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Real Estate and Facilities Plant and Production Mobile Assets Infrastructure Information Technology
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Asset Management Center of Excellenceamcoe
Asset Management Solutions
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Supported By
"Using Asset Management Leading Practices to Create Your Organization’s Best Practices"
Richard van DongenService Manager EAM Maximo BeneluxMaximo Service Area Leader - SW IOT
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Material Table of ContentsMaterial Table of Contents
� Key Trends in Industry
� Visibility issues and strategy
� How to use Enterprise Asset Management to make Assets Visible
� Control: asset management opportunities
� How Enterprise Asset Management helps you control processes that impact your asset performance
� Automation: it’s critical to have efficient asset performance
� How Enterprise Asset Management supports automation of strategic maintenance management
� Some Success Stories
� Summary
� Q&A
Real Estate and Facilities
Plant and Production
Mobile Assets
Infrastructure
Information Technology
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Leading Practices vs. Best PracticesThe Big Picture
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In Response to these Trends…• Increased automation
• More complex silos of technology
• Aging workforce
• “Best of breed” vs. “one stop shop”
• Greater emphasis on “green” and Corporate Social Responsibility
• Increased complexity meaning Increased risk with more serious consequences
• Greater pressure to do more with less
How do I…• Get alignment, from plant eng & maintenance,
to customer?
• Integrate technology to keep it simple?
• Use IT for knowledge transfer?
• Ensure ease of implementation & upgrade, maximum flexibility, and best fit with needs?
• Better monitor asset sustainability for lower costs & improved brand?
• Improve planning, tracking, and control systems to minimize damage and prevent re-occurrence?
• Develop a strategy, measure, benchmark best practices, and take action?
Need to ChangeNeed to Change StrategyStrategy MeasureMeasure InitiativesInitiatives Behavior ChangeBehavior Change
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The Need for Change:Today’s Big Challenges
and Opportunities
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EAM Challenges/OpportunitiesEAM Challenges/Opportunities
� What are the challenges and opportunities regarding enterprise asset management?
� How do you get the attention of top management, and change the behavior of the front line, to deal with these challenges and exploit these opportunities?
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Getting BuyGetting Buy --in: What Gets in: What Gets Senior ManagementSenior Management Attention?Attention?Link enterprise asset management to profitability management as follows:
Profitability = profit / net assets
= profit x sales sales net assets
= profit margin x capital turnover
This link can more easily be accomplished through a more strategic approach to managing assets.
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Getting BuyGetting Buy --in: What Changes in: What Changes Front LineFront Line Behavior?Behavior?
� Leadership- Clear vision and plan- Consistency over the long term- Support through action- Realistic performance measures & targets that define success- Recognition, rewards & consequences aligned with success
� Knowing “what’s in it for me?” for each stakeholder, and managing expectations
� Clarity of roles and responsibilities
� Constant and meaningful two-way communication
� FLEXIBILITY – Things Will Change!
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The Need for Change:Technical versusStrategic Change
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Technology
Processes
Strategy
Organizational Design
Measurement
Change Management
Primary Tools (e.g., Lean, Six Sigma, RCM, PdM)
CUSTOMER
Service Price Quality
Key Differentiators(e.g., Human Performance Factor)
TechnicalChange
StrategicChange
Move from Technical Change to Strategic ChangeMove from Technical Change to Strategic Change
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It Takes a Team with a StrategyIt Takes a Team with a Strategy …………....
� 80% of your improvements will be related to Process + Organization .
� Technology itself is not the solution.
� Maintenance of IT enabled assets is no longer just the job of IT staff.
� If the Business processes never change then the heavy reliance on the new software implementation simply glosses over (or automates) existing problems. Never assume the improvement process will manage itself.
“ If you do what you always do, you will get what you always get.”
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Where Promises meet RealityWhere Promises meet RealityTechnology DOES:
� Create agility
� Leverage process improvements across all asset classes
� Reduce total cost of ownership:
• single interface
• single set of skills
• consistent employee interface
Need to ChangeNeed to Change StrategyStrategy MeasureMeasure InitiativesInitiatives Behavior ChangeBehavior Change
Technology DOES NOT:
� Automatically fix all your problems.
