WHAT IS EAM?

Enterprise Asset Management (EAM) covers the whole life cycle of managing physical assets of an organization to maximize value. It includes design, construction, commissioning, operations, maintenance and decommissioning/replacement of plant, equipment and facilities.

“Enterprise” refers to the management of the assets across departments, locations, facilities and, in some cases, business units. By managing assets across the facility, organizations can improve utilization and performance, reduce capital costs, reduce asset-related operating costs, extend asset life and subsequently improve ROA.

WHY EAM?

• Ensure accuracy & consistency of asset register

• Perform detailed maintenance / operating cost analysis and track performance between like/similar assets

• Accurately determine asset value per location and ROI for capital investment (in each location)

• Facilitate integration between asset register and maintenance equipment register

• Track assets through the full installation-failure-repair-reinstall cycle

• Accurately determine “service life” for assets to better reflect existing norms in asset category

• Determine ‘optimal’ spare parts inventory
  
  

STRATEGIC & FINANCIAL BENEFITS

• Consistent definition of asset boundaries within the asset register

• Full integration between CMMS and asset register

• Improved ability to compare performance of like assets (ROA), and hence better  assessment of health of the operation
  

• Improved compliance with accounting and regulatory guidelines
  

• Reduced inventory holding costs through warehouse optimization and elimination of obsolete materials not linked to operating assets
  

• Ability to perform “spend analysis” based on category and type
  

• Updated market value and remaining service life estimates to better reflect asset values
  

• Objective assessment of value when selling and/or leasing assets
  

RECOMMENDED APPROACH

• Bring up-to-date asset registry for all locations (verify existing & create new)
  

• Create consistent definition of asset boundaries and classification hierarchy for all asset and equipment structures including

• Functional location map and linkage to material masters, BOMs etc.
  

• Implement asset tagging standards and tag key assets with RFID
  

• Integrate business processes and data between financial asset management and physical asset management
  

• Verify, standardize and cleanse all data linked to assets i.e. equipment masters, item masters, BOMs, functional locations, etc.
  

• Determine estimated market value for assets and typical service life per asset class
  

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