As the global economy keeps throwing new challenges at companies that are dependent on the proper performance of their assets, some companies are opting for new and improved Enterprise Asset Management Systems to ensure lower cost of operations. Enterprise asset management (EAM) refers to the optimal use of the physical assets owned by an organization. It includes the designing, construction, operation, maintenance, and replacement of equipment and facilities. The word ‘enterprise’ is used to signify that the system embraces the management of assets that used by various departments in various locations. In some cases, the system embraces numerous business units.
Companies that are in industries like healthcare, in which the uninterrupted use of infrastructure, equipment, and buildings is of prime importance and disruptions are very expensive, are opting for newer models of utilizing these. They need to find out things like whether it would be more profitable to replace, overhaul, or maintain a utility that is not performing as required.
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.
An Enterprise Asset Management System provides the framework for decision making with regard to labor and capital allocation so that organizations can prepare for expenditure in the short and long-term. The main advantage of such a model of management of utilities is that it provides a holistic view the asset base of a company. This makes it easier for the managers to optimize operations.
These days, more and more companies are opting for Enterprise Asset Management System software because these are far more efficient compared to the traditional methods.
Typically a system includes components like work order management and inventory control systems. If the software is fed the relevant details, it provides assistance with reserving material, assigning material, and scheduling jobs. The inventory control function of some systems provides alerts when new materials have to be purchased. It also facilitates the proper use and storage of tools, spare parts, and other materials.
This type of software has become very popular because they enable managers to take important decisions on the basis of updated and processed data that they make available on a regular basis.