Enterprise Asset Management (EAM) Strategy

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Framework Primer
Enterprise Asset Management
(EAM) Strategy
Presentation created by
Governance and Decision
Making
OrganizationTechnology
Performance Measurement
and Reporting
PeopleProcesses
1
3
4
5
26
How do we govern and
make decisions?
What people and skill sets
do we need to execute our
capabilities?
How do we organize
the company?
How do we measure organizational
and individual performance?
What processes/
services do we provide?
What technology do
we need to enable the
efficient execution of
our capabilities?
Organizational Culture
Change
Management
Communi-
cations
Program Execution
Excellence

2This document is an exclusive document available to FlevyPro members - http://flevy.com/pro
Contents
Overview
EAM Program
EAM Strategy
EAM Training Program
Templates
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Enterprise Asset Management Strategy ensures validation of business
processes and making best-value choices in tools and technologies
Presentation Overview
A good starting point for designing an EAM Strategy is to create a Target Operating Model
(TOM) that addresses the key aspects of the EAM Program.
Companies in asset-intensive industries have long sought to manage huge investments in assets
more effectively. Yet, after significant investment of time and money in formal Asset
Management programs, this often fall short of delivering the promised benefits of more reliable
assets, lower costs, and improved safety. Too often, executives are not sure why the benefits
have not materialized.
Companies often concentrate its efforts on technology upgrading without addressing underlying
problems. The latest technology solution will never enable companies to manage assets
effectively. A successful EAM Program must begin with the right strategy for managing assets
and then focus on the people, processes, and technology to carry it out.
This frameworks provides a defining perspective and exploration of Enterprise Asset
Management (EAM) and the 3 core components of a successful EAM Program.
A well-structured EAM Program incorporates these 3 disciplines that are tightly integrated.
However, companies often fail in the implementation due to failure to develop an effective EAM
strategy.
This deck also includes slide templates for you to use in your own business presentations.
1 Asset Management
2 Maintenance Management
3 Workforce Planning

Companies turn to Enterprise Asset Management (EAM) to manage
complexity in operations
For EAM efforts to succeed, companies must approach them strategically.
Enterprise Asset Management (EAM) – Overview
Enterprise Asset Management (EAM) is the set of integrated processes and tools for managing and
maintaining operational assets at target service level while optimizing life-cycle costs and asset life.
EAM can offer real benefits if implemented properly.
Sizable long-term cost
savings as a result of effective
operations management and
improved financial tracking.
Great asset reliability and
longer life.
Improved health, safety, and
environmental performance.
Better response time to meet
service and regulatory
requirements.
Improved regulatory
compliance.
Make companies eligible for
government funding.
With explosive
growth of high-
quality mobile
capabilities, a
successful EAM
program can leverage
technologies to
manage assets more
efficiently and
expand further.

Contents
Overview
EAM Program
EAM Strategy
Templates

The EAM Program combines 3 Key Components for the entire system
to function smoothly
Companies with a robust and effective EAM Program maximizes the benefits of EAM.
EAM Program – Overview
A well-structured EAM Program incorporates 3 key components that are tightly integrated.
Poor EAM strategy development
Inadequate stakeholder management
Poor processes and procedures
Insufficient change management and training
Problem with data management
Insufficient integration with the supply chain
However, most organizations have EAM Programs
that are lacking. These organizations are faced
with multiple challenges leading to programs not
meeting expectations.ASSET
MANAGEMENT
ASSET
MANAGEMENT
MAINTENANCE
MANAGEMENT
MAINTENANCE
MANAGEMENT
WORKFORCE
PLANNING
WORKFORCE
PLANNING
• Planning for and
managing all assets
through the entire life
cycle, from when they
are put into service
through major
maintenance and
upgrades to final
decommissioning.
• Conducting required
preventive and
reactive asset
maintenance.
• Managing the
maintenance
workforce.
1 2 3

The 3 Key Components must work in concert for an effective EAM
Program
The EAM Strategy determines how the team managing the assets will function, what
processes are needed, and what IT systems are required.
EAM Program – Asset and Maintenance Management Strategy
The overall Asset and Maintenance Management Strategy, based on the company’s operational and
business needs, governs the EAM Program.
Source: Fulfilling the Promise of Enterprise Asset Management, PwC, 2015
AssetsAsset
Management Plan
Assets
Asset
Management
Team
Processes Technology

Contents
Overview
EAM Program
EAM Strategy
Templates

Investment decisions should be supported by 6 cost-related components,
which drive EAM Strategy
Failure to involve key stakeholders in EAM strategy development leads to insufficient
buy-in and accountability, and overall poor program governance.
EAM Strategy – Overview
An EAM Strategy must cover 6 core components to achieve sustainable growth.
Governance
1
3
Performance
management
4
5
PeopleProcesses 26
Involve key senior leaders in the
creation of business plan.
Executives with deep expertise
and industry-level knowledge are
best equipped to define potential
EAM benefits.
2
Undertake an overall assessment
of how the company conducts its
current Asset Management,
maintenance management, and
workforce planning efforts.
1
Companies can take a 2-step approach
to put a robust EAM Strategy in place.

