Performance Management with Maximo. From Input to Output

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1 Performance Management with Maximo From Input to Output

2 One of the important asset management issues is Better Decision Support. One of the priority issues for EAM is: analytics and performance management, which means: monitoring and analysis of asset information and key performance indicators (KPl) for continuous improvement. Source: ARC Advisory Group: EAM/CMMS Solutions Worldwide Outlook Market Analysis and Forecast through

3 Performance Management with Maximo From Input to Output The Enterprise Asset Management (EAM) software market is rapidly changing. One of the key trends involves the transformation of maintenance recording systems into maintenance management systems. Maintenance organizations are becoming increasingly professional and require management information in the areas of costs, availability, reliability, safety and the deployment of resources. There is increased focus on improving data quality and obtaining good output in the form of KPIs and management reports. 3

4 Maximo s Management Capabilities IBM Maximo is one of the global market leaders and trendsetters in the field of EAM systems (see Figure 1). As one of the first EAM systems suppliers, they realized the need for KPIs and reporting and developed three different options for this purpose: Actuate, Maximo KPI Manager and BIRT. Actuate was the reporting tool that was embedded into Maximo software in versions 5 and 6 as a default. Starting with version 5, Maximo also includes KPI Manager. Maximo KPI Manager makes it possible to define KPIs and to track these critical performance indicators over time (KPI trend graphs). Starting with version 7, BIRT is the default reporting tool embedded in Maximo. BIRT is open source software and has more functionality than Actuate, particularly when it comes to producing graphs. Figure 1: Gartner Magic Quadrant for EAM for Manufacturing 4

5 Use in Actual Practice Research among Maximo users in the Netherlands and Belgium shows that the use of Maximo reporting tools is limited (see Figure 2). A striking finding is that Excel remains the most often used tool. This involves the download of data from Maximo for processing in Excel. Excel reports are easy to access, but are often also laborintensive with little dynamic filtering and drilldown possibilities. Furthermore, Excel reports can be modified and are sensitive to errors. Actuate comes in a solid second in the research. Many Maximo users are sticking with Actuate because they are familiar with this tool from previous Maximo versions. As a result the transition to a new tool such as BIRT is not as likely. Figure 2: Use of different reporting tools. Percentage of companies in the mini-survey that makes use of specific tools. A single company may use more than one tool. 5

6 The limited use of Maximo KPI Manager is also striking. This tool in actual practice appears better suited for monitoring transactional and administrative processes in Maximo (such as the number of work orders and purchase orders by status), than for generating management reports and performing analyses. Finally, it is notable that a quarter of the companies use their ERP system for budget preparation and cost reporting. This is due to the lack of functionality for preparing and monitoring budgets in Maximo. Research The research took place during September October, The objective was to find out which Maximo reporting facilities are being used, the level of satisfaction with these reporting capabilities and possible improvements. A mini survey was developed that was distributed to Maximo users in the Netherlands and Belgium. 13% of the companies in the Netherlands and Belgium that use Maximo collaborated on this research. 6

7 Rating Maximo users assigned an average rating of 5.9 to Maximo s reporting capabilities. This is disappointing. Figure 3 provides a summary of reporting satisfaction ratings by competence. Figure 3: Maximo reporting satisfaction ratings by competence The lowest satisfaction rating was received by reporting in the area of Planning & Preparation, Execution and Outsourcing. Although reporting in the area of Cost Control is (just barely) rated as satisfactory, the feedback shows that financial reporting in particular, such as a budget control report or an assets/locations cost summary, is required. Primary reasons for the dissatisfaction include: data has not been properly or is incompletely entered into Maximo; the standard Maximo reports are inadequate; not all reports have as yet been defined; and it is impossible to drill down into the details underlying a report. 7

