Question 1

What is enterprise asset management (EAM) software?

Accepted Answer

Enterprise asset management (EAM) software helps users track assets across their entire lifecycle, from installation to disposition. Compared to computerized maintenance management systems (CMMS), which focus on small and mid-market businesses, EAM software is beneficial mainly for large enterprises that manage various assets by providing detailed tools to track costs, optimize performance, and manage asset resources. In this sense, EAM systems are more dynamic and offer more business functionality than a CMMS.  
 EAM tools take asset management a step further by covering maintenance and handling other business functions such as procurement, inventory management, and field service management. In this regard, large businesses looking for software to help them manage a wide array of assets and handle multiple business functions should be looking to use EAM software. EAM solutions will offer businesses a more holistic view of company assets and a better sense of their performance. 
 What does EAM stand for? 
 EAM stands for enterprise asset management, meaning this software benefits large companies in asset-intensive industries.

Question 2

Types of enterprise asset management tools

Accepted Answer

EAM solution types vary depending on how the product is sold and implemented, its features, and the software's delivery model. 
 Standalone EAM or part of another product 
 While most EAM software products are sold and used as standalone solutions, some enterprise resource planning (ERP) systems include advanced EAM modules.  
 Industry-specific EAM 
 EAM usually focuses on manufacturing, but some alternatives provide functionality for other industries. A few examples are oil and gas asset management software and aviation MRO software. 
 Delivery model 
 Most EAM software companies adopted the cloud delivery model, also known as software-as-a-service (SaaS), but some solutions can still be implemented on-premises.

Question 3

What are the common features of enterprise asset management solutions?

Accepted Answer

The following are some core features within EAM software that can help users manage all stages of an asset lifecycle: 
 Asset definition: One of the core functions that separates EAM software from similar software is asset hierarchy. An asset hierarchy allows businesses to keep track of the history and features of any given asset. An asset hierarchy will often be broken down to show what the asset does, its location, and what parts are within that asset. An example would be an air conditioning unit installed on a specific date in a particular office containing a motor, freon, and an electric harness. While this is an essential asset hierarchy, it gives a sense of how visualizing the history and parts of an asset would provide a maintenance team with a better understanding of the location of assets and when, where, and how to schedule maintenance checkups. 
 Asset tracking: Companies using fixed assets must strictly know which equipment is used, where, and how. This functionality relies on asset information provided by equipment manufacturers and the asset hierarchy mentioned above. Tracking numerous fixed assets across multiple locations depends on geographic information systems (GIS) and radio-frequency identification (RFID). 
 Inventory: Inventory management features help users track spare parts and accessories required for repairs and other maintenance operations. Managers also use inventory management to estimate future demand for spare parts and plan maintenance operations based on stock availability.  
 Depreciation: Fixed assets lose their value over time, and companies need to identify all of their assets' accounting value. While EAM does not include accounting features, it provides the information required to calculate asset value at any moment. Tracking the value of assets helps companies identify their return on investment (ROI), also known as return on assets (ROA).  
 Maintenance: EAM tools allow businesses to track projects and work orders that involve the installation and maintenance of assets. Suppose a company is constructing an entirely new facility containing hundreds of assets. In that case, a project management dashboard can monitor the estimated time of completion of work orders, who is in charge of which assets, and compare the estimated and actual costs of the facility.  
 Field service: Many workers who deal with managing assets are often in the field and working on the go. EAM systems allow these users to monitor and manage assets from their mobile devices while in the field. Within the mobile application, users can make work orders, monitor inventory, and record asset performance. 
 Monitoring: Condition monitoring allows businesses to monitor an asset's condition by installing sensors into a system or physical location. The sensors streamline data on an asset and alert when an asset needs to be replaced or repaired. This helps with continuous preventive maintenance, reducing the likelihood that an asset will fail to function correctly. 
 Contract and warranty: Fixed assets usually come with a warranty which allows companies to get equipment repaired or replaced at a low cost or for free. Warranties are generally included in the sales contract for the asset acquisitions. Contract management also helps companies when they outsource maintenance operations and need to define service-level agreements clearly.  
 Analytics: With business intelligence features, users can get real-time reports on how assets perform to determine if a particular asset is underutilized or is no longer useful. Users can get information on average asset downtime, uptime, mean time between asset failures, and asset depreciation. Asset analytics allow businesses to see which assets are efficient and which ones are at risk. 
 Integration: Since companies implementing EAM also use other types of software, such as ERP and accounting, it is critical to integrate all of these systems. Integration with EHS is also essential because companies need to ensure that each asset is up to code with safety, health, and environmental regulations.

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