What is an Enterprise Asset?
An asset is a resource owned or controlled by an enterprise that creates a positive economic impact. Principal properties of industrial assets include ownership, economic value and resourcefulness (ability to generate value). Physical assets are of interest, from a plant operations and asset maintenance point of view, as opposed to financial assets (investments, receivables) or intangible assets (goodwill, copyrights, patents, intellectual property).
Examples of different Industrial Assets
An industrial asset can be any physical asset viz facility, plant, machinery or utilities. Industrial assets include
- A physical location or facility or a building or a project site (facilities management) and its sub-systems
- Manufacturing plant, unit, assembly line or plant equipment like machinery, assemblies and sub-assemblies (plant and machinery)
- Instruments that are used for measuring in production, inspection and maintenance activities. Can be inline instruments as part of production equipment or stand-alone instruments that are moved around
- Components used for assembling a machine, erecting a civil structure, building a production line, or extending a power line
- Linear assets like oil and gas pipelines, water supply systems, power transmission networks
- Mobile assets like automotive fleets or in-plant movable tools (forklifts, hoists and mobile cranes)
- Utilities like boilers, HVAC, chillers, compressors, generators, captive power plants
- Redundant assets (standby assets for failover, rotating assets for replacement)
- Spares inventory
- Other physical Enterprise Assets like furniture and fittings, computers and electronic devices
Classification of Enterprise Assets
Enterprise assets can be classified in multiple ways
- Based on Usage – Production equipment (including their assemblies and sub-assemblies), Measuring Instruments or non-production assets (hoists, cranes, fleets)
- Nature of Asset – Civil, Electrical, Mechanical, Hydraulic etc.
- Movable (forklift, hoists, fleets) or Stationary (fixed and immovable plant and machinery)
- Equipment Criticality – High, Medium, Low for Equipment or Vital, Essential, Desirable for Spares
- Equipment Grouping and Sub-grouping
- Purpose – Running assets, Standby assets in an assembly line, Rotary assets in stores for quick replacement
What is Enterprise Asset Management?
Enterprise Asset Management is a holistic process to efficiently control and utilize the assets owned or controlled by the organization to maximize the business value generated out of it. ISO 55000 defines asset management as the activity to realize value from assets.
Enterprise Asset Management spans the entire lifecycle of an industrial asset including acquisition (planning, budgeting procurement, commissioning), operations, maintenance and disposal (decommissioning, replacement planning). Enterprise Asset Management usually involves a combination of processes, systems, technology, services and information. EAM helps asset-intensive organizations to maintain, control and analyze the assets effectively, with a life cycle approach. EAM solutions are used by different enterprise stakeholders – business heads, plant managers, asset owners, maintenance managers, supervisors, maintenance technicians, safety officers, purchase teams and finance managers.
What is Enterprise Asset Management Software?
Enterprise Asset Management software (EAM Software or EAM System or EAM platform) offers a holistic perspective looking at the asset lifecycle from different angles – financial (capital allocation, running costs and total cost of ownership), project, process, asset performance, maintenance management, risk management, compliance, safety management, and sustainability. EAM Software is an enterprise system and thus the emphasis is on a full-service solution, multi-site architecture, integration with other enterprise systems and asset intelligence/metrics-based management.
EAM software facilitates the enterprise users to view the asset at different hierarchical levels and helps in seamlessly rolling up the information from individual assets to a system of assets. Such method of assets can be based on functional grouping (e.g., different production equipment, line, unit, plant) or horizontal grouping (similar class of equipment across multiple sites) or another form of gathering (usage-based, product or project-based, lifecycle maturity based, etc.)
