5 Advantages of Enterprise Asset Management Software
Enterprise asset management (or EAM) is essential for companies who want to maximize the value of their assets throughout the asset lifecycle. This applies to all organizations.
Enterprise asset software allows organizations to monitor, manage, and report on all their critical assets. This allows them to be proactive in problem-solving and doesn’t lead to increased operational costs.
The maintenance team can use an enterprise asset management system to manage company assets throughout their lifecycle. This is done through asset tracking. They can be used by the entire company to improve asset performance over their lifecycles, increase return on investment, maintain workplace safety, reduce the cost of ownership and improve efficiency.
Gartner principal analyst Nicole Foust said that asset-intensive companies such as oil and natural gas, utilities, and transportation need EAM software to support industrial infrastructure, plants, and equipment.
Foust stated that EAM software is particularly useful in supporting maintenance in three types. These asset types are:
- Fixed Plant Assets, including power generation and manufacturing, as well as oil refineries.
- Linear assets include power lines, rail, and pipelines.
- Mobile and fixed assets such as service equipment and rail cars, locomotive trains, trucks, transformers, pumping stations, and other vehicles, are both mobile and fixed.
Foust stated that an EAM system can be used to manage, plan and schedule work, create work orders, track maintenance history, order and track replacement parts and equipment, as well as track equipment components and assemblies.
What types of assets does EAM manage?
Asset managers use EAM software to manage different types of physical assets and get a complete picture. These are the most popular types of EAM software:
- Manufacturing assets, such as conveyor systems and industrial ovens;
- Cars and trucks are fleet assets;
- Facilities assets like elevators and security systems;
- Construction assets, such as cranes or specific types of tools, are important.
Planning and scheduling asset maintenance is a key function of an EAM plan. This will ensure asset health and asset performance management.
Juliana Beauvais is the research manager for IDC’s enterprise program. She said that EAM refers to managing physical assets that an organization needs to function. An EAM system tracks the time of those who did the work and makes sure they are paid. Financial management is also an important part of enterprise asset management.
Some EAM systems have the option to add a basic financial management suite, such as accounts payable and cost recording into ledgers, along with human resource functions such as a maintenance skill database, Foust stated.
1. Predictive maintenance can reduce overall maintenance costs.
Modern Predictive Maintenance helps companies stay ahead of machine failures by relying on IoT sensors, real-time data analysis, and real-time IoT sensor monitoring.
According to Alan Salton, Panorama Consulting Group director of innovation, predictive maintenance is equipment-specific analytics that allows companies to use historical data in order to predict when equipment will fail.
Salton stated, “Maintaining an asset is extremely important because whenever something breaks down there are all sorts of implications.”
Salton explained that if oil runs out in a truck’s engine and nobody notices it, it could cause engine failure and a large expense.
SBB AG, also known as Swiss Federal Railways, is implementing SAP’s EAM in order to improve its train maintenance and allow its workers to access real-time information and forecast potential asset operations problems.
Gehrig stated that Swiss Federal Railways will use SAP EAM’s predictive and service tools to integrate data from the train’s onboard monitoring system. This will allow the rail company’s trains to run using reliability-centered maintenance (RCM), which is based on extensive data about these trains.
RCM was designed to prioritize maintenance activities using predictive analytics. It also helps identify high-value assets. Swiss Federal Railways transports nearly 11,000 trains each day and 1.32 million passengers. The company’s primary responsibility is to ensure that these trains run smoothly. The company must have a better method to maintain these trains and improve operational efficiency.
Gehrig stated that this will enable the railway company to use data insights from the predictive maintenance tool in order to identify and fix potential issues. This will save money and enable workers to be more productive.
2. Plan and schedule maintenance proactive
One of the key benefits of EAM software lies in its ability to plan and schedule maintenance more efficiently.
Beauvais stated that EAM systems give organizations more insight into asset usage and when they break down so organizations can make better decisions regarding repairing or replacing assets or performing maintenance ahead of time.
He added that companies can use the data in EAM to plan maintenance and schedule their maintenance teams’ timing more efficiently.
Beauvais stated, “If you are a utility company or a manufacturer environment, you cannot just shut down the entire system whenever you need to make repairs.” You need to carefully plan and coordinate when and how it will impact other areas. EAM software allows you to plan for maintenance in a way that doesn’t disrupt your business, she explained.
3. Understanding OEE
Without an understanding of EAM software, it is difficult to measure overall equipment effectiveness (OEE). This is why it is important to have a good understanding of vendors and equipment using an asset management system.
Beauvais explained that EAM systems, which are computerized maintenance management software, allow companies to track and store information about their vendors. This includes the ability to track payments so they can have a better idea of what they’re spending.
She said that organizations can also analyze historical records in the EAM to determine asset quality and decide whether to continue buying from vendors whose products are constantly breaking down.
Also read: List of Top 10 Business Management Software
4. Communication and alerts for automated equipment
Process automation is a key benefit of EAM systems. This includes more information, automated notifications, and system notifications.
EAM allows companies to automate their internal processes,” said Ed Spots (ERP Manager at Panorama).
Spotts explained that instead of sending someone an email saying “We need to do this” and “We must do that”, the EAM system could automatically send notifications to people and other machines based upon defined parameters. If something exceeds these thresholds, an alert can be sent [to] the appropriate person].
Bob Carnes, EAM expert at LP Building Solutions, stated that LP Building Solutions now receives a variety of alert notifications from its Infor CloudSuite EAM software.
Carnes stated that one notification alert is set up to notify him of machine anomalies. This could include a high oil temperature or machine running at an excessive speed or slow rate. These alerts enable him to fix the problem before it gets worse.
Carnes said, “You can push this information into the EAM, and it will send an alert saying Hey, someone needs to check this out.” “A work order can be created at this point to send the right person (e.g., an electrician, maintenance worker, or a millwright) out to inspect the equipment and confirm that the problem is solved.
5. Assist in ensuring regulatory compliance
Salton stated that enterprise asset management is about optimizing the performance of assets. However, there are many implications, including regulatory compliance.
He said that a problem with one of the machines at a food company could cause it to introduce impurities into its products.
Salton said, “We have all seen recalls in which a small amount of plastic or metal shavings was found in food because of machine maintenance failures.”
He explained that an EAM system is a computerized maintenance and management system. It helps organizations manage assets to prevent failures.