Navigating the Dynamics of Asset Management in D365 Finance and Operations
Managing physical assets is complex, but utilizing Asset Management in Dynamics 365 Finance and Operations streamlines this process by optimizing performance and extending asset lifecycles.
Leveraging Enterprise Asset Management in Dynamics 365 provides you with a comprehensive solution that manages the entire lifecycle of your assets, from purchase to retirement. This helps you perform preventative and corrective maintenance and streamline supply chain operations.
In this blog post, we will explore the key features and benefits of this tool, how it differs from Dynamics 365 Field Service, and examine the basic capabilities and concepts you should be familiar with. We will also give you a glimpse into EAM in action within Dynamics 365, and reveal what is on the horizon for this innovative product.
What is Enterprise Asset Management?
Enterprise Asset Management (EAM) is a term that encompasses various aspects of managing internal assets and machines of a business, as well as the spare part inventory and resource needs for them. It is a powerful solution that includes a variety of specific and effective capabilities including enabling businesses to:
- Track the status and condition of their assets
- Generate maintenance requests and work orders based on the information stored in the system
- Help businesses plan and execute preventative maintenance
- Record and post the costs associated with maintenance activities to the general ledger for improved accuracy and transparency in financial reporting
All of these benefits are built into Supply Chain Management, meaning you can use them to drive your business process and optimize it as you tackle asset management requests within your organization.
Why is Enterprise Asset Management Important to Manufacturers?
EAM helps manufacturers improve their asset performance, reduce their costs, and enhance their operational efficiency in a variety of beneficial ways, such as:
Tracking and controlling your assets
You can monitor the location, status, condition, and hierarchy of your assets. You can also track the acquisition cost, maintenance cost, and total repairs of each asset, giving you a clear picture of your asset value and performance. EAM can handle many different types of assets, such as machines, tools, vehicles, buildings, and more.
Automating and streamlining your maintenance processes
This tool lets you create and assign work orders, schedule preventive and corrective maintenance, and reorder spare parts based on demand. You can also integrate EAM with D365 Finance to manage your budget and expenses. EAM helps you meet your operational maintenance requirements, such as compliance, safety, quality, and efficiency.
Reducing downtime and increasing productivity
EAM helps you plan and coordinate your maintenance activities to minimize disruption and maximize utilization of your assets. You can also use EAM to analyze the impact of downtime on your production and adjust your MRP planning accordingly. EAM leverages advanced MRP capabilities, such as resource allocation, capacity planning, scheduling, and forecasting, to optimize your production processes.
Leveraging advanced capabilities and integrations
With built-in features such as advanced warehouse management, transportation management, demand planning, and machine learning, you can optimize your inventory, logistics, forecasting, and decision-making processes. EAM also integrates with other D365 modules including Supply Chain Management, Manufacturing, and Customer Service, to provide a comprehensive and unified solution for your business.
Enterprise Asset Management vs Dynamics 365 Field Service: What Are the Differences?
We commonly get asked about the difference between EAM and Dynamics 365 Field Service. This is because both are powerful software solutions that can help you manage assets and equipment, but have different purposes and features. Here are some key differences:
Internal Assets vs External Assets
EAM is designed to help you manage the assets you own and use within your organization, such as machines, tools, vehicles, buildings, and more. It is integrated with the D365 Supply Chain Management and gives you access to resources from a production perspective, such as MRP, inventory, purchasing, and bidding.
Field Service is mainly used to service the assets you sell or provide to your customers, such as products, devices, or systems. Field Service helps you manage the work orders, schedules, and invoices of your field technicians who perform the service.
Advanced Features vs Basic Inventory
With EAM, you gain access to more features that support more complex operations specific to internal asset management, including:
- Fixed asset integration
- Advanced spare part management
- Extended business process support
- And more
For example, EAM in Dynamics 365 will help you reorder spare parts based on demand by using planning optimization and Min Maxes. It can also help you perform maintenance rounds to check on the condition of your assets before each shift. With Field Service, you get access to a basic inventory system where you can track spare parts that field technicians use. However, it does not have the same depth of integration with purchasing and bidding as EAM.
Different Integrations
While the two systems share common concepts like assets, installed locations, spare parts, BOMs, and more, they have different integrations with other Dynamics 365 modules. EAM integrates with Dynamics 365 Finance and Supply Chain Management, and Customer Service, whereas Field Service integrates with Dynamics 365 Sales, Customer Service, and Project Operations
Enterprise Asset Management Capabilities in Dynamics 365
Let's delve into the five core capabilities of EAM in Dynamics 365:
Asset and Functional Location
At the core of EAM lies the concept of assets and functional locations. Assets can be organized hierarchically, with parent-child relationships defining complex structures within the system. Functional locations complement this hierarchy, allowing users to determine where assets are deployed within the manufacturing facility. This configuration provides a clear overview of asset distribution and installation locations, facilitating effective maintenance planning and resource allocation.
