At an essential level, enterprise asset management (EAM) software operates like a more advanced, larger-scare computer maintenance management system (CMMS). In fact, the development of EAM systems followed many years after the original CMMS solutions came on the market.
While MRP/MRPII/ERP solutions were addressing manufacturing-related production and inventory issues, process manufacturing in other industries experienced an increase in the cost of physical asset management. Other software solutions addressing these cost issues began to sprout up around the same time.
These first real EAM systems were popular within electric, mining, defense, mass transit, and oil and gas industries. The common thread for these industries was their immense reliance on a dependable physical asset management program.
Interestingly enough, the maintenance departments within these production-line and process manufacturing companies were often left out of this technological evolution. Most stayed in a reactive mode, taking phone calls, paper orders, or emails when something needed repairing.
EAM, however, focused on the fact that physical assets often have intermittent issues, which have less of an impact on the organization. These issues could also be addressed earlier before a complete breakdown occurs.
Today, EAM systems are designed to take a broader view by managing a company's physical assets throughout an entire organization. Because of this, EAM really came into its own when network technology was growing in sophistication in the 1990s. This network technology allowed the disparate computer systems throughout an organization to be more easily connected and centrally accessible.
Although EAM systems deal with maintenance management at one level, they also look at the entire asset lifecycle from acquisition to decommissioning. This allows EAM systems to better manage the total cost of ownership of an asset. EAM systems not only serve maintenance departments and inventory asset management within a company, but also look at the equipment that involves purchasing, engineering, accounting, and safety.
Although both CMMS and EAM systems had different birthplaces, which were governed by the needs of particular types of companies and industries, the advent of web-based technology has resulted in essentially merging the two technologies.
Since CMMS solutions were originally purchased and implemented at a plant-by-plant level, it was previously difficult to standardize processes, accounts, and coding Additionally, it was challenging early on to integrate CMMS systems with other packages, across a multi-site enterprise. Individual facilities could not easily share data, spare parts, or knowledge.
EAM systems originally stepped in to be a single-vendor answer designed to centralize and consolidate this type of information, as it related to assets across an entire corporation. This included managing multiple locations, parts and warehouses, and even global currencies.
By the turn of the millennium, the internet became an easy way to share information between different plants and even among vendors along the supply chain. At the same time, many large corporations were struggling to solve Y2K programming issues. This combination made it reasonable to shift to enterprise-level systems.
As CMMS vendors took advantage of the available, accessible, and affordable open technology, they were able to begin offering enterprise-wide solutions, instead of single-facility systems. At the same time, CMMS solutions began adopting EAM-type functionality, as well as merging with other providers in the marketplace to broaden their offerings.
At the same time, EAM systems have always included many of the same features offered by CMMS packages, along with broader functionality.
As a result, today’s CMMS and EAM solutions have a great deal in common. Both systems are focused on improving the maintenance process, as well as both are available as cloud-based subscriptions. Additionally, both CMMS and EAM software come with similar features such as purchasing modules, inventory management tools, and asset tracking abilities. Both systems can be web-based, available through mobile apps, and come with multi-site support as well.
Despite the fact that many EAM systems offer CMMS capabilities and vice versa, analysts and vendors still refer to these systems separately. The truth of the matter is that there is a wide spectrum, ranging from very basic shareware-type CMMS solutions to complex, large-scale EAM systems designed for larger corporations. Many of today’s popular solutions fall somewhere in the middle, with varying capabilities and at different price points.
If you’re trying to decide on a solution for your organization, you’ll want to consider factors such as your size, projected growth rate, key pain points, and short- and long-term business goals. Technology will continue to change rapidly, so you’ll want to make a good decision to meet current needs, as well as have the ability to expand your system down the road; as your needs and the available tools change and evolve.
Smaller or mid-sized organizations may be better off implementing a CMMS system, as many of these solutions have comparable capabilities to a full-blown EAM at a lower cost. This is particularly true for those businesses that may be automating a manual or paper-based process for the first time or one that has a less technology-savvy employee base.
For example, a mobile-first based solution such as UpKeep has an incredibly easy user interface. Technical staff are frequently up and running within weeks and find the platform simple to learn and use.
If a small or medium company has a rapid growth horizon and wants to implement an EAM, one cost-effective option would be to access that technology through a software-as-a-service model.
Medium or larger businesses that manage many assets in many different locations may benefit from a full-blown EAM system.Traditionally, companies seeking to graduate from a CMMS solution move to an EAM system. The biggest benefit is that all a company’s asset information is stored in a centralized location in an EAM, which can include warranty records, repair histories, audit trails, purchase orders, and other important details. Through an EAM system, any department can access any asset information it may require. Large organizations that run multiple operational sites and need to manage many assets can obtain a comprehensive view across many locations through an EAM.
Although CMMS and EAM systems grew out of the needs and demands of different segments of the manufacturing and production industries, they both worked to automate manual and labor-intensive work processes. As they have evolved, they both worked on collecting critical data for companies that could be used to fuel smarter, long-term business decisions. Machine learning and artificial intelligence tools are now in the foreseeable future, promising to incorporate even more accurate data to help companies embrace truly predictive maintenance processes.
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Consider this metaphor. A CMMS was originally kind of like heartbeat monitoring equipment. It keeps an eye on the “pulse” of the factory’s assets, alerting maintenance technicians when they need to fix something, or perform preventive maintenance. Once a facility is too large for a CMMS to adequately cover every asset, an EAM becomes the right choice because of the sheer amount of factors that need to be tracked.
