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Enterprise Asset Management Overview

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Agenda
ERP Vs EAM
What
What is Asset?
What is EAM?
Where
EAM Application Areas
Why
Why Enterprise Asset Management?
How
EAM Methodology
Key Processes in Enterprise Asset Management
Integrated View of Enterprise Asset Management
Key Challenges


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Enterprise Resource Planning ( ERP) Vs EAM
ERP integrate information across an entire organization - Operations, HR,
Finance, Sales and Distribution ,customer relationship management etc.
Enterprise Asset Management, focuses on managing the assets, typically plant
and equipment, in a company


What?

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What is an asset?
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What is an Asset?
Equipment, Machinery, Buildings, Property, Vehicles and other items and related
systems that have a distinct and quantifiable business function or service
Point Assets and Linear Asset
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What is Enterprise Asset Management ( EAM) ?
Managing the Life Cycle of Asset


Enterprise
Asset
Management
Acquire
Track
Operate/
Maintain
Retire
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What is Enterprise Asset Management ( EAM) ?
Enterprise asset management (EAM) means the optimal management of the physical assets of
an organization to maximize value. It comprises of activities like the
design,
construction,
commissioning,
operations,
maintenance
decommissioning/replacement
of plant, equipment and facilities.

The word "Enterprise" signifies to the management of the assets across departments, locations,
facilities and, in some cases, business units to improve
utilization and performance,
reduce capital cost and
extend asset life.

Where?

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EAM Application Areas
Production Assets
Production Equipment
Packaging Equipment
Handling Equipments
Facility Assets
Office building
Security Systems
Storage Facilities
Air conditioning Equipments
Transportation Assets
Fleet such as Truck, Forklifts
Material Handling Equipments
IT Assets
Software
Hardware



Service
Management
Configuration
Management
Change
Managment
Asset
Management
EAM supports/integrate all asset classes
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Key Industries of EAM
Why?

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Assets Percentage in balance sheet
Is significant
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Nestle Thames Water Sainsbury MOD British Airways
%

o
f

t
o
t
a
l

v
a
l
u
e

o
f

a
s
s
e
t
s
Real Estate Fixed Assets Network Assets Mobile Assets
Asset Management is
fundamental to success
Asset Percentage in balance sheet is significant
Why EAM Solution?
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For Illustrative Purposes
Service Intensive Asset Intensive
Maintenance, Repair and Operations Spending
MR Spending
O Spending
%

o
f

P
r
o
c
u
r
e
m
e
n
t

Banking
Insurance
Process
Manufacturing
Discrete
Manufacturing
Transportation
Government
Education
Hospitals
Utilities
Retail
How does Asset Management Correlate to Various Industries?
Why EAM Solution?
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Why EAM Solution?


Manufacturing, by its very nature, relies on the availability of physical assets.
Selecting the right EAM application to ensure the availability of those manufacturing
assets is a key factor in long-term success
- Gartner Industry Research Note Magic Quadrant for Enterprise Asset Management for
Manufacturing September 2008


Reducing manufacturing costs continues to remain the top pressure driving Best-in-
Class manufacturers to focus on EAM initiatives. Improving asset utilization is the
top strategic action, with 67% of Best-in-Class manufacturers focusing on this
action
- Aberdeen Research Note Benchmarking Enterprise Asset Management in
Manufacturing June 2007

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Why EAM Solution?
Integrate & Automate asset management tools enterprise wide and Manage the
full asset lifecycle from a corporate and business perspective
Integrate Assets
Track Compliance
Minimize Risk
Improve efficiency
Maximize Return
Discover incidents that could reduce throughput and profitability

Optimize Asset utilization & Reliability and improve cost management for
material and labor

Maximize return on assets and decrease Maintenance Cost
Track the environmental, health and safety (EHS) impact of asset
How?

