7 Enterprise Asset Management Software Best Practices That Cut Costs by 20%

Introduction

In the world of facility and maintenance management, the pressure is always on. Budgets get tighter, equipment gets older, and the C-suite wants to see numbers that prove maintenance is more than just a cost center. For years, we've been fighting fires, running from one breakdown to the next, with barely enough time to catch our breath, let alone think strategically. That run-to-failure model, the one that feels so familiar, is a slow bleed on the bottom line. It’s a cycle of reactive chaos, and it’s incredibly expensive.

The promise of Enterprise Asset Management (EAM) and Computerized Maintenance Management System (CMMS software) has always been to break that cycle. Yet, many organizations invest in these powerful platforms only to use them as glorified digital work order pads. They barely scratch the surface of what’s possible, and the promised ROI remains elusive. The software itself isn't a magic bullet. It’s a tool, and like any tool, its effectiveness depends entirely on the skill and strategy of the person wielding it.

The good news is that unlocking significant savings doesn't require a complete overhaul or a PhD in data science. It requires a commitment to a set of proven best practices. Industry data and hands-on experience show a clear pattern: organizations that rigorously apply these principles see dramatic improvements. We're not talking about marginal gains. We're talking about a fundamental shift in operational efficiency that regularly leads to cost reductions of 20% or more through reduced downtime, optimized labor, better inventory control, and extended asset life. This isn't theoretical; it’s the tangible result of moving from a reactive stance to a proactive, data-informed strategy.

This guide outlines seven of those core best practices. These aren't abstract concepts; they are actionable strategies that maintenance and facilities teams can begin implementing to transform their operations and, more importantly, their bottom line.

The Bedrock of Success: Asset Data and Hierarchy

Before a single wrench is turned or a work order is generated, the foundation for success—or failure—is laid. Too many EAM implementations stumble right out of the gate because of a rush to get the system "live" without first doing the unglamorous but absolutely critical work of structuring the asset data. It's the equivalent of building a skyscraper on a shaky foundation. Sooner or later, it’s going to show cracks.

1. Architect a Granular and Logical Asset Hierarchy

The asset hierarchy is the backbone of the entire maintenance management system. It’s the logical structure that organizes every piece of equipment your team is responsible for, from an entire facility down to a single motor. A poorly constructed hierarchy is a nightmare. Imagine trying to find the maintenance history for a specific air handler unit (AHU-07) on the third floor of Building B, but it’s just listed as "HVAC" along with 50 other units. It makes historical analysis impossible and PM scheduling a guessing game.

A best-in-class hierarchy uses a parent-child logic. For example:

* Campus > Building B > Third Floor > Mechanical Room 301 > AHU-07 > Fan Motor

This level of granularity is non-negotiable for effective EAM. It allows maintenance teams to roll up costs and analyze failure trends at any level. Is Building B costing more in HVAC repairs than Building A? Is there a systemic issue with a certain model of fan motor across the entire campus? Without a logical hierarchy, these questions are unanswerable. The data exists, but it's lost in a flat, disorganized list.

Getting this right takes time. It involves walking down the assets, verifying nameplate data, and making logical decisions about how to group equipment. It’s a significant upfront investment of time, but it pays dividends for the entire lifecycle of the system. Skimp on this step, and you’re building a system that will forever fight against you.

2. Institute a Culture of Data Discipline

The old adage "garbage in, garbage out" has never been more true than in EAM. A CMMS is only as smart as the data fed into it. The most common point of failure is inconsistent and incomplete data entry on work orders. When a technician closes a work order, the information they provide is gold. Or it should be.

Consider a work order for a failed pump. If the technician simply writes "Fixed pump" in the notes, that data is virtually useless for future analysis. What was the problem? A failed seal? A bearing seizure? An electrical issue with the motor? What was the root cause? Was the wrong lubricant used? Was it a vibration issue?

Enforcing data discipline means creating standardized failure codes, problem codes, and action codes. It means training technicians not just on *how* to use the mobile CMMS app, but *why* capturing accurate data matters. It’s about shifting the mindset from "closing the ticket" to "contributing to the asset's knowledge base."

This is also where a modern, user-friendly system makes a world of difference. If the software is clunky and difficult to use on a mobile device, technicians will find workarounds or enter the bare minimum to get the job done. A platform designed with the end-user in mind, one that makes it easy to select from dropdowns, attach photos, and dictate notes, dramatically increases the quality of data captured in the field. This high-quality data becomes the fuel for all other optimization efforts, from refining PM schedules to making informed capital replacement decisions.

