An Enterprise Asset Management (EAM) system is a software program designed to be integrated into your company’s workflow that enables or enhances the processes for the initial planning of acquiring assets, identifying the desired use of assets, installation if assets, the set up of maintenance program, training, operations of the assets, and concludes with the eventual replacement /retirement of an assets. How do you know how well your EAM is working? Examining your output is a good place to start.

5 signs your EAM system is not set up correctly

5 signs your EAM system is not set up correctly can be identified if your reports do not include:

  1. Lifecycle projections. One of the key functions of an EAM is to be able to project when your assets will need to be retired or replaced. In order to do this there must be adequate historical data supplemented by ongoing maintenance records. Historical data includes date of purchase, manufacturer, contract data, asset detail, history of use. Ongoing maintenance records indicate the number of times the asset has had maintenance performed, whether the maintenance was preventive or reactionary (repair), who did the work and what was the cost.
  2. Expected Efficiencies Results. Expected efficiencies include Key Performance Indicators (KPI) evaluations, work order cost changes, work order management, percentage of time fighting fires versus preventive maintenance. Successfully implementing an EAM requires proper planning of expectations and their subsequent performance measurements. What are your KPIs? Are there too many or too few?
  3. Workflow recommendations The utility of an EAM is its ability to identify areas needing improvement. Workflow is best described as the mechanics of the operations from beginning to end. Understanding workflow requires the correct initial setup of all asset data including location, classification, and hierarchy. Your EAM should be providing you with information describing how workflow has been impacted, what needs improvement, adjustment or change.
  4. Training and enforcement recommendations. Training end users is crucial to a successful implementation. Just as critical is management support that the EAM is being used as intended. Reports should indicate who is not using the system correctly and why. Training and review should be continual (at least once a year) to ensure new features are known, new reports can be generated and the system is being effectively utilized.
  5. Feedback. Best practices for the implementation of any system include obtaining feedback from end users, administrators and vendors. This feedback provides management with insight to additional needs or resources staff may need to make improvements or more effectively utilize the system. Feedback is also an important mechanism in recognizing adoption rate issues.

Each company implements an EAM based upon a different set of needs and each operation has a unique set of variables that need to be measured. However, the old adage ” Garbage In = Garbage Out” should be at the top of all EAM planning, execution and evaluation. Failure to set up asset detail, expectations, performance measurements correctly in the beginning will result in ineffective and useless output. If your output reports are missing lifecycle projections, efficiency reports and are unable to make workflow recommendations then it is necessary to re-examine the asset detail, how the system is being used and correct or make adjustments.

Share with us how you implemented your EAM and what mistakes were made.