Getting the Best Value from your Asset Management Information System
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- Garey Hines
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1 Getting the Best Value from your Asset Information System Presentation to AMSIG By Greg Hockey, Lilley (Qld) 13 May 2003
2 Case Study CMMS Audit
3 ASSET MANAGEMENT SYSTEM & PROCESS GAP ANALYSIS SUMMARY Business Process Degree of Fit to meet Objectives Business Objectives 1.1 EQUIPMENT REGISTER 1.2 ASSET CATALOGUE 1.3 WORK REQUESTS 1.4 SAFETY PLANS 1.5 WORK PLANNING 1.6 WORK SCHEDULING 1.7 LABOUR ASSIGNMENTS 1.8 REPORTING AND COSTING OF ACTU Current Maximo Functionality Current Business Procedures Current User Practice 70% 15% 20% 80% 20% 20% 100% 30% 45% 100% 0% 0% 76% 28% 40% 70% 27% 27% 100% 0% 0% AL RESOURCES USED 100% 70% 70% (INTERNAL AND EXTERNAL) 1.9 FAILURE REPORTING 88% 0% 16% 1.10 QUICK REPORTING 100% 0% 0% 1.11 MASTER ITEMS CATALOGUE 100% 12% 4% 1.12 STORES AND INVENTORY REQUIRE MENTS (INCLUDING 100% 60% 67% CONSIGNMENT STOCK) 1.13 WORK ORDER RESERVATIONS 52% 32% 32% 1.14 REORDERING 100% 60% 60% 1.15 REQUESTS FOR QUOTATIONS 100% 60% 0% 1.16 PURCHASING AND RECEIPTING 100% 60% 93% 1.17 INVOICE PROCESSING 95% 60% 100% 1.18 EQUIPMENT AVAILABILITY FOR 'DOWN' MAINTENANCE 76% 28% 44% 1.19 PLANNED MAINTENANCE 86% 17% 23% 1.20 OPERATIONS PLANNING 0% 0% 0% 1.21 PROJECT MANAGEMENT 72% 24% 28% 1.22 ANALYSES - CONDITION AND PERFORMANCE 20% 0% 0% 1.23 ANALYSES - LIFE CYCLE COSTING AND AGING 60% 12% 12% 1.24 ANALYSES - FAILURE ANALYSIS 0% 0% 0% 1.25 ANALYSES - RELIABILITY ASSESSMENTS AND RISK 40% 0% 8% MANAGEMENT 1.26 PREPARATION OF OPERATIONS PLAN 0% 0% 0% 1.27 PREPARATION OF GENERATION & TRADING BUSINESS PLAN 80% 40% 40% 1.28 PREPARATION OF CAPITAL WORKS PLAN 40% 60% 40% 1.29 MAXIMO/ORACLE FINANCIALS INTERFACE 100% 100% 90% 1.30 ACCESS CONTROLS 100% 0% 0% 2 REPORTING REQUIREMENTS AND STRATEGIES 60% 40% 60% 3 DATA FLOW AND INTERFACES 60% 60% 60% 4 DATABASE CONFIGURATION 60% 0% 0% 5 TRAINING REQUIREMENTS 60% 0% 0% 6 SYSTEM SUPPORT ISSUES 60% 60% 60% Overall Average Scores 72% 28% 30% 3
4 Raw Scores Business Process Business Objectives 1.1 EQUIPMENT REGISTER To identify maintainable Equipment for which maintenance is to be planned and recorded ASSET MANAGEMENT SYSTEM & PROCESS GAP ANALYSIS Degree of Fi t to mee t Major Gaps Objectives Current Maximo Functionality Current Busine ss Procedures Current User Practice Equipment Register not maintained since Criticality of Equipment is not identified. To classify Equipment in terms of Type/Make/ Model Classification data is incomplete and fragmented To record purchasing, construction or commissioning details There are no purchasing or construction details To identify warranty periods and details Function not used To identify Assemblies and Spares for Equipment Spare parts lists have been developed for new stock only To identify Operating Locations of all Equipment Not maintained or QA managed To identify the Asset Owner of each item of Equipment Asset Owner inferred by KKS and Type To identify the Service Provider of Defect Maintenance for each item of Service CREWS not identified Equipment Average Scores
5 Closing the Gaps Recommendation Component Extent Need for a User Manual 71% Need for User Training 70% Need for Data rationalisation and management 65% Need for services of a System Administrator 23% Need for extended use of software functionality 17% Need for development of Enhancements 15% Need for upgrade to functionality of latest version 10% 5
6 CMMS Heritage CMMS V1 Dec 93 CMMS V2 Sep 94 CMMS V3 Jun 96 Merged Co. 3 Co. 1 FMS 1 FMS 2 Jun 96 CMMS V3 CMMS V Co. 2 FMS 1 FMS 2 Dec 96 FMS 2 CMMS V3 Dec
7 What were the Likely Problems? 1. Poor Asset Framework 2. Poor Corporate Standing of CMMS little integration with Corporate Business Processes & Systems 3. Poor Ownership of Assets & CMMS 4. Poor Asset Data no clearly defined data elements for Operations or Analysis, poorly defined Datasets, inconsistent data gathering 5. Poor Utilisation of the CMMS 6. Poor Asset Analysis and Control 7
8 1. Establishing an AM Framework
9 Continuous Improvement Cycles Service Delivery Continuous Im provem ent Cycle Service Delivery Demands Asset Utilisation Plant Operational Responses M aintenance M anagem ent Continuous Im provem ent Cycle Plant Service & Condition Requirements Maintenance Asset M anagem ent Continuous Im provem ent Cycle Asset Requirements Appropriate Asset Responses & AM Strategies Supporting Business Solutions: Production, CMMS, GIS, FMS etc 9
