs and lowers capital expenditures that may occur as a result of unplanned asset failure.
Enterprise Asset Management
Following the terms above, EAM differs from Asset Management because it treats the asset from an enterprise perspective. EAM refers to the management of assets to the benefit of the organization as a whole and not limited to a specific area such as a department, location or division. It includes the entire process from initial planning, designed use, installation, training, operations, maintenance and eventual retirement/replacement.
"When the entire asset portfolio of the organization is considered, EAM takes over. As business and market requirements are dynamic, the output specifications for the organization's assets change constantly (e.g., increase in output capacity due to new customers). EAM provides the framework for capital and labor allocation decision processes across the competing categories of equipment addition/ reduction, replacement, over-hauling, redundancy setup and maintenance budgets in order to meet business needs" Source: Wikipedia, Definition of an EAM
How does an EAM System Work
An EAM system works by creating a database (registry) of all assets. EAM systems make use of a computerized maintenance management software (CMMS) to provide the core asset detail. As part of this database, all asset detail including description, location, serial number, vendor information and costs are recorded.
An EAM begins to differentiate itself from a CMMS because it adds features for managing documents (blueprints, contracts, photos etc.). However, the full value of an EAM appears when asset managers are able to use work management history as well as other types of reports that can provide the information to:
Identify repair and maintenance trends across facilities.Make better repair, refurbish or replacement decisions.Enable an analysis of vendor performance.Reduce document tracking and retrieval costsEnable more accurate capital analysis.Establish a knowledge base that can be used for training or establishing standard operating procedures.An EAM systems allows asset and maintenance management to always know the where their assets are and the condition they are in.
Stuart Smith writes about Enterprise Asset Management (EAM) and Computerized Maintenance Management Software (CMMS) Solutions for Mintek Mobile Data Solutions. Learn more about EAM/CMMS features that can help your business navigate through tough economic times.
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