All organizations aim to grow their business and reduce their other expenses such as operational costs, equipment maintenance cost, and so on. However, it is not an easy process as organizations have lots of assets. For this process organizations require assistance. This is where EAM comes into play. It is helpful in reducing expenses and helps in optimizing business activities. In this blog, we will know what EAM is and why organizations should invest in EAM solutions. So, let us begin!
What Is EAM Solution?
EAM stands for Enterprise asset management. It assists organizations in monitoring and managing their assets. EAM plays a crucial role in tracking the asset life of every asset that an organization possesses.
The whole association can utilize them to the full capacity during its productive lifecycle, get better profit from speculation, guard working environments, work on the cost of proprietorship with better lifecycle costs, and further develop proficiency.
EAM minimizes asset downtime and optimizes its performance as it ensures each asset is maintained.
EAM solution helps organizations by monitoring and managing assets physically and ensuring that each asset gets maintenance on time. So that asset productive life can be maximized.
It is used by those specific, organizations which are equipped with lots of assets, for example, oil and gas, hospital, transportation, hotel, and manufacturing associations need EAM solutions to help their modern infrastructure and complex asset maintenance.
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The EAM market is growing at a great speed. According to Allied Market Research, “The global enterprise asset management market was valued at $3.4 billion in 2021, and is projected to reach $9.9 billion by 2031, growing at a CAGR of 11.5% from 2022 to 2031.”
What Are the Main Reasons for Implementing EAM Solutions in Your Organization?
The main reasons for implementing EAM solutions in your organization are discussed below:
1. Get Valuable Insights
With EAM software you get valuable information that helps you make an informed decision. This software can play a crucial role in enhancing asset lifecycle with data assistance that optimizes performance as well.
With data, you can improve predictions of asset failure occurrence so that you can avoid costly asset breakdown.
We all know the importance of data insight; it helps in improving daily operations and optimizes equipment performance and enables organizations to utilize assets to their full capacity.
2. Enhancing Asset Performance
With EAM software, you can easily schedule asset maintenance so that the performance of any asset is not decreased. Most importantly, you can avoid asset breakdown by scheduling asset maintenance.
This software inspects each asset and monitors them and tracks their performance as well so that during maintenance all the aspects are kept in mind and the best asset performance can be introduced.
3. Reducing Total Cost of Ownership
If maintenance is not delivered on time, then maintenance bills can increase. However, when work is done manually lots of assets are kept in some else place and employees look for assets in some else place. As a result, new assets are purchased. In many cases, assets are not utilized at all.
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All these factors increase the cost of ownership and return on investment decreases. EAM software ensures that return on investment does not increase and the cost of ownership is reduced as well by working on all these factors.
4. Keep Away from Copy Errands
Smooth out the resource the board interaction by adding EAM to your ERP. At the point when you utilize separate EAM programming, you can fail to focus on the effect resource the board has on your endeavor.
It's extremely simple to copy undertakings or misuse data when you need to include numbers into two separate frameworks.
5. Eliminate Duplicate Tasks
When information is not centralized lots of duplicate tasks and repeated work occur. It has been seen several times that more than one employee works on the same task and as a result efficiency decreases and productive work is not delivered.
However, with EAM software you can easily avoid this issue as this software centralizes information and duplicate tasks do not occur. This feature is important for all industries specifically manufacturing construction and oil and gas.
When information is centralized then collaboration is improved between teams and productivity increases as well. Managers can see which employee is working on which task and schedule tasks accordingly. Centralized information keeps everyone on the same page.
If your organization is a medium-sized or big-sized organization then you must invest in the EAM solution. This software is very helpful to the growing organization as this system automates the process and eliminates the manual system. As a result, the chances of human error are minimized, and productivity increases.
EAM utilizes cloud technology which means you can access it from anywhere and most importantly it adds security to your data so for data security you do not have to worry as the cloud service provider will take care of it.
Cloud technology makes you more efficient as you can make changes in the operations and maintenance as per the requirement. Therefore, it is important to invest in EAM software as it can be a key factor in optimizing your business and improving your return on investment.
Frequently Asked Questions (FAQs)
Q.1 - What Are the Types of Assets Managed by EAM?
The types of asset EAM manage are fixed assets such as generators, HVAC, etc. mobile assets such as locomotives, service equipment, etc., and linear assets such as power lines, pipelines, etc.
Q.2 - What Are the Major Functionality EAM Solutions Offer?
The major functionality EAM software solution provides are given below:
1. Scheduling maintenance work
2. Planning and managing asset utilization
3. Creating & tracking work orders
4. Tracking assets
5. Providing maintenance history
6. Tracking each asset's history
7. Data Analytics
Q.3 - How Does EAM Software Make Assets More Profitable?
Yes, EAM makes assets more profitable, for instance, let's say your organization has of asset worth value of 2.5 million. If you use EAM software to control and monitor assets, then you increase asset life by 10%. It will add an additional value of 250000 dollars. EAM software also comes with proactive maintenance. It is one of the major factors that minimize expenses of the organization there's this maintenance provides maintenance to the asset before asset failure can occur. As we know, sudden maintenance expenses of assets can be very costly.