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What is Enterprise Asset Management (EAM) Software?

by ManagerPlus on March 13, 2020
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Asset Management Toolkit
 

Enterprise Asset Management, or EAM software, enables organizations to manage the maintenance of assets throughout the lifecycle. EAM is used to implement, optimize, and monitor the maintenance activities with the associated assets, inventory, work orders, tools, and information.

In today’s fast-paced work environment, enterprise asset management (EAM) software is the linchpin that holds all your essential equipment together and keeps everything running smoothly. Whether you spend most of your time on the road, at a construction site, on the factory floor, or managing buildings, you need your assets to work as hard as you do. Here you'll learn the following about EAM Software:

1)  What is EAM Software?

2)  What are the benefits of EAM Software?

3)  What should you look for when comparing EAM Softwares?

4)  EAM vs CMMS Software

5)  Why invest in EAM Software?

Having real-time information about every asset at your fingertips helps you increase efficiency,
maximize uptime, and reduce your total costs of ownership.

What is EAM software?

EAM software offers a single platform for leaders to track all information and maintenance activities related to their physical assets from facilities and related systems to fleet, construction and manufacturing equipment. 

With EAM software, business leaders and maintenance managers can: 

  • Track all assets and store detailed information on them, including their age, lease agreements, location and recommended maintenance schedules
  • Schedule preventive maintenance
  • Manage work orders
  • Keep track of all equipment inspections to ensure compliance 
  • Manage parts lists and inventory counts
  • Keep a record of all employee training
  • Analyze critical data to make better decisions

access managerplus enterprise asset management eam software on any device

Enterprise asset management software consolidates data from many sources into one place your team can access anywhere. This ensures that no matter where you are, you and your team will have the most up to date information on every asset.

If you aren’t using EAM software yet, here are five good reasons to invest in one. 

What are the benefits of EAM software?

1. Increased operational efficiency 

Implementing a solid, uniform system for tracking and managing your assets provides the insights you need to identify asset management best practices and achieve specialization for both assets and operations. Let’s say you’re managing a large fleet of vehicles. You can use fleet management feature of an EAM software to run reports that help you determine which makes, models, and types of vehicles require more maintenance than others. This is invaluable information for executives who must make big financial decisions regarding replacement procedures and asset lifetime. 

2. Improved asset reliability and reduced costs

Consistent, thorough preventive maintenance routines are up to five times more cost-effective than reactive maintenance. This is due in large part to the fact that PM targets maintenance tasks while they’re small, simple, and relatively cheap to fix, whereas reactive maintenance is only performed after severe, costly problems have developed.

EAM software allows you to create standardized maintenance schedules you can easily implement throughout your entire organization. This improves day-to-day asset reliability and extends the useful life of your assets. 

3. Easy access to information

Regardless of your industry, minimizing equipment downtime is a mission-critical objective. Time spent searching through binders of paper reports or disorganized spreadsheets increases downtime and wastes resources. Instant access to full asset data is one of the key features of maintenance software. Mobile functionality allows asset maintenance staff to pull up open work orders and immediately get to work without having to wait around for further instruction or a paper-based work order. 

Software as a Service (SaaS) solutions put critical asset data at your fingertips anywhere you have internet access. For large companies in particular, this reduction in administrative workload can have a major impact on the bottom line. Short-cutting the administrative chain of command also reduces communication errors by putting workers in direct contact with the information they need—rather than relying on memos, scribbled notes, ambiguous emails, and other inefficient means of assigning and describing maintenance tasks.

4. Improved collaboration

One of the most common problems our implementation experts encounter is the internal “tug-of-war” over equipment and parts, leaving worksites without the resources they need to function at an optimum level. Enterprise Asset Management software features asset- and tool-tracking functionality to help eliminate this problem. Using equipment management software, managers can quickly see where tools and equipment are and who has them. This book of record makes it easy to hold workers accountable by cutting down on excuses stemming from equipment downtime or unavailability.

5. The ability to track maintenance KPIs

Asset data can only be actionable if reporting is consistent across sites and entities. Discrepancies between the reporting criteria used by different sites/entities, or at different periods of time, make for distorted assessments of operations and asset performance. 

Enterprise asset management software consolidates all your asset data into one place so you have a single source of truth. 

Having this information holds everyone accountable while empowering them to be proactive.

enterprise asset management eam software dashboard

What should you look for when comparing EAM software solutions?

The EAM software market is growing fast, predicted to increase from $5.1 billion in 2019 to $8.2 billion by 2024, according to a recent MarketsandMarkets forecast. Several factors are driving this demand, including the desire to maximize operational efficiency, and extend the useful life of assets. Considering the growing number of EAM solutions available and the cost of the investment, it’s more important than ever to choose the right one. 

