Contemporary businesses must continuously seek out new strategies to increase the efficiency of their operations because many of them are well-positioned to conduct business broadly. Whatever the industry, all sorts of assets need to be managed to achieve the greatest return on investment. The Singaporean automotive industry is a place where they find many challenges to face in daily assets management. That is exactly where the solution of Enterprise Asset Management (EAM) fits in. Businesses have realised how important it is to get more value out of their machines and other properties thanks to the utilisation of new digital platforms like EAM.
In this article, we will discover the concept of EAM and how the implementation of EAM happens for the automotive industry in Singapore. Moreover, we will walk you through the advantages of EAM solutions for the automotive sector and how they significantly benefit from EAM strategies.
How Big is the Automotive Industry in Singapore?
With a predicted compound annual growth rate (CAGR) of 6.03% between 2022 and 2027, the automobile sector in Singapore is expected to develop significantly. It is anticipated that throughout this time, the market would grow by 18,191 real units. The demand for fuel-efficient and low-emission cars is on the rise, smaller engines are increasingly being used in light commercial vehicles (LCVs), and the web markets for car sales are all contributing causes to this expansion.
These patterns reflect a transition toward technologically sophisticated and environmentally friendly vehicles that is consistent with the country’s emphasis on innovation and sustainability. The anticipated expansion emphasises the automobile industry’s significance in Singapore and its potential for future growth. Due to its unstoppable growth, the automotive industry requires fewer mistakes and unexpected asset failures on its way to broadening its horizons. Employing EAM systems is known as one of the main strategies the automotive companies in Singapore utilise to predict the future breakdowns of their equipment and asset collapses.
What Exactly is the EAM Solution?
The EAM or Enterprise Asset Management refers to taking control over your assets. It is common knowledge that unplanned downtime will result from a single, simple mistake in the management and upkeep of company assets. Yes, one mistake leads to a million dollar loss! With the use of EAM software, businesses can better prioritise, plan, carry out, and keep track of the tasks, resources, tools, and data related to their assets.
EAM is not limited to one aspect. It spans a wider range of activities, including capital planning, procurement, installation, performance, maintenance, compliance, risk management, and asset disposal. It also includes the management and maintenance of physical assets owned by a company for every phase of an asset’s existence. Although conventional EAM systems have been set up on-site, technology has advanced, and contemporary solutions now operate in the cloud.
If put in simple words, It is software that can respond to any asset-related queries, including where the assets are, how long they will last under specific operating conditions, when their next maintenance is necessary, which professional is most qualified to handle repair calls, and more.
As a result, small and medium-sized companies should also consider using EAM software. This is not a facility that should only be utilised by the pioneers of the business world, as the features of the software can be customised according to business purposes. This is the reason behind the employment of EAM systems in the different sectors. For example, the global EAM market size was $5,966.2 according to the 2021 reports, and it has been estimated to grow up to $19,401.9 by 2030.
This is Why Automotive Companies Need EAM Solutions
The activities carried out by the Singaporean automobile sector are massive overall, necessitating a significant amount of workers, plant machinery, spare parts, equipment, and facilities. All these aspects come under one category which is known as assets. Utilising an efficient asset management system allows companies in the automotive sector to get the most out of the effectiveness of their productive output. As we have mentioned above, most automotive companies have started to opt for EAP systems considering the possible losses. Still, there are some companies that do not give much weight to asset monitoring through digitised tools.
Realising the most significant benefits associated with using an EAM could assist you identify the distinctive benefits you can derive from one to maximise your company’s asset management efforts. The following are some of the best advantages of implementing an EAM system.
Tracing Assets
Every piece of equipment is crucial in the automotive business. These assets are not only complex, but they also have a high cost. It becomes essential to track them properly to prevent theft, loss, and the resultant damage to corporate operations. Each asset has a high value, thus it is crucial to manage them well. Fortunately, with the help of cutting-edge EAM software, you can now easily manage and monitor any asset while making decisions based on real-time data. Vehicle manufacturing companies that manage large inventories and a variety of key assets might discover this software to be very helpful.
