What is Enterprise Asset Management?

As organizations scale up production, expand to new regions, and identify ways to reduce costs and improve productivity, the pressure on teams and assets increase. With more growth comes more work and a greater need to manage asset performance for maximum uptime and cost efficiency. To achieve those goals and overcome challenges, organizations should consider a proper enterprise asset management (EAM) solution.

EAM solutions are services and processes designed to improve asset reliability, performance, and efficiency as well as reduce operating, inventory, and maintenance costs. Well-executed enterprise asset management solutions can produce improvements ranging from extended asset lifespans and more effective use of repair technician time to long-term costs savings on replacement parts and more streamlined documentation. Ultimately, EAM helps companies achieve what they’ve set out to accomplish.

What Goes Into an EAM Solution?

While not every program is alike, an ideal program would include several components. First, a predictive maintenance strategy would be established to resolve bad actors (i.e., asset reliability gaps), identify failure points via a failure mode and effects analysis (FMEA) and/or root cause failure analysis (RCFA), and other reliability-focused initiatives. The goal of this component is to prevent teams from dealing with reactive maintenance and unnecessary equipment failures.

A second component of an enterprise asset management solution — and one of the most critical — is a computerized maintenance management system (CMMS). These platforms are nothing new, but it’s important that an organization’s assets, inventory, labor, and other information be centralized in them. Often, companies aren’t using a CMMS to its full extent, so information about maintenance programs and assets isn’t known.

A third component of an EAM solution is a documented process for calibration. This part compares the performance of assets to a standard of known accuracy, meaning that a benchmark is set for when assets and maintenance activities were at optimal levels. Procedures are then set to maintain and improve that benchmark.

The final components of an EAM solution are processes around inventory management and workflow optimization. For inventory, it’s important to align parts with asset priority. This ensures that high-priority assets are repaired quickly in the event of a failure while saving resources and warehouse space. Workflow enhancement is focused on increasing one of the driving metrics of every maintenance program: craft productivity, or the value received after eliminating non-contributory activities. Effective EAM focuses on improving this as a success metric.

What Are the Long-Term Benefits of EAM Solutions?

1. Improved Reliability

Whether you have one facility or multiple facilities, enterprise asset management solutions help you understand the assets in your footprint, their priority as it relates to business operations, and how to maintain the highest level of productivity and cost efficiency. This allows technicians, facility managers, safety managers, and more to know what the best next step is when an asset goes down and how to proactively maintain assets.

2. Data Centralization and Management

Companies often have no idea about the number of assets they have. Without this knowledge, there’s no way to efficiently repair and maintain them — let alone take a proactive approach. EAM brings this data into a CMMS for more effective management, reporting, and decision-making. Using this information, repair and maintenance activities are centralized, prioritized, and measured. This ensures asset uptime is maximized, costs pertaining to repair and maintenance are analyzed, and leadership can better understand asset performance.

3. Quantitative Baselining

While improvements across the board are desirable, it’s important to know where to begin. Quantitative baselining sets a starting point for asset performance and reliability. Over time, this baseline is used to evaluate the success and progress of a maintenance program, identify areas where adjustments need to be made, and more. Beyond assets themselves, baselining also helps you understand factors about your program, such as pre-existing constraints, the value of change, and more.

4. Refinement Through Calibration

While baselining creates a starting point, calibration gives a north star that shows what accuracy looks like. Through calibration, a point of known accuracy is used to understand how well assets are maintained and ensure that proper processes and procedures are followed. While you likely use an asset management platform, many companies calibrate assets manually, which produces inaccuracies, requires more time and labor, and doesn’t achieve goals. A proper calibration program as part of an EAM solution documents all calibration needs and establishes a program for following them.

5. Inventory Improvements

Every asset has various parts and components needed to keep it running smoothly. Just as it’s important to prioritize maintenance for more critical assets, it’s also important to prioritize keeping parts for them in stock. Warehouse shelves are often overstocked with parts that aren’t needed as often. Following a prioritization strategy with inventory means you have what’s on hand right when it’s needed. Lower-priority parts can be ordered, or the asset itself can run to failure (RTF). An effective EAM solution evaluates inventory and clarifies what’s needed.

6. Workflow Optimization

Last but not least, an enterprise asset management solution identifies obstacles that limit productivity. With only 25-30% of all work hours considered productive, this is one of the best goals an EAM solution can achieve. Anything wasteful is identified and addressed, enabling teams and assets to accomplish more, which in turn provides a number of secondary benefits. Numerous areas of production are evaluated beyond assets, including emergency response, staffing, skills, planning, scheduling, and more.

Maximize Uptime and Productivity with SEAM Group

As global leaders in enterprise asset management solutions, we can design a full EAM program, implement it throughout your facilities, monitor progress, and provide recommendations along the way for the best results. Learn more about our EAM solutions, or get in contact with our EAM team here.

Share on linkedin
Share on facebook
Share on twitter
Explore these topics

Related Content

Stay Informed

Stay ahead of the curve with our latest insights, strategies, and news.