The manufacturer of the automobile industry has lots of pressure to deliver products on time. That is why the automobile industry and manufacturing firms has to work on maximum efficiency.
They cannot afford their assets to breakdown. The market is competitive and no mistake is affordable. That is why the automobile industry needs enterprise asset management (EAM) it not only provides several benefits but also provides real-time information that helps managers.
In this blog, we will know how asset management helps the automobile industry! But first, let us know what is enterprise asset management.
What Is Enterprise Asset Management?
Enterprise asset management provides control over your assets. The objective of enterprise asset management is to take the asset to its optimum performance so that productivity increases.
After that, optimizing assets so that maintenance cost minimized.
Enterprise asset management allows you to maximize asset lifecycle.
When asset life increases the return on investment increases as well. Sometimes it is also compared to the CMMS (Computerized maintenance management system).
Also Read: 7 Factors Why Enterprise Asset Management Is Crucial for Your Company?
CMMS is focused on maintenance whereas EAM focuses on asset maintenance and asset lifecycle also. It has all the features of CMMS & other features.
According to PS Market Research, “The global enterprise asset management market size stood at $5.5 billion in 2019, and it is expected to reach $25.9 billion by 2030, exhibiting a CAGR of 17.0% during the forecast period (2020-2030)”.
How Enterprise Asset Management Is Beneficial to the Automobile Industry?
Benefits of EAM (Enterprise asset management) to the automobile industry are as follow:
1. Track Asset & Equipment
Each piece of equipment is essential in the automobile industry. These assets are complex and expensive as well.
They need to be properly tracked otherwise theft & loss can occur that will be not good for business. It will lead to not only delayed operations but each asset is precious.
With this software, you can make better decisions with real-time data & keep track of every asset in real-time.
A manufacturing firm has a lot of inventories & assets that are not only essential. So, they need to be properly tracked and monitored & this software precisely delivers that.
2. Maintenance Scheduling
Maintenance is an important aspect of the automobile industry. When assets are maintained, your daily operation runs smoothly without any issue.
However, if there are problems with assets then the operation will interrupt and it impacts productivity. If a sudden breakdown occurs then it will be worse as the daily operation will halt and production will be not done on time.
Moreover, delivery will be not done on time. Enterprise asset management ensures that maintenance is done on time.
It schedules maintenance for critical and non-critical assets as per the defined frequency of the manager. Maintenance decreases the chances of sudden failure of equipment.
Furthermore, rusty parts or broken parts must be removed & new parts are installed otherwise maintenance is not successful.
With inventory tracking, the maintenance team can ensure that inventory is available in stock. When assets are maintained, uptime will increase and downtime will decrease.
Also Read: Types of Assets Managed by Enterprise Asset Management in Different Industries
3. Preventive Maintenance
For maintenance there are several types of maintenance are available but preventive maintenance is most beneficial for the automobile industry.
As preventive maintenance is proactive maintenance so it schedules maintenance in advance. With the help of asset data, you can make your maintenance plan that will help increase asset life, and return on investment will increase as well.
With record maintenance of each asset, you can monitor its expenses or upcoming upkeep dates. This feature is very useful when you want to decide on an asset either to keep it or exchange it.
4. Inventory Tracking
For an automobile-based organization, assets & inventory are equally important.
Inventory is required not only in manufacturing automobiles but also in asset maintenance, if inventory is not available then assets will not be working efficiently and delivery will be delayed.
EAM benefits can save the organization from facing drastic business loss. As enterprise asset management keep track of inventory with asset tracking technology.
This asset tracking technology provides real-time location of inventory & assets. Asset tracking technologies include barcodes, QR codes (quick response code), RFID (Radio-frequency identification).
These technologies are utilized in the form of inventory tags or labels. Each label has a unique identification number, the label is stickered to the asset or inventory.
Furthermore, this software also tracking the number of inventories left in stock. It alerts the responsible person when stock is low then the refilling of the inventory process starts.
5. Regulatory Compliance
Compliance is very important for organizations. Compliance can be related to asset verification, asset health condition, work environment & safety, documentation of assets, and so on.
A big organization has lots of assets that are located at different locations. Some of them are lost or misplaced when these assets are mentioned in the accounts but physically not available (ghost assets) then compliance issue rises.
With this software, you can know the exact location of the asset, or you can remove them from your account in a proper way.
A lot of organizations do not able to comply with the rules and policies of the government and they have to pay a huge penalty.
However, EAM ensures that the organization does follow rules relates to all these factors. Hence, it is one of the major EAM benefits.
Automobile organization is full of assets even for small operations assets are utilized to save time.
Assets, types of equipment, and inventories are the main pillars of automobile organizations. That is why taking care of assets is important and the above-mentioned EAM benefits are just a few of the benefits.
There are several other advantages as well. You will notice these benefits when your organization is equipped with enterprise asset management software.
With your automobile fixed asset management requirements, you can furnish your organization with this software.
This system will ensure that your assets, inventories, and types of equipment are tracked, complied with rules & quality of asset is maintained.
Also Read: How Asset Management Software Helps the Oil & Gas Industry?
Frequently Asked Questions (FAQs)
1. What are the benefits of tagging equipment with asset tracking technology?
You can know asset real-time location, avoid asset & inventory theft, easy shipment tracking, better utilization of assets. These are a few of the benefits of tagging equipment with asset tracking technology.
2. What are the other enterprise asset management benefits?
1. Optimized asset performance
2. Increased asset life
3. Improved return on investment
4. Saving unnecessary expenses
These are a few of the other EAM benefits.
3. Which type of industries can utilize enterprise asset management software?
As we said earlier, those industries which are asset intensive can utilize enterprise asset management software such as oil & gas, hospital, manufacturing, banking, hospitality industries, and so on.