What Is EAM Software — and How Does It Differ From a CMMS?

Enterprise asset management software (EAM software) offers a comprehensive solution for managing assets throughout their entire lifecycles. This cloud-based system is designed to optimize asset quality and utilization, increase uptime and reduce operational costs. Additionally, EAM software enables the storage of large amounts of data, seamless integration with other technologies and mobile asset management for the desk-less workforce. This solution is especially well-suited for organizations operating on a larger scale with complex asset management needs.

EAM vs. CMMS: What’s the Difference?

EAM software is similar to computerized maintenance management system (CMMS) software, but the two have some key differences. While both solutions aim to assist organizations shift from reactive to preventive maintenance strategies, they differ in their features, scope and how comprehensively they address asset management needs. Let’s break down their similarities and differences to help you determine which solution is best for your company.

A CMMS focuses primarily on managing and maintaining assets while they are operational. In contrast, EAM offers a more holistic approach, overseeing the entire asset lifecycle, from procurement to disposal. While both systems include features like asset management, work order tracking, preventive maintenance scheduling, equipment performance reporting and maintenance team communication, EAM software provides additional capabilities, including:

• Supply chain management: EAM systems streamline inventory and asset management, allowing organizations to efficiently track and procure spare parts and components essential to operations.  
• Labor management: EAM software integrates employee scheduling and task assignment features, helping facility managers monitor employee work hours, prioritize assignments and get real-time data on maintenance activities.
• Service contract management: Managing a large number of assets means keeping track of software, service and supply chain contracts is vital. EAM systems organize these documents and provide quick access to critical asset information when needed. 
• Financial management: A valuable feature of EAM systems is their capability to connect with financial management or ERP software, improving communication between maintenance and finance departments. This integration helps managers make informed financial decisions using advanced analytics gathered throughout the asset lifecycle. This feature also simplifies budget management and makes auditing less arduous. 
• Health and safety management: EAM systems can centralize EHS (environmental, health and safety) documents and procedures, reduce workplace risks and analyze incidents to improve safety outcomes. 
• Advanced predictive maintenance options: Leveraging predictive data analytics, EAM systems automate the management of asset maintenance scheduling and operations. By analyzing historical asset data, these systems implement predictive maintenance strategies that forecast potential asset failures, maximize uptime and optimize asset lifetime and profitability. 

So, how should you choose between an EAM and a CMMS? 

When deciding between the two, assessing your organization’s specific scope, operations, assets, goals and pain points is crucial. For example, a small- to medium-sized hotel will require work order tracking, preventive maintenance and performance monitoring features for its assets, but it will likely not face the more complex asset challenges of a manufacturing facility. 

For smaller organizations that likely do not need access to the full range of features offered by EAM software, a CMMS would suffice. Most companies that adopt EAM software have already used CMMS software and now need a more comprehensive solution to manage the entire asset lifecycle. Think of it like this: A CMMS system is often a more budget-friendly option for businesses looking to keep their maintenance costs low; whereas, EAM software is typically used by larger companies with more complex asset management needs.  

Key Phases of Asset Lifecycle Management

To better illustrate the core differences between the asset management functions of an EAM and CMMS, here’s a step-by-step breakdown of the former’s asset lifecycle management. 

1. Researching and defining asset needs: In the initial phase of an asset’s lifecycle, stakeholders review maintenance operations reports to determine the need for a new asset. This decision usually involves evaluating factors like projected value, upfront costs and associated risks. Consideration is also given to how the asset will be operated and what types of maintenance strategies will be implemented to achieve maximum output at the lowest cost. 
2. Procuring, developing and installing an asset: This stage encompasses the purchase, transportation and installation of a physical asset within the facility. Beyond procurement, it is essential to ensure the asset integrates smoothly with your organization’s asset management systems and is compatible with your existing tech ecosystem. The new asset should enhance and improve operations — not interfere with them. 
3. Operating and maintaining the asset: Effective asset lifecycle management focuses on maximizing the asset’s performance through proactive maintenance strategies. This involves continuous monitoring and timely responses to asset breakdowns and issues to ensure optimal functionality. 
4. Dismantling and disposing the asset: As an asset approaches the end of its lifecycle, stakeholders must determine whether it is more valuable to continue using the asset or to dispose of and replace it. This decision is based on the asset’s performance and resale value as well as the availability of more sustainable and ethical alternatives. This process concludes with dismantling the equipment, archiving data records and planning for replacement, thus beginning the asset lifecycle anew. 

