What is EAM and How Can it Enhance Your Business?

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EAM can be an effective application for any business, but what is EAM and what are the key benefits of implementing an EAM system?

What is EAM?

EAM (Enterprise Asset Management) focuses on managing the life cycle of physical assets in order to maximise the length of use, reduce costs, and improve quality and efficiency.

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In this context, “Enterprise” means the way that assets interact across the company. This includes input from a number of other departments and locations, even support departments such as Human Resources.

Enterprise assets are usually fixed; buildings, machinery and plants. But can also include moving equipment like ships, vehicles and aeroplanes.

Collecting the data you need, then taking the time to analyse it can all impact on the effectiveness of an asset management strategy. This can be especially difficult if assets are spread out across locations and managed on-site by different teams. You need to be able to assess your bottom line quickly, and ensure that your assets remain profitable.

How to Plan for Effective EAM

In asset-intensive industries – such as mining, road, rail, ports and air travel – you need to be able to manage your business assets and equipment. You want to ensure that your assets perform well and last, whilst costs and quality are kept under control.

What is EAm and how to plan for it?

All limited companies in the UK need to record their assets in their tax return every year, including total value and depreciation.

The definition of an asset can differ from industry to industry. For a property of facilities business, their assets are the physical property and land. For IT, assets will be IT infrastructure and devices. Utilities business will class their electrical or water grid system as an asset. Councils will have buildings, roads, housing and care homes as their assets.

What are the Key Challenges of Managing Assets?

Challenges in asset management are varied and often come from problems with systems, planning and inputting. Some of the most common challenges in asset management are:

  • Calculating depreciation and the value of assets
  • Ensuring the longevity of the asset through time maintenance
  • Monitoring and maintaining accurate records
  • Managing tasks such as repairs
  • Health and safety issues may only come to light after a negative event has occurred
  • Quality and efficiency of assets
  • Cost management and projection
  • Gaining a holistic overview of an asset lifecycle

One of the easiest, most efficient and cost-effective way of managing these assets is through using EAM software.EAM provides a full, integrated overview of your business assets.

What is EAM Software?

EAM software is a computerised system to help businesses manage and maintain the physical assets that they rely on. They tend to be used by larger organisations with users across multiple sites, to help see the bigger picture.

Enterprise Asset Management focuses on managing the lifestyle of physical assets in order to maximise the length of use, reduce costs, and improve quality and efficiency.

What is EAM

In this context, “Enterprise” means the way that assets interact across the company. This includes input from a number of other departments and locations, even support departments such as Human Resources. EAM assets are usually fixed; buildings, machinery and plants. But can also include moving equipment like ships, vehicles and aeroplanes – so needs careful planning.

Collecting the data you need, then taking the time to analyse it can all impact on the effectiveness of an asset management strategy. This can be especially difficult if assets are spread out across locations and managed on-site by different teams. You need to be able to assess your bottom line quickly, and ensure that your assets remain profitable.

Why Should you Implement EAM Software?

One of the key reasons to use an EAM application is that it can provide a complete view of assets and infrastructure, and allow for future planning. It can let you see the tools that are available to help meet the business’ priorities – including finance, skills, materials and data.

EAM systems can also provide you with information through the entire asset lifecycle, not just a snapshot at a point in time. It can support your business in a number of ways right from the start, including:

  • Design and commission
  • Asset accounting and financial management
  • Operation, maintenance and service management
  • Asset tracking
  • Stock ordering, inventory management and supply chain
  • Management of documents
  • Scheduling, time tracking and space management
  • Assigning responsibilities and locations
  • Fleet tracking and management
  • Project management
  • Human resources and payroll

EAM software can even support with more detailed tasks such as maintenance scheduling and warranty management. It can help you to standardise activity, and make better connections between the organisational strategy and day-to-day running.

The ultimate goal of an asset management software is to ensure that your assets remain as profitable as they can. A good system can even help you to stay one step ahead and gain competitive advantage.

The difference between EAM Maintenance Software and CMMS

How is EAM different to CMMS?

EAM Software helps businesses collect, manage and maintain the physical assets that they rely on. It registers the buying, operations, production and disposal of all assets.

Collecting the data you need, then taking the time to analyse it, can have an effective impact on your asset management strategy. You also need to be able to assess your bottom line quickly, and ensure that your assets remain profitable.

You might be thinking that this all sounds like CMMS. But, whilst there are some similarities between EAM and CMMS software, they’re not the same.

CMMS is used to manage maintenance, whereas EAM maintenance software manages the entire lifecycle of an asset.

Who should use EAM?

Who should use EAM?

Simply, any person responsible for the following:

  • Finance, procurement and accounts management
  • Maintenance and operations teams
  • Directors with legal responsibility for asset management
  • IT teams with responsibility for asset management
  • Security team
  • Auditors
  • Change Managers and consultants
  • Customer service and support teams with links to asset management

Where do you go from here?

To find out more about which Enterprise Asset Management Software is best for your business, try our free search tool.

Over 18,000 businesses have already used CompareSoft to find the right tool for them – we can even supply you with case studies for your industry!

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