Companies in the automotive sector can retain a thorough overview of their assets by utilising this software solution, assuring accurate tracking and monitoring at all times. Decision-makers are given practical insights through real-time data, which also enables proactive asset management and prompt actions.
Utilising such software has a variety of advantages. It reduces the possibility of asset theft, loss, or misplacement, averting interruptions and delays in Singaporean automotive business operations. Plus, it optimises resource usage and allocation, resulting in increased effectiveness and cost savings. Real-time tracking features of the software also enable quick reaction and recovery in the case of asset-related accidents.
Deciding on When to Schedule Maintenance
The Singaporean vehicle business places a lot of emphasis on maintenance to stand out from its rivals. Your everyday operation will operate smoothly and error-free when your assets are maintained. Yet, operations will be interrupted and productivity will be affected if there are issues with the assets. The situation would worsen if a breakdown happens suddenly since it will stop routine activities and cause manufacturing to be disrupted. Not only that but also the delivery will not be completed on schedule.
This is where the automotive industry requires the EAM system. EAM makes sure that maintenance is completed on schedule. The manager-defined schedule is followed when planning maintenance for both critical and non-critical equipment. Equipment maintenance lowers the likelihood of unexpected equipment failure.
In addition, it is important to replace any broken or rusted parts with new ones to successfully maintain a vehicle. Maintenance workers can confirm that the inventory is in stock thanks to inventory tracking. For the automotive sector, the uptime and downtime go up and decrease, respectively, when assets are well-maintained.
Taking Maintenance Decisions
It is always better to prevent than cure. This theory applies to the Singaporean automotive industry as well. As we mentioned before, this industry realises that maintenance is the key to successful operations. So they put more value on maintenance and monitoring maintenance activities. The automotive industry is where different types of maintenance happen regularly. To make the operations smooth, these automotive companies have to make maintenance decisions. Taking decisions is important, yet taking them at the right time is more important. Being proactive, the EAM system allows companies to take the necessary decisions in advance. EAM extends its capabilities not only to create a comprehensive maintenance schedule but to expand the ROI as well.
You can keep an eye on costs and keep track of impending maintenance dates by maintaining meticulous records of each asset’s maintenance history. This function is quite beneficial in deciding whether to keep an asset or replace it since it gives information on how much total maintenance will cost and what kind of upkeep it will need in the future. The automotive sector can efficiently improve asset performance, reduce breakdowns, and make informed decisions for the management of its priceless assets by using the preventative maintenance feature of the EAM system as a pillar.
Tracing Inventory
Assets and inventory are equally important in a company centred on automobiles. Inventory availability is essential for timely deliveries as well as effective asset maintenance and the production of automobiles. Significant corporate losses can be minimised with the implementation of asset tracking systems and EAM.
EAM offers real-time location tracking of equipment and assets using technologies like barcodes, QR codes, and RFID. Each labelled asset or inventory item is given a special identification number that enables effective monitoring, sets off alarms for low stock levels, and starts prompt replenishment procedures.
Complying with Regulations
As Singapore places increasing emphasis on this component, its compliance is crucial for vehicle manufacturers. Compliance can encompass things like asset authentication, asset health, work environment & protection, asset paperwork, and other things. A large automotive company owns several assets that are dispersed around a wider area. With EAM software, it is possible to properly eliminate damaged assets from a company account or determine their precise location. Complying with the asset management regulations prevents automotive companies from getting penalised by the Singaporean government.
Expedite Growth Ensuring Your Assets are Well-Managed
Assets being abundant in the automotive industries are inevitable as they are being utilised to speed up processes seamlessly. As a result, the major pillars of automobile companies are assets, different kinds of equipment, and inventories. That is why keeping assets up-to-date is vital.
Companies in the Singaporean automotive sector can gain a lot from implementing an appropriate EAM system, from maintaining manufacturing facilities operating safely, effectively, and within guidelines, offering complete traceability over every step of the asset lifecycle to improving warranty claim management, etc.