8 Value Driven Maintenance Value Driven Maintenance (VDM) is an innovative maintenance philosophy that bridges traditional maintenance methods with managing by economic added value. VDM demonstrates that the value of maintenance is not just limited to cost and inventory reductions. On the contrary, much greater economic value is often inherent in higher installation availability and safety. The added value of an individual Technical Department (TD) is calculated on the basis of KPIs, benchmarks and value models after which a design is created for the most valuable maintenance organization. Ten competences are set up on the basis of best practice working processes, organization models and EAM support observed among leading TDs. The 10 competences are: Asset Utilization (Asset Performance Management) Cost Control SHE Management (Safety, Health & Environment Management) Reliability Engineering (Management of Maintenance Concept) Planning & Preparation Maintenance Execution MRO Supply Chain Management (Procurement and Inventory Management) Service Supply Chain Management (Management of Outsourcing) Skill & Tool Management (Management of Capacity and Tools) Equipment Knowledge Management (Management of Documents and Drawings) 8

9 The Future: COGNOS IBM announced the acquisition of Cognos towards the end of Cognos is one of the global market leaders in the area of Business Intelligence and Performance Management software (see Figure 4). Cognos specializes in score cards and dashboards, reports and drilldown analyses, and planning and budgeting. Figure 4: Gartner Magic Quadrant for Business Intelligence platforms IBM recently decided to integrate Maximo and Cognos and to establish Cognos as Maximo s standard reporting tool. The result is a combination of two state-of-the-art products and a significant strengthening of Maximo s management potential. 9

10 VDM Control Panel Cognos does not yet contain any content, however. Dashboards, reports and drilldowns must still be defined and configured by the Maximo user. Mainnovation has developed a standard control panel with approximately 50 KPIs and PIs and over 100 drilldowns on the basis of the Value Driven Maintenance (VDM) philosophy. The VDM control panel starts off with a summary of the performance of the maintenance organization based on 10 KPIs (see Figure 5). Figure 5: VDM Control Panel start-up page 10

11 The targets for these KPIs are established yearly. The value of a KPI can be explained by clicking through to the underlying dashboard (see Figure 6) with a maximum of 6 PIs (graphs). Figure 6: Cost Control Dashboard 11

12 A predefined drilldown is available for each PI (see Figures 7a 7d). Different filtering options are available at each level, such as year, location, asset or asset type to limit data selection and a download of the data (e.g., summary of the relevant work orders) can be generated at each level. This provides a simple way of tracking down causes and explaining KPIs. Figure 7a 12 Figure 7b

13 Figure 7c Figure 7d 13

14 VDM Control Panel is developed in Cognos 8.4 (Transformer, Framework Manager, Report Studio) and is available for Maximo 5, 6 and 7. It contains approximately 50 KPIs and PIs and over 100 standard drilldown analyses. Furthermore, the user has the option of performing his own analyses using the Control Panel s ad hoc query functionality. A yearly target is established for each KPI that is used as a baseline for tracking actual performance. Budget functionality has been developed for maintenance costs. Budgets can be established per asset and type of work. he VDM Control Panel has been developed such that it immediately works with existing Maximo systems, provided that the Maximo system is close to the standard configuration. VDM Control Panel will be further developed in the near future. Enhancements will include new KPIs, simulation functionality for preparing maintenance budgets and an online link with the VDM Benchmark Database. Antwerp Port Authority The Antwerp Port Authority manages, operates, develops and promotes the second largest port in Europe. The maintenance of port assets is carried out by approximately 500 workers spread over the various maintenance departments. In 2005, the Antwerp Port Authority selected VDM as its maintenance management model. The work processes in the various departments were standardized in accordance with VDM. Following an intensive tendering exercise, IBM Maximo was selected as the maintenance management system in support of the processes. The rollout to all maintenance departments is expected to be completed in November At the end of 2008, the Port Authority selected the VDM Control Panel developed in Cognos by IBM and Mainnovation in The Port Authority will start using the VDM Control Panel as its control tool starting in November

15 Additional Information If you are interested in the VDM Control Panel, in discussing the VDM Control Panel s potential for your organization or if you would like a demonstration, please contact: Mainnovation NL Lange Gelderse kade CJ Dordrecht The Netherlands T +31 (0) F +31 (0) Mainnovation BE Pegasuslaan Brussels (Diegem) Belgium T +32 (0) F +32 (0) IBM Cognos Software Jurgen Grolleman Tel:

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