Shifting from Reactive to Proactive Maintenance

The single biggest driver of maintenance cost is unplanned downtime. When a critical asset fails unexpectedly, everything grinds to a halt. The costs pile up fast: lost production, expedited shipping for parts, overtime for technicians, and the cascading effect on downstream processes. The core purpose of any EAM strategy is to get out of this reactive firefighting mode and into a proactive, planned state.

3. Systematically Implement and Refine Preventive Maintenance

Preventive maintenance (PM) is the first and most critical step away from a run-to-failure approach. It's the simple idea of performing routine inspections, lubrication, adjustments, and parts replacements on a schedule to prevent failures before they happen. It’s changing the oil in a car before the engine seizes. Everyone understands the concept, but the execution is often where things fall apart.

An effective PM program isn't just a collection of random tasks on a calendar. It is a highly structured system managed within the CMMS software. For each critical asset, specific PM work orders should be generated automatically based on time (e.g., quarterly, annually) or usage (e.g., every 1,000 run hours). These work orders must include detailed checklists, safety procedures (like Lockout/Tagout), required parts, and estimated labor hours.

This is where the asset hierarchy and data discipline start to pay off. When a PM is created for "AHU-07," the system can automatically link to its maintenance history, technical manuals, and a bill of materials listing the exact filters and belts required. This eliminates the guesswork and wasted time for the technician.

The initial implementation of a PM program will almost certainly result in an increase in planned "downtime" and maintenance hours. This can be a tough sell to operations and finance, who are used to seeing maintenance only when something is broken. This is where maintenance metrics become crucial. It’s about tracking the corresponding *decrease* in unplanned, emergency work orders and the overall reduction in asset-related failures. The goal is to trade expensive, chaotic reactive hours for cheaper, more efficient planned hours.

4. Use Data to Optimize PM Task Lists and Frequencies

Simply "doing PMs" isn't enough. The next level of maturity is PM optimization. Many organizations implement PMs based on OEM recommendations, which are often overly conservative to protect the manufacturer from warranty claims. The result? Teams spend precious time and resources over-maintaining assets that don't need it, while potentially under-maintaining others.

This is where the data captured in the EAM becomes a strategic asset. By analyzing failure history against PM schedules, patterns emerge. Are you replacing a bearing every six months as part of a PM, but the failure data shows that specific bearing model consistently lasts nine months or more? You might be able to extend that PM frequency, saving parts and labor with minimal risk. Conversely, if an asset keeps failing due to a clogged filter a month before its scheduled PM, that frequency needs to be tightened.

This is a continuous improvement loop:

1. Execute the planned PMs.

2. Capture detailed data on all failures and corrective work.

3. Analyze the data to find trends (e.g., using reports on MTBF - Mean Time Between Failures).

4. Adjust PM task lists and frequencies based on the analysis.

This data-driven approach ensures that "wrench time" is spent on the most valuable tasks. It stops the wasteful practice of performing PMs "because we've always done it that way" and shifts to a dynamic program that adapts to the real-world performance of your specific assets in your specific operating environment. It’s the difference between blindly following a map and using a live GPS that reroutes you based on real-time traffic.

Streamlining the Core Engine: Work Orders and Inventory

The work order is the lifeblood of the maintenance department. It’s the vehicle for communication, execution, and data collection. At the same time, nothing can derail a well-planned job faster than a missing part. Optimizing the interconnected processes of work order management and MRO (Maintenance, Repair, and Operations) inventory is essential for cutting wasted time and money.

5. Perfect the Work Order Management Lifecycle

An optimized work order process is about flow and information velocity. It’s about minimizing the time from when a problem is identified to when it’s fully resolved and documented. A clunky, paper-based system is a boat anchor on this process. Technicians waste time walking back and forth to a central office to pick up and drop off paper, information gets lost, and handwriting can be illegible.

A modern, mobile-first CMMS completely transforms this lifecycle.

* Creation: A work request can be submitted by anyone on the floor via a simple web portal or mobile app, complete with photos of the issue. This request is then reviewed and converted into a work order by a planner or supervisor.

* Planning & Scheduling: The planner can assign the work order to the right technician based on skill set and availability, attach all necessary documents (manuals, schematics, safety permits), and pre-stage any required parts.