Enterprise Asset Management Software also enables asset-intensive organizations to orchestrate all their processes and procedures via technology systems, making it easier to translate the asset management strategy to operational and maintenance processes. All the data capture, templates, workflows, approvals, analytics etc. are gathered via the system and processed. Modern EAM systems have standard integration interfaces to capture data from operational technology systems (OT systems – Eg. Sensors, PLC, SCADA, MES, Internet of Things) to provide a comprehensive view of the underlying assets. Enterprise Asset Management software, thus, serves as a gold source of all asset data.
Benefits of EAM Software
Enterprise Asset Management software looks at the assets comprehensively over their life cycle and brings in the necessary interventions during the different phases of the asset. Right EAM software solution can help in efficient asset tracking, management, asset intelligence analysis and optimization through the entire asset lifecycle. Comprehensive features and functionalities available in the EAM software enable the asset managers and maintenance teams to have a 360-degree view of the assets including purchase order, equipment history, operating environment, asset maintenance, warranty records, failures and repairs, asset availability, utilization, asset performance, energy usage and audit trails. Benefits of EAM software solution include
- Increasing the asset availability and asset utilization: Information transparency, access to knowledge base and failure history improve the maintenance efficiency. Quick resolution of equipment breakdowns reduces unplanned downtime thereby increasing asset availability and asset utilization.
- Enhancing Operational Efficiency: EAM software provides a comprehensive view of all asset data in one place. This helps in better asset tracking, maintenance planning, asset management, resource utilization and spare inventory optimization. Remote monitoring can enable work from anywhere. QR code swipe from smartphones to fetch all asset data can help in maintaining social distancing in plant operations and maintenance.
- Extending Life of Assets: Planned and periodic maintenance of assets, usage and run hours based interventions, condition monitoring on first symptoms of equipment failure etc. improves the equipment availability, maintainability, usability and reliability. All of these extend the asset lifecycle.
- Optimization of asset performance: Comprehensive analytics and condition monitoring capabilities provide insights on equipment deterioration and performance degradation to enable timely repairs and maintenance to ensure optimal performance. Easy access to equipment information, troubleshooting manuals, knowledge base and how-to guides help in improving maintenance team productivity.
- Institutionalization of Standards, Process, and Procedures: Enterprise Asset Management Software has tools and process libraries that can be used for process standardization (eg. Preventive maintenance schedules and checklists, failure phenomena). Roll out the same set of process assets, best practices and standards across the organization to ensure uniform and consistent operations and KPIs for measurement.
- Governance, Risk and Internal Control (GRIC): Enterprise Asset Management software has comprehensive functionalities that facilitate inspections, audits and other control mechanisms, toolsets to gather information on regulatory compliance and safety requirements, risk measures to improve asset reliability etc.
- Enterprise View: Traditionally operational technology systems (Direct machine interface (M2M), Sensors, SCADA, DCS, MES, Internet of Things etc.) operate in silos and at the local plant level. EAM software can integrate with Operational Technology and Enterprise Technology (SAP, other ERP, and Business applications) and bridge the gap, to provide a comprehensive enterprise view.
- Comprehensive Analytics: As enterprise asset management software integrates and collects real-time information from multiple automated sources, such information can be combined with other equipment data to provide comprehensive maintenance metrics, asset analytics and enterprise intelligence.
- Return on Investments: EAM software provides insights on individual equipment budget vs actuals, cost of maintenance, life cycle costs, financial metrics on asset utilization and downtime, cost-benefit analysis of repairs vs replacements etc., thereby enabling better return on investments
How is Enterprise Asset Management related to Facility Management, Maintenance Management and other different Management systems?
As the business organizations grew with process maturity, different disciplines emerged in the optimization of underlying processes. Focus, objectives and targeted results of each of these systems evolved based on the industry structure, type of business requirements and criticality. Today there are different focussed systems available for different industries and purposes.
- Facility Management Systems (FMS) or Building Management Systems (BMS) focus on the buildings, facilities, hotels and hospitals, large campuses (university, Software Companies), public spaces (malls, stadia) and other infrastructure. Assets managed to include buildings and civil structures, electrical and mechanical systems (elevators, escalators, cranes, movable assets, waste disposal), utilities (generators, captive power plants, water treatment plants, effluent treatment plants etc.)
