From EAM to ROI: A practical guide for manufacturers

U.S. manufacturers are navigating a complex landscape of rising costs for labor, raw materials, and energy, making effective cost control an urgent priority. Enterprise Asset Management (EAM) might present a compelling solution.

According to Deloitte, poor asset management practices can erode production capacity by 5% to as much as 20%, significantly impacting revenue. However, for many operations and reliability teams, the journey to EAM adoption is fraught with high upfront investments and integration challenges. EAM can positively impact the bottom line if the following steps are followed during consideration of an EAM, deployment of it, and later expanding it.

Clearing the confusion: Understanding EAM vs. CMMS

Before diving into implementation strategies, it's crucial to understand the distinction between EAM and Computerized Maintenance Management Systems, or CMMS.

CMMS focuses on execution, scheduling, tracking, and managing maintenance activities. EAM encompasses the entire lifecycle of assets, integrating financial elements and compliance.

While there’s overlap, recognizing these distinctions is crucial for maximizing value. CMMS offers immediate value by optimizing day-to-day maintenance operations, which should be the primary focus. EAM builds upon this foundation, providing comprehensive asset lifecycle management, but EAM’s success hinges on the quality of execution data from CMMS.

EAM helps manufacturers answer crucial questions:

What do we own?
What condition is it in?
Are we depreciating at the right rates?
How do we forecast spending in our capital planning?

Why does this matter? Because to do EAM well, you need to start with a solid CMMS foundation. Your CMMS is where you digitize and standardize your maintenance processes. It's the source of the data that powers your EAM insights. Without a robust CMMS, your EAM efforts will be severely handicapped.

Consider the case of Titan America, a leading manufacturer of heavy building materials. By implementing a modern CMMS solution and integrating it with their Enterprise Resource Planning (ERP) system, Titan America was able to reduce unplanned maintenance by 30%. This shows the importance of a strong CMMS foundation in enabling successful EAM initiatives.

Tip No. 1: Start small, think big

CMMS is the bedrock of effective asset management. It's where you digitize and standardize your maintenance processes. It's how you track work orders, schedule preventive maintenance, and record asset histories. Without a solid CMMS, your EAM efforts will be built on quicksand.

Many companies make the mistake of trying to run before they can walk. They invest in a shiny new EAM system without having their core maintenance processes digitized and optimized. This is a recipe for failure. Start with your CMMS. Get good at the fundamentals. Then—and only then—should you start thinking about expanding into EAM.

Once your CMMS foundation is solid, it's time to start your EAM journey. But where do you begin? The key is to think big but start small.

EAM is a marathon, not a sprint. Trying to implement a comprehensive EAM system across your entire operation all at once is a surefire way to overwhelm your team and burn through your budget. Instead, take an incremental approach.

Start with a pilot project. Choose a single site, or even a single asset class. Implement EAM there. Iron out the kinks. Measure the results. Learn from the experience. Then, once you've proven the value, start expanding to other areas of your business.

This phased approach has several advantages.

First, it allows you to test and refine your EAM strategy without betting the farm. If something doesn't work, you can course-correct quickly without major consequences.

Second, it helps you build momentum and buy-in. Nothing convinces skeptics like real, tangible results. By starting small and putting quick wins on the boardd, you can get the rest of your organization on board with your EAM vision.

Tip No. 2: Prioritize interoperability

As you roll out your EAM initiative, one of the biggest challenges you'll face is data integration. EAM doesn't exist in isolation—to be truly effective, it needs to connect with your other business systems.

This is where many EAM projects stumble. They treat EAM as a silo, separate from the rest of the business. But to optimize your assets, you need a holistic view. You need to understand how your maintenance decisions impact your financials, your supply chain, and your production.

That means your EAM system needs to talk to your ERP, your MES, your SCADA, your IoT platforms. It needs to be able to exchange data seamlessly and in real-time.

When evaluating EAM solutions, make interoperability a top priority. Look for systems with open architectures and robust API capabilities. And don't underestimate the effort required to integrate your systems. It's not a one-and-done task—it's an ongoing process that requires dedicated resources and governance.

Tip No. 3: Simplify user adoption

Amid all the talk of systems and data, it's easy to overlook the most critical factor in EAM success: user adoption.

You can have the most sophisticated EAM system in the world, but if your maintenance technicians don't use it, it's worthless. And if they use it incorrectly, it can do more harm than good.

The key is to make your EAM system as easy and intuitive to use as possible. That means mobile-friendly interfaces, so technicians can access information and complete tasks from anywhere. It means simple, streamlined workflows that match how work gets done. And it means investing in training and change management to ensure everyone knows how to use the system effectively.

But ease of use goes beyond just the software. It's also about integrating EAM into your maintenance culture. It's about getting buy-in from your team, from the shop floor to the top floor. It's about making EAM a part of how you do business, not just another IT project.

EAM to ROI: The path forward

EAM is a journey, not a destination. It's not a one-time project, but a continuous process of optimization and improvement.

The manufacturers who will thrive in the years ahead are those who embrace this reality. They're the ones who will make asset management a core competency. They're the ones who will continually push the boundaries of what's possible with data, analytics, and AI.

But to get there, you need to start with the basics. Build a solid CMMS foundation. Start small, prove value, then expand. Prioritize interoperability and user adoption.

It won't be easy. It will require investment, leadership, and a willingness to change. But the payoff will be immense.

In an era of rising costs and increasing competition, asset optimization is no longer optional—it's imperative. EAM is the key to unlocking this optimization. It's the hidden lever that can transform your manufacturing operation.

The question is: Are you ready to pull it?