Implementing enterprise asset management solutions
Summary
Asset life cycle management is not static. New methods and techniques are constantly being tried
and implemented around the world. The challenge is to share these methods and techniques to
allow others to learn and adapt.
Enterprise asset management solutions
An Enterprise Asset Management Solution is not just hardware and software but also the
information and knowledge encapsulated in the technology. It needs to incorporate the
management practices and principles to make effective use of the software and related
information. An EAM Solution should incorporate three main components:
- An Asset Management Framework
- Asset Management Processes
- Integrated Information Technology
Asset Management Framework
The asset management framework provides the foundation for making the information tracked
about assets and work come alive. The asset management framework defines what needs to be
tracked with respect to the assets and work. For example, what materials are the most effective
for extending the life of assets, what is the overall life cycle cost of the asset?
Key within the asset management framework is to understand the timeline, which makes the
information in the system become knowledge. For example, work programs can be compared
over a one to five year time horizon. However, asset management programs take longer to
compare say, five to twenty-five years.
For organizations to make effective use of the information inherent in an Enterprise Asset
Management system, a continuous improvement approach is recommended. This approach
incorporates the following items:
- Performance Management. This defines where the
organization is today with respect to asset/work management and where
they envision going. Key performance indicators are the primary
measurement means.
- Benchmarking and Best Practices. Looking
externally, an organization can compare against similar organizations to
find new ways of managing assets and performing work. This could include
new processes or different policies.
- Process & Methods Experimentation. With
performance goals identified and benchmark/best practices reviewed, the
organization can experiment with alternative processes and methods. The
EAM system will provide the information to compare results.
Asset Management Processes
Asset management is primarily about managing the life cycle of assets. This includes everything
from identifying and planning for new assets, to acquiring or building assets through to the
operations and maintenance of the assets.
In implementing an Enterprise Asset Management Solution, an organization needs to incorporate
the use of EAM information into its management processes and feedback loops. For example, the
collection of asset performance statistics should be a by-product of the daily information
tracking. Additionally, the operating statistics should be used to make purchasing decisions.
Management and staff should be taught how to make better decisions using this large repository
of information. The collection of the information for decision-making can be defined by process
area. The process areas include:
- Asset Management. This process area can be
separated by asset group, however, the information requirements and
decisions are similar. Typical information used for decision-making
includes asset condition, life cycle cost and performance statistics.
Decisions related to the process will result in more effective asset
management practices resulting in improved return on capital invested.
- Work Management. This process area is focused
more on the day-to-day work required to build, replace, improve,
maintain and operate the assets. Typical information used for
decision-making includes labor performance, material availability,
equipment performance, work duration, activity descriptions and work
estimates. Teaching those accountable for the asset overall how to use
this information will result in better asset management practices. (This
sentence is unclear.)
- Materials and Service Management. This process
area is focused on managing the requirements and fulfillment for
materials and services. Typical information used for decision-making
includes vendor performance information, material usage, inventory
turns, and service quality.
- Financial Management. This process area is focused on the money movement
within the organization. Typical information used for decision-making includes
financial statements and cash flow forecasts.