10 Total Asset Service Delivery Continuous Im provem ent Cycle Requirement: Service Delivery Demands Response: Effective and Efficient Operation and Utilisation of Assets M aintenance M anagem ent Continuous Im provem ent Cycle Requirement: Asset Performance and Condition for Satisfactory Service Delivery Response: Delivery of Cost Effective Maintenance Services Asset M anagem ent Continuous Im provem ent Cycle Requirement: Translation of Service Delivery Demands into Asset Specifications Response: Provision of most appropriate Assets & Asset Strategies 10
11 Service Delivery Continuous Improvement Cycle Requirement: Service Delivery Demands Requirements: Service Delivery Demands Service Level Agreements Response Assessment Criteria: Effectiveness, Efficiency and Compliance of Delivery Performance Effectiveness, Efficiency and Compliance of Service Level Achieved Business Functions: Market Research Stakeholder Strategic Alliances Research & Pricing Marketing Customer Agreements Response: Effective and Efficient Operation and Utilisation of Assets Response Delivery Assessment: Service Delivery KPI s Service Level KPI s Business Functions: Customer Logistics HR Accounts Receivable Procurement Accounts Payable Inventory 11
12 Maintenance Continuous Improvement Cycle Requirement: Asset Performance and Condition for Satisfactory Service Delivery Response: Delivery of Cost Effective Maintenance Services Requirements: Asset Performance & Condition Requirements Response Assessment Criteria: Assessment Parameters Assessment Scales Assessment Criteria Business Functions: Service Provider (internal & external) Response Delivery Assessment: Availability KPI s Performance & Condition KPI s Reliability KPI s Life Cycle KPI s Business Functions: Register & Classifications of Physical Assets Asset Criticality & Risk Assessments Performance & Condition Monitoring Asset Utilisation Planned Maintenance (Routine Servicing, Inspections, Planned Corrective/Refurbishing) Breakdown Maintenance Resource Assignment & Prioritisation Scheduling Work Procurement Inventory Project RCM Analysis 12
13 Asset Continuous Improvement Cycle Requirement: Translation of Service Delivery Demands into Asset Specifications Requirements: Form, Fit, Function, Capacity, Performance, Condition Standards Response Assessment Criteria: Commissioning Tests Business Functions: Investment Fixed Assets Planning & Design Standards Response: Provision of most appropriate Assets & Asset Strategies Response Delivery Assessment: Appropriateness of Fit of Assets (on-going) Commissioning KPI s Business Functions: Mortality Analysis (Condition, Rem. Life etc) Reliability Analysis (Performance & Serviceability) Utilisation Analysis (System Capacity, Levels of Utilisation, Effectiveness) Cost Analysis (Life Cycle Cost Assessment) Failure Analysis (incl Failure Prediction Modeling) Risk Assessment & Maintenance Treatment Options Renewals Decision Making Modifications & Life Extensions of Assets Disposal of Assets Design & Acquisition of Assets Strategic Operations Plans Strategic Maintenance Plans Strategic Capital Works Plans 13
14 AM & MM Process Levels Service Planning Optimise Strategies Resource Planning Non Asset Solutions Optimise O&M Modify Review Operate & Maintain Create Dispose 14
15 2. Integration of Business Processes & Systems
16 Tailoring a CMMS for YOUR Organisation Core Business Functions Supporting Business Functions Integrated Business Processes Functional Solutions/Applications Data Sets & Database Configurations Reporting & Analysis Requirements Data Flows, Interfaces, Systems Integration 16
17 CORE BUSINESS FU N C TIONS 17 Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Business Targets Achieved Business Functions Firm Infrastructure HR SUPPORT BUSINESS FU N C TIONS Technology Development Procurement Best Utilisation of Assets
18 Business Functions Wholesale Trading Wholesale Market Commercial Performance Production Asset Acquisition/ Creation Operations & Production Asset Performance Maintenance Procurement Environmental Asset Disposal Retail Sales Customer Service Connections Retail Billing Business Development Market Research Marketing Corporate Services Human Resource Property IS Organisational Development Training Health & Safety Finance Financial Services Accounting Financial Modelling Risk 18
19 Business Solutions Mapping Production Asset Acquisition/ Creation Operations & Production Asset Performance Maintenance