Skip to main content

You are visiting the Deutschland site. You might be interested in the Sverige site.

Go to the Sverige site Stay on the Deutschland site

EAM—Enterprise Asset Management

What is EAM software?

Enterprise Asset Management (EAM) software helps companies keep track of the upkeep needed to ensure their equipment or other fixed assets are kept in good running order. In other words, it covers the maintenance and repair of machines, facilities, vehicles, fleets of vehicles, property and more.

An EAM solution tracks the cost of material and labor required to maintain each piece of equipment, structures the data according to equipment type, location, production line, product group, age or other categories, and allows you to efficiently plan and manage preventive maintenance.

Enterprise Asset Management Software
 

EAM software can help a plant or facilities management team manage important key performance indicators, for instance by keeping the preventive-to-corrective maintenance ratio above 75 percent.

In practice, this means that for every three preventive maintenance tasks a maintenance team performs, they are only doing one corrective task.

This ratio indicates a proactive asset management program, better efficiency, and a better chance of achieving profitability.

Why do you need EAM software?

As you would expect, one of the main goals of EAM software is to ensure equipment efficiency and reliability. After all, if equipment is down, it is not generating revenue. Poorly operating equipment will only be able to run at a fraction of its full capacity and will likely lead to increased waste and product quality issues. All these problems result in money invested in the asset being left on the table and a poor customer experience.

However, there are more strategic reasons to implement EAM software—reasons that affect the immediate and long-term success of the business. One reason having to do with the immediate term is health, safety and environmental (HSE) concerns. An equipment failure might result in costly or even catastrophic damage to the equipment. In many cases, there is also risk of injury or death, or release of harmful materials into the environment.

The long-term reason to select and implement EAM software is to maximize return on capital assets and make better-informed decisions for the business. EAM will support repair-or-replace decisions for an individual piece of equipment like a drill press or compressor, classes of equipment purchased at the same time or nearing the end of their functional life, types of equipment that might not be as effective as newer technology, entire production lines or manufacturing plants, or even portfolios of assets or plants.

When EAM software is a native component of the over-arching ERP software application used across the business, decisions like these—and others—can be made in the context of not just the cost of operating the asset, but the revenue generated, how it affects the customer experience, and other strategic factors. The following are just a few scenarios where EAM software can play an important role:

  • A maintenance shut down may be important to keep a production line running, but if there are several important customer orders pending that cannot be shipped, it may need to be delayed
  • If quality problems are affecting a given product line or customer relationship, the cost of maintenance and repair activities can be evaluated in light of the effect on revenue, regulatory compliance and customer satisfaction
  • If geographic demand patterns are changing, plants and assets in one part of the world can be prioritized for maintenance, repair, lifecycle extensions or expansions over assets in other parts of the world
  • Ensuring compliance with the ISO 5500 and PAS 55 standards that require the entire asset lifecycle be managed on the same database, cradle to grave, EAM will provide a single version of the truth across all phases: from design to operation, maintenance and eventually through decommission and replacement
 

What makes Enterprise Asset Management software unique (draft)

EAM software differentiates itself from computerized maintenance management system (CMMS) in that it includes capabilities for inventory management, finance, and even human resources (HR). In fact, EAM solutions can ideally function as a complete enterprise resource planning (ERP) software system for organizations that wholly rely on their equipment or capital/fixed assets to generate revenue (asset-intensive).

EAM software can help a plant or facilities management team manage important key performance indicators, for instance by keeping the preventive-to-corrective maintenance ratio above 75 percent. In practice, this means that for every three preventive maintenance tasks a maintenance team performs, they are only doing one corrective task. This ratio indicates a proactive asset management program, better efficiency, and a better chance of achieving profitability.

EAM will support a business in its progression from reactive (fixing things after they break) to proactive maintenance (preventing things from breaking in the first place). This maintenance journey starts with the ability to plan and execute calendar-based preventive maintenance tasks.

On a given interval, often at the recommendation of the company that built the piece of equipment in question, you perform certain maintenance tasks. As an organization advances, EAM will support them in moving to a criteria-based approach, where these tasks are performed not after a certain number of days, but a certain accumulative value—either hours of run time, number of duty cycles, or other metric that determines actual wear and tear of the machine. By using diagnostics data from the machine, the EAM user can progress to condition-based maintenance, where values like temperature, vibration, pressure—or changes in temperature and pressure—trigger preventive maintenance once they hit certain thresholds.

