The design, implementation, and improvement of an organizational enterprise asset management (EAM) Model is an internationally accepted and recognized approach to enterprise asset management. Both PAS 55 and ISO 55000, global international asset management standards, recommend that multi-site, asset-intensive organizations develop an EAM Model to govern and standardize asset management.
This makes sense. Enterprise asset management is chaotic. It is no cake walk having multiple sites, performing multiple functions (maintenance, storeroom, operations, etc.), executing various integrated business processes (planning parts, generating pick tickets, ordering materials, etc.) in risky environments on a daily basis.
It can be difficult getting all of the plants “singing from the same sheet of music” – doing the same process, utilizing common measurements, codes, and data sets, etc. However, coordination and communication are paramount if costs are to be minimized and productivity losses avoided. That is why the establishment of an organizational EAM Model is a best practice.
But what is an EAM Model?
EAM Model Definition
Simply put, an EAM Model consists of documented standards. A standard is a repeatable, harmonized, agreed upon, and documented way of doing something. Standards contain specifications or other precise criteria designed to be used consistently as a rule, guideline, or definition.
An EAM Model forms the building blocks of enterprise asset management by establishing a consistent and tangible process that can be understood and adopted across the organization.
An EAM Model defines the codes, the naming conventions, business rules, practices, roles and responsibilities, key performance indicators, policies, etc. that the organization implements to properly manage its assets. It is the organization’s asset management playbook. Do you have one?
Download an outline to see what an EAM Model is made of.
EAM System Definition
An EAM System is the software that you are using to manage your assets. An EAM system is implemented to better plan, optimize, execute, and track asset management activities.
An EAM System includes features such as asset life-cycle management, preventive maintenance scheduling, warranty management, MRO inventory management, and procurement.
An EAM System is the organization’s asset management information delivery tool. It is built to produce the information that managers need to make informed and educated asset management business decisions.
EAM Model & EAM System
Both an EAM Model and an EAM System play integrated, critical roles in helping the operation generate rich and actionable asset management information – information that is leveraged to improve reliability, reduce risk, and minimize costs.
They both need each other as well. An EAM Model and an EAM System make each other better. They each have what the other is missing. They are attracted out of necessity.
The EAM System needs an EAM Model to define its success elements. Codes, master data, workflow, roles and responsibilities, KPIs, reports, etc. don’t magically appear when the software is purchased. These need to be defined up front (or at some point) before the EAM System can be effectively implemented.
An EAM Model provides the documented standards in which to operate by.
An EAM Model needs an EAM System to streamline its processes and produce the information that managers need to make value-add decisions. To implement an EAM Model without an EAM System means a lot of paper, spreadsheets, and extra resources.
An EAM Model and an EAM System are also very different. They do different things. One is focused on practices and the other is focused on technology. But opposites attract. Like Felix and Oscar, they may be an odd couple, but when they get together their whole is greater than the sum of their parts. The real power of an EAM Model and an EAM System is displayed when they combine forces, when they work together to help the organization level up its performance. This is definitely a case of 1 plus 1 equals 3.
An EAM System is designed to create efficiencies. An EAM Model is designed to make you effective.
Effective and efficient asset management operations is what we are all about. Right?
Using EAM Models to Standardize Practices
EAM Systems have been around for a while, but the push to partner them up with EAM Models is a fairly new phenomenon. And organizations are getting on the band wagon. They realize that EAM Systems cannot fix asset management by itself.
As Yoda told Luke, ”Only a fully-trained Jedi Knight, with the Force as his ally, will conquer Vader and his Emperor.” Asset management is kind of like that. You need to bring all of the forces to bear – an EAM Model and an EAM System – if long-term and sustainable results are to be achieved.
Once EAM Model standards have been defined they can be rolled out across the organization. This gives the word Enterprise in EAM its meaning. Standards can then be used to drive EAM System configuration, to train personnel, and to audit performance.
Download sample equipment failure codes from an ISO-compliant EAM Model.
See how practices, master data, and organizational elements give the EAM System a performance boost.
An EAM Model is an EAM System accelerator.
The development of an organizational EAM Model is applicable to any organization where physical assets are a key or a critical factor in achieving its business goals.
The implementation of an EAM Model is an internationally accepted and recognized approach to enterprise asset management. If your EAM System is trying to do it alone, it is going to be a tough journey. Consider a partner for it. Consider an EAM Model – a game plan for your EAM operation.
Our solutions help organizations quickly develop high performance EAM Models. If we can help you develop or improve yours, please let us know.
Thanks for reading.