7 Factors Why Enterprise Asset Management Is Crucial for Your Company
November 4, 2019

7 Factors Why Enterprise Asset Management Is Crucial for Your Company

Enterprise Asset Management

In today's world, the human is totally dependent on technology. We cannot complete our project, task & work without the help of the technology. In reality, we have created a reliance on machines and equipment.

So, when there are machines then there is need of maintenance & management. In other words, it plays an important role in improving quality & this is where enterprise asset management comes into the picture. Enterprise asset management schedules the maintenance in order to keep the asset and equipment optimized.

What is Enterprise Asset Management?

What is Enterprise Asset Management

It is a procedure of managing the lifecycle of an asset in order to increase its life, minimize costs, enhance quality and productivity. Enterprise asset management is executed to monitor the company's assets, optimize, and track maintenance activities.

It will provide you answers to all assets related questions, such as what's the location? Who is using it? When it needs service/maintenance etc.

After the basic understanding! Let's discuss 7 factors why Enterprise Asset Management is important for your company!

Also Read: 7 Features to Look When Implementing Asset Management System

Enterprise Asset Management: 7 Major Factors

1. Asset lifecycle

If implemented correctly the life of an asset can also be increased. It is one of the most important reasons why you should use an enterprise asset management system in your company. It is also very helpful in scheduling maintenance.

As we all know, an unexpected breakdown can be very dangerous for a company and it hurt your pocket badly. However, an EAM can assist you, avoiding these types of maintenance.

2. Work order

Basically, the main objective of enterprise asset management is to follow a preventive approach in order to increase the asset lifecycle. In other words, it applies preventive maintenance in an organization. When assets require maintenance and fixes, this EAM can help & prompt you.

Once set up, it can automatically result in work & purchase orders. It can also make a request for proposal as per your scheduling, therefore empowering you to finish work request on time.

3. Effective decisions making

For becoming a top-notch company you need effective business strategies on all levels.  How to save costing without compromising on quality & without delaying work delivery.

What are the areas where improvisation can be done?

It can be complicated, but the answer is simple! An EAM can provide you with all the answers you need if used correctly. It can get you company asset insights which can help you in a crucial operational decision for the company. How your assets are performing and how it can improvise! It can play a vital role in achieving company goals.

Also Read: RFID vs Barcodes: Which One is Better for Asset Tracking?

4. Reports and Analytics

EAM empowers venture firms to diminish the weight of paperwork and handling. The issue with documented papers is they just enable organizations to catch constrained data about their assets.

EAM, then again, offers deep analytics and reports expanded knowledge of all organization assets. It enables an organization to gain incredible performance by identifying the area of improvement.

5. Employee safety

The well-being of employees or workers should be always kept in mind. As they are also assets to a company. Therefore, the safety of assets & worker is reasonable.

However, we know due to bad maintenance or no maintenance at all can lead to serious consequences. Plus, it can create a bad reputation for your company in the market. Today's advanced EAM is designed keeping safety management and all the above-mentioned factors in mind.

An EAM facilitates inspection rounds and monitors everyone's safety. By implementing EAM you can ensure everyone's safety & no accident or any mishappening can occur due to machines and equipment.

6. Return on Investment

The essential value you will get from Enterprise Asset Management will be an expanded return on investment from your machines and equipment. You will be better focused to accomplish your performance for customer satisfaction. Maximizing asset utilization by keeping critical assets and equipment is a great operating state.

7. Process streamlining

Gone are the days when you required a particular piece of paper about an asset but did not find it. Not anymore! Find the required data within seconds by using EAM. It makes you more organized. EAM removes the usage of paperwork eliminating paperwork. Therefore, every information is online.

Also Read: What Are the Benefits of the Enterprise Asset Management System?

What are the highlights of Enterprise asset management?

  • The EAM manages planned and unplanned equipment maintenance, MRO inventory, and material procurement.
  • By scheduling preventative and predictive maintenance based on elapsed time or utilization, you can keep away unplanned downtime and control maintenance costs.
  • Lower overall inventory by smart planning parts usage across multiple locations & facilitates.
  • Set stock limit minimum and maximum and re-order criteria.
  • Receive notification for an inventory shortage situation.
  • Use cost analysis & track information in detail for each piece of equipment.

Frequently Asked Questions (FAQs)

1. Are Computerized Maintenance Management Systems (CMMS) and Enterprise Asset Management (EAM) same?

The aim of both software is similar but yes there are few differences! CMMS was launched first and as a punch-card system. On the other hand, EAM can be said as a robust version of CMMS. EAM has all the features that CMMS has! CMMS and EAM both are umbrella terms for scheduling and maintenance of assets and equipment.

2. What is the meaning of EAM?

According to the Techopedia
“EAM integrates techniques for holistic control and optimization throughout asset life cycles, including design, commissioning, operations, and replacement.”

It is the procedure of lifecycle management of physical assets to maximize their efficiency & usage. Plus improving the overall quality, health, safety, and environment. Not to forget, one of the main objectives of the software is to save money.

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