Month: October 2019

Top 3 KPIs for Asset Management and How to Interpret Them

Reports splayed out on a table with visualizations of asset management KPIs and metrics

This article is part of a maintenance management metrics KPIs series. Read our other KPI articles:

Today’s maintenance teams rely on real data – supported by hands-on experience – to effectively manage their assets. Tracking key performance indicators (KPIs) allows them to measure asset performance, evaluate maintenance strategies, and make smarter decisions about how assets are managed and maintained. In this article, we’ll cover three of the most commonly used asset management KPIs and explain how to interpret each one to continuously improve your asset management practices.

The Importance of Tracking Asset Management KPIs

Asset management KPIs provide insight into your equipment’s reliability, availability, and overall performance. Tracking these metrics over time helps you measure your progress towards broader organizational goals, such as reducing downtime, improving safety, and lowering maintenance costs. Understanding the variables in each KPI – and what the results mean – guides your attention to what’s working well and highlights areas that may need improvement.

Top 3 Asset Management KPIs

Every organization has its own strategic business goals, which means the asset management metrics they track – and even how those KPIs are defined – can vary. Some organizations may even develop their own metrics that better reflect their industry, regulatory environment, or internal processes.

That said, there are three core asset management KPIs widely used across industries: Mean Time to Repair (MTTR), Mean Time Between Failures (MTBF), and Overall Equipment Effectiveness (OEE). These metrics provide a foundation for evaluating asset performance and identifying areas for improvement.

Mean Time to Repair

Mean Time to Repair (MTTR) is the average time it takes to restore an asset to working condition– from when the technician begins work until the asset is returned to normal operation. It is calculated by dividing the total time spent on corrective maintenance by the total number of repairs.

Mean Time to Repair (MTTR) asset management kpi formula

Repair time includes only the time spent performing the repair itself, also called “wrench time”. It does not include time spent waiting for access to the equipment, parts, technician availability, work approvals, or other maintenance processes. The calculation assumes that all necessary resources are available.

To be most useful, MTTR should be calculated per asset and per type of failure, since different failure types involved different levels of expertise, troubleshooting, time, and effort to resolve. Therefore, failures with vastly different repair times should not be grouped together when calculating MTTR.

MTTR Example

Over the course of six months, a motor had to be repaired 4 times due to a bearing failure. Technicians spent a total of 12 hours repairing the motor.

MTTR = 12 repair hours ÷ 4 repairs = 3 hours

On average, it takes 3 hours to repair the motor following a bearing failure.

How to Interpret Mean Time to Repair

MTTR helps maintenance teams evaluate how quickly they can resolve unplanned failures, and is used to predict how long a particular piece of equipment will be unavailable depending on the nature of the failure.

A low MTTR means that technicians can carry out repairs quickly. It typically reflects that technicians are knowledgeable and well-trained and that work instructions are clear. Low MTTR across similar failures also indicates that those tasks are relatively simple and do not take much time to complete.

For example, replacing a blown fuse might take just 10-15 minutes, while replacing a gearbox could take several hours. If you were to average both types of failures together, your MTTR would overestimate the time needed to replace a fuse, and greatly underestimate the time required for a gearbox replacement. That’s why it’s important to calculate MTTR by failure type.

A high MTTR can indicate that repairs are complex, equipment is difficult to maintain, or that technicians cannot complete the work in a timely manner. As assets age, they become more difficult to repair. Calculating MTTR can show how long certain repairs take compared to similar assets and help you build a business case for replacement.

Workforce and management issues may also lead to undesirable MTTR calculations. Technicians may lack the proper skills or training, or work instructions may be vague, requiring technicians to spend extra time interpreting what needs to be done. Calculating MTTR by labor resource – in addition to by asset and failure type – can help reveal whether issues lie with your workers or somewhere else.

In some cases, a consistently high MTTR may suggest a need for increased or adjusted preventive maintenance. If certain failures take significant time to repair, more frequent inspections or other targeted tasks could help reduce the likelihood or severity of those failures and lower MTTR over time.

Read Further: How to Measure Preventive Maintenance Effectiveness

While MTTR focuses on how quickly assets can be returned to service, it’s most meaningful when paired with metrics like Mean Time Between Failures (MTBF). Tracking both helps maintenance teams understand whether they’re putting out fires or responding to rare, unavoidable issues.

Mean Time Between Failure

Mean Time Between Failures (MTBF) is a measure of an asset’s reliability – specifically, how long equipment performs its intended function under normal operating conditions before a failure occurs. MTBF directly affects availability – the amount of time equipment is operable – and can be used to evaluate the effectiveness of maintenance strategies, track asset health, and set reasonable expectations for the timing of future failures.

MTBF is calculated by dividing the total operating time (the time equipment is functioning as intended) by the number of failures within a given time period.

Mean Time Between Failures (MTBF) asset management kpi formula

In this context, operating time is the period of time when the asset is functioning as intended. It excludes time spent offline due to failures, scheduled maintenance, or planned downtime. Like MTTR, MTBF is most useful when calculated per asset and failure type, since different failures tend to occur at varying frequencies.

MTBF Example

Suppose the same motor from our earlier example ran for 2,000 hours in the six month period. The bearing failure occurred 4 times. Therefore:

MTBF = 2,000 hours ÷ 4 failures = 500 hours

This means the motor operates, on average, for 500 hours between bearing failures. However, keep in mind that this is just an estimate. A bearing failure may occur well-before or well-after the 500 hour mark. As you collect more data, this calculation will become more accurate and lead to more predictable maintenance needs.

How to Interpret Mean Time Between Failures

Tracking MTBF helps organizations monitor asset performance over time and make informed decisions about asset reliability.

A low MTBF value indicates frequent failures, and may suggest that equipment is nearing the end of its useful life, but that is not always the case. Frequent failures may also be caused by poor maintenance, incorrect operation, or ineffective preventive maintenance.

When MTBF is consistently low, maintenance teams should look at several potential factors before considering replacement:

  • Preventive Maintenance Plans: Are the right tasks in place to prevent specific, frequent failure types?
  • Maintenance Quality: Are technicians treating symptoms rather than performing proper troubleshooting? Are technicians rushing work? Is the asset a candidate for further root cause analysis?
  • Operating Conditions: Is the asset being used according to manufacturer specifications? Are misuse or environmental factors reducing reliability?
  • Training: Are operators and maintenance technicians properly trained? Are standard procedures being followed?

If equipment continues to fail despite addressing these areas, MTBF measurements provide objective data to support repair vs. replacement decisions.

A high MTBF value, on the other hand, means that equipment is operating reliably, well-maintained, and properly used, suggesting that your current maintenance strategy is working. However, it is important to regularly measure MTBF to check for early signs of wear and be aware of other potential issues before failures occur.

When used in conjunction with MTTR, MTBF paints a fuller picture of asset performance. MTBF tells you how often failures happen, while MTTR tells you how long those failures stop operations. Together, these asset performance metrics help assess both the frequency and impact of unplanned downtime.

Overall Equipment Effectiveness

Overall Equipment Effectiveness (OEE) measures the productivity of an asset over a period of time. It is expressed as a percentage from 1% to 100%, with the higher the percentage indicating better performance.

This KPI is typically used in manufacturing environments that practice lean manufacturing. While the maintenance team may not be responsible for tracking this KPI, it is important to understand how maintenance activities contribute to reaching OEE targets.

This KPI is more complex than MTTR or MTBF, but it can be broken down into three simple components. To calculate OEE, multiply the equipment’s availability, performance, and quality together.

Overall Equipment Effectiveness (OEE) asset management kpi formula

  • Availability: how often equipment is ready when scheduled
  • Performance: how fast equipment operates vs. its maximum speed
  • Quality: how many units produced meet quality standards

For a deeper dive into OEE, read our article What is Overall Equipment Effectiveness?

OEE Example

A piece of production equipment has 87% availability, 95% performance, and 93% quality. Therefore:

OEE = 0.87 × 0.95 × 0.93 = 0.7686 = 76.86%

How to Interpret Overall Equipment Effectiveness

Overall Equipment Effectiveness helps manufacturers identify where inefficiencies might exist in their production process. It gives insight into whether your equipment is available when it should be, producing at its expected rate, and making quality parts. Maintenance activities often contribute to each of these factors.

Low availability means excessive unplanned downtime, which may be caused by poor reliability, slow repairs, or ineffective preventive maintenance. Tracking Mean Time to Repair (MTTR) can help you uncover what’s holding back repairs from being completed quickly. Similarly, tracking Mean Time Between Failures (MTBF) can help determine why equipment is failing frequently.