Ultimately, a sound approach to predictive maintenance combines condition-based and duty cycle and load factors and times maintenance actions accordingly. This is best done when EAM is a part of an overall ERP package so that not only equipment run time, but product data like material are made available. After all, cutting stainless steel will result in more wear to your equipment than cutting aluminum.

The goal is to eliminate unnecessary maintenance not only to reduce cost, but because many maintenance activities bring some risk of damaging the machine, and that impacts uptime.

What are the benefits of EAM software?

EAM software is a tool, and it is how you use it that will deliver benefits in the business. However, frequently reported benefits of EAM software include:

  • Increased equipment availability
  • Increased equipment optimization
  • Increased productivity and production capacity
  • Reduced scrap rates or product nonconformance issues
  • Maximized wrench time for technicians
  • Improved quality of financial and repair/replace decisions
  • Faster turn time for plant shutdowns, refits and other large-scale maintenance projects
  • Fewer stoppages due to repair and replacement part stockouts or labor shortages
  • Streamlined compliance due to strong documentation of maintenance actions and certification of maintenance technicians

But the more strategic benefits of EAM software lie with how it enables you to do business in ways that would not be possible without it.

EAM enables asset lifecycle management (ALM), which lets companies map their future with regard to how assets will deliver current and future products, services, revenue and customer solutions. Assets can be designed to evolve and adapt to anticipated needs, in addition to current ones. Maintenance can be balanced between the extreme of over-maintenance, which increases cost without improving outcomes.

As changes are made to the asset over time, these are included in an as-maintained record. At some point, despite optimal maintenance, the asset will degrade and the cycle will begin anew. But thanks to EAM, the planning and engineering team can begin their work with full visibility into maintenance and usage data that will enable them to use the learnings gathered from operating the previous asset to improve the running of the replacement asset.

Combined with operational systems like ERP, EAM can deliver overall equipment effectiveness (OEE), which marries data from EAM, equipment performance data collected from individual machines or a supervisory control and data acquisition (SCADA) system, and ERP data to determine how to maximize the output of the machine. OEE does this by minimizing:

  • Schedule losses
  • Availability losses from equipment failures or planned losses like set-up time
  • Performance loss from minor stoppages and reduced equipment running speeds

Quality losses resulting from poor equipment performance and attendant product defects

OEE is a measurement of manufacturing productivity as a percentage of manufacturing time that is truly productive. Ideally, a manufacturing company would have 100 percent good parts with no stop time, maximum equipment operating speed, and 100 percent availability. This is unattainable for a number of reasons, and generally the operating speed of production equipment needs to be reduced to find the optimal balance. Other processes in EAM are a factor here, including availability of replacement parts and maintenance personnel. In some cases, operational factors in ERP play a role, including available inventory or raw materials.

EAM can be the repository for recording these stoppage events, and this can be achieved manually or through automated data capture through the internet of things (IoT).

How to select the right EAM software solution

Selecting EAM software requires a disciplined process to first identify the functional requirements of the business not only now, but well into the future. The project requires an executive sponsor to ensure the funding is reliably available and that the process changes and improvements the EAM implementation will deliver are adopted by end-users throughout the business.

While EAM in its functional capacity is straightforward, and most users will want to ensure they can execute work orders on various devices as they stand at the machine, the more strategic elements of EAM software will differentiate one product from the next. Here follows some considerations that may help guide your selection:

  • How does the EAM software package support each stage of the asset lifecycle, from cradle to grave?
  • How well does the EAM software package support larger enterprise projects including engineering, construction or fabrication, plant shutdowns, lifecycle extensions and refits?
  • Does the software support maintenance contracting, and can it, for instance, automate bid letting and contract management?
  • How well does the EAM software support OEE?
  • How will the EAM solution evolve in the future? Does the software vendor have a roadmap of how the software will be extended and improved over time?
 

