Up to 10% of a company’s production time and 20% of productivity can be lost due to unplanned downtime, which can cost $50 billion for manufacturers each year. To prevent such losses due to maintenance-related problems, companies in asset-intensive industries such as manufacturing, construction, or mining appeal to asset maintenance management solutions such as EAM and CMMS. In this article, we will present CMMS and EAM and explore the differences between them.
Computerized Maintenance Management System (CMMS) is a software that facilitates asset maintenance processes by centralizing maintenance-related information. CMMS was first adopted in the manufacturing sector in the 1960s and has since evolved and expanded into other industries including communication, education, healthcare, and transportation. In their business processes, around 40% of companies use CMMS and 30% of them are planning to implement it.
With its database, a CMMS enables streamlining maintenance inventory management by automating stock control, keeping track of the work orders, providing the organization with preventive maintenance solutions, and recording the list of assets in detail.
Check our article on the benefits of CMMS for a more comprehensive account.
Enterprise Asset Management (EAM) is a tool that is created to centralize the management and maintenance processes of assets. An EAM system can be used through both on-premise and cloud infrastructure.
EAM is used for improving the quality of asset lifecycles, improving health and safety conditions, and optimizing asset performance through the development of effective strategies from the planning phase to the replacement phase. In asset-intensive sectors such as transportation and manufacturing, EAM is used to facilitate the operations and asset maintenance processes. According to a report, the global EAM market is expected to grow at a CAGR of 8.7%, and reach $5.5 billion in 2026.
EAM and CMMS can be confused due to their overlapping qualities. Both tools are preferred by companies in asset-intensive industries and both of them provide organizations with tools to facilitate inventory management, preventive maintenance, work order planning, and also purchasing management. The key differences between them are their:
If you have questions about EAM, CMMS and how to get started with them, we can help:
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Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 55% of Fortune 500 every month.
Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE and NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and resources that referenced AIMultiple.
Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised enterprises on their technology decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.
He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch like Business Insider.
Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.