Low performance means that machinery is running slower than expected, which may be due to wear and tear, improper calibration, or operator issues. Maintenance teams can help diagnose, analyze, and address many of these issues.

Low quality may stem from equipment running outside of specification, indicating a need for additional preventive maintenance inspections and adjustments.

The higher OEE, the better; however, keep in mind that there are limits to how high an OEE is realistically possible. LeanProduction.com offers the following OEE benchmarks:

  • Perfect (100%): Perfect production – manufacturing only good parts, as fast as possible, with no stop time.
  • World Class (85%): Considered world class for discrete manufacturers.
  • Typical (60%): Typical for discrete manufacturers, but leaves room for improvement.
  • Low (40%): Common for manufacturers just starting to track and improve production performance. Can be easily improved.

Tools for Tracking Asset Management KPIs

Tracking asset management metrics like MTTR, MTBF, and OEE requires access to reliable, accurate, and up-to-date maintenance data. Computerized maintenance management system (CMMS) software provides just that.

A CMMS tracks and stores key maintenance data such as wrench time, failure records, and service history, which form the basis of KPI calculations. With all of this information stored in one place, you can create dashboard visualizations and reports that help measure progress towards your goals over time.

Improve Asset Performance with FTMaintenance Select

FTMaintenance Select is a powerful asset management platform that captures and connects critical maintenance data to help you achieve your strategic goals. By centralizing asset information alongside service requests, inventory, work orders, and more, FTMaintenance Select enables you to effectively monitor asset health, reduce downtime, and improve performance. Request a demo today to see how FTMaintenance Select supports smarter, data-driven asset management.

Is it Time to Replace your CMMS?

floor-plan-software-complex-laptop-woman-typing-replace-cmms

Have you ever owned a laptop that was considered “old”, but still worked? In our personal lives, it’s not all that important to keep up with the latest technology. If a laptop takes a while to boot up and lags a bit, but still does what you need it to do, it’s probably good enough for basic personal needs. Eventually, though, you’ll grow tired of having to deal with the laptop’s shortcomings and most likely purchase a new one.

In a professional setting, you may have a computerized maintenance management system (CMMS) that technically works, but you are experiencing some shortcomings. Maybe it doesn’t have all the features you need, it isn’t compatible with mobile devices, or you can’t pull the reports you need.

At home, it’s no big deal if it takes a bit longer to do things. In a professional environment however, it’s all about efficiency and eliminating things that slow you down. There is a lot more on the line such as production quotas and costly downtime. You cannot afford to use something unreliable.

If your current CMMS is not keeping accurate records of your assets, making your maintenance management process more efficient, or saving you time and money, it may be time to replace your CMMS. How do you know for sure?

8 Signs Its Time to Replace your CMMS

Your existing CMMS may actually be costing you time and money. Here are just some of the potential shortcomings found in older maintenance management software that may be resolved by implementing a new, modern CMMS.

1. Current Software is Obsolete

If your current CMMS is out of date, you are doing your maintenance team a disservice. Software can become obsolete in many ways:

Perhaps you fell behind on version upgrades and your needs have outgrown the version in use. More research must be done to determine if the newest version will meet your needs and how large the learning curve might be to get everyone up to speed.

In other cases, the original CMMS vendor has closed up shop or abandoned the product, leaving you without the service and support you need. Sometimes, software is simply not supported on newer operating systems—meaning when you switch to a newer operating system, your software may not be compatible with it.

Whatever the case, unsupported software is like a ticking time bomb—you’ll be able to use the software until suddenly, you can’t anymore. Then what will you do without vendor support?

2. Reporting Takes Too Long

If your CMMS software is outdated, compiling a few simple reports can take a lot longer than it should. (Think hours instead of minutes). When you have several comparisons to make and so much information to analyze, you don’t have time to wait that long. Reporting features may also be lacking due to the age of the system, as more modern reporting tools have more robust capabilities.

3. Compliance-Related Tracking is Missing or Outdated

Regulatory compliance is especially important in highly regulated industries that produce consumable goods such as food and beverage and pharmaceuticals. Older CMMS software may not track the data to show compliance with regulations at all; therefore they may not meet this requirement for these industries.