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EAM methodology
Automate data collection: Implement Automatic , real time
data collection of Assets
Condition Based Monitoring and Predictive Maintenance of
Assets
Work Execution Management - create track, and monitor work
orders, spare parts, Labor usage etc.
Asset Reliability Monitoring .Standardize and optimize best
practice implementation
Integration of EAM, MES/CMMS with Plant Floor Automation
and ERP to enable real time enterprise inter operability
Dashboards and Portals : Measure KPIs in real time
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Key Processes in Enterprise Asset Management
Asset Management Work Management
Service/Change
Management
Inventory/Material/Contr
act Management
Procurement Mgmt
Asset, Location and Work Order
tracking
Location and Equipment hierarchies
allowing cost to be rolled up across
systems, sub- systems and locations
Condition monitoring support
Plan, schedule and manage
maintenance programs
Complete tracking of work
management tasks
Graphical Work Scheduler
Supports Preventive Maintenance
activities
Manage Workforce
Track KPIs
Self service requests
Ticket templates
Service Catalogs
Service level agreement (SLA)
monitoring
Incident and Problems
management Solutions
Set up approved vendors
Vendor performance analysis
Automated material purchase
based on maintenance schedules
Interval-based, meter-based,
or event-based purchasing
Supports Global Purchasing
Material movement tracking
Inventory planning and optimization
Associates SLAs to contracts
Terms and conditions library
Receipt of automated notifications and alert based on key
dates within contracts
Enterprise Asset
Management
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Key elements of Asset Management Processes
Strategic
Planning
Investment
Decision
Making
Operational
Planning
Asset
Planning
Strategic Objectives
Measures
Targets
Assumptions
5+ years out
Capacity planning
Reliability planning
Engineering and
Design standards
Risk
Cost analysis
Benefit analysis
Performance
analysis
Condition analysis
1 5 year horizon
Service forecasting
Service strategies
Resource strategies
Sourcing strategies
Service level
agreements

Financial analysis
Risk analysis
Scenario analysis
Funding approval
A sophisticated combination of information, decision making and
action to deliver real benefits
Compliance
programs
Maintenance
programs
Refurbishment
programs
Funding requests
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Key elements of Work Management Processes
Initiating
Work
Performing &
Closing Work
Scheduling
Work
Planning &
Designing
Work
Customer requested
Company requested
Planned
Emergent
Short cycle
Long cycle

Work standards
Standard work orders
Material requirements
Equipment
requirements
Labor requirements
Time requirements
Demand planning
linkages
Resource planning
linkages
Appointments
Work prioritization
Skill based
Rule based
optimization
Short cycle
Long cycle

Work order status
Work procedures
Reference documents
Asset data capture
Event logging
Condition reports
Time entry
Payroll linkages
Accounting linkages
A single process for managing all work providing an enterprise view of all
work demand and resource supply
Construction standards
Standard designs
Contract management
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Key elements of Material Management

Focus is on maintenance Repair and Overhaul Supply Chain Indirect Procurement
Vendor Management
Procurement Procure to Pay Cycle
Inventory Management
Storerooms
Inventory Levels Inventory Optimisation
Reordering

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Key elements of Service Management
Incident Management
Problem Management
Change Management
Service Level Agreement
Monitoring of Service Delivery against defined SLA

Integrated EAM Process

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Integrated View of Enterprise Asset Management Processes
Generating Planning
Asset
Preventive
Maintenance
Service
Request
Purchasing Inventory
Scheduling
Execution
Completion
1. 2.
3.
4.
Job Plans
Contracts
Service Agreement
Resources
A Work Order is generated via a PM, service request, purchase of an asset.
Basic process points of flow.
Planning occurs to determine when work should be performed.
Scheduled work is assigned.
Work is executed and completed.
Key Challenges in EAM

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Key Challenges in Asset Management
Globalization - Asset Visibility
Financial Pressure to reduce cost, increase quality, improve reliability extend lifecycle
More importance due to Recession
Managing Complex Asset Portfolio
Ageing Assets
Ageing Workforce
Process Standardization
Knowledge Management
Green Asset Management
Regulatory Compliance






IBM Maximo addresses all the above- How ?? Explore Maximo !!!
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Thank You
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