What Is EAM Software Used For?

Much like a CMMS, EAM systems are designed for any organization looking to maintain their assets and enhance the overall operational efficiency of their facilities. As you can imagine, the versatility and broadness of its functions means that the potential use cases for an EAM extends across a wide range of asset-intensive industries: 

• Chemicals, Petroleum and Mining
  • Assets: Refineries, drilling rigs, conveyors, crushers, chemical processing units and pipelines
  • Use case: In these industries, EAM systems are crucial for ensuring compliance with EPA regulations, maintaining workplace safety and maximizing asset uptime.
• Energy and Utilities
  • Assets: Power plants, transmission lines, transformers, wind turbines, solar panels and water treatment facilities
  • Use case: Facilities in the energy and utilities sector use EAM systems to ensure uninterrupted delivery of services and enforce adherence to FERC, EPA and OSHA standards. 
• Healthcare
  • Assets: MRI machines, ventilators, X-ray machines, hospital beds, HVAC systems and elevators
  • Use case: Healthcare facilities rely on EAM systems to guarantee the operational efficiency of the organization’s physical assets, maintain compliance with healthcare regulations and ensure the safety of both patients and staff.
• Life Sciences
  • Assets: Bioreactors, lab instruments, autoclaves and pharmaceutical manufacturing machinery
  • Use case: The life sciences industry uses EAM systems to ensure the precision, reliability and compliance of equipment essential for the research and production of pharmaceuticals, biotechnology products and medical devices.
• Manufacturing
  • Assets: Assembly lines, CNC machines, robotic arms, forklifts and packaging machines
  • Use case: EAM systems help manufacturing facilities manage the maintenance of production equipment, reduce downtime and optimize asset utilization.
• Transportation
  • Assets: Trains, buses, trucks, airplanes, rail tracks and airport ground equipment
  • Use case: Organizations in the transportation industry depend on EAM systems to manage fleet maintenance schedules and repairs for vehicles and infrastructure, ensuring safety, reducing downtime and extending asset lifespans.

EAM Software Use Case Example

To illustrate the benefits of an EAM system, let’s consider Coca-Cola Enterprises as a hypothetical example of a company struggling with inefficient fleet management in the following ways:

• Inefficient maintenance scheduling: Before adopting an EAM system, Coca-Cola’s fleet maintenance was reactive, addressing issues only when they became critical. Routine inspections based on mileage were not consistently scheduled, leading to the deferral of maintenance tasks like oil changes and tire rotations. 
• Unplanned downtime: The lack of proper preventive maintenance scheduling caused frequent, unplanned vehicle downtime, disrupting deliveries and costing the company millions per hour. These breakdowns also posed safety risks for drivers on the road.
• Lack of asset performance visibility: Without an EAM system, Coca-Cola could not track vehicle performance, making it difficult to make informed decisions about repairing or replacing delivery trucks. 

Adopting an EAM software provided Coca-Cola with the following key benefits:

• Proactive maintenance scheduling: Coca-Cola’s EAM solution enables routine inspections based on mileage, preventing minor issues from escalating into costly breakdowns, reducing downtime and extending vehicle lifespans.
• Real-time asset tracking: With full visibility into vehicle performance and depreciation, Coca-Cola can make informed decisions on repairs and replacements, optimizing fleet efficiency and reducing unnecessary repair costs.
• Data-driven decisions: Using predictive analytics and historical asset data helps Coca-Cola detect early warning signs of failure, such as brake wear. This allows maintenance managers to take preemptive action to avoid future delivery disruptions.
• Inventory management: Adopting an EAM system improved Coca-Cola’s parts inventory tracking, ensuring critical components like brake pads, tires and filters are always available. This minimizes repair delays and keeps the company’s delivery trucks on the road.