How IFS EAM is helping businesses succeed

IFS solutions saw the light of day in the asset management sector over 30 years ago. Our software was designed not just for, but to a great extent by the industry. We have seen mergers and demergers, deregulation, greater demands on asset and workforce optimization—and we have helped companies all over the world turn these challenges into profit-making opportunities. Want to learn more? Check out what some of our customers say:

Holmen Paper, one of Europe’s leading producers of printing paper, uses IFS software to streamline maintenance processes

Global ticketing and revenue collecting systems provider Cubic Transportation Systems uses IFS to predict what repairs will be required and prioritize accordingly

Statnett, the main-grid operator of Norway, relies on IFS technology to keep the lights on

Leading forestry group SCA's journey towards Overall Equipment Effectiveness (OEE) with IFS

Safer, faster, better: modern maintenance, repair and overhaul (MRO) and performance excellence at China Airlines

Why do you need EAM software?

As you would expect, one of the main goals of EAM software is to ensure equipment efficiency and reliability. After all, if equipment is down, it is not generating revenue. Poorly operating equipment will only be able to run at a fraction of its full capacity and will likely lead to increased waste and product quality issues. All these problems result in money invested in the asset being left on the table and a poor customer experience.

However, there are more strategic reasons to implement EAM software—reasons that affect the immediate and long-term success of the business. One reason having to do with the immediate term is health, safety and environmental (HSE) concerns. An equipment failure might result in costly or even catastrophic damage to the equipment. In many cases, there is also risk of injury or death, or release of harmful materials into the environment.

The long-term reason to select and implement EAM software is to maximize return on capital assets and make better-informed decisions for the business. EAM will support repair-or-replace decisions for an individual piece of equipment like a drill press or compressor, classes of equipment purchased at the same time or nearing the end of their functional life, types of equipment that might not be as effective as newer technology, entire production lines or manufacturing plants, or even portfolios of assets or plants.

When EAM software is a native component of the over-arching ERP software application used across the business, decisions like these—and others—can be made in the context of not just the cost of operating the asset, but the revenue generated, how it affects the customer experience, and other strategic factors. The following are just a few scenarios where EAM software can play an important role:

  • A maintenance shut down may be important to keep a production line running, but if there are several important customer orders pending that cannot be shipped, it may need to be delayed
  • If quality problems are affecting a given product line or customer relationship, the cost of maintenance and repair activities can be evaluated in light of the effect on revenue, regulatory compliance and customer satisfaction
  • If geographic demand patterns are changing, plants and assets in one part of the world can be prioritized for maintenance, repair, lifecycle extensions or expansions over assets in other parts of the world
  • Ensuring compliance with the ISO 5500 and PAS 55 standards that require the entire asset lifecycle be managed on the same database, cradle to grave, EAM will provide a single version of the truth across all phases: from design to operation, maintenance and eventually through decommission and replacement
 

What makes Enterprise Asset Management software unique (draft)

EAM software differentiates itself from computerized maintenance management system (CMMS) in that it includes capabilities for inventory management, finance, and even human resources (HR). In fact, EAM solutions can ideally function as a complete enterprise resource planning (ERP) software system for organizations that wholly rely on their equipment or capital/fixed assets to generate revenue (asset-intensive).

EAM software can help a plant or facilities management team manage important key performance indicators, for instance by keeping the preventive-to-corrective maintenance ratio above 75 percent. In practice, this means that for every three preventive maintenance tasks a maintenance team performs, they are only doing one corrective task. This ratio indicates a proactive asset management program, better efficiency, and a better chance of achieving profitability.

EAM will support a business in its progression from reactive (fixing things after they break) to proactive maintenance (preventing things from breaking in the first place). This maintenance journey starts with the ability to plan and execute calendar-based preventive maintenance tasks.

On a given interval, often at the recommendation of the company that built the piece of equipment in question, you perform certain maintenance tasks. As an organization advances, EAM will support them in moving to a criteria-based approach, where these tasks are performed not after a certain number of days, but a certain accumulative value—either hours of run time, number of duty cycles, or other metric that determines actual wear and tear of the machine. By using diagnostics data from the machine, the EAM user can progress to condition-based maintenance, where values like temperature, vibration, pressure—or changes in temperature and pressure—trigger preventive maintenance once they hit certain thresholds.

Ultimately, a sound approach to predictive maintenance combines condition-based and duty cycle and load factors and times maintenance actions accordingly. This is best done when EAM is a part of an overall ERP package so that not only equipment run time, but product data like material are made available. After all, cutting stainless steel will result in more wear to your equipment than cutting aluminum.

The goal is to eliminate unnecessary maintenance not only to reduce cost, but because many maintenance activities bring some risk of damaging the machine, and that impacts uptime.