� In itself define a Best Practice
� Provide information in lieu of data
�Change behavior
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An Opportunity for ImprovementAn Opportunity for Improvement
� Supporting Systems- Numerous “niche” systems
- Excessive overlap
- Difficult to manage data
- Limited agility
� Business Processes- Fragmented
- Limited standardization
- Limited alignment with business goals
OPERATIONALASSETS
ITASSETS
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Strategic Asset and Service ManagementStrategic Asset and Service Management
� Supporting Systems- Rational suite
- Architecturally modern
- High degree of agility
� Business Processes• Single set, supporting
business and IT operations
• Aligned with business goals
• Standardized
ASSETS
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� Asset Management is a business discipline related to managing an enterprise’s assets over their lifecycle from design, build, procurement, operation, maintenance, modification and disposal. This not only includes the assets, but the inventory and human resources associated with maintaining them. Assets can be in classes such as Real Estate and Facilities, Plant and Production Equipment, Mobile/Fleet Assets, Infrastructures, and more recently IT equipment and networks.
� Assets Classes Include- Utilities... plants, pumps, generators, and substations…- Transportation organizations… crews, mixers, sub-contractors...- Fleet… trucks, buses, heavy equipment, rail cars…- Seaports… ships, cranes, platforms, and forklifts…- Airlines... planes, cargo handling equipment...- Facilities… buildings and grounds...- Healthcare... hospitals, health care equipment…- Pharmaceutical … FDA compliance mfg...- Defense... tanks, planes, ships…- IT … servers, workstations, software, help desk…
Real Estate & Facilities
Infrastructure
Mobile/Fleet
Plant and Production Information Technology
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Best in Class depends on Total Lifecycle Asset Mana gement Best in Class depends on Total Lifecycle Asset Mana gement
� Single platform for Enterprise Asset Management , IT Asset Management , and Service Management- Fully integrated real and personal property asset management solution- Extend asset life, improve asset performance, and improve mission readiness and availability- Reduce infrastructure cost and improve accountability and compliance- Utilize standard processes, definitions and tools providing economies of scale- Support emergence of pervasive devices (embedded chips, RFID, sensors, detectors, etc.)
Runways, Roads, Electric / Gas Distribution, Telecom, Water/Wastewater
AssetStrategy
Plan Evaluate and Design
Create / Procure
Operate Maintain Modify Dispose
Asset LifecycleTraditional
Asset Classes
Plant and Production
Real Estate and Facilities
Mobile and Fleet
Infrastructure
Installations, Buildings, Hangars, Warehouses, Schools, Hospitals, Gyms
Back Shop, Fuel Farms, Nuclear, Calibrated Equipment, Industrial Plant
Aircraft, Tanks, Ships, Airlines, Vehicles, Shipping, Weapons Systems
IT Equipment & Network PCs, Networks, Routers, Applications, Auto Discovery, Service Desk
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Eliminate Silos / Get Alignment: Common View of Cus tomerEliminate Silos / Get Alignment: Common View of Cus tomer
� Internal Customer Model – us/them or servant/master mentality
� Business Partner Model – shared goals but different roles
End Customer:- Service- Quality- Price
MktgLineOpns
Eng
Maint
Line Opns
Marketing
Internal Customer Model Business Partner Model
End Customer:- Service- Quality- Price
Engineering
Maint
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Shared VisionShared Vision
“If you don’t know where you’re going, any road will do.”
…. And you’d better be prepared to be satisfied wherever you end up!
The road to EAM starts with strategy; performance
measurement ensures you know when you’re there; var ious
technical tools help you develop a trouble-free rou te down the
shortest path; an SLA manages expectations along th e way.
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Where are you on the Enterprise Asset Management Where are you on the Enterprise Asset Management Continuum?Continuum?
• Inconsistent EAM Strategy; :Little or no Green• Limited Planning, Analysis & Measurement• Inefficient Processes; Unreliable Data• Poor Understanding of Risk
• Integrated EAM Strategy incl Green• Robust Planning & Measurement• Effective Automation; Accurate Data• Clear Risk Management Plan
EAM Industry
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Goals Objectives Performance MeasuresTargets(Year)
ActionItems
Baseline 1 2 3 - process-driventechnologychanges
- processchanges
- productchanges
- organizationalchanges
- financialchanges
CustomerSatisfaction
EmployeeSatisfaction
Operational Effectiveness
AssetIntegrity
Risk Mgt
Etc.
