Enterprise asset management

Enterprise asset management

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Enterprise asset management (EAM) means the whole life optimal management of the physical assets of an organization to maximize value. It covers such things as the design, construction, commissioning, operations, maintenance and decommissioning/replacement of plant, equipment and facilities. "Enterprise" refers to the management of the assets across departments, locations, facilities and, in some cases, business units. By managing assets across the facility, organizations can improve utilization and performance, reduce capital costs, reduce asset-related operating costs, extend asset life and subsequently improve ROA (return on assets).
Asset intensive industries face the harsh realities of operating in highly competitive markets and dealing with high value facilities and equipment where each failure is disruptive and costly. At the same time, they must also adhere to stringent occupational safety, health and environmental regulations. Maintaining optimal availability, reliability and operational safety of plant, equipment, facilities and other assets is therefore essential for an organization's competitiveness.
The functions of asset management are taking a fundamental turn where organizations are moving from historical reactive (run-to-failure) models and beginning to embrace whole life planning, life cycle costing, planned and proactive maintenance and other industry best practices. Some companies still regard physical asset management as just a more business-focussed term for maintenance management - until they begin to realize the organization-wide impact and interdependencies with operations, design, asset performance, personnel productivity and lifecycle costs. This shift in focus exemplifies the progression from maintenance management to Enterprise Asset Management and is embodied in the British Standards specification PAS 55 (Requirements specification for the optimal management of physical infrastructure assets).

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