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

Enterprise asset management software, aka EAM software, offers a complete solution for managing assets from start to finish. This cloud-based system improves asset quality, boosts uptime and cuts operational costs. Plus, it handles large data sets, integrates with other tools and offers mobile enterprise asset management for field teams. The solution suits large organizations with complex needs. But it can also be a great place to start for businesses looking to scale. 

Read on to learn more details about what EAM software offers, how it differs from computerized maintenance management system (CMMS) software and key factors to consider when deciding to choose one.

EAM vs. CMMS: What’s the Difference?

EAM software is similar to CMMS software. Both systems help organizations shift from reactive to preventive maintenance strategies, but their features and scope differ. 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. Both systems share core features like asset management, work order management and equipment performance reporting. But EAM software provides additional capabilities, including:

• Supply chain management: EAM systems streamline parts inventory and asset management. This allows 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: EAM systems use predictive maintenance to automate maintenance scheduling. That includes analyzing historical asset data to forecast asset failures and maximize uptime and profitability.

How Do You Choose Between an EAM & 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 hotel needs basic work order tracking. However, a manufacturing facility requires more complex asset reliability tools.

For smaller organizations that don’t require all the features offered by EAM software, a CMMS would suffice. But EAM software is the next step for companies looking for a more complete solution to manage the entire asset lifecycle. Think of it like this: CMMS systems are often more affordable for businesses with simple needs. EAM software is for larger, more complex operations.

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 configurable 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 management maximizes performance through proactive maintenance. 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 ages, you must decide if it is more valuable to keep it or 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 & 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

An EAM system tracks an asset’s full lifecycle costs, from maintenance to disposal. This optimizes budgeting by identifying 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. This allows 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. This makes it substantially easier to meet reporting requirements and handle risk management.

Streamlines Asset Management

By centralizing asset data like warranties and service records, EAM software breaks down data silos. This centralized data repository provides more accurate information for smarter decisions.

Key Factors to Consider When Choosing an EAM Software

With several EAM software solutions on the market, how do you choose the best fit for your organization? Here are some key factors to guide you in your decision-making process: 

• Customization: Asset management is not one-size-fits-all. You want to look for software that addresses the specific pain points of your team. Tailoring the system to your team’s workflows also 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.
• 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?

Yes, EAM and CMMS systems share many features and functions. But the key difference lies in the breadth and depth of their asset management capabilities. Every organization has unique operations, assets and needs, making it crucial to assess your requirements. As CMMS systems offer more robust capabilities, it may be worth it for your organization to start with a CMMS. As your needs evolve, you can always scale up to an EAM if necessary.