Enterprise Asset Management (EAM) involves the effective administration of a company’s physical assets, like equipment and machinery, for the purpose of increasing profits and minimizing downtime expenses. The scope of this administrative function includes activities such as construction of facilities and fixtures, plant and office building design and engineering, production operations, and finally the maintenance of equipment and replacement of necessary parts. Even in today’s digital age, server downtime could cause huge losses to a business, through loss of new business and loss of existing data.
Why is Enterprise Asset Management vital for a Company? Because In it is important to achieve the best possible performance from your assets, money has been spent on them, and their downtime our outage can mean significant difference in annual profits. Imagine a scenario where customers are willing to buy, but your equipment is down, so they go elsewhere. Such loss of sales can turn a profitable company into a loss making company within the same year. Enterprise Asset Management involves curbing operating costs, maximizing results on periodic asset maintenance, and effective management of capital. In any industry, the employees must recognize the importance of asset management, and have the knowledge on the necessary steps to make the assets produce maximum performance.
As an example, physical assets would encompass machines like computers and printers as well as furniture like desks, chairs, and filing cabinets. Transport systems are also included, as well as cable and plant machinery, in the case of bigger industries. Of course fixed assets would differ depending on the type of industry the organization is engaged in, such as food production, textile, corporate services, or healthcare.
Thus, from the procurement of supplies and tools, operation of machines for production, to the maintenance of facilities, all these should be handled with asset value maximization in mind.
The modern approach to asset management by organizations and entrepreneurs has shifted from the traditional type, which had merely involved short term planning. Today, any organization is taking an active role in ensuring that its asset expenditures and utilities are geared towards achieving longer-term returns. Moreover, asset management is very crucial for enterprises that maintain units across various locations or those that utilize fixed assets in different departments within one unit.
Why this type of management is essential?
Effective asset management commands importance in the same manner that physical assets play very important roles in the day-to-day operations of any industry. The purchase and the ownership of fixed assets, while very important in any business, require excellent management and maintenance skills. Entrepreneurs for instance, should have a system wherein the cost of owning equipment or expensive machinery is minimized at all times. Poor performance, downtime, and repairs all add up to the cost of these fixed assets over time.
Machine repairs and equipment maintenance are indeed important for any industry; however these should be effectively carried out so as not to hamper the daily operations of the industry, such as the production processes. Furthermore, whenever equipment or system downtimes happen, this subsequently affects the expenses of the company. Planning and management of assets, costs, and maintenance should all be done to increase the life cycle of the assets and for the business to perform more effectively even in the face of rigid competition.
The Essential Tools in Assets Management
EAM tools are available for complex organizations and industries. These tools provide the best solutions in work and asset management and even asset information management. These are all geared towards helping businesses maintain their plants, maximize equipment value, effectively manage information for sales, and coordinate with production and maintenance personnel for improved quality and competence.
Successful enterprise asset management is certainly a requirement for any industry, especially in today’s rapidly globalizing and extremely competitive business settings. Through this, industry managers, business owners, and company top-level executives will be able to optimize and organize the daily operations of the business for effective performance and profitability.