In this comparison, the traditional EAM would be like a computer system that tracks every vital sign, medication, and body fluctuation of a patient from their entry to the hospital to the moment they leave. So while a CMMS gives you a good idea of how your assets are doing right this moment and help you plan for the future, an EAM tracks the entire lifecycle of every piece of equipment you own, from the second it’s purchased to the moment it becomes scrap.
In addition to being larger in scope, EAM systems have additional features outside of preventive maintenance, including financial audits, lockout tagout procedures, and in-depth maintenance records and histories for decommissioned equipment.
Today, EAM and CMMS solutions share many of the same features and sometimes overlap in terms of capabilities. However, it’s important to understand the differences that remain, the advantages and disadvantages of each, and which solution is best for your company.
A Historical Perspective
It’s helpful to look at how both EAM and CMMS came into existence, along with the development of other related technologies, such as enterprise resource planning (ERP) solutions, network computing, and the internet to better understand where we are today. Some of these developments happened one after another, while others occurred simultaneously in different industries.
Origins and Early Components of a CMMS
The origins of CMMS date all the way back to the 1960s. During that time, large companies that had to operate many assets were relying on a purely manual system to keep track of the four major operational areas that would eventually form the foundation of a CMMS.
These operational areas included: work orders, preventive maintenance, inventory control, and equipment history. Let’s take a look at each area and its origins.
Work Orders
Originally, work orders were simply paper forms that allowed supervisors to assign jobs to technicians. They were printed and passed out each morning, and as the work was completed, team members would jot down basic data on a time card or the work order itself. Clerks then needed to type the written information into a computer if they had access, which could then generate reports. However, not all businesses used computers, and often work orders remained on paper, which were easily lost or misplaced.
Preventive Maintenance
In the beginning, preventive maintenance requests were written down on paper forms, which were then manually reviewed and scheduled for the day. Supervisors needed to keep track of the highest priority items by shuffling through the files, and assistants may have organized them by period or order received.
Inventory Control
When this process was completed manually using a Cardex system, employees needed to record information such as part number, description, and supplier for every part held in inventory. Keeping track of when those parts ran low and reordering was incredibly time and labor-intensive.
Equipment History
This fourth area manually tracked data for each asset, which included identifying name and number, as well as description and location. Labor and material costs were all recorded manually.
The first improvements moved these companies to punch-cards and mainframe computer systems. These systems were extremely expensive, and only the largest businesses that operated many assets invested in them.
In this initial system, information and data were often collected, recorded, and re-entered multiple times by technicians, clerks, and other employees. This frequently resulted in inaccuracy, errors, and incomplete records over time. In addition, it was extremely difficult and inefficient to find and use relevant information.
Two decades later, companies were still using the infant-versions of CMMS as essentially automated storage of this data. Reports were difficult to run and often confusing to understand. No business analysis capabilities existed at this point. In fact, simply accessing the collected information in any useful manner was nearly impossible.
CMMS, Microcomputing, and Networks
The slow move from large, mainframe systems to the relatively less expensive mini-computers in the 1980s encouraged CMMS providers to beef up their functionality. CMMS solutions began implementing more user-friendly data entry and added better reporting capabilities.
However, technology still limited CMMS usage and application to a single department or one plant facility. Usually, individual CMMS vendors offered products that addressed something very specific, such as manufacturing plant equipment or highway infrastructure.
Ten years later, size and cost of computers continued to drop, while networking systems blossomed in complexity and reach. These developments encouraged CMMS companies to address security concerns, improve communication and workflow functionality, and broaden their planning and scheduling features.
CMMS, the Web, and Cloud-Computing
At the turn of the century, internet and web-based technologies were rapidly developing. As a result, most of today’s CMMS solutions are web-based.
As more daily business operations in all industries move their computing to cloud-based solutions, access and manipulation of data increases exponentially. Not only can a company’s employees enter and retrieve the information needed to do their jobs, but also outside partners and suppliers can also contribute to and access critical data.
Throughout its evolution, CMMS has continued to expand its functionality to include more sophisticated preventive maintenance, asset and inventory management, multi-site support, purchasing, and MRO management. Today, machine learning and artificial intelligence developments are beginning to expand predictive maintenance features.
Even with all the added functionality, the core CMMS solution is still based on efficiently executing work orders. Many of the best solutions on the market today are extremely effective and streamlined to help small, medium and large organizations better manage their maintenance operations.
In addition, most CMMS systems can be integrated with other software packages that provide the additional services that companies might need, including scheduling and accounting.
Origins of EAM
EAM finds its earliest roots about a decade after the seeds were planted for CMMS solutions. During the mid-1970s, manufacturing companies were struggling with problems on their production lines. They could see that things like equipment breakdowns and inventory problems contributed to many inefficiencies and lost production. Manufacturing management knew that computer technology had the capability to provide solutions and help them become more competitive.
The first solution for manufacturing companies came in the form of improved materials planning. Vendors began offering materials resource planning (MRP) solutions in the 1980s, which promised to help companies see what inventory materials they needed in the next day, week, or month, and then acquire them when the production lines were ready.
Soon, MRPs expanded to manufacturing resource planning (MRP II), which took a broader perspective towards boosting production efficiency overall. At around the same time, Toyota introduced the concept of just-in-time inventory, where parts and materials could be received immediately before they were needed to reduce or eliminate storage of inventory.
After another decade, MRP II blossomed to become enterprise resource planning (ERP) systems, which promised to bring together different departments into a centralized location. ERP systems were designed to tie inventory management directly to the requirements of the production lines and focused on ensuring that the supply chain delivered materials to the production line as efficiently as possible.