That’s Not a EAM System. THAT’S A EAM SYSTEM!


Here is introduced a holistic and forward-looking enterprise asset management (EAM) model (1). It guides an organization’s leaders as to how to profit greatly from their EAM system. The typical EAM model promoted to an organization’s executives, managers, and engineers is incomplete and restricts the scope of future success. Because it limits perspective it fails to get and sustain best performance and productivity from operations. A truly effective EAM system model includes in its design methodology the sure means for building a highly successful future.

Keywords: EAM model, EAM system, enterprise asset management system, life cycle asset management, physical asset management, asset life cycle cost, LCC

Organizational problems this article helps you to address:

      • Designing and building a highly effective Enterprise Asset Management system
      • Increasing operating profit month after month
      • Getting more ROI and productivity from an EAM System

An Enterprise Asset Management system has one key purpose: To make the User more operating profit. A great EAM system would do that quickly, and repeatedly, forevermore as a designed-in outcome. An EAM system benefits a company only when it brings far greater operating profit with it than without it. That can only happen if its design ensures continually increased operating profits month after month, endlessly.

The first illustration below shows the phases of an operating asset life cycle. It applies universally to all plant and equipment physical assets (also known as engineering assets). The most common misunderstanding made by corporations, businesses, organizations, and production sites when they adopt enterprise asset management as an operational philosophy is to build an EAM system that spans only their operating assets’ life cycles. Such an EAM model does not expect, or require, the EAM system to be optimized. It provides no insights into how to continually maximize operating profits while minimizing the life cycle cost (LCC) of every asset.

To be lastingly successful, an EAM system, in fact every system, must include ensuring the future success of its User. The first illustration only concerns itself with improving operating asset performance and not with getting an endless stream of ever-growing operational profits. Whereas the second illustration overviews an EAM system model that will optimize both operational asset performance and the operational system to generate more operating profits every month.


The EAM system model below provides Users with an EAM system improvement strategy. It views life cycle asset management as an integrated, self-improving, business environment-wide system. It includes many ways to optimise an EAM system to ensure it enhances operating asset performance and will deliver much greater operational success and new operating fortunes.


Great thanks are given to W. Edwards Deming, the Father of Quality Management, whose Figure 1 in his book, Out of the Crisis, titled ‘Production Viewed as a System’ guided and influenced the content of the holistic EAM system design in the second diagram.

Mike Sondalini
PWWEAM System-of-Reliability
9 May 2022

1. Apology to Paul Hogan for usurping the famous quote from his movie, Crocodile Dundee. When a thug threatens Mick Dundee and his date on a New York City Street with a pocketknife, Dundee pulls out a huge outback hunting Bowie knife and says, “That’s not a knife. THAT’S A KNIFE!” Like the pathetic knife the mugger used to try get Mick Dundee’s wallet, if the EAM system design used by a corporation, business, organization, or a site does not continually optimise and improve operating results, then it is a laughable EAM system model to be using.