Benefits of EAM Software

Whether you’re managing a soda bottling facility, a fleet of vehicles or healthcare equipment, the perks of adopting an EAM system go far beyond just keeping assets from breaking down. Let’s review all the things an effective asset management software can and should do for your assets.

Reduces Downtime

An EAM system schedules routine maintenance, monitors asset health and predicts potential asset failures using IoT (internet of things) devices, preventing unexpected breakdowns and minimizing unplanned downtime. 

Saves Costs

EAM systems track costs throughout an asset’s entire lifecycle, providing clear insights into ongoing expenses such as maintenance, repairs, operational costs, depreciation and eventual disposal. This helps optimize budgeting and financial planning, identifying areas for savings through preventive maintenance and improved asset utilization.

Increases Asset Lifespan

With preventive maintenance scheduling and predictive analytics, EAM systems keep a constant eye on your valuable assets, detecting potential issues before they escalate into costly breakdowns. It’s like giving your equipment a little TLC — by tackling problems early, you can stretch their lifespan and avoid shelling out for avoidable breakdowns.

Enhances Productivity

An EAM system boosts overall productivity by automating maintenance tasks, streamlining workflows and reducing equipment downtime, allowing teams to focus on core operations.

Provides Better Compliance & Reporting

EAM systems centralize essential EHS documents and ensure compliance with regulations such as OSHA, EPA and FDA standards, making it easier to meet reporting requirements and handle risk management.

Streamlines Asset Management

EAM software eliminates data silos by centralizing asset data such as purchase dates, warranties, service records and maintenance schedules. Compiling this data in a single repository enhances accuracy, enabling more informed, efficient performance management decisions.

Key Factors to Consider When Choosing an EAM Software

With a wide range of EAM software solutions on the market, how do you choose the best fit for your organization? While this decision should be shaped around your maintenance team’s specific needs and operations, here are some key factors to guide you in your decision-making process: 

• Customization: Asset management is not one-size-fits-all. Since organizations have different needs, looking for software that addresses the specific pain points of your maintenance team and allows users to customize workflows using internal language is essential. Tailoring the system to your team’s norms helps increase user adoption and comfort with the technology.
• Ease of use: The software should be intuitive, minimizing the learning curve for your team and seamlessly integrating into your maintenance planning. 
• Mobile compatibility: Since many EAM users are desk-less employees working out in the field, it’s critical that the solution is accessible on mobile devices for teams to use on the go. 
• Preventive maintenance: To maximize asset lifecycles, your software should support scheduling routine maintenance tasks, enabling your team to preemptively address potential asset issues rather than resolving them with a reactive maintenance approach. 
• Asset inventory: Asset inventory data should be easy to access, ideally linking inventory data directly to work orders for informed, data-driven maintenance decisions.
• Communication: Fostering communication and collaboration between your team is crucial to enhancing the operational efficiency of your organization. For this reason, you should seek out software with built-in messaging and collaboration features that enable real-time communication between maintenance team members and upper management. 
• Tracking and reporting tools: The software should offer robust tracking and reporting features, allowing you to monitor asset performance, costs, downtime and technician productivity. Ideally, it should also allow for uploading photos and videos to work orders for better documentation. This enables upper management to monitor costs, downtime and the time technicians take to complete work orders. 

Still Deciding Between an EAM or CMMS Software?

While EAM and CMMS systems share many features and functions, the key difference lies in the breadth and depth of their facility maintenance and asset management solutions. Every organization has unique operations, assets and needs, making it crucial to assess your requirements. With CMMS systems now offering more robust capabilities on par with those of EAMs, it may be worthwhile for organizations still weighing their options to start with a CMMS. As your needs evolve, you can always scale up to an EAM if necessary.