CMMS and EAM

Computerized maintenance management system (CMMS), also known as computerized maintenance management information system (CMMIS), is a software package that maintains a computer database of information about an organization's maintenance operations.(WIKIPEDIA)

A CMMS offers multiple core maintenance functionalities. It is not limited to manufacturing but expands to facilities, utilities, fleet, hospitals, sports arenas and more where any type of equipment/assets are subject to repair and need maintenance. With improved technology and increasing competition, more and more companies are switching to CMMS vs using manual methods to track and organize information. The different components of a CMMS include but are not limited to:

1. Equipment data management
2. Preventive Maintenance
3. Labor
4. Work order system
5. Scheduling/Planning
6. Vendor Management
7. Inventory Control
8. Purchasing
9. Budgeting
10. Asset Tracking

Enterprise asset management (EAM) involves the management of the maintenance of physical assets of an organisation throughout each asset's lifecycle. EAM is used to plan, optimise, execute, and track the needed maintenance activities with the associated priorities, skills, materials, tools, and information. This covers the design, construction, commissioning, operations, maintenance and decommissioning or replacement of plant, equipment and facilities.(WIKIPEDIA)

Asset management is described in INTERNATIONAL STANDARD ISO 55000

An asset is an item, thing or entity that has potential or actual value to an organisation. The value will vary between different organisations and their stakeholders, and can be tangible or intangible, financial or non-financial. A grouping of assets referred to as an asset system could also be considered as an asset.

• Tangible Fixed Assets (eg. Cars, Machinery, Computers, Buildings, Desks)
• Intangible Fixed Assets (eg. Goodwill, Intellectual Property)

Another criterion for separate classification as a fixed asset is when an item has significantly different maintenance requirements from those of nearby assets. Thus, the capitalisation policy could state that a group of machines clustered on an assembly line be classified as a single asset if they share common maintenance requirements, but as separate assets if they have significantly different maintenance requirements.

Asset type: grouping of assets having common characteristics that distinguish those assets as a group or class.

The period from the creation of an asset to the end of its life is the asset life . An asset’s life does not necessarily coincide with the period over which any one organisation holds responsibility for it; instead, an asset can provide potential or actual value to one or more organisations over its asset life, and the value of the asset to an organisation can change over its asset life.

An organisation may choose to manage its assets as a group, rather than individually, according to its needs, and to achieve additional benefits. Such groupings of assets may be by asset types, asset systems, or asset portfolios.

A capitalisation policy is used by a company to set a threshold, above which qualifying expenditures are recorded as fixed assets, and below which they are charged to expense as incurred. The policy is typically set by senior management or even the board of directors.

The threshold level set by a capitalisation policy can vary considerably. A smaller business with few expenditures may be willing to accept a low capitalisation threshold of just $1,000, whereas a larger business that may be overwhelmed by the recordation requirements of fixed assets may prefer a very high limit, such as $50,000. Nonprofits may prefer a low capitalisation limit, so that they can keep close track of their assets. Many businesses find that a capitalisation threshold of about $5,000 balances the offsetting issues of avoiding excessive record keeping and avoiding charging large items to expense as incurred.

A CMMS focuses on maintenance, while an EAM system takes a comprehensive approach, incorporating multiple business functions. A CMMS starts tracking after an asset has been purchased or installed, while an EAM system can track the whole asset lifecycle, starting with design and installation. 

An EAM system is more than just a beefed up CMMS. It’s a comprehensive tool for managing physical assets and maximising their performance across the business. It’s a CMMS combined with an inventory management system, a purchasing management system, a document management system, an accounting system, a project management system, multisite management tools, performance management tools and BI tools, all rolled into a single, integrated piece of software.

Taxonomy of maintenance system consist of components (maintenance objects) organised in functional or components hierarchy. Component can be asset.

Component: A generic technical part. Many components make up equipment. Hierarchy is that parts make components, makes equipment, makes systems.

Simplified taxonomy of maintenance system: System-Equipment-Component-Part. Any of them can be assets (depends on capitalisation policy threshold level)

Simplified ontology: System classes, Equipment classes, Component classes, Part classes

Example: Equipment class "pump set", Component class "centrifugal pump", Part class "pump casing"

Stock item if cost will be higher then capitalisation policy threshold level is also asset.

Spare part (EN 13306):item intended to replace a corresponding item in order to retain or maintain the original required function of the item

Advanced taxonomy and ontology described in ISO 14224:

• equipment class - class of equipment units
• equipment unit - specific equipment unit within an equipment class as defined within the main boundary
• item - any part, component, device, subsystem, functional unit, equipment or system that can be individually considered
• maintainable item - item that constitutes a part, or an assembly of parts, that is normally the lowest level in the hierarchy during maintenance
• required function - function, or combination of functions, of an item which is considered necessary to provide a given service
• subunit - assembly of items that provides a specific function that is required for the equipment unit within the main boundary to achieve its intended performance
• boundary description - a clear boundary description is imperative for collecting, merging and analysing RM data from different industries,plants or sources. The merging and analysis will otherwise be based on incompatible data. For each equipment class, a boundary shall be defined indicating what RM data are to be collected.
• guidance for defining an equipment hierarchy - preparation of a hierarchy for the equipment is recommended. The highest level is the equipment unit class. The number of levels for subdivision will depend on the complexity of the equipment unit and the use of the data. Reliability data need to be related to a certain level within the equipment hierarchy in order to be meaningful and comparable.