An enterprise asset management software solution is best suited for an asset-intense organisation. It can be critical in helping to plan an approach to maximise the usability of physical assets in a bid to sustain the production and operations of its assets. For example, EAM would perfectly suit a company such as Sodexo who manage 1.2 million assets across 24,000 buildings.
With such a large scale of assets to rely on for day-to-day operations, it’s more than likely that businesses will encounter problems in the management of their assets. But with features such as work order management, asset maintenance, and maintenance planning and scheduling, an enterprise asset management software solution aims to resolve any issues.
Collect and Store Asset Data in a Centralised System
A common problem in an asset-intense organisation is overcoming the sheer scale of managing the entire asset base. Without an EAM system, this process is usually done by hand or manual input through spreadsheets. This can lead to a lack of accessibility to recorded data and inefficient time management while waiting for the information to be uploaded.
But an EAM system has the features necessary to track, collect and store an entire database of information regarding each of its physical and infrastructure assets. This data can be recorded throughout an asset’s entire life cycle with better accuracy and precision, allowing managers and employees to better understand how to improve an asset’s usability.
The data is then instantly made accessible to designated work personnel through smartphones, mobile devices, tablets, and desktops. They’re then able to analyse the information and gauge where an asset is in terms of its life cycle.
Identify and Resolve Issues Before They Happen
Without accurate knowledge of an asset’s life cycle or how it operates in the workplace, businesses may find it difficult to construct an effective maintenance and repair schedule. And, without a schedule, assets can breakdown and sit idle without warning. This can result in a loss of production, costly unplanned downtime, and hefty repair costs.
But by implementing tracking tools that accurately collect asset data, and through precise analytics and reporting, problems can be identified before they happen. This could be done by creating a maintenance and repair schedule to implement preventive maintenance, as opposed to a reactive maintenance approach, or even by identifying the need to acquire a certain asset that will improve operations.
An effective EAM system can also provide enough details to alert a manager when an asset is deteriorating or coming to the end of its life cycle. This gives businesses extra time to decide whether to replace, repair or dispose of an asset when the time comes.
Reduce MRO Costs and Downtime
A financial issue that business may encounter, significantly without the accurate data collected by an EAM solution, is high MRO (Maintenance, Repair and Operations) and downtime costs. These costs can be directly linked to the lack of asset life cycle data that restricts businesses to building an effective maintenance and repair schedule.
By issuing a reactive maintenance approach, MRO costs can have an impact on business expenditure. For example, a CNC machine that is crucial for the operations of an engineering company breaks down and is unusable until repaired. Not only does this mean pricey repair costs, but it also results in unplanned downtime of an asset that is essential in the production process.
In 2018 an Aberdeen Research study estimated that the cost of unplanned downtime across all businesses had risen 60% in just two years, from $164,000 per hour to $260,000.
But these costs can be prevented with the use of EAM and the collection of efficient asset life cycle data. By having access to accurate data, managers will know when a machine needs servicing in order to maintain its health while keeping it operational for a longer period of time.