For example, there is often an electronic signature requirement that outdated software does not have the functionality to meet. Safety and health regulations are continually changing, so your CMMS needs to keep up and ensure related data is tracked accurately. If not, something could get overlooked, resulting in failed audits or even fines. Besides that, tracking compliance is important for the safety of your employees and customers.

4. CMMS Does Not Reduce Paperwork

One of the goals of implementing a CMMS is to reduce paperwork for maintenance teams. If your CMMS doesn’t store all of the data you need, you may have to record additional information on paper. If this is the case, your CMMS either doesn’t have the features you need or it is outdated. When you’re working in two systems, (physical and electronic), data cannot be readily shared between the two, which can affect recordkeeping and reporting.

5. CMMS is Difficult to Use

If CMMS training has taken place and you still find your CMMS system difficult or confusing to use, it could be that the system is not very user friendly. You should be able to deduce what to do next as you complete tasks or enter data in the software. Older software may be more cumbersome to use, which may increase abandonment or failure to properly use the software. In modern software, the interface is typically more intuitive and streamlined, making it easier for users to navigate.

Read More: What Makes CMMS Software Easy to Use?

6. Work Order Process is Failing

One of the main goals of using a CMMS is to improve the work order process. If that isn’t happening (or it’s getting worse), the software you’re using may not be right for your organization. In some cases, it can be difficult to enter work order data into the system. There may not be a way to assign work to specific technicians, making it difficult for them to know which jobs are theirs. Finally, lack of mobility (ability to use the software on mobile devices) might make work less efficient.

7. Lack of Vendor Service and Support

It should be easy to reach your vendor via email, phone, or screen sharing sessions to receive the support you need to fully utilize your software. This is important for troubleshooting, ongoing user training, and any questions you may have about your CMMS. Some vendors have long wait times, or they outsource support to people who don’t understand maintenance. Others may charge a high price for their support packages. If your vendor is not readily available or isn’t offering adequate support, it may be time to find one who will.

8. Not Supported on Mobile Devices

While many modern CMMS systems are fully functional on mobile devices, older, obsolete systems are not mobile-friendly. If you want to access your CMMS from anywhere, you need modern maintenance management software, no matter where the job takes you.

 Read Blog Post: Benefits of Mobile Maintenance Software

FTMaintenance: the Switch you Want to Make

At FasTrak SoftWorks, we understand that switching to new CMMS software takes time. FTMaintenance CMMS implementation services to make the transition to your new CMMS an easy one. We’ll make sure your data and processes remain intact in between removing the old software and installing FTMaintenance. Contact us today to learn more about how we can help you transition to FTMaintenance.

How to Increase CMMS User Adoption

employees-laptop-production floor-user adoption

Humans are creatures of habit. That is to say, we are naturally resistant to change, even if we are motivated and there are clear benefits for changing our behavior. For example, can you recall your last New Year’s resolution? Did you accomplish your goal or did you eventually give up and revert to how things used to be?

The introduction of computerized maintenance management system (CMMS) software is a big change for those who currently use manual methods for tracking and managing maintenance. In fact, a common reason why CMMS implementations fail is the lack of user adoption. In this article, we’ll discuss strategies for increasing CMMS user adoption in order to achieve a successful implementation.

What is User Adoption?

CMMS user adoption is the process of end users starting to use a new software system. Obviously, your implementation will not be successful unless you and your team use the CMMS. In order to transition away from the old system, your team must “adopt” and accept the new system. While that sounds like common sense, gaining buy-in from employees can be easier said than done.

CMMS User Adoption Challenges

A CMMS promises to make life easier for the maintenance team, so it can come as a surprise when the software is met with resistance. Here are some of the most common contributors to poor CMMS user adoption.

Fear of Replacement

Technicians may fear that CMMS software may one day replace them. This stems from the concern that if all of their knowledge, gained over years of experience, is entered into a computerized system, they will no longer be valuable to the organization. Therefore, employees may withhold information from the software or refuse to use it altogether.

Lack of Experience with Technology

Organizations that currently rely on paper-based maintenance management may have employees that are uncomfortable using new technology. After all, making the transition from pen and paper to a fully computerized system is a big leap. Though as a society we are becoming more technologically savvy, there is still a significant part of the population that lacks basic computing skills.