Here are a few of the most important factors to consider when comparing EAM software.

Does it have predictive maintenance capabilities?

The advancement of artificial intelligence and Internet of Things (IoT) sensor technologies are driving smarter asset maintenance. While scheduling preventive maintenance can significantly reduce equipment downtime and costly repairs, the ability to predict when a machine might fail is even better. 

To ensure the EAM software you choose can keep up with these emerging technologies, look for a solution that integrates with sensors. 

Is it cloud-based software? 

On-premise enterprise asset management software is costly to implement, maintain and update. It requires expensive IT hardware and often, a dedicated IT team. These solutions are also difficult to scale across an enterprise, as they are bound to a physical location. For facilities managers and maintenance professionals on the move, this is more than just inconvenient; it can be crippling to productivity. 

For these reasons, more organizations are embracing cloud-based EAM software solutions. Software-as-a-Service (SaaS) solutions are typically subscription-based, so your organization pays a monthly fee rather than a large upfront capital investment. And because asset data is stored in geographically dispersed data centers, SaaS EAM solutions are easy for your team to access anywhere. They are also easier to scale across your organization. 

Does it include a mobile app? 

Your team likely spends a lot of time away from the office, so they need a mobile solution that meets them where they are. Look for EAM software that includes a user-friendly mobile app. 

Does it have the reporting capabilities we need?

Having the right information is critical when it comes to making smart decisions about asset management. However, it’s easy to get overwhelmed by data that’s difficult to interpret. It’s even more difficult to present that information to your leadership team if you’re using it to justify new capital investments. 

That’s why your organization should look for EAM software that provides robust data in a format that’s easy to understand. Look for a solution that can provide insight into the following asset maintenance metrics: 

  • Weekly maintenance workloads –  To maximize the efficiency of your team, you need to be able to see historical data on maintenance activities and identify peak times so you can schedule accordingly.
  • Average response times – Knowing how quickly your team is able to respond to maintenance needs also helps you ensure everyone has a balanced workload and no one is overwhelmed or falling behind. 
  • Total cost of ownership – This includes all costs, from initial purchase price, customization costs, preventive maintenance costs, and corrective maintenance. It should also subtract the selling price of the asset at the end of its life.
  • Preventive maintenance completion rate – Tracking your PM completion rate will allow you to know where you can improve, and what’s not getting done.
  • Asset utilization rates – Utilization rates are measured in two ways: Per asset and average. Per asset utilization looks at how much a particular asset is being used, usually in terms of hours per day or miles over a month. These individual utilization rates are then compared against your average utilization. Over time, you should seek to increase your average utilization, and consider eliminating assets that you don’t utilize very often.

EAM vs CMMS

While shopping around for an asset maintenance solution, you will likely come across the term computerized maintenance management system (CMMS). Several decades ago, when paper and pen were used to track and manage equipment work orders and maintenance scheduling, the first systems to digitize these processes became known as a CMMS. As its name suggests, these earlier systems were primarily focused on easing maintenance challenges. They became a starting point for companies to leverage data, so they could use these newfound insights to improve their maintenance programs and help them quantify costs.

Today, data has become critically important to the success of a business's overall maintenance program. While EAM and CMMS are both highly effective at streamlining work orders and gaining better visibility into inventory management, where you start to see major differences is in the overall asset lifecycle capabilities. Whereas CMMS functionality tracks the maintenance and usage of assets currently in play, EAM takes it several steps further by giving full oversight into the end-to-end asset lifecycle—providing asset data across multiple job sites, from procurement to disposal, and delivering in-depth reporting and analytics. The aforementioned benefits of EAM software is just the tip of the iceberg.

Stated simply, if you want the most out of your physical assets, EAM is the solution for you. Asset-heavy organizations will experience the greatest return on their EAM investment.

So why invest in EAM software?

In addition to improving your own operations, having an accurate, reliable enterprise asset management system sends a strong signal to customers that your company values accountability, consistency, and transparency. When you use EAM software, you don’t have to rely on idle promises of reliability and consistency. You can easily access data on asset performance, print detailed reports, and provide customers with insight that gives them peace of mind. 

If your organization is serious about improving efficiency, reducing costs, and delivering on your promises to customers, it’s time to invest in a robust eam system that was built to support you in these goals. 

ManagerPlus is a scalable enterprise asset maintenance management software designed to meet your maintenance needs, no matter your size or industry. Our cloud-based solutions will support you anywhere, whether you’re in the office or out in the field. And now, they’re faster than ever. Ready for a closer look? Schedule a demo today

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