| As the global economy keeps throwing new | | | | cycle costing, whole life planning, and proactive and |
| challenges at companies that are dependent on the | | | | planned maintenance to reduce costs of operations. |
| proper performance of their assets, some companies | | | | An Enterprise Asset Management System provides |
| are opting for new and improved Enterprise Asset | | | | the framework for decision making with regard to |
| Management Systems to ensure lower cost of | | | | labor and capital allocation so that organizations can |
| operations. Enterprise asset management (EAM) | | | | prepare for expenditure in the short and long-term. The |
| refers to the optimal use of the physical assets owned | | | | main advantage of such a model of management of |
| by an organization. It includes the designing, | | | | utilities is that it provides a holistic view the asset base |
| construction, operation, maintenance, and replacement | | | | of a company. This makes it easier for the managers |
| of equipment and facilities. The word 'enterprise' is | | | | to optimize operations. |
| used to signify that the system embraces the | | | | These days, more and more companies are opting for |
| management of assets that used by various | | | | Enterprise Asset Management System software |
| departments in various locations. In some cases, the | | | | because these are far more efficient compared to the |
| system embraces numerous business units. | | | | traditional methods. |
| Companies that are in industries like healthcare, in | | | | Typically a system includes components like work |
| which the uninterrupted use of infrastructure, | | | | order management and inventory control systems. If |
| equipment, and buildings is of prime importance and | | | | the software is fed the relevant details, it provides |
| disruptions are very expensive, are opting for newer | | | | assistance with reserving material, assigning material, |
| models of utilizing these. They need to find out things | | | | and scheduling jobs. The inventory control function of |
| like whether it would be more profitable to replace, | | | | some systems provides alerts when new materials |
| overhaul, or maintain a utility that is not performing as | | | | have to be purchased. It also facilitates the proper use |
| required. | | | | and storage of tools, spare parts, and other materials. |
| The primary aim of an Enterprise Asset Management | | | | This type of software has become very popular |
| System is to enhance the return on assets (ROA) by | | | | because they enable managers to take important |
| reducing capital costs and enhancing the performance | | | | decisions on the basis of updated and processed data |
| of equipment. Organization are switching from the | | | | that they make available on a regular basis. |
| historical reactive model and adopting practices like life | | | | |