- Computerized Maintenance Management Systems (CMMS Software) focuses on plant and machinery. Assets managed include plants, equipment, instruments, tools, spares, utilities, fleet, field assets etc. Focus areas include Breakdown Maintenance, Preventive Maintenance, Predictive Maintenance, Instrument Calibrations, Utilities Management, Shut-down management, and Management of change and projects. Maintenance Software and Work Order software are sub-set of CMMS Software.
- Services Management / Service Contract Management deals with the services performed on the assets by external parties like annual maintenance contract (AMC) service, OEM Warranty service, turnkey operations and maintenance services, specialized services (shut down / start-up services, inspection and audit, assessment and performance tuning, certifications etc.)
- Spares Inventory Management deals with the spare life cycle optimization (minimum stock level, stock reorder point, order quantity, expiry). Often dealt with the larger Materials Management function.
As each discipline and practice area grew, it embraced the knowledge and best practices of other disciplines and the business applications and software systems serving them began to converge. Since Enterprise Asset Management spans the entire life cycle of assets, it can be considered as the breadth or superset of all of these systems, and each of the sub-set systems addresses the depth of the respective domains.
What are the Challenges in the adoption of Enterprise Asset Management Software?
Though EAM software Systems have been in existence for more than two decades, organizations have been cautious in its approval. Primary reasons for the slow adoption include:
- All or none – to derive the maximum benefits, EAM Software has to be implemented in its totality. Performing in parts may not give any essential benefits
- Significant investments in Enterprise Asset Management Software and ironically the lack of measurements on return on investment from EAM solution
- Time, effort and resource commitments required to roll out such a comprehensive EAM system are mammoth
- Mission-critical legacy systems that are still running but are not compatible with external systems limit the adoption of EAM Systems
- Organizational culture and preparedness to deal with the across-the-board change Enterprise Asset Management Software brings
- Enterprise track record in the successful rollout of such mammoth systems.
How do you select an Enterprise Asset Management Software?
- Clear Business Goals & Requirements Definition:
EAM software implementation is often a multi-million, multi-year project and without clearly spelt out requirements that are in alignment with the strategic goals of the organization, the rollout can go awry.
- Don’t over-engineer:
EAM systems are humungous and present abundant features that are tantalizing. Lack of focus can often lead to over-engineering than what’s required, resulting in useful for none. A key metric is to look for suitability and fitment for the organization than an all-in-one solution.
- Management commitment and Clear plan for Organization Adoption:
EAM with its all-encompassing changes will surely find resistance, and an unflinching management commitment and bandwidth are necessary for a successful rollout and later adoption. It’s not enough if EAM is successfully implemented. Organizations need to have a clear plan for approval i.e., how it will integrate with the rest of the enterprise systems, the changes required and its impact.
- Cultural Fit and Change Quotient: Enterprise Asset Management software benefits can be fully realized if it results in process re-engineering, standardization, systematic data capture and remediation of gaps. Not all organizations are wired to embrace complete change at once. Some organizations adopt incremental changes; be it continuously. And in some organizations, rigid EAM software implementation may restrict continuous improvement.
- Regulatory Compliance and Industry Standards: Legal regulations require certain asset management and maintenance process compliance in industries like Aviation (FAA 14 CFR Part 53) and pharmaceutical manufacturing (FDA CFR Title 21). ISO 55000 lays out clearly the asset management standards. Industry-specific standards like ISO 14224 lays out guidelines for the Oil and gas industry. A well-documented body of knowledge on Environment, Health and Safety (EHS) is available. Strategic initiatives like Total Productive Maintenance (TPM), Total Quality Maintenance (TQM) and Reliability Centered Maintenance (RCM) requires enabling systems to support the organization’s business requirements. Evaluation and selection of EAM Systems should be done in accordance with the applicable regulations and industry standards.