Building an EAM Strategy: The “One Pager”
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Measurement:Setting & Managing Expectations
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Goals Objectives Metrics/ Action PlansMeasures 0 1 2 3
Targets
STRATEGY
-training hrs/year
-safety lost time
People Management
-total cost of ownership
-performance
-reliability
-cost per unit of prodn
Equipment Lifecycle Management
-inventory turns
-service level
Parts Inventory Control
-equipment availability
-parts availability
Shutdown
etc.etc.etc.-machine downtime
-worker utilization
etc.Work Order
Management
60
99
50
95
40
90
-% planned work
-PM compliance
2.b.
3.c.
Maintenance
Planning
Stretch GoalRealisticMin/Max
S e r v i c e L e v e l sMeasures
ObjectiveReferences
Service
-training hrs/year
-safety lost time
People Management
-total cost of ownership
-performance
-reliability
-cost per unit of prodn
Equipment Lifecycle Management
-inventory turns
-service level
Parts Inventory Control
-equipment availability
-parts availability
Shutdown
etc.etc.etc.-machine downtime
-worker utilization
etc.Work Order
Management
60
99
50
95
40
90
-% planned work
-PM compliance
2.b.
3.c.
Maintenance
Planning
Stretch GoalRealisticMin/Max
S e r v i c e L e v e l sMeasures
ObjectiveReferences
Service Measures/ Baseline Expectations Target Design ActualDrivers
Cust. Sat.measure1measure2measure3
Emp. Sat.measure1measure2
Risk Mgmt.measure1measure2measure3
Productivitymeasure1measure2
Project Performance Measures & TargetsService Level Agreement
Business as Usual:“The best that we canbe today, consistently”
Projects:“Address the gap betweenwhere we are today vswhere we need to be”
baseline target
current service level =project baselineEAM
System EAM System
EAMSystem
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Service Level Agreement Provides a BaseService Level Agreement Provides a Base
*EAM system tracks plan vs actual
-training hrs/year
-safety lost time
People Management
-total cost of ownership
-performance
-reliability
-cost per unit of prodn
Equipment Lifecycle Management
-inventory turns
-service level
Parts Inventory Control
-equipment availability
-parts availability
Shutdown
etc.etc.etc.-machine downtime
-worker utilization
etc.Work Order
Management
60
99
50
95
40
90
-% planned work
-PM compliance
2.b.
3.c.
Maintenance
Planning
Stretch Goal*Realistic*Min/Max*
S e r v i c e L e v e l sMeasures
Objective
ReferencesService
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SLA: Setting Expectations for Baseline Performance MeasuresSLA: Setting Expectations for Baseline Performance Measures
MATERIALS MANAGEMENT� Vendor performance� Supplier pricing� For ABC classifications: Service level vs Inventory
level/turns� Obsolescence� Procurement cost (per order/unit): Rush orders,
blanket PO’s, e-procurement
ASSETS = EQUIPMENT/FACILITIES� Availability (vs machine downtime)� Utilization (vs available but not used)� Reliability (eg. MTBF, MTTR)� Performance (ie, efficiency)� Quality of output (eg, scrap)� Total Cost of Ownership (ie, lifecycle cost)
LABOR� Utilization (ie, % productive vs non-value-added
like wait time)� Performance (ie, % of standard/plan)� Effectiveness (eg, % contracted, overtime,
training, innovation, quality)
FINANCIAL/OVERALL� Cost/Unit for inventory, equipment/facility, people� Planned vs Budget vs Actual Costs� Performance to Schedule� Cycle time� “Customer” Satisfaction (eg, response time,
backlog, compliance, satisfaction survey results)� Service Levels� Cash conversion cycle (Inv+AR-AP)
Sample measures are as follows:
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The Purpose of BenchmarkingThe Purpose of Benchmarking
� Benchmarking involves seeking out another organization that does a process better than yours.
� Benchmarks are therefore an outward look to compare your organization with companies which have Best Practices in place.
� This outward look does not have to be a competitor. And it could be an entirely different industry.
Most business processes are common throughout industry – good and bad. Benchmarking within and outside one's industry allows organizations to get the information they need to set goals and find ways to achieve them. Identifying, analyzing, adapting, and sharing best practices allows organizations to do more than simply improve a particular business process. It promotes the emergence and evolution of a "learning culture" throughout the enterprise.
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Measurement:Using the Right KPI’s
To Facilitate Behavioral Change
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The Use of KPIThe Use of KPI ’’ss
� KPI (Key Performance Indicator) is another name for Performance Metric. This form of auditing provides a venue from which to compare activities over time.
