Many Enterprise Asset Management (EAM) systems primarily focus on maintenance accounting rather than effectively managing enterprise level assets. While maintenance accounting includes tracking labor hours, costs, parts, and failures, it often overlooks crucial aspects such as life cycle costs, operating costs, asset health, and performance. This raises the question - are these systems truly providing full Enterprise Level Asset Management, or are they simply serving as failure historians and maintenance cost trackers? The discrepancy lies in marketing strategies, as EAM systems are often marketed as comprehensive asset management solutions, when in reality they are more suited for maintenance transaction tracking. Despite this, there are plug-in applications available to supplement the deficiencies in EAM systems. However, it is crucial to have a solid understanding of Asset Management before diving into a new EAM system. In many companies, there is a reluctance to invest in a Maintenance Accounting System (MAS), as the term "maintenance" carries a negative connotation. This stigma leads vendors and companies to promote EAM as a solution for asset management, when its main strength lies in maintenance tracking and recording. Therefore, it is essential to discern between EAM and MAS before deciding on a system that best suits the needs of your enterprise.
When it comes to Enterprise Asset Management Systems, the focus is often on initial costs and asset performance, but what is frequently overlooked are factors such as life cycle cost, operating cost, energy efficiency, and decommissioning processes. To truly understand data like Life Cycle Cost (LCC), one can utilize systems like SAP PM or PMIS for comprehensive analyses. Additionally, external solutions like Meridium can be considered for asset health monitoring. Various softwares, such as vibration monitoring systems and DCS, offer ways to track equipment performance. Custom analyses can be done in SAP PM with proper IT programming, while Maximo provides packaged analyses or the option to integrate with separate software. Ultimately, the goal is to seamlessly conduct maintenance and reliability analyses within the CMMS without the need for additional software. Whether it's SAP, Maximo, or any other software, the choice is yours for improving maintenance programs. Aim for an integrated Maintenance & reliability software, and count me in!
What are your thoughts, Terry?
Quote by Terrence O'Hanlon: Many Enterprise Asset Management (EAM) systems focus more on maintenance accounting than on effectively managing assets. Maintenance accounting typically includes tracking labor hours, labor cost, parts usage, part cost, time between failures, time to repair, and failure codes. However, crucial aspects such as life cycle cost, operating cost, asset health, and asset performance are often overlooked in these systems. Despite being marketed as comprehensive Enterprise Asset Management solutions, what users often end up with is essentially a maintenance cost tracker and failure historian. The focus on maintenance over asset management may be attributed to the negative connotations associated with the term 'maintenance accounting.' An effective EAM system should go beyond mere maintenance tracking and recording. It should provide insights into asset performance, health, and total cost of ownership. While there are plug-in applications available to supplement EAM systems, it is crucial to have a solid understanding of asset management principles before implementing a new system. EAM allows for revenue offsetting relative to the costs incurred by assets. For example, a SAP-centric EAM solution can assist in aligning overhaul costs with revenues earned during that time period. Properly incorporating energy costs into the total cost of ownership can also optimize asset management processes. Collaboration between asset owners, IT teams, and experienced consultants is essential for successful EAM implementation. A well-designed EAM solution should not only streamline operations but also promote proactive asset management, leading to cost savings and improved asset reliability over time. If you believe EAM is limited to accounting and historical data, it may be time to consult with an expert to unlock its full potential.
You've brought up a really valid point here about the distinction between EAM and MAS. From my experience, I've found that understanding the needs of a company is critical before implementing any system, whether it's an EAM or a MAS. I also agree that the marketing strategies of EAM vendors often blur lines and could mislead companies into thinking they're getting comprehensive asset management when it's predominantly maintenance-focused. Your point about plug-in applications is interesting too - they can definitely offer a feasible solution to enhance capabilities of an EAM system. But the prime necessity remains identifying the specific requirements of the enterprise first.
I absolutely agree with your points. In fact, it's important to understand how such misrepresentation of EAM functionality can skew expectations and lead to inadequate planning or misuse of these systems. Strategically, an organization needs to look beyond mere maintenance records and should focus on a holistic approach in managing assets. It's high time we started considering the total life cycle of assets and integrating asset health and performance in our EAM systems. This could truly revolutionize how we manage assets at the enterprise level. Long story short, each organization should take time to really investigate what they require from an EAM system before investing.
I completely agree with your point on the discrepancies in the marketing aspect of EAM systems. Many businesses are drawn in by the pursuit of a one-size-fits-all solution, and vendors are quick to capitalize on this. It's important to keep reminding ourselves that EAM systems, while incredibly useful for tracking maintenance metrics, don't inherently provide the holistic view of asset management that they're often advertised to. Companies need to critically assess their needs and use supplementary tools and applications as necessary to fill these gaps. Additionally, the stigma against 'maintenance' needs to be addressed within organisational cultures, to allow for a more accurate understanding and implementation of these systems.
You've hit the nail on the head with your analysis. The terminology used to market these systems really does often lead companies to misjudge what they're investing in. These EAM systems do indeed handle maintenance accounting effectively, but they don't fully live up to the promise of managing assets at an enterprise level, and this is something companies need to be attentive to. Acquiring additional plug-in applications can help fill the gap, but this, again, requires an understanding of Asset Management that many might not have. It's an ongoing challenge to align what is marketed and what is truly needed by the enterprise. Your advice to clearly discern between EAM and MAS before investing is sage advice.
You've hit the nail on the head! There's definitely a disconnect in how EAM systems are marketed versus what they actually deliver. Many organizations get swept up by the promise of comprehensive asset management but end up with tools that merely track maintenance activities. It’s crucial for companies to evaluate their specific needs and be aware of the limitations of these systems. Investing time into understanding asset management principles can really help in selecting the right tools, and integrating those plug-ins can bridge the gaps, but we need to push back against the negative stigma around maintenance to truly harness the power of these systems.
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Answer: - EAM systems primarily focus on maintenance accounting, tracking labor hours, costs, parts, and failures. However, they often overlook aspects such as life cycle costs, operating costs, asset health, and performance. On the other hand, MAS is more specific to maintenance tracking and recording.
Answer: - While EAM systems are often marketed as comprehensive asset management solutions, they are more suited for maintenance transaction tracking. There are plug-in applications available to supplement the deficiencies in EAM systems.
Answer: - The term "maintenance" carries a negative connotation, leading vendors and companies to promote EAM as a solution for asset management. It is important to discern between EAM and MAS to choose a system that best suits the enterprise's needs.
Answer: - It is crucial to have a solid understanding of Asset Management and the capabilities of the EAM system being considered. This will help in identifying any deficiencies and the need for plug-in applications to supplement the system.
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