Maintaining the Status Quo

Maintaining the status quo is best explained with the proverb, “If it ain’t broke, don’t fix it.” Staff may be satisfied with the way things are working right now and see no reason for a change. Somewhat connected to this idea is a sense of tradition or that the way things are done now are the way things have always been done. In either case, workers are more prone to wanting to do things the same way as before.

Selecting a User Adoption Strategy

The level of user adoption can depend on how the software is implemented. User adoption strategies can range from an instant switch, to parallel use where the old and new system are used simultaneously for a period of time, to a phased approach where employees begin to use the system little by little over time. Ultimately, the best user adoption strategy will depend on your organization.

Based on his experience providing CMMS consulting and implementation services, Dave Dulak, an FTMaintenance Product Expert at FasTrak SoftWorks, recommends a phased user adoption strategy.

“I’ve always been a proponent of implementing a system in the simplest form with the easiest processes possible.”

He advises that organizations should take “baby steps” when integrating the CMMS into their processes. Once the low-level, simple goals have been achieved, more advanced use can be introduced.

Tips to Increase CMMS User Adoption

Dave also offers the following suggestions for increasing CMMS user adoption.

Communicate the Benefits

Inevitably, employees will have some grievances with the current system. When switching to a new system, your staff will want to know, “What’s in it for me?” Maintenance managers should focus on communicating the ways in which the CMMS will address their team’s pains, make life easier, or give them something that they didn’t have before. Doing so should create some enthusiasm for the new CMMS.

Involve Employees in the Selection Process

As part of the CMMS selection process, the software evaluation team should gather feedback from all stakeholders. The needs of executives will differ from those of maintenance technicians, who are the primary users of the software. If any stakeholder is left out of the process, they are less likely to feel like the CMMS will meet their needs and they will be less willing to embrace the system. Therefore, including maintenance technicians in demos and asking for their opinions on different software will make them feel like their voice was heard and increase adoption of the system.

Read Blog Post: What to Expect from a CMMS Software Demonstration

Amp up Training

CMMS training provides a boost in user adoption. Vendor-led, in-person training provides technicians with valuable face time with a knowledgeable, experienced software trainer. Employees can acclimate themselves with the software and practice using it in a friendly, no-risk environment. Online videos provide on-demand learning opportunities that teach users how to use system features. Live, web-based training allows users to follow along with an instructor from the comfort of their own facility.

Training can come from your internal team as well. Tech savvy employees can serve as an internal support network for others. Power users and system administrators can also make themselves available to answer questions, share tips via email, or hold lunch-and-learn sessions, if appropriate.

Increase User Adoption with FTMaintenance

At FasTrak, we understand that CMMS implementation can be tricky. We spend every day helping clients overcome implementation challenges including user adoption. FTMaintenance is an easy-to-use, easy-to-learn CMMS solution that allows you to be up and running with minimal training. We also provide complimentary implementation services and superior CMMS support to help make your entire implementation a success. Request a demo today.

How to Plan for CMMS Implementation | CMMS Implementation Activities (Part 1)

Metal cogwheels representing the moving parts that must interconnect for a successful CMMS implementation

Implementing a computerized maintenance management system (CMMS) is more likely to be a success when using a systematic approach. However, the urgency of putting a system in place now often forces buyers to take shortcuts, potentially putting successful implementation at risk.

Although CMMS implementation can be a long process, it is worthwhile if it creates operational improvements and makes maintenance management easier. Our eBook, The Definitive Guide to CMMS Acquisition and Implementation, provides first-time buyers with a systematic implementation plan.

Implementation covers events that happen both leading up to and following the purchase of a CMMS. This article describes implementation planning activities – activities that occur before software has been purchased. Our second article in this series, So You Purchased a CMMS – Now What?, covers post-purchase CMMS implementation activities.

CMMS Implementation Planning Activities

In most cases, purchasing a CMMS is not a unilateral, one-sided decision. Although the software will be used primarily by the maintenance department, its use affects the entire organization. Therefore, being methodical in your approach to CMMS implementation will ensure that the chosen solution addresses everyone’s needs.

The first step for any business improvement project is to get buy-in from upper management. While there may be implied support for the project, management must first be presented with a project plan before any action is taken. The following sections help you develop the contents of the project plan.

Determine Ballpark Project Costs

Estimating, or “ballparking,” project costs for budgetary purposes may take place early or late in the implementation process. Management will likely have a ballpark number in mind for what they think the project will cost, which they may share with you. Otherwise, you may need to do a little research to get a sense of what the project might cost.