* Execution: The technician receives the work order instantly on their mobile device. They have the entire asset history at their fingertips. They can log their time, record parts used, enter failure codes, and add notes directly in the field. No more greasy papers and double data entry at the end of the day. Modern platforms, where the mobile experience is paramount (such as the solution found at https://www.app.maintainnow.app/), are built to make this process as frictionless as possible, which is key to user adoption.

* Closure & Analysis: Once the work is complete, the technician closes the work order on their device. All the data—labor hours, parts costs, failure codes—is instantly available for reporting and analysis.

This digital workflow eliminates countless small delays that add up to massive productivity losses. It increases "wrench time"—the amount of time technicians are actually performing maintenance—and provides management with real-time visibility into work status and backlogs.

6. Integrate MRO Inventory Control with Your EAM

There are few things more frustrating for a technician (and more expensive for the company) than having a critical machine down, knowing exactly how to fix it, and then discovering the necessary spare part isn't in the stockroom. The job stops. The machine stays down. The tech is idle while someone scrambles to source the part, often paying a premium for expedited shipping.

Effective inventory control is not a separate function; it must be deeply integrated with your EAM/CMMS. This means linking spare parts directly to the assets that use them in the asset hierarchy. When a work order is generated for a specific asset, the system should show the technician exactly which parts are needed and whether they are in stock.

Best practices for integrated inventory management include:

* Setting Min/Max Levels: Establish automatic reorder points for critical spares. When stock levels drop below a set minimum, the system should automatically generate a purchase requisition or alert the inventory manager.

* Cycle Counting: Move away from the dreaded annual physical inventory. Implement a program of regular cycle counting for high-value or critical items to ensure the inventory levels in the CMMS match what's actually on the shelf.

* Parts Kitting: For major, recurring PMs, the system can be used to generate a "kit" of all required parts. The storeroom attendant can pull and package these parts ahead of time, so the technician can just grab the kit and go, saving significant time.

By treating MRO inventory as a strategic asset managed within the EAM, organizations can drastically reduce stockouts, minimize expensive rush orders, and lower overall inventory carrying costs by eliminating obsolete and excess parts. It turns the storeroom from a cost center into a key enabler of maintenance efficiency.

The Strategic View: Compliance, Reporting, and Continuous Improvement

The final practice elevates EAM from an operational tool to a strategic business system. It’s about using the platform not just to manage daily work, but to mitigate risk, ensure compliance, and provide the data-driven insights needed to justify budgets and drive long-term improvements.

7. Leverage EAM for Compliance and Data-Driven Decision Making

In many industries—from food and beverage to pharmaceuticals and energy—regulatory compliance is not optional. Audits from bodies like the FDA, EPA, or OSHA can be intense, and failure to provide proper documentation can result in hefty fines or even shutdowns. The EAM system should be the single source of truth for all maintenance-related compliance activities.

This means using the EAM to:

* Document Safety Procedures: Attach Lockout/Tagout procedures, confined space entry permits, and other safety documents directly to assets and work orders. This ensures the correct procedure is always available to the technician.

* Track Calibrations: For critical instrumentation, the EAM can schedule and track all calibration work, providing a complete, auditable history to prove that devices are performing within specified tolerances.

* Maintain Audit Trails: A robust EAM provides an unalterable record of who did what, and when. Every work order closure, every PM completion, every data change is time-stamped, creating a bulletproof history for auditors.

Beyond compliance, the ultimate goal is to use the wealth of data collected in the EAM to make smarter business decisions. This is where maintenance metrics and reporting come into play. Dashboards and reports should be configured to provide clear answers to key questions:

* What is our PM compliance rate?

* What is our ratio of planned vs. unplanned work?

* Which 10 assets are costing us the most in maintenance labor and parts?

* What is our Mean Time To Repair (MTTR), and how is it trending?

* Are we improving our Mean Time Between Failures (MTBF) on critical assets?

These aren't just maintenance metrics; they are business metrics. They provide the hard data needed for facility and maintenance managers to move beyond anecdotal evidence and have fact-based conversations with senior leadership. This data is what justifies a new hire, proves the ROI on an equipment upgrade, and ultimately transforms the maintenance department from a perceived cost center into a recognized strategic partner in the organization's overall success. When a maintenance director can walk into a budget meeting with a report showing how a targeted PM optimization program on the HVAC systems saved $150,000 in energy and repair costs last year, the conversation changes completely. That is the ultimate power of a well-implemented EAM strategy. It's not just about fixing things; it's about driving tangible business value.