Industries spend nearly $1 trillion annually to maintain their operations, assets and equipment. According to IBM business consulting services, maintenance costs alone represent 20 to 40 percent of operating costs, and this has raised an average of 10 to 15 percent per year. The evolution of industrial MMS can be traced back to the 1960s. The focus on the reduction of inventory led to the customized software package as part of the MRP (materials resource planning) program, the MRPII (which focused on the manufacturing in terms of financial management) and the ERP systems, which integrated the entire enterprise.
Then came the enterprise asset management (EAM) systems, in which the focus is on managing assets through the entire life cycle. EAM encompasses all stages of the asset life cycle right from the planning, design, purchase, install, operate, maintain and disposal stages. Maintenance management software for all types of equipment form a subset of EAM.
Enterprise Asset Maintenance System- 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 costs
Enable 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.
Then came the enterprise asset management (EAM) systems, in which the focus is on managing assets through the entire life cycle. EAM encompasses all stages of the asset life cycle right from the planning, design, purchase, install, operate, maintain and disposal stages. Maintenance management software for all types of equipment form a subset of EAM.
Enterprise Asset Maintenance System- 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 costs
Enable 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.
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Asset Maintenance Software Improves business planning, makes informed decisions, mmproves reporting and analysis capabilities.
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