Table of Contents:
- Introduction
- What is Enterprise Asset Management & ERP Software for Asset Management
- Stages in Asset Lifecycle Management
- Benefits of ERP Software for Asset Management
- Main Features of ERP Software for Asset Management
- Why EAM Solution Should Be Part of Your ERP System
- Conclusion
Physical assets take up the major budget of a business or company so it becomes essential to manage their lifecycle efficiently and ensure that their potential is utilized fully. ERP Software for Asset Management or Enterprise asset management (EAM) enables a planned approach to usage of asset, obtainment, and maintenance.
What is Enterprise Asset Management (EAM)?
Enterprise Asset Management (EAM) encompasses a range of practices aimed at ensuring asset reliability and optimizing their performance. EAM manages asset lifecycle management, which provides better control over the performance and health of assets.
EAM is particularly vital for enterprises with numerous complex and costly physical assets, such as vehicles, heavy machinery, and buildings. Sectors like manufacturing, construction, energy, space, and defense needs EAM solution. Without effective asset management in these industries, companies face high costs related to asset support and maintenance, leading to operational disarray.
What is ERP Software for Asset Management?
EAM software is a software solution that helps perform asset management and guides you through every asset lifecycle stage.
Understanding Asset Lifecycle Management
Planning
The lifecycle begins with the stage of planning of design and concept of asset utilization. This include taking note of assets in hand, requirement of new asset which will work in-sync with existing assets.. Planning helps building a clear vision of a new project, research new technologies and run a digital transformation of business. Planning also includes budgeting for asset acquisition and maintenance.
Acquiring
Once planned, next begins purchasing and delivering the assets to the place where it will be utilized. This stage involves contract management, quality management & inspection, storage of the asset, spare part management, and other activities.
Deployment
Deployment involves assembling, installation, and preliminary checks of the acquired assets. Factors including asset tracking and ownership, documentation, qualifications, maintenance and support strategies are considered in this stage.
Operation
At this stage assets generate a return on investments (RoI). During this phase, ERP for Asset Management or EAM software schedules planned work activities tracks unplanned. It also monitors asset health to gather data for planning and scheduling maintenance activities, preventing untimely failures.
Maintenance
Asset maintenance is unavoidable but can be managed to optimize it and decrease downtime. Maintenance can be planned or unplanned.
Planned maintenance is preventive and scheduled ahead, while unplanned maintenance occurs when equipment breaks down or performs poorly, causing unplanned downtime and affecting productivity.
Implementing predictive maintenance technologies like the Industrial Internet of Things (IIoT) or artificial intelligence (AI) can help amplify the monitoring process with real-time data on asset state.
Disposal
Every asset has a lifecycle, and its end is also a task for the company to leverage instead of simply writing it off. Common reasons for disposal include the end of the asset’s life, incompatibility with company needs, high support costs, or replacement with modern technologies. Analyzing asset life data with EAM software and evaluating the value of asset removal are crucial steps in this process.
Benefits of ERP Software for Asset Management
Real-time Asset Monitoring
ERP software enables real-time asset tracking, allowing companies to allocate their physical assets and gain full control over equipment, regardless of location.
Enhanced Operational Efficiency
ERP for Asset Management digitalizes and automates processes, relieving employees from repetitive data entry and allowing them to focus on higher-value tasks. This reduces delays and costs associated with asset support, remove bottlenecks, and enhance operational efficiency.
Improved Asset Reliability and Uptime
Maintenance management, particularly preventive maintenance, prolongs asset life and reduces inconvenient breakdowns that disrupt the manufacturing cycle ensuring consistent uptime.
Data Centralization
ERP for Asset Management centralizes operational data, enabling shared access between employees and departments. This enhances collaboration and communication within the company.
Access to In-depth Analytics
ERP solutions track costs from asset purchase to total maintenance expenses, providing insights into the total cost of ownership (TCO) and helping optimize investments and expenses.
Main Features of ERP Software for Asset Management
Lifecycle Management
Effective ERP software reflects all asset lifecycle stages and processes, including planning, procurement, installation, operation, maintenance, transfers, disposal, and storage. It allows proper tracking of enterprise assets, their documents, and costs.
Work Order Management
Work order management simplifies the process of task creation and completion for asset maintenance requests. It helps navigate tasks and employees, ensuring that every order is assigned and not lost among other requests.
Maintenance, Repair, and Operation (MRO) Inventory Management
MRO inventory management tracks resources and parts procured for asset maintenance, reducing losses, preventing theft, and eliminating excessive expenses.
Labor Management
Labor management tracks employees’ working hours, workloads, certifications, and necessary training schedules, emphasizing the value of employees responsible for asset management.
Financial Management
Financial management feature analyzes essential financial data, such as production planning reducing costs and downtime and emergency scenarios, contributing to financial transparency and informed decision-making.
Reporting
Detailed reporting and analytics enable data-driven decision-making. Dashboards, charts, and other visualization tools provide detailed progress and equipment state insights.
Why Asset Management Solution Should Be Part of ERP System
Integrating EAM with ERP systems enhances collaboration and data streamlining, offering several benefits:
– Data Centralization: Eliminates data duplicates and centralizes data across departments.
– Modernized Processes: Enhances collaboration and reduces miscommunication and delays.
– Financial Insights: Provides comprehensive understanding of asset costs and financials.
– Simplified IT Support: Directs IT efforts to one system instead of multiple.
– Easier Adoption: Simplifies system adoption and reduces time lost switching between interfaces.
Conclusion
Efficient asset management is crucial for maximizing the potential of your company’s physical assets. ERP software for asset management, like PACE360, provides advanced features and benefits that enhance asset tracking, operational efficiency, asset reliability, and data centralization. Integrating EAM solutions with ERP systems further streamlines processes and improves financial insights, making it an indispensable tool for modern industries.
