In today’s asset and asset management world, there are many software abbreviations such as CMMS, EAM, FMIS, IWMS, etc. This article explains what Enterprise Asset Management (EAM) is and what it is for.
Understand the terms Enterprise and Asset Management
A good place to start is to understand what business is. Business refers to the organization as a whole, not just to an individual department, object, or location.
Asset management is the planning and maintenance of physical assets during their useful life cycle for the organization. This includes planning the use, maintenance and performance of assets to maximize asset profitability (ROA). Asset management is achieved through systematic care, which extends the life cycle of the asset, reduces operating costs and reduces capital costs that may result from an unplanned asset failure.
In the above conditions, EAM differs from Asset Management in that it considers the asset from a business perspective. EAM refers to asset management for the benefit of the organization as a whole, rather than being limited to a specific area, such as a department, location, or division. It covers the entire process from initial planning, intended use, installation, training, operation, maintenance and possible removal/replacement.
“When the entire portfolio of the organization’s assets is taken into account, EAM takes responsibility. As business and market needs are dynamic, the output characteristics of an organization’s assets are constantly changing (for example, production capacity for new customers is increasing). create processes for capital and manpower in competing categories such as adding/reducing equipment, replacing, overloading, creating reserves and maintenance budgets to meet business needs.
How the EAM system works
The EAM system works by creating a database (registry) of all assets. EAM systems use Automatic Maintenance Management (CMMS) software to provide basic asset information. This database records all details of assets, including description, location, serial number, vendor information and value.
EAM begins to differ from CMMS by adding document management functions (plans, contracts, photos, etc.). However, the total value of EAM is displayed when asset managers can use job management history, as well as other types of reports that can provide information for:
Identify repair and maintenance trends at different sites.
Make the best repair, upgrade or replacement decisions.
Allow the supplier’s analysis.
Reducing the cost of tracking and searching documents
Allow a more accurate analysis of the capital.
Create a knowledge base that you can use to teach or establish standard work procedures.
The EAM system allows asset management and maintenance to always know where their assets are located and where they are located.