Enterprise asset management (EAM) is generally used to reduce the operational and maintenance costs of corporate assets. By more effectively coordinating the maintenance of manufacturing plants, vehicle fleets, oil and gas pipelines, and other infrastructure, EAM can also help minimize costly service disruptions.
However, the value of EAM can extend beyond the bottom line by enabling organizations to more effectively manage the entire asset lifecycle. Effective lifecycle management can extend the useful life of assets, making it possible to postpone the need to construct new facilities or procure new equipment. This not only preserves capital and maximizes ROI but saves the financial and environmental impacts of decommissioning and disposing of the existing assets.
When new construction is required, EAM can be used to record and monitor the cost of materials and the work of contractors to ensure that all expenses are captured and any deviations from specifications are managed. This data will then provide a baseline for ongoing decisions about maintenance and lifecycle management, and reduce the risk of future upgrades or increases in capacity.
EAM can further help organizations promote their “green” initiatives by tracking the environmental footprints of products and components. Examples might include the chemical makeup of a product that is subject to regulation, measures taken to reduce greenhouse gas emissions, or the regular inspection of assets to prevent chemical leakage or the failure or environmental controls. Having all this data in one place helps organizations meet regulatory compliance and supply chain requirements, as well as customer demand for environmentally friendly products. It also facilitates disaster planning and helps ensure properly trained and certified personnel are available to service these assets.
Finally, EAM can assist with field service management. Increasingly, organizations must manage, maintain and support growing inventories of assets in remote locations, including customer sites. This may include customer-owned equipment that is under a maintenance agreement as well as company-owned equipment. In either case, efficient field service has a direct impact on the customer experience, while equipment downtime may bring financial penalties as well as reputational damage. EAM is a useful tool for ensuring that the right technician with the right parts can be dispatched quickly to perform maintenance or make repairs.
According to new data from Markets and Markets, the EAM market is expected to see a compound annual growth rate of 11.9 percent, exceeding $6 billion by 2022. EAM has traditionally been used in the government, oil and gas, manufacturing, transportation and logistics, and energy and utilities sectors, but is seeing growing adoption in healthcare, retail and other industries. Aging infrastructure, increasing maintenance and procurements costs, and the need to better track assets across geographically dispersed operations are among the factors driving the growth of the EAM market.
EAM is proven to reduce maintenance and operational costs, but it can deliver even greater value when applied throughout the asset lifecycle. By providing a 360-degree view of assets from design through implementation and ongoing operations, EAM can help to extend the useful life of assets, reduce risk and environmental impacts, and enhance the customer experience.
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