Featured Author - Daryl Mather - June 27, 2003
Defining EAM
Enterprise Asset Management systems (EAM) continue to point the way into the future for capital intensive industries. The combination of functionalities, asset focussed business intelligence and advanced management consulting have allowed some vendors to provide consistently high results to those industries whose operating model involves the management of large numbers of physical assets.
This specifically refers to industries in the areas of Mining, Oil and Gas, Defense, Utilities and Transport although it does also offer positive benefits for companies in some areas of manufacturing.
The Gartner Group defines EAM as the following:
"EAM consists of asset management, materials management, HRMS and financials"
Figure 1: Complimentary Effects between Managerial Functions in Capital Intensive Industries
The focus and structure of an EAM system recognises the strategic importance of asset management and provides a structure and depth of functionality dedicated to providing clear strategic advantages in these areas. It is for this reason that it is directed at the central role played by maintenance and includes the three additional functional areas in capital intensive industries that have a synergistic relationship with asset management. They have truly evolved into solutions for enterprise performance management in this industry sector.
It represents a key strategy to increase plant capacity, using information technology in lieu of new construction in large, asset-intensive enterprises. It integrates key plant control systems (PCS) and ERP with maintenance activities and functions to reduce downtime and minimize maintenance spending
Confusion in E.A.M
The emergence of EAM as the solution for this style of industry has at times been confused both by clients, as well as by vendors.
Myth 1: EAM are only transactional Systems
While there are lower standard systems that offer only transactional functionality, a true EAM system builds on this data by providing advanced functions in critical areas affecting asset management. For example:
* Risk management and reliability engineering (Including predictive maintenance management)
* RCM
* Root Cause Analysis
* Advanced Workforce and Human Capital management
* Advanced Inventory Management
It is the inclusion of these ranges of functions that EAM systems are able to provide strategic advantages in asset management. Advantages that can separate industry leaders from their competitors.
Myth 2: Misunderstanding of the Areas of EAM
A common ploy by vendors of lower quality systems is to attempt to include other functions as a part of the core functionality of these systems. This effort of re-branding by specific vendors is not only misleading but affects the overall goals of asset management in industry. For example:
1. Addition of CRM (Customer / Client Relationship Management)
2. Addition of SCM (Supply Chain Management)
While these two system functionalities are important parts of managing enterprises., they are not vital parts of asset focussed industries. In fact the use of these systems, functions, in lieu of basic EAM functionalities, can substantially reduce benefits from the overall asset-centric solution. (Note: Basic CRM is considered to be a part of EAM)
An EAM provides a means of generating strategic advantages through the management of physical assets. And uses the issues of Asset Management as key drivers for achieving these advantages.
source
http://www.technologyevaluation.com/research/articles/the-total-eam-vision-strategic-advantages-in-asset-management-16994/
Defining EAM
Enterprise Asset Management systems (EAM) continue to point the way into the future for capital intensive industries. The combination of functionalities, asset focussed business intelligence and advanced management consulting have allowed some vendors to provide consistently high results to those industries whose operating model involves the management of large numbers of physical assets.
This specifically refers to industries in the areas of Mining, Oil and Gas, Defense, Utilities and Transport although it does also offer positive benefits for companies in some areas of manufacturing.
The Gartner Group defines EAM as the following:
"EAM consists of asset management, materials management, HRMS and financials"
Figure 1: Complimentary Effects between Managerial Functions in Capital Intensive Industries
The focus and structure of an EAM system recognises the strategic importance of asset management and provides a structure and depth of functionality dedicated to providing clear strategic advantages in these areas. It is for this reason that it is directed at the central role played by maintenance and includes the three additional functional areas in capital intensive industries that have a synergistic relationship with asset management. They have truly evolved into solutions for enterprise performance management in this industry sector.
It represents a key strategy to increase plant capacity, using information technology in lieu of new construction in large, asset-intensive enterprises. It integrates key plant control systems (PCS) and ERP with maintenance activities and functions to reduce downtime and minimize maintenance spending
Confusion in E.A.M
The emergence of EAM as the solution for this style of industry has at times been confused both by clients, as well as by vendors.
Myth 1: EAM are only transactional Systems
While there are lower standard systems that offer only transactional functionality, a true EAM system builds on this data by providing advanced functions in critical areas affecting asset management. For example:
* Risk management and reliability engineering (Including predictive maintenance management)
* RCM
* Root Cause Analysis
* Advanced Workforce and Human Capital management
* Advanced Inventory Management
It is the inclusion of these ranges of functions that EAM systems are able to provide strategic advantages in asset management. Advantages that can separate industry leaders from their competitors.
Myth 2: Misunderstanding of the Areas of EAM
A common ploy by vendors of lower quality systems is to attempt to include other functions as a part of the core functionality of these systems. This effort of re-branding by specific vendors is not only misleading but affects the overall goals of asset management in industry. For example:
1. Addition of CRM (Customer / Client Relationship Management)
2. Addition of SCM (Supply Chain Management)
While these two system functionalities are important parts of managing enterprises., they are not vital parts of asset focussed industries. In fact the use of these systems, functions, in lieu of basic EAM functionalities, can substantially reduce benefits from the overall asset-centric solution. (Note: Basic CRM is considered to be a part of EAM)
An EAM provides a means of generating strategic advantages through the management of physical assets. And uses the issues of Asset Management as key drivers for achieving these advantages.
source
http://www.technologyevaluation.com/research/articles/the-total-eam-vision-strategic-advantages-in-asset-management-16994/
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