� Performance metrics are an inward look to determine where the organization is relative to its goals. The challenge is to habitually seek and adapt ideas . This also means you should revise the metrics each year.
� They are useful in determining where changes are needed to sustain success.
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Key Performance IndicatorsKey Performance Indicators
One of the most successful methods of achieving behavior change is using KPIs. But lasting behavior change is the stuff of planning, sustainable motivation, and careful consideration of the pro or con. Ultimately, create a KPI only when it makes sense and supports the mission of the company.
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Business IMPACT Executive Seminar Series29
The Maturity Path from Innocence to ExcellenceThe Maturity Path from Innocence to Excellence
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Critical Success Factors
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What are the next steps to improvement ?What are the next steps to improvement ?� Get management backing. Find a visionary .
� Setup a Core team – meet on regular basis. Discuss ways to improve maintenance. Organize guest speakers. Share knowledge between EAM power users.
� Learn from others on and off-site. Strive for “best of the best”.
� Develop a Plan of Action.
� Prioritize your list of “things to be done” based on ROI.
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Keys to SuccessKeys to Success� Educated and convinced employees
� NOT just another “program of the month”
� Total management commitment and support
� Allow adequate time for implementation
� Involvement by all concerned employees
� Have one member of staff who can write good report specifications
� Turn information into policy and progress
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Keys to SuccessKeys to Success� Cross-functional, team-oriented, participatory approach involving all key stakeholders
� Adequate budget for successful implementation
� Good communications and change management plan
� Quick Wins process that capitalizes on any ideas that may come out of next steps
� Risk and business impact assessment to anticipate barriers to success and areas of greatest potential for each stakeholder group
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Getting it Right Getting it Right –– NedTrainNedTrain
The Company• Dutch Train Maintenance organization• 6 big Maintenance Locations, 35 Service
Locations
The Challenge• Many different (ERP) systems in separate databases
with limited consistent AM processes across factories• Select a solution with “best practices” built in
The Solution• Maximo Enterprise Suite, CM + SP + TM• Integration to ERP (SAP FiCo and PLM) • IBM providing Implementation Services
The Benefits• Expected savings in Overall Fleet & Contract
management regarding Performance Management, Process alignment, supply chain optimization and information sharing
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Getting it Right Getting it Right –– ProximusProximus
The Company
• Leading mobile phone operator in Belgium• > 4.0 million customers, 50% market share
The Challenge
• High cost of internally developed maintenance solut ions• Inability to manage engineer workforce efficiency• Outage on critical assets (high frequency antennas) leads
to churn
The Solution
• Maximo to provide enterprise asset management soluti on: Equipment management, Workforce planning and scheduling, Work Mgmt, Vendor Mgmt, Site Access Mgm t, KPIs, Mobile access for engineers
The Benefits
• Transparency of installed assets• Single solution for engineering and operation• Process improvements through automated workflow• Manage full Trouble Ticketing process
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Getting it Right Getting it Right –– GilletteGillette
The Company• Gillette• 7 Factories in 6 Countries
The Challenge• Many different systems in separate databases with
limited consistent AM processes across factories• Select a solution with “best practices” built in
The Solution• Maximo Enterprise Suite, Common DB 6 languages• Integration to ERP (SAP)• IBM providing Implementation Services
The Benefits• Expected savings in training, supply chain optimization
and information and process sharing • Project completed
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Getting it Right Getting it Right -- DTE EnergyDTE Energy
• Large, Multi-Business Unit Utility Serving 3.2 M Customers
• Nuclear, 9 Fossil Stations, Gas & Electric Distribution
• Variety of non-regulated businesses including railroad for coal transportation, biomass, merchant generation
The Company
The Challenge
• Consolidate numerous systems into one set of applications for all business units.
• Develop and Implement standard processes for Financial Management, Human Resources, Supply Chain and Work & Asset Management
• Rollout to “virtual company” DTE2
The Solution
• Industry Solutions: IBM Maximo for Utilities and Nuclear Power
• Integrated to SAP Financials and Supply Chain
• MDSI for Mobile and ESRI for GIS
• Hub and Spoke Integration Architecture
The Benefits
• Standardized Processes across the enterprise
• Numerous benefits including; Higher service levels, reduced O&M expense, Increased asset reliability
• $90M annual post implementation benefits