An EAM Strategy must answer key questions
The key questions are vital in conducting an assessment of the company’s current Asset
Management processes.
EAM Strategy – Key Questions
The exact shape of an EAM Strategy varies from company to company.
Answering the key questions provides a common ground to effectively developing an effective EAM
Strategy.
Does our EAM strategy support our overall
business strategy?
Do all stakeholders agree with the strategy?
What are our overall business objectives for our
assets, now and in the future?
What is our time line for getting to our target
level of maturity in managing our assets?
How centralized or decentralized should we be
in managing our assets?
What will our operating model be for managing
our assets?

Designing an EAM Strategy requires creating a Target Operating Model
that addresses key aspects of the EAM Program
An effective and robust EAM Program is anchored on a holistic EAM Strategy
and Operating Model.
EAM Strategy – Operating Model
The Target Operating Model (TOM) must look at the 6 Core Components of the EAM Strategy. Integrating
them together leads to delivery of a holistic approach to EAM.
Governance and Decision Making
and Reporting
PeopleProcesses
1
3
4
5
26
make decisions?
capabilities?
How do we organize
the company?
What processes/
What technology do
our capabilities?
Change
Management
Communi-
cations
Program Execution Excellence

Contents
Overview
EAM Program
EAM Strategy
Templates

Adequate training is critical in achieving a high level of buy-in from all
involved
Companies are well advised to develop training programs that match their culture and
learning style.
EAM Training Program – Overview
Companies do not evaluate whether employees have the skills needed to perform new duties and execute
modified processes, procedures, and technologies proficiently.
Assess the capabilities and skills of the current workforce.
Map out these capabilities against the newly updated set of processes and procedures to uncover
any gaps or imbalances.
Use this information to develop an overall training strategy to fill the gaps and achieve a better mix
of the required skills.
Poorly trained users often get frustrated and revert to old, inefficient processes or being using new technology in
ways never intended.
Effective training can help alleviate the frustration felt by older workers when asked to change their work habits.
It can help mitigate the risk of workers walking out the door. A plan must be devised for sustaining process
improvement over the longer time and a superior training program be developed.

Our organization must have a plan for developing an EAM Training
Program
Training Modules must be developed based on specific requirements of specific roles and
functions to be effective.
EAM Training Program – Training Strategy
The EAM Training Strategy must address identified gaps or imbalances of skills or resources.
New asset management capabilities to be deployed
Training content
How new capabilities support future-state asset management
process
Where gaps or imbalances of skills or resources exist (by role:
leadership, manager, EAM team)
Acquisition
capabilities
Main-
tenance and
monitoring
capabilities
Refur-
bishment
capabilities
Replace-
ment
capabilities
Financial
manage-
ment
capabilities
Develop training modules differentiated
by organizational roles
Driving capability
adoption in the
organization
For leadership
Driving new
capability usage in
teams
For team
lead/manager
Value and use of functional
enhancements
For EAM staff

Contents
Overview
EAM Program
EAM Strategy
Templates

Insert headline
Insert bumper.
Components of Asset and Maintenance Management Strategy – TEMPLATE
Assets
Asset
Management Plan
Assets
Asset
Management
Team
Processes Technology

Insert headline
Insert bumper.
Components of Asset and Maintenance Management Strategy – TEMPLATE ALTERNATE
Acquire Maintain and monitor Refurbish Replace Financial management
Asset Management Plan
Assets
Asset Management Team
Processes
Technology

Insert headline
Insert bumper.
6 Components of EAM Strategy – TEMPLATE
Governance
1
3
Performance Management
4
5
PeopleProcesses 26

Insert headline
Insert bumper.
6 Components of EAM Strategy – TEMPLATE ALTERNATE
1
2
3
4
6
5
Performance
Management
Governance
PeopleProcesses
• Insert filler text, filler
text, filler text, filler
text, filler text.
text, filler text.
text, filler text.

Insert headline
Insert bumper.
EAM Target Operating Model – TEMPLATE
Governance and
Decision Making
and Reporting
PeopleProcesses
1
3
4
5
26
make decisions?
capabilities?
How do we organize
the company?
What processes/
What technology do
our capabilities?
Change
Management
Communi-
cations
Program Execution
Excellence

Insert headline
Insert bumper.
EAM Target Operating Model – TEMPLATE ALTERNATE
Governance and
decision making
How do we govern
and make
decisions?
Technology
What technology
do we need to
enable the efficient
execution of our
capabilities?
Processes
What processes/
services do we
provide?
People
What people and
skill sets do we
need to execute
our capabilities?
Organization
How do we
organize the
company?
Performance
measurement and
reporting
How do we measure
and track
performance?
Program execution excellence
Organizational culture
Communications Change management
4
1
26
35

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Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
• General Inquiries
support@flevy.com
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press@flevy.com
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