What is EAM?
As the acronym implies, EAM is used to manage assets in a company, which can be a module in an enterprise resource planning (ERP) solution or a standalone product. EAM is also known as computerized maintenance management system (CMMS), or computerized maintenance management information system (CIMMS), and it is a software package used to plan, control, and monitor assets from acquisition to obsolescence.
Who Needs EAM?
In order to understand who needs this type of system, the definition of “asset” is required. According to businessdictionary.com, an “asset” is defined as “something valuable that an entity owns, benefits from, or has use of, in generating income.” This means that people and know-how can also be considered assets, but EAM manages physical (or tangible) assets, such as vehicles, machinery, buildings, etc. There are exceptions when non-tangible assets are managed for industries such as IT or media.
Another thing worth mentioning is the value and the importance of the assets you intend to manage using EAM. If you have 50 computers, a few printers, and a fax machine, an EAM solution will not be very helpful. Of course, companies using vehicle fleets or heavy machinery will find it very useful.
Who Offers EAM?
There are business software vendors who specialize in EAM (Champs, Corrigo, etc.) but also ERP vendors that offer EAM functionality (Pronto, Lawson, Oracle, SAP, etc). You can find both categories in our Vendor Showcase and even compare them in our EAM Evaluation Center. Other vendors call EAM asset lifecycle management (ALM), and the difference between EAM and ALM is not very clear. To make the asset management landscape even more complicated, some software vendors offer solutions for specific industries like IT asset lifecycle management (ITALM), media asset lifecycle management, and healthcare EAM (HEAM).
Vendors like JDA, InfoTrak, and Jobscope offer maintenance repair and overhaul (MRO) software for aircraft and fleet vehicles, which has very similar functionality to EAM. Finally, vendors like Thales combined EAM with product lifecycle management (PLM) software and the result is product and asset lifecycle management (PALM).
What Does EAM Do?
In a nutshell, EAM should handle maintenance management, work order management, preventive maintenance, calibration management, asset purchasing and inventory management, risk management, inspections, etc.
Some vendors offer financial or human resources (HR) functionality and the integration with other business software types (ERP, PLM, etc.) is very important. In a future blog post I will describe the functionality an EAM product should provide and I will also describe the offerings of the main players in the EAM space.
I think you forget property management companies and lodging companies as possible targets of EAM systems. EAM systems are very valuable for any asset intense industry. You can find a list of industries that we believe would benefit from an EAM system on our website.
I would like to be taught more about EAM
Engineers and Accountants have a huge problem agreeing with the right software. Engineers like the Windows approach and I sigh when they say they have a likely solution that works off a laptop and requires 1Gb memory when our ERP does it all for them.
In this organisation Engineers are being carried away by the International Infrastructural Asset Management methodologies lead by Australians and Kiwis.
We are on JDE World latest release.
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Paul you can learn alot more about EAM systems on our blog here.
We cover EAM and CMMS topics with fresh articles 1-3 times a week and do an EAM article overview weekly as well.
Hope that helps!
Thank you all for your comments! I will provide more details on EAM and the main players in a future blog post.
@ Paul In addition to the website Chris provided (thank you, Chris!), you can go to our white papers website, where you can find valuable information about EAM: http://whitepapers.technologyevaluation.com/.
I believe that the primary aim of an Enterprise Asset Management System is to enhance the return on assets (ROA) by reducing capital costs and enhancing the performance of equipment. Organization are switching from the historical reactive model and adopting practices like life cycle costing, whole life planning, and proactive and planned maintenance to reduce costs of operations.
As far as I can ascertain none of the ERP offerings provide EAM in respect of Infrastructural assets used by Local Government, Provincial and National Government and large companies/utilities. This software should enable the management of assets such as Roads, bridges, buildings, water and electricity assets etc in accordance with International Infrastructural Asset Management practices as best implemented in Australia and NZ. This is a whole vertical that needs attention.