Enterprise Asset Management (EAM) is a strategic approach to maximize the value of an asset. EAM systems are very important for manufacturing organizations because they encompass all activities (from design to decommission or replacement) that ensure the physical assets are running at maximum efficiency. They involve all the departments (not only maintenance) and IT systems to optimize asset performance, through reduced costs and risks. Since most manufacturing organizations are asset-intensive, having the right information at the right time will help them immensely in driving bottom-line growth.
EAM systems are powerful tools, which when implemented properly can help generate real-time asset management data. However, EAM system implementation faces multiple challenges that limit manufacturing organizations from obtaining the information that is required to make informed asset management decisions. In this blog, four important challenges that affect the EAM implementation process are discussed below.
1. Incomplete and Inconsistent Data
EAM implementation requires reliable and accurate data to generate the right asset intelligence. EAM systems require master data, coding structures, and transactional data like work orders, purchase orders, etc., as a foundation to work with. Each and every activity in the EAM system requires this base data in some form or the other to generate reports. However, in reality, organizations fail to maintain consistent equipment records or update inventory levels. This has a direct impact on the quality of information the EAM software can generate Having a solid foundation of complete, consistent and accurate data can aid in faster EAM implementation, as well.
2. Absence of Structured Information System
Most companies invest in EAM or Computerized Maintenance Management (CMM) systems without first collating the information required as input. Instead, they complain that the EAM system does not offer what it promised to deliver. EAM systems can offer drill-down statistics that help you pinpoint the most common and expensive reasons for equipment failures. However, this output requires accurate master data records, equipment hierarchies, problem-failure mapping systems, failure codes, assigned responsibilities, and more, as its inputs. A quality information system and a management system approach are necessary for EAM software to perform optimally and provide maximum ROI. They are the ingredients for long-term success of the EAM software.
3. Software Selection Challenge
There are three categories of software that are used by manufacturing organizations to manage assets – the Enterprise Resource Planning (ERP), CMM, and EAM systems. For an asset-intensive organization, the output from these systems should be able to improve asset reliability and reduce costs. For most companies, software selection is a major challenge because they are not able to tell the difference between ERP, CMM, and EAM. Amongst the three systems, EAM is the most suitable system for asset management because CMM is primarily focused on maintenance and ERP on the financials. But, if the organization requires a holistic approach to asset management, then EAM systems are the go-to solution. Since asset performance has a huge impact on revenue generation, choosing the right EAM system is of utmost importance. It is important to note that EAM systems can also be integrated with an existing ERP or CMM system, depending on the scalability of the latter.
4. Lack of Strategic Execution
For EAM to be successfully implemented, manufacturing organizations need to show their employees the right direction. It requires clearly establishing the mission, vision, goals, roles and responsibilities, and documenting the processes and procedures for asset management, in order to keep everyone on the same page. Therefore, the creation of the asset management policy, strategy, objectives, and the roles and responsibilities documents should be planned and executed before the EAM software is implemented. By aligning the entire organization for EAM success, it is easy to measure real ROI from the EAM implementation.
In Part 2 of this blog series, we will see how challenges related to practices, measuring performance, auditing, and reporting affect the EAM implementation process.
Proper implementation of a robust EAM system offers organizations substantial benefits such as reduced costs, and increased asset uptime and performance. Do you want to implement an EAM system to enhance the life of your assets? Infoways offers Infor EAM, a highly configurable solution to manage, maintain, and track your assets. Customers who have implemented Infor EAM have realized 20% increase in labor productivity and 20% reduction in production downtime. If you would like to explore working with our solution, drop us a line and we’ll get back to you at the earliest.