- Enterprise Integration: Organizations that have a different stack of enterprise applications will find a newer addition painful. Legacy applications may vary in their vintage and compatibility. Hardwired relationships with specific databases or workflows may pose additional challenges. Besides the numerous integration touch points with the systems, changes brought in may also break some of the existing relationships. Convoluted workarounds rolled out to patch pain points may not scale up and can become potential vulnerabilities.
- Return on Investment: Enterprise Asset Management system implementations are multi-year, multi-million projects touching numerous areas and enterprise systems inside an enterprise. Since the scope is vast with varying shades across different functions, definition, measurement, and realization of financial benefits are very complicated and may often turn into a mirage.
What is the future of Enterprise Asset Management Software?
Industry observers discern a trend of EAM as a concept and EAM as a system. While EAM as a System has been slow in getting adopted due to the reasons mentioned above, EAM as an idea has been well understood and thus has been getting more assimilated by other enterprise systems serving similar needs, especially Enterprise Resource Planning (ERP) and Computerized Maintenance Management Systems (CMMS Software).
EAM Systems, on its part, has also been adopting some of the newer frontiers of technology like the Internet of Things, machine-to-machine communications, etc.
Advances in Cloud hosting of infrastructure and new age Software-as-a-Service architecture have brought down the barriers to adoption with their ease-of-use, cost-effective and scalable solutions. Multi-site architecture, ready-to-use integration services, off-the-shelf business intelligence, application of AI / ML technologies for predictive maintenance etc. make EAM software adoption more attractive. With interoperability easily available, modern enterprises prefer best-of-breed solutions for asset management and plant maintenance, that can integrate with their enterprise technology stack.
Why is MaintWiz the best solution for you?
MaintWiz is a new-age EAM platform that helps you in digitizing your asset management and operations. It provides a comprehensive view of the services, performance and maintenance aspects of the asset. MaintWiz is a Simple, Easy to use, Integrated, Cost effective and Scalable solution.
Key benefits of the solution include:
- Multiple Site Architecture: MaintWiz is offered as a Software-as-a-Service Solution and thus has been designed for multiple site architecture. It can scale seamlessly to include different sites and assets.
- Enterprise Integration: A cloud-based application with an inbuilt design for interoperability. Deep integration capabilities to integrate with any enterprise application including ERP, Inventory Control, Production Planning, Data Warehouse and Business Intelligence suite.
- Digital native solution for IoT and M2M Communications: Architected for the new age. Can ingest data from an automated data source including the Internet of Things and machine-to-machine communications.
- Industry Standards & Certifications: With its robust feature set, MaintWiz can support your business goals of regulatory compliance (FAA CFR Part 53, FDACFR Title 21), rolling out standards (ISO 55000, ISO 14224) or achieving Total Productive Maintenance (TPM) and Reliability Centered Maintenance (RCM).
- Action Oriented Asset Intelligence: A single window view of the entire enterprise. Converts information to intelligence and insights to drive business outcomes. Presents dashboard views to get an overview of project status, equipment OEE, schedule compliance and cost of maintenance. Granular entitlements can be given to site staff to allow graded access.
- Quick Roll Out: Easy do-it-yourself data can be uploaded to intuitive screens. Concise cycle time to Go-Live and effective Usage. MaintWiz Mobile CMMS app with its One-Click Maintenance can increase adoption and productivity.
- Low Total Cost of Ownership: SaaS offering with a flat monthly subscription fee. There are no entry or exit barriers. It’s easy to implement, learn and use.
MaintWiz is a cloud-based enterprise asset management solution, thus there are no upfront capital investments. It is offered on a Pay as you Grow model with a monthly subscription. Once you sign up, you can start experiencing the business value from the very first month. And has the in-built success guarantee – MaintWiz has to perform to earn its renewals.
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