Utilities are spending countless hours and millions of dollars trying to solve EAM implementation challenges. Here is more about the challenges involved in EAM implementation and the ways utilities can tackle them.
FREMONT, CA:Asset management addresses the entire lifecycle management of physical assets of an organization to maximize value. It is a discipline covering areas such as design construction, operations, maintenance or replacement of equipment and many more. For utilities, it is a strategic approach to maximize the value of utility assets. Asset management systems are powerful tools if implemented correctly. Here is a look at the significant challenges utilities face during EAM implementation.
• Gaining Executives’ Support
A primary challenge utility asset management teams face is gaining executive support for anything they do around maintenance or asset management. Most of the times, asset management is not regarded as a strategic part of the business. As a result, operations and maintenance leaders struggle to get respect from the rest of the organization. But utility asset management leaders can gain respect when they fix assets or when they do preventive maintenance. Another way to gain support from the executive level is to make executives understand the value of implementing a robust EAM system and the benefits it can bring to the organization.
• Software Selection
There are two categories of software that are used by utilities to manage assets. They are Enterprise Resource Planning (ERP) and Enterprise Asset Management (EAM) systems. For the asset-intensive utility firms, the output from these systems is needed to improve asset reliability and reduce costs. But for most utilities, software selection is a significant challenge. Among ERP and EAM, EAM is the most suitable system for asset management. Since asset performance has a substantial impact on revenue generation, choosing the right EAM system is of utmost importance. Utilities need to note that the EAM system can also be integrated with the existing ERP system, depending on the scalability of it.
• Incomplete and Inconsistent Data
Most utilities invest in asset management systems without collating the information required as input. Utility asset management systems can offer drill-down statistics that help utilities pinpoint the most common and expensive reasons for equipment failures. This output requires accurate master data records, equipment hierarchies, problem-failure mapping systems, assigned responsibilities, and more as its inputs. A quality information system approach is necessary for utility asset management system to perform optimally and provide maximum ROI. With quality information, asset management software can generate a solid foundation of complete, consistent, and accurate data that can aid in yielding improved result and faster asset management system implementation.
• Poor Integration
The impact of poor data expands to delays in ERP process integration, optimization, system updates, and brings unwanted exposure to regulatory and compliance fines. As EAM is often implemented as an integral part of enterprise resource planning, poor integration affects the communication and connectivity between software modules and business operations. So it is highly recommended for utilities to consult EAM vendors to implement and follow the correct migration procedures for the EAM system to ensure efficient and seamless integration.
• Lack of Strategic Execution
For utility asset management system to be successfully implemented, utility firms need to show their employees the right direction. To keep everyone on the same page, it requires clearly establishing the mission, goals, roles and responsibilities, and documenting the processes of asset management. Therefore, the creation of utility asset management policy, strategy, objectives, and the roles and responsibilities should be planned and executed before the EAM software is implemented. By aligning the entire firm for EAM success, it is easy to measure real ROI from the utility asset management system implementation.
Most utilities have realized the importance of EAM systems to keep track of their capital assets and to maximize the use of resources. Hence the deployment of EAM applications is highly recommended for utility firms. Only proper implementation of an asset management system can offer utilities substantial benefits, including reduced costs and increased asset uptime and performance.