What is SAP AM Module

What is Enterprise Asset Management?


Enterprise asset management (EAM) means the whole life optimal management of the physical assets of an organization to maximize value. It covers such things as the design, construction, commissioning, operations, maintenance and decommissioning/replacement of plant, equipment and facilities. "Enterprise" refers to the management of the assets across departments, locations, facilities and, in some cases, business units. By managing assets across the facility, organizations can improve utilization and performance, reduce capital costs, reduce asset-related operating costs, extend asset life and subsequently improve ROA (return on assets).



Asset intensive industries face the harsh realities of operating in highly competitive markets and dealing with high value facilities and equipment where each failure is disruptive and costly. At the same time, they must also adhere to stringent occupational safety, health and environmental regulations. Maintaining optimal availability, reliability and operational safety of plant, equipment, facilities and other assets is therefore essential for an organization's competitiveness.



On the operations side, EAM caters to increased efficiencies of all assets including inventory, regulatory compliance and human resources by combining the salient goals of investment, maintenance, repair and operations management. Simultaneously, EAM addresses business challenges that include productivity enhancement, maximizing asset life cycle, minimizing total cost of ownership and support of the technology and supply chain infrastructure.



Software solutions to support this business paradigm have been in use since the 1970's.


SAP Service and Asset Management is the only integrated solution that allows to manage service and maintenance from end to end. It can handle service sales and marketing, manage service-level agreements, oversee service call centers, track warranties and claims, and provide customer self-service over the Web. It can also perform field service, in-house maintenance and repair, depot repair, service parts management – including execution and planning – and service performance and financial analysis.



And, SAP Service and Asset Management gives asset owners and operators unprecedented capabilities for managing assets, equipment, and facilities. They can manage all types of physical assets, such as production equipment, facilities, and infrastructures over the complete life cycle of those assets – including design specification and procurement, installation and start-up, maintenance and operations, and decommissioning and disposal.

Posted in: