Companies looking to improve asset management need to understand the real meaning of Enterprise Asset Management (EAM) and how to implement it.
According to TechTarget, “Enterprise Asset Management (EAM) is the process of managing the lifecycle of physical assets to maximize their use; save money; improve quality and efficiency; and safeguard health, safety and the environment.”
EAM covers the entire lifecycle of assets, encompassing all stages, such as commissioning, usage, maintenance, and disposal. Physical assets include all factory machinery such as pipes, building equipment, etc. Anything in which the company has invested a capital amount comes under the category of physical assets. And, EAM covers all business locations, IT systems, and business locations.
Therefore, EAM can be summed up as a holistic and strategic approach to physical asset management. It primarily aims at optimizing asset performance, and keeping costs and risks low. Although EAM sounds like a maintenance strategy, it differs in the way it creates value by making asset management a coordinated effort. By coordinating business functions and IT systems, EAM aims to maximize the value derived from the combined effect of the functions.
Benefits of EAM
- EAM creates the necessary synergy by bringing together people, practices, and systems, in order to derive maximum ROI from physical assets.
- Implementing EAM enables manufacturers to improve individual asset performance that contributes to an increase in ROI, reduced costs, elimination of wastes, and ensures longevity of machines.
- Asset reliability increases, which in turn, increases service levels of the machines and equipment.
- For stakeholders like customers and suppliers, it is a demonstration of the manufacturer’s responsible management of assets, contributing to an increase in brand value.
Standardization of the EAM Process
Maximizing the value of asset management is possible through standardization. Standardization should be applied across processes, data, and systems. It brings about the desired effect of maximizing an asset’s values, during its lifecycle. For a common decree to be followed across the organization, it is necessary to implement asset management standards. This includes implementation of:
- A policy – Stating the overall goals and directives, and signed by the top leadership.
- A strategic plan – That translates policy into actionable objectives. ISO 55000 calls it as SAMP, Strategic Asset Management Plan.
- Roles and responsibilities – For management and individual departments.
- Processes and procedures – Detailed documentation on how assets will be managed. Includes step-by-step instructions for all business functions and maintenance personnel.
- IT Documentation – System configuration and integration documentation for IT systems to work seamlessly for EAM success.
- Audit guideline – Processes that describe scheduled evaluation of assets, and to ensure standards are being followed across the organization.
Deploying EAM solutions help optimize the asset lifecycle and solve critical asset performance challenges. By selecting the right solution, manufacturers can future-proof their organizations from sudden breakdowns and missing delivery timelines. The right EAM solution can offer much-required visibility to manage assets and floor operations across the manufacturing production line. Manufacturers can easily maintain an accurate database of their physical assets, their performance, and history. It is also an easy way to ensure compliance to industry asset management standards, as well.
Are you looking for EAM solutions to increase asset uptime, and reduce maintenance costs? Infoways offers, Infor EAM, a highly configurable, scalable and dynamic solution for manufacturers. Customers using Infor EAM have realized 20% increase in production downtime and 50% increase in warranty cost recovery, amongst other revenue benefits. If you’d like to explore harnessing the power of our best-in-class EAM features, please drop us a line.