The method of managing the lifecycle of tangible assets to optimise their use, save money, enhance quality and efficiency, and protect health, security, and the environment is known as enterprise asset management (EAM).
EAM is most commonly used in industries that rely heavily on costly and complex tangible assets, such as automobiles, plants, and heavy machinery. The oil and gas, shipyards, mining, energy, authorities, utility, and aerospace & automotive industries are among the most prominent users. While EAM can be done on documents or with desktop software such as spreadsheets, it is more commonly done with specialised EAM asset management software.
EAM Enterprise asset management can assist in reducing risks and costs while also optimising business value by assisting in ensuring that high-value assets operate as intended.
For example, EAM asset management software can notify operation managers about the malfunction of a machine part and then provide the data and scheduling tools required to dispatch a repair person to replace the part before it breaks down and causes further damage. Maintenance performed on time can also reduce the risk of incorrectly operating equipment hurting workers or spurting pollutants that endanger the health and the environment.
EAM also contributes to cost savings by partially automating the supply chain to ensure an ideal inventory of parts and materials, avoiding rush orders or the need to redirect to more expensive or less trustworthy suppliers. EAM functions, on the other hand, can increase business value. Analytics, for example, can detect opportunities to redistribute equipment within an industrial facility to support new ways of doing business.
Most full-fledged EAM suites include features for performing all of the usual EAM business functions.
Asset Management: According to Gartner, core enterprise asset management focuses on managing an accurate, detailed record of assets, their features, and history, as well as regulatory requirements documents. Organisations often use master data management to confirm the accuracy of asset data because the entry is involved in most aspects of EAM. EAM software frequently includes financial management and analytics tools.
Asset Lifecycle Management: Another common EAM software feature is asset lifecycle management. It covers the major stages of an asset's life cycle, from initial concept to production planning, warranty management, decommissioning, and disposal.
Supply Chain Management: Supply chain management is crucial in EAM because materials and equipment must be secured before assets can be built, maintained, or repaired. Most EAM software includes inventory management, inventory control, and procurement capabilities. Forecasting can be aided by demand planning tools.
Maintenance: Apart from the asset registry, maintaining planning and scheduling is undoubtedly the most heavily used component of EAM. Users of EAM software make note of available employees and their skills, issue maintenance requests for maintenance or repair jobs, track hours, and prepare for payment.
CMMS: An EAM package may also be integrated with specialised software that manages a subcategory of the EAM process, such as a computerised maintenance management system (CMMS) or maintenance, restore, and operations (MRO) software.
So, these are the functions and benefits of enterprise asset management.