Generally speaking, you should consider the costs of software licenses, setup and installation fees, and training in your a rough estimate. Be sure to also provide an estimate of how long you expect the project to take.

Identify Stakeholders

Stakeholders are the people within your organization who will be impacted by the CMMS. Each CMMS stakeholder has different needs and a different amount of influence over the project. Therefore, you must be aware of how the CMMS is likely to affect each person’s daily work and responsibilities. Your communication of the benefits the CMMS will bring will differ when discussing the project with upper management versus technicians.

Create the Evaluation Team

As mentioned previously, CMMS implementation is not a solo effort. Successful implementations are supported by a team of internal system advocates and cheerleaders. Let’s discuss who to include on your implementation team.

One person that every implementation team should include is a project champion, whether that person is you or someone else from the facility or maintenance management team. The project champion acts as the project manager and is involved in every stage of the implementation process. This person helps identify the project goals, keep things moving, and ensure that all stakeholders are satisfied. Depending on the size of your organization, multiple other stakeholders may be involved, including:

  • Corporate management responsible for overseeing maintenance
  • A technical expert, typically IT staff, to provide internal technical support
  • Power users and system administrators who will be advising others on system use and maintaining the system
  • End users who will use the CMMS on a day-to-day basis
  • Management from departments impacted by maintenance, such as production, quality, and operations

Identify Maintenance Management Needs

The success of your CMMS will depend on how well it meets your maintenance management needs. You must first identify exactly what it is that you are looking for a CMMS to do. For example, are you responsible for maintaining a fleet of vehicles, permanent assets, or buildings? Will you be tracking inventory on work orders or through an existing system? Do you require mobile access to maintenance data?

Knowing your maintenance needs up front allows you to more easily identify viable CMMS solutions during your research. Be careful to distinguish between your needs and your wants. Needs must be addressed for your CMMS solution to be a success. This needs-identification exercise is typically done as part of a request for proposal (RFP), but can be done absent of a formal process as well.

Read On: How to Write an RFP for CMMS Software

Identify Maintenance Management Goals

Your maintenance goals should reflect your vision of how you want to improve your operations in order to satisfy your maintenance management goals.  Perhaps you are looking to minimize inventory costs, improve maintenance responsiveness, or process more work orders per month.

Setting specific goals and metrics to measure against will help you determine whether or not the CMMS is making a difference. Let’s look at a quick example:

Your goal might sound something like this: “Lower MRO inventory costs”. Note that this goal is quite broad and there can be many ways to accomplish it. Each goal needs to be more specific so that a detailed plan can be created to meet the goal and the results can be measured against the original goal.

Here’s a revised version of the goal: MRO inventory costs will be lowered by reducing the costs associated with emergency inventory purchases. With this more specific goal identified, now determine a way to measure progress. Using a CMMS, you can track dollars spent on rush orders, the number of emergency purchases, and the frequency of those purchases.

Identify CMMS Features

With your maintenance management needs and goals identified, you should be able to determine what CMMS features match your needs. Your use of the system will be based on your goals. Refer back to the goal outlined in the previous section.

The CMMS will need to be able to track inventory purchases if their costs are to be lowered. Additionally, you will want to see how costs change over time, so maintenance inventory reports will also be required. There are other, non-feature-related qualities to consider also, such as ease of use, system customization options, and scalability.

Make a Decision and Purchase a CMMS

Through your research, you and your evaluation team should identify at least 2-3 CMMS systems that will meet your requirements, fit your project budget, and can be implemented according to your deadline. After some deliberation, you should be able to make a recommendation to upper management. Make sure to note your preferred choice, along with any viable alternatives. The vendor selection process is covered in our article, How to Create a Vendor List for CMMS Research.

FTMaintenance Makes Maintenance Management Easy

FTMaintenance is a fully-featured CMMS that solves many challenges facing today’s maintenance teams. With solutions for work order management, asset management, inventory management, preventive and corrective maintenance, and more, FTMaintenance is the perfect fit for any-sized maintenance team. Read a CMMS case study to learn how our customers benefit from using FTMaintenance and schedule your demo today!

CMMS vs. EAM | Difference between CMMS and EAM Software

A laptop with a yellow hard hat in the background referencing the differences between CMMS and. EAM.