Maintenance Requests
Maintenance requests serve as the initial trigger for addressing maintenance needs within the organization. These requests enable end-users to report issues or request maintenance services, initiating a structured approval process before it goes onto a work order. By segregating user-generated requests from direct work orders, maintenance teams can prioritize and address maintenance issues efficiently.
Work Orders
Work orders are actionable directives for maintenance teams, encapsulating resource requirements, labor allocations, material provisions, and financial considerations. These directives serve as the focal point for scheduling maintenance activities and orchestrating downtime management. Work orders enable better coordination between various stakeholders and ensure timely resolution of maintenance tasks, minimizing operational disruptions.
Preventative Maintenance/Maintenance Schedule
Preventative maintenance is pivotal in preemptively addressing asset degradation and mitigating potential failures. Maintenance schedules within Dynamics 365 allow you to create and execute preventative maintenance plans, driven by either date-based or counter-based triggers. Data-driven plans, such as quarterly filter replacements, ensure timely maintenance intervals, while counter-driven plans, like mileage-based vehicle tune-ups, optimize maintenance cycles based on asset usage and performance metrics.
Internet of Things
Integrating Internet of Things (IoT) capabilities further enhances preventative maintenance initiatives within D365. IoT devices, such as ESP32 chips, enable real-time monitoring of asset conditions and performance parameters. By leveraging IoT data, organizations can proactively generate work orders based on predefined thresholds and operational benchmarks, fostering a proactive maintenance culture.
Use-Cases for Asset Management in Dynamics 365 in Action
Navigating the intricacies of asset management within D365 offers a glimpse into the comprehensive capabilities designed to streamline organizational operations. Here's a look at features in EAM in action:
Asset Management Overview
Upon accessing Finance and Operations, users can utilize a robust array of features under Asset Management. From requests to work orders, procurement processes, pooling, loaning, and inbound/outbound asset tracking, the platform provides a comprehensive suite for managing assets efficiently.
User-Centric Workspaces
The platform's user-centric design ensures intuitive interaction with asset management functionalities. Users can seamlessly create maintenance requests, manage work orders, and track asset-related activities through dedicated workspaces tailored to their roles.
Asset Insights and Hierarchies
D365 enables users to gain deeper insights into asset details and hierarchies. By accessing asset profiles, users can view pertinent information such as child assets, work orders, preventative maintenance schedules, and loaned assets. The platform supports both parent-child relationships and complex hierarchies to denote asset installations accurately.
Maintenance Planning and Execution
The system facilitates comprehensive maintenance planning and execution through customizable maintenance plans. Users can define maintenance schedules based on time or usage metrics, ensuring proactive asset management and minimizing downtime. The platform's flexibility allows for the integration of location-based maintenance plans, optimizing asset upkeep based on specific requirements.
Work Order Management and Execution
Work orders serve as actionable directives for maintenance teams, encompassing resource allocations, material provisions, and financial considerations. D365's work order management module enables users to track work order status, manage resource planning, and monitor maintenance progress effectively. The system supports real-time updates and expense tracking, enhancing transparency and accountability in maintenance operations.
Mobile Accessibility and Mobility
Dynamics 365 extends its functionality to mobile devices, empowering maintenance teams with on-the-go access to asset management tools. The mobile app provides seamless navigation, allowing technicians to view work orders, access asset details, and perform maintenance tasks remotely. The mobile experience ensures agility and responsiveness in addressing maintenance needs, enhancing operational efficiency across the organization.
What Does the Future Hold for Enterprise Asset Management?
The future of EAM holds significant advancements in IoT integration, updated mobile applications, and AI enablement. With the increasing reliance on IoT devices, machines will provide detailed usage reports, facilitating more informed decision-making. Moreover, mobile applications will undergo enhancements, aligning with the robust capabilities of platforms like D365, offering improved functionality.
The imminent integration of AI into EAM processes promises pattern-based predictive maintenance, enabling proactive asset management by identifying potential issues based on data patterns. This evolution emphasizes a transformative shift towards smarter, more efficient EAM practices, with these innovations expected to shape the landscape soon.
Capitalizing on EAM capabilities in D365 Supply Chain Management empowers manufacturers to streamline asset management processes, optimize maintenance workflows, and enhance operational efficiency. By leveraging EAM’s powerful features, businesses can proactively manage their assets, minimize downtime, and drive sustainable growth in today's dynamic business landscape.
Reach out to Stoneridge Software to Gain Insight into How You Can Optimize Processes in Dynamics 365
Stoneridge experts can help you use and optimize EAM to streamline your asset management processes. We want to help you unlock the potential of your business by taking advantage of the innovative solutions within Dynamics 365.
Get in touch today to learn more.
Under the terms of this license, you are authorized to share and redistribute the content across various mediums, subject to adherence to the specified conditions: you must provide proper attribution to Stoneridge as the original creator in a manner that does not imply their endorsement of your use, the material is to be utilized solely for non-commercial purposes, and alterations, modifications, or derivative works based on the original material are strictly prohibited.
Responsibility rests with the licensee to ensure that their use of the material does not violate any other rights.