Virtually every large business started small. As they grew, more and more assets were naturally added. At first , it is easy to manually keep track of what needs to be done because most assets were relatively new, many were under warranty and there just were not that many. Now you have your own facilities, hundreds if not thousands of assets or pieces of equipment and maintenance problems seem to be increased without cause. You accept this increase in maintenance and repair costs by making budget adjustments but at the same time, you are failing to realize there is a better way using an Enterprise Asset Management (EAM) system.

Why an EAM is a better way

Let us make an analogy to the way an entrepreneur grows a business. When the amount of customer invoices and A/P increases to the point where you either hire another person or obtain accounting software that could do the job more effectively – you choose software. Why – because you realized time was money and by investing in a purely administrative (overhead) application you get more done in less time freeing up resources for core business activities. Therefore doesn’t it make good business sense to manage the maintenance of facilities in the same way? When maintenance, repair and operations can account for 30-50% of all operating costs it makes sense to operate as efficiently as possible. An EAM can help you do this plus it has extra benefits that go beyond maintenance management such as:

  • The extension of asset lifecycles through better proactive maintenance methods. This translates to fewer capital investments needed.
  • A reduction in overtime resulting in lower labor costs. Preventive maintenance lowers unplanned maintenance or emergency repairs/replacements.
  • Lower energy bills. Well maintained assets require less energy to operate. See your utility bills decline.
  • Exceptional contract and vendor management tools. No more searching through files or a Rolodex for a contact, service or warranty information.
  • Fewer surprises. You will know where all your assets are, what condition they are in as well as their complete maintenance history.
  • Increased mobility for staff and management. A hosted or online EAM allows for data access via the web from any location including non-site computers 24/7/365.

EAM Price is not the issue

Was price really the issue when you purchased your first accounting software? The answer as explained above is no. Purchasing an EAM solution is going to allow you to do more with less delaying that next headcount addition as well as lowering maintenance operations costs, reducing capital expenditures and slashing energy bills. Although EAM/CMMS pricing can vary greatly, the cost of most good EAM systems is less than the FTE of a professional maintenance team member. See Tips For Negotiating an EAM/CMMS Contract for additional price considerations.

An EAM system is a viable solution for virtually any business in any industry. From utility companies to Federal and State government facilities to property managers there is a customizable EAM/CMMS solution for your operations. Obviously the more asset intensive your company is the greater the urgency to take back control. Share with us when you recognized the need to professionalize facilities management.

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