Page 1 A s s e t S m a r t ® SMART asset management software LESSONS LEARNED IN IMPLEMENTING...

Page 1 A s s e t S m a r t®

SMART asset management software

LESSONS LEARNED IN IMPLEMENTING CORPORATE

PROPERTY AND LOGISTICS MANAGEMENT SYSTEMS COUPLED

TO LARGE ERP SYSTEMS

NPMA National Educational SeminarJune 15, 2010

Myrtle Beach, SC



Introduction

Many large organizations have consolidated their financial, HR and manufacturing operations under ERP Enterprise Resource Planning Systems. However, most ERP packages lack robust asset management functionality, presenting a serious challenge for asset management professionals.

Why might you consider a bolt-on solution in this situation, and how do you make it work for your organization?



Key Topics

• Why Choose the Bolt-On Route?

• How Do You Get There?

• Common Risks and Pitfalls

• Conclusion

• Q & A



Why Choose the Bolt-On Route?

• Address ERP Functional Gaps

• Knock-Down Information Silos

• Open-up Access to Asset Data and Functions

• Maintain More Direct Influence and Control Over the System



Custom Development or COTS?

• Three Basic Options:

1) Customize the ERP System

2) Build from Scratch

3) Obtain a COTS Solution



Advantages of COTS Software

• Substantially Reduces Total Cost of Ownership

• Specialized Implementation Help is Available

• Improves Continuity of Updates and Support

• Leverages Industry Best-Practices

• Guards Against Technological Obsolescence

• Accelerates Implementation and Lowers Risk



How Do You Get There? Key Elements of Asset System Implementations

• Project Management• Requirements• Resources• Process Analysis• Data Migration• Integration

• Reporting• Security• Performance• Testing• Training• Ongoing Support



First StepsPlan the Work, then Work the Plan

• Define & Document Requirements• Assign a Project Manager• List and Estimate Detailed Tasks• Allocate Resources to Tasks• Set Realistic Schedule and Budget• Rinse and Repeat

(Revisit the Plan Frequently)



Do Not Just Automate a Poor Process!

“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency.

The second is that automation applied to an inefficient operation will magnify the inefficiency.”

- Bill Gates



Process Analysis and Mapping

• What do your Asset Management Professionals and other Customers or Stakeholders do on a Regular Basis?

• Can and Should it be Tracked or Automated by the New System?

• How Can we Improve the “Old Way”?

• Exactly How will the New System Perform Each Function?



Data Migration

• Identify ALL Sources of Data• Enlist Subject Matter Experts• Assess Data Integrity and

Completeness – Be Honest!• Load Using High-Level Tools that

Enforce Validations if Feasible• Require Stakeholders to Validate

their Data after Loading



Potential Integration Points

• Potential Inbound Integration Points(into Asset System from ERP)• New Asset or material receipt from

procurement• Master/Reference Data

• Contracts, Account/Charge Numbers, Employee Data, Vendors/Suppliers

• Maintenance/PM Information• Fixed Asset Data, Depreciation, Book

Value, Useful Life • Shop-Floor Tool Damage or Scrappage



Potential Integration Points (cont’d)

• Potential Outbound Integration Points(into ERP from Asset System)• Current Asset Location, Organization,

Status and User• Departmental Charges (Calibration, Repair,

Mods)• Material Orders or Re-Orders

• Bidirectional• Special Tooling Fabrication & Cost Details• Capital Asset Disposition



Integration Techniques

• Vendor-Provided Tools– Web Services and other API’s– Canned Interfaces / Adapters– Import Tools for Excel, etc.

• Database Views, Stored Procedures or Triggers

• Conventional Custom Programming

14



Reporting

• Three Basic Flavors:1) Built-In Application Queries or

Standard Forms/Reports• Examples: Asset Lists by Status,

Site, Contract, DD1149 Form2) Custom Canned Reports• In-House Management Reports

Produced on a Regular Schedule3) Ad-Hoc Queries/Reports• Unpredictable “One-Off” Queries



SecurityTypical Application Security Layers



Performance

• Performance is Critical to User Acceptance of the System

• Involve IT Staff and Vendors Early

• Set Target Response Times

• Collect Data During Testing Cycles



Testing

• Develop Written Test Plans from your Business Process Maps

• Also Ensure that all Interfaces and Security Controls are Tested

• Use Realistic Data Values and Volumes

• Configure Test Environment as Similar as Possible to Production



Training and Change Management

Do not Underestimate Human Inertia!Change Management is Crucial “It must be considered that there is nothing more difficult to carry out nor more doubtful of success nor more dangerous to handle than to initiate a new order of things”

- Machiavelli



Common Risks and Pitfalls

• Lack of Strong Management Support

• Imbalance in Goals vs. Available Resources

• Perpetuation of Outdated Processes

• Inadequate Testing

• Incomplete/Unclear Documentation



Conclusion – Key Takeaways

• Set Realistic Goals and Timelines for the Project – Define Success at the Onset

• Rigorously Apply Project Management Principles – Who Will do What by When

• Re-Visit All Legacy Data and Processes – Always Question the Status Quo!

• Document, Document, Document!



Q & A / OPEN DISCUSSION



For Additional Information

PMSC2800 28th StreetSanta Monica, CA [email protected]

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