As you search for an asset and maintenance management solution, you will encounter two primary types of software: computerized maintenance management system (CMMS) software and enterprise asset management (EAM) software. Because they share similar functionality, the differences between CMMS and EAM are not always clear; however, there are differences. This article examines CMMS vs. EAM software to clear up confusion between the two so that you can select the appropriate system for your organization.

CMMS Software vs. EAM Software

It’s no surprise that CMMS and EAM are often confused for one another. Some CMMS vendors market their product as EAM software, even if it is inaccurate to do so. That said, over time CMMS software packages have become more robust, further muddying the waters for buyers trying to distinguish between the two solutions.

While CMMS and EAM software are alike in some respects, they are in fact different in their functionality and application. First, let’s break down the basics of each system.

What is CMMS Software?

A computerized maintenance management system (CMMS) is a software program designed to help you manage maintenance activities and resources in order to keep assets in optimal condition. As its name describes, a CMMS focuses on maintenance. Core features of a CMMS include work order management and preventive maintenance scheduling, but many systems go above and beyond these basic capabilities. Our article What is a CMMS? provides a more in-depth explanation of computerized maintenance management system (CMMS) software.

What is EAM Software?

A diagram of the scope of CMMS vs. EAM. EAM software is inclusive of CMMS software capabilities.

Enterprise asset management (EAM) software considers the entire asset lifecycle, from planning to decommission. It has a wide range of features used to track energy consumption, depreciation, MRO procurement, engineering, safety and compliance, and more. EAM software also includes some maintenance management functionality, though it is not a primary focus of the system.

Compared to CMMS which is primarily used by the maintenance department, an EAM may be used organization wide. For example, employees from accounting and finance, operations, and production are frequent users of an EAM, in addition to maintenance personnel.

CMMS and EAM: Two Sides of the Same Coin

CMMS and EAM software share similar goals and contain some of the same functionality. Where the two types of software really differ is their approach to asset management.

Scope of CMMS vs. EAM Software

EAM software takes a holistic approach to asset management, finding ways to maximize an asset’s value at every stage of the lifecycle:  planning, acquisition, operation, maintenance, and decommission. Doing so requires contributions from multiple business functions such as accounting, production, and engineering, in addition to maintenance. EAM is most useful in asset-intensive organizations with a large number of assets (thousands to tens of thousands or more) spread across multiple locations.

CMMS, on the other hand, seeks to maximize asset performance during operation, after it has been purchased and installed. The more narrow focus of a CMMS makes it a powerful tool for managing maintenance, but it is not necessarily designed to do more. However, some CMMS solutions offer multisite support and other features that resemble the functionality of EAM.

A diagram of CMMS vs. EAM, showing that EAM software includes CMMS software capabilities.

One way to think about the relationship between CMMS and EAM is by visualizing two concentric circles. Enterprise asset management is more comprehensive than maintenance management, and encompasses all stages of an asset’s lifecycle. Maintenance management, on the other hand, is focused on a single stage of the lifecycle – maintenance. Based on the graphic above, one could say that while all (or most) EAM solutions have the capability of a CMMS, not all CMMS solutions are as broad as EAM software.

Which Software is Best for My Business: CMMS or EAM?

The best way to determine which type of software is right for your business is to consider your organization’s asset management needs.

CMMS software is ideal for smaller organizations looking to improve asset uptime. It provides a powerful platform for helping organizations move from reactive maintenance to a more proactive mindset. Besides work order management and preventive maintenance, CMMS solutions often have MRO inventory management functionality. However, organizations implementing high-level maintenance strategies like reliability-centered maintenance (RCM) and failure modes and effects analysis (FMEA) may quickly outgrow a CMMS.

EAM software is a good choice for organizations that: 1) have a large portfolio of assets, 2) operate multiple sites, and 3) want to reduce the total cost of ownership (TCO) of their assets. It offers the advanced tracking and analytical tools required to manage assets at an enterprise level. Smaller organizations may find EAM software to be too overwhelming for their needs.

Improve Maintenance Operations with FTMaintenance

FTMaintenance is full-featured CMMS software that provides powerful tools for managing equipment and facility assets, work orders, MRO inventory, and preventive and corrective maintenance. It is designed to help organizations gain better control of maintenance operations through the documentation, management, organization, and analysis of maintenance activities. Schedule a demo to learn more about how FTMaintenance can improve your maintenance operations.