What Is Enterprise Asset Management And Why It Matters?

Keeping a track of assets manually for any organisation is an ordeal, especially in high-value industries where the asset footprint is vast and complex. Siloed management asset lifecycle brings the challenges of lack of visibility and control, adding to the complexities. Thankfully, Enterprise Asset Management software addresses this concern. Enterprise Asset Management (EAM) combines systems and software that help enterprises manage their physical assets like equipment, vehicles, machinery, etc. and non-physical assets such as software and intellectual property. With EAM software, companies can track the complete lifecycle of their assets, from purchase to disposal. According to IDC, businesses that adopted a modern EAM system witnessed a 15–20% boost in workforce productivity, a decrease in spare part inventory stock by 20–30%, and an increase in mechanical efficiencies of 5–10 percentage points. In this article, we will explore what EAM is and what makes it essential for enterprises.

What is Enterprise Asset Management (EAM)?

Enterprise Asset Management involves using specialised software to manage an asset’s lifecycle. Asset-intensive companies use it to keep a check on their property and ensure everything is functioning as expected. Industries heavily reliant on enterprise asset management solutions include mining, energy, engineering, construction, logistics and transport, manufacturing, healthcare, government, aerospace, and defence, among others.

Besides asset tracking, the software can be used for maintenance management, work order management, inventory management, and reporting and analytics. With enterprise asset tracking solutions, companies can monitor the location and status of their assets in real-time, while maintenance management enables them to schedule preventative maintenance and repairs, thereby reducing downtime and extending the asset lifespan.

Work order management helps enterprises assign tasks to technicians and other concerned personnel, while inventory management ensures that organisations have the necessary parts and supplies to keep assets operating smoothly. Reporting and analytics offer insights into asset performance, expenses, and other metrics, thus enabling enterprises to take data-driven decisions.

Key Capabilities of Enterprise Asset Management System

• Asset Inventory: Maintaining accurate and up-to-date information on assets is vital to effectively manage maintenance and repairs and forecast needs that can arise. An EAM software streamlines asset inventory management. It will identify and catalogue all assets, including equipment, machinery, and infrastructure.
• Asset Tracking: Companies can track asset location, usage, and condition with EAM software. They can optimise asset utilisation, reduce downtime, and track asset performance. EAM systems help ensure that assets are used effectively, and they’re in good condition.
• Maintenance Management: An EAM system contains tools for managing preventive maintenance and corrective repairs. The maintenance teams can schedule and track maintenance tasks, identify needs, and automate the work order process. It also helps track the maintenance history.
• Depreciation Management: EAM systems can help track the depreciation of fixed assets over time and manage related costs. It provides information on when assets need to be replaced or retired.

How Can EAM Solutions Benefit Your Enterprise?

Organisations of all sizes across every industry own assets in a variety of forms. With Enterprise Asset Management software, they can effectively manage assets as they gain a centralised view of asset information. Here are some ways in which industries stand to benefit from EAM:

• EAM in Manufacturing
  Manufacturing businesses are under significant pressure to bring down costs, meet production targets, and maximise returns. Machinery failures must be avoided at all costs. With EAM software, manufacturers can track maintenance schedules, manage work orders, monitor asset performance, and identify potential issues before they become problems.

• EAM in Oil and Gas Industry
  EAM software can help to ensure the safety, reliability, and efficiency of pipelines, offshore platforms, and refineries. EAM software affords enterprises the opportunity to monitor asset health, access and analyse deficiencies, and identify potential risks. With predictive maintenance, unplanned downtime can be avoided.

• EAM in Transportation and Logistics
  EAM can be used to manage the maintenance of vehicles, aircraft, and other assets, ensuring they are available when needed. Fleet managers can track asset performance, schedule maintenance activities, and monitor fuel consumption with EAM software.

• EAM in Construction
  EAM can be used to manage the maintenance of heavy equipment, like excavators, bulldozers, and cranes. Companies can track equipment utilisation, schedule maintenance activities, and monitor asset health. EAM software can be used to track the location of assets, thereby reducing the risk of theft, and the availability of spare parts for construction activities.

• EAM in Healthcare
  It’s essential that every medical equipment stays in top condition so that healthcare professionals can perform their duties and functions smoothly. With EAM software, the maintenance of medical equipment, HVAC systems, and building infrastructure can be managed. It can be used to track inventory and reduce the risk of equipment downtime and delays in patient care.

The Bottom Line: EAM Software Maximises Asset Value

Enterprise Asset Management is a critical tool that organisations should use to manage their assets effectively. As seen above, EAM software goes a long way in optimising the performance of assets and reducing costs. By providing a comprehensive view of an enterprise’s assets, EAM helps companies make informed decisions about any repair and/or replacement of assets. They can track their asset performance, identify potential problems early, and take proactive measures to prevent downtime.

Hardcat EAM, powered by Yotta, is a market-leading Enterprise Asset Management software serving the asset lifecycle management needs across industries. Deployed on cloud and delivered as a service, it includes an accurate asset register, maintenance management, asset accountability, and more. The solution enables companies to access real-time data and analytics, identify potential safety hazards, manage assets anytime and anywhere, etc. Overall, organisations have much to gain from EAM software, and utilising it can achieve operational excellence, reduced costs, and improved overall business performance.