Enterprise Asset Management - A Necessity Not An Option For Every OrganizationWith the increase in competition amongst the various organizations, it is important for every organization to minimize its losses and thereby increase the profit of an organization. A great deal of this task depends on the proper management of the resources and assets of the company. So, we can say that a good asset manager is itself an asset for an organization. He is the one who is responsible to ensure the purchase, selling, depreciation and appreciation of an organization and deal with the merchants. An important part of asset management is enterprise asset management. Enterprise asset management is a business prototype that brings together an organization in terms of operations, decision-making regarding capital investment and strategic planning. In terms of operations, Enterprise asset management takes into account an improves efficiency of almost all assets that includes regulatory compliance, human resources and inventory by focusing on the repair, investment, maintenance and operations management. Along with it, Enterprise asset management deal with the challenges of the business that include minimizing the ownership cost, technological support, productivity enhancement, maximizing the lifestyle of assets, and infrastructure of the supple chain. The software that helps in this task was introduced long back somewhere in1970s. Enterprise asset management refers to a complete and the best possible management of the tangible assets of an organization, so as to make the maximum value out of it. It consists of commission, operation, design, construction, maintenance or replacement of machinery, other facilities and equipments. "Enterprise" means the best management of assets among the facilities, locations, business units and departments of a single entity. This judicious management of assets helps in an improved performance and utilization, less operating costs on assets, bargained capital costs, extended life of the assets and thereby better ROA (return on assets). Companies that have a large number of assets have to struggle a lot to combat the prevailing competition and deal with equipments and facilities of higher value. For these companies a small mistake can be very troublesome and costly. They also have to be specific about not breaching the environmental and health regulations and occupational safety. The correct reliability, availability, machine operational safety, facilities, assets and equipments are all essential for the competitiveness of an organization. That is to say, enterprise asset management of an organization is important for every organization. There has been a great turning point in the complete organizational set-up since they have started to accept life cycle costing, life planning, proactive maintenance and the other best practices of the industry. However, some people still prefer using enterprise asset management rather than maintenance management, as they consider the former to be more business specific term. This was until they have realized the interdependencies of an organization with asset performance, lifecycle costs, personnel productivity, operations and design. This shift in the focus represents the progress of an enterprise from the term maintenance management to the term Enterprise asset management. So, for a company to prove its worth have to mark this shift as soon as possible. |