What are the benefits of EAM software?

EAM software is a tool, and it is how you use it that will deliver benefits in the business. However, frequently reported benefits of EAM software include:

  • Increased equipment availability
  • Increased equipment optimization
  • Increased productivity and production capacity
  • Reduced scrap rates or product nonconformance issues
  • Maximized wrench time for technicians
  • Improved quality of financial and repair/replace decisions
  • Faster turn time for plant shutdowns, refits and other large-scale maintenance projects
  • Fewer stoppages due to repair and replacement part stockouts or labor shortages
  • Streamlined compliance due to strong documentation of maintenance actions and certification of maintenance technicians

But the more strategic benefits of EAM software lie with how it enables you to do business in ways that would not be possible without it.

EAM enables asset lifecycle management (ALM), which lets companies map their future with regard to how assets will deliver current and future products, services, revenue and customer solutions. Assets can be designed to evolve and adapt to anticipated needs, in addition to current ones. Maintenance can be balanced between the extreme of over-maintenance, which increases cost without improving outcomes.

As changes are made to the asset over time, these are included in an as-maintained record. At some point, despite optimal maintenance, the asset will degrade and the cycle will begin anew. But thanks to EAM, the planning and engineering team can begin their work with full visibility into maintenance and usage data that will enable them to use the learnings gathered from operating the previous asset to improve the running of the replacement asset.

Combined with operational systems like ERP, EAM can deliver overall equipment effectiveness (OEE), which marries data from EAM, equipment performance data collected from individual machines or a supervisory control and data acquisition (SCADA) system, and ERP data to determine how to maximize the output of the machine. OEE does this by minimizing:

  • Schedule losses
  • Availability losses from equipment failures or planned losses like set-up time
  • Performance loss from minor stoppages and reduced equipment running speeds

Quality losses resulting from poor equipment performance and attendant product defects

OEE is a measurement of manufacturing productivity as a percentage of manufacturing time that is truly productive. Ideally, a manufacturing company would have 100 percent good parts with no stop time, maximum equipment operating speed, and 100 percent availability. This is unattainable for a number of reasons, and generally the operating speed of production equipment needs to be reduced to find the optimal balance. Other processes in EAM are a factor here, including availability of replacement parts and maintenance personnel. In some cases, operational factors in ERP play a role, including available inventory or raw materials.

EAM can be the repository for recording these stoppage events, and this can be achieved manually or through automated data capture through the internet of things (IoT).

How to select the right EAM software solution

Selecting EAM software requires a disciplined process to first identify the functional requirements of the business not only now, but well into the future. The project requires an executive sponsor to ensure the funding is reliably available and that the process changes and improvements the EAM implementation will deliver are adopted by end-users throughout the business.

While EAM in its functional capacity is straightforward, and most users will want to ensure they can execute work orders on various devices as they stand at the machine, the more strategic elements of EAM software will differentiate one product from the next. Here follows some considerations that may help guide your selection:

  • How does the EAM software package support each stage of the asset lifecycle, from cradle to grave?
  • How well does the EAM software package support larger enterprise projects including engineering, construction or fabrication, plant shutdowns, lifecycle extensions and refits?
  • Does the software support maintenance contracting, and can it, for instance, automate bid letting and contract management?
  • How well does the EAM software support OEE?
  • How will the EAM solution evolve in the future? Does the software vendor have a roadmap of how the software will be extended and improved over time?
 

How IFS EAM is helping businesses succeed

IFS solutions saw the light of day in the asset management sector over 30 years ago. Our software was designed not just for, but to a great extent by the industry. We have seen mergers and demergers, deregulation, greater demands on asset and workforce optimization—and we have helped companies all over the world turn these challenges into profit-making opportunities. Want to learn more? Check out what some of our customers say:

Holmen Paper, one of Europe’s leading producers of printing paper, uses IFS software to streamline maintenance processes

Global ticketing and revenue collecting systems provider Cubic Transportation Systems uses IFS to predict what repairs will be required and prioritize accordingly

Statnett, the main-grid operator of Norway, relies on IFS technology to keep the lights on

Leading forestry group SCA's journey towards Overall Equipment Effectiveness (OEE) with IFS

Safer, faster, better: modern maintenance, repair and overhaul (MRO) and performance excellence at China Airlines