Maximize Efficiency: Essential Asset Maintenance Management Strategy 

Over 80% of organizations experience unplanned downtime every three years, as per Forbes findings. At a time of economic uncertainty and the need to optimize costs, companies seek solutions to simplify asset management. Implementing programming is just the beginning of the challenges and decisions to be made.

AI, outages, and more… What CEOs talked about in Q3 2024? 

The end of 2024 has brought the next edition of the report on aspects of most interest to CEOs ‘What CEOs talked about’ by IoT Analytics. There are rarely any surprises, but the trends show what topics will most likely be invested in in 2025. The top three included: 

1) Practical AI applications – interest in AI capabilities is high in any industry looking to improve performance and accelerate tasks. Process automation, digital twins, and AI-based predictive maintenance solutions are in the spotlight. 

2) Renewable energy sources – in Q3 2024, interest in solar energy increased by almost 80% quarter-on-quarter and wind energy by almost 60%. Sustainability, green energy, and climate change are important themes globally, with some regional variations. 

3) Unpredictable IT outages – 2024 brought an outage that was on everyone’s lips: the CrowdStrike / Microsoft related to cyber security. Unpredictable outages such as this can cost thousands of dollars per hour, depending on the industry. This is why companies are prioritizing solutions to prevent unforeseen failures, such as Enterprise Asset Management Solutions. 

What is asset maintenance management? 

Asset Maintenance Management or Enterprise Asset Management (EAM) is a comprehensive approach to managing an organization’s physical assets across their entire lifecycle. It encompasses the processes, tools, and systems used to plan, acquire, maintain, operate, and dispose of assets in a way that maximizes their value, minimizes costs, and ensures operational efficiency.  

Asset Management is particularly relevant for organizations with significant investments in physical infrastructure or equipment, such as manufacturing, utilities, transportation, and healthcare.  

What is reactive maintenance? 

Reactive maintenance (also known as corrective maintenance) is the type of maintenance that involves repairing an asset once it is broken. This means responding to failures or breakdowns rather than taking preventive actions. 

What is preventive maintenance? 

Preventive maintenance is a wide subject, and the general aim is to prevent breakdowns before they happen and thus take care of the asset lifecycle. One of the types of PM is Condition-Based Monitoring. In the CBM approach, activities take place based on machine condition-related data, collected through sensors.  

What is CMMS software?  

CMMS stands for computerized maintenance management system. It refers to software that helps manage assets, plan maintenance work, and manage work orders. CMMs are inventory tracking systems that allow you to make informed decisions.  

What are the key challenges in asset maintenance management? 

1. Identifying inefficient maintenance – relying on reactive asset management techniques adds costs and gives a dim view of investment in this area. Companies that are unaware of this problem struggle with a vast number of work orders, fail to see the value in equipment data, and try to address staff shortages by temporarily subletting contractors. At the same time, the main problem remains unresolved and results in further investment.  

2. Creating an asset maintenance plan – creating a successful asset maintenance plan is no easy task. It’s a complex process that involves gathering asset inventory along with their value, calculating expected lifecycles, establishing SLAs and an optimum maintenance plan, and then sticking to the strategy over the long term.  

3. Choosing asset management software – such software is designed to follow the life cycle of solutions, whether software, hardware, or any machine. A properly chosen solution increases confidence in data security. It also improves confidence in the devices themselves. There are many asset management solutions on the market, many of which offer extensive customization and integration with external systems and take advantage of the cloud. One example allowing you to build an EAM is the Cumulocity IoT platform.  

4. Training maintenance team – investing in your technicians is crucial for implementing a successful maintenance strategy that incorporates Computerized Maintenance Management Systems (CMMS). Great training leads to well-prepared staff that can handle the maintenance process with ease. The trained team can effectively perform maintenance tasks and adhere to a preventive maintenance schedule. This ensures that maintenance needs are addressed proactively, thus preventing asset failures, and extending the asset life. 

Importance of asset maintenance plan across industries 

Asset management solutions are critical in industries that rely heavily on them. Such as, for example:  

Manufacturing  

IoT solutions collect real-time data from devices and parts for health monitoring purposes. This allows for the application of predictive maintenance solutions and the reduction of downtime and unnecessary repairs. With the right system, companies can schedule maintenance and engage maintenance teams to perform tasks more efficiently.  

Sales and procurement 

The area is focused on ensuring that the right assets are procured or produced at the right time to meet operational needs.  

Finance and controlling  

This area is related to financial planning, budgeting, and control mechanisms for managing the aspects of asset acquisition, its maintenance, and overall lifecycle costs.  

Compliance 

Regulatory adherence and compliance with legal standards related to asset management is an important part of managing organizational assets.  

How to develop an effective asset maintenance strategy? 

A successful and comprehensive Enterprise Asset Management strategy is built upon 3 main pillars:  

1. Asset business management  

2. Asset operations management  

3. Asset service management  

These areas are strictly connected and dependable upon each other to cover the whole landscape of the company’s asset-related activities from its “birth” (either by purchase or fabrication) until end-of-life and removal. The high degree of digitalization and automated integrations are crucial in taking advantage of this holistic approach.  

What are the benefits of asset maintenance management software 

• Extended asset lifespan: By providing the tools to maintain assets proactively, EAM systems help organizations extend the useful life of their assets.  
• Reduced downtime: Real-time monitoring, predictive maintenance, and better planning result in fewer breakdowns and less unplanned downtime.  
• Cost efficiency: By optimizing maintenance schedules, reducing emergency repairs, and managing spare parts more effectively, EAM can significantly reduce operational and maintenance costs.  
• Regulatory compliance: EAM systems ensure that organizations maintain compliance with industry standards and regulations, reducing legal and operational risks.  
• Better decision-making: With better data and analytics on asset performance, usage, and costs, EAM systems provide insights that allow for smarter decision-making regarding asset investment, replacement, or optimization.  

Want to dive deep into Enterprise Asset Management solutions? Prevent asset downtime with successful maintenance operations! Request a free demo presentation of a solution based on the Cumulocity IoT platform. 

Asset management system success story 

Wind turbines monitoring  

A leader in green energy and wind turbine manufacturing faced the challenge of operating thousands of wind turbines worldwide with only a few operators.  

To achieve that, we helped them to build their command streamlined towards the devices and integrate everything into a central IoT solution based on Cumulocity IoT.  

Read the story! 

Asset management – summary 

Asset management is crucial for organizations aiming to maximize the lifecycle of their assets. A comprehensive asset maintenance management plan ensures that maintenance activities are scheduled and executed effectively 

This will allow you to make more informed decisions about needed maintenance work, whether that involves preventive and predictive maintenance or any other strategy.