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ERP Vs EAM.. - Printable Version

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ERP Vs EAM.. - TheOne - 05-26-2003

Lot of debate is going in "enterprise softwares" world about "Enterprise Resource Planning" Vs "Enterprise Asset Management"... Not much material is available about the debate but what I read is that "SAP" says "there's no difference (or shouldn't be)" whereas one of their big rivals "PeopleSoft" claims that two are quite different.
Guys.. is there any feedback available???

- tech01 - 06-17-2003

Most ERP systems are devoid of the' P' for planning. Generally these are from SO to PO and so just another name for Accounting Control Systems in the majority of cases. EAM is used for managing physical assets e.g. a CMMS- Computerised Maintenance Management System which tracks the repair an maintenance needs for the Enterprise Assets.

- TheOne - 06-19-2003

Hi Tech01, first of all welcome to Forums...!
absolutely agreed with your remarks about so-called 'erp' softwares.... (they got everything except 'P')... but getting to my basic question.... I'd read somewhere that 'ERP' in most of the cases is for 'Human Resources Based Concerns'[like Agriculture, Textiles, Construction, Retail, Services etc] where Activity Based Costing is the real concentration base...
Whereas 'EAM', on the other hand in most of the cases is for sort of 'Capital Based Concerns' [like Utilities,(like Gas supply companies, Airlines, Electric power generation & Distribution Companies etc. ].... Somehow your opinion is that "ERP & EAM are TWO different typs of softwares, designed for TWO different types of organisations'???? Is it true???
IN THE LAST.... Thanks for reply... at least I heard from someone on the topic...!!!

- tech01 - 06-25-2003

Hello TheOne,
I think that it may be fair (and possibly 'true')that EAM is a subset of ERP. An asset is a resource and capital intensive companies such as refineries,fertliser plants, power plants et all generally use an asset management system (computerised maintenance management system is just one example). These industries are continuos process based and cannot afford any downtime.

- CBPian - 07-12-2003

I agree with tech01, EAM is definitely a subset of ERP in an organisational context. However, only those organisations would use it where asset management is mission-critical.

- tech01 - 07-16-2003

Hello CPBian,
Asset management should be mission critical to all businesses- would you agree? Unfortunately our local establishments forget that even 'employees' are an asset that has to be 'managed'! Physical assets are run down much quicker where no asset management exists textile industry is an obvious example.

- CBPian - 08-07-2003

Well generally you are right. Specifically asset management is most needed industries like textile etc. EAM is not necessary in trading and service concerns. Treating employee as human capital does sound good but it is not relevant in EAM context. Perhaps some other management strategy/system for human capital should be developed.

Edited by - CBPian on Aug 07 2003 32148 PM