Enterprise Asset Management

Enterprise Asset Management

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).

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-focused 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). See Institute of Asset Management.

Enterprise asset management is the business processes and enabling information systems that support management of an organization's assets, both physical (such as buildings, equipment, infrastructure etc.) and non-physical such as:

  • Physical asset management: the practice of managing the whole life cycle (design, construction, commissioning, operating, maintaining, repairing, modifying, replacing and decommissioning/disposal) of physical and infrastructure assets such as structures, production and service plant, power, water and waste treatment facilities, distribution networks, transport systems, buildings and other physical assets. Infrastructure asset management expands on this theme in relation primarily to public sector, utilities, property and transport systems.
  • Fixed assets management: an accounting process that seeks to track fixed assets for the purposes of financial accounting.
  • IT asset management: the set of business practices that join financial, contractual and inventory functions to support life cycle management and strategic decision making for the IT environment. This is also one of the processes defined within IT service management.
  • Digital asset management: a form of electronic media content management that includes digital assets.

Read more about Enterprise Asset Management:  What Is Enterprise Asset Management?, Professional Bodies, Information Technology Enterprise Asset Management, Why Is EAM Important?, EAM System Challenges, Healthcare Enterprise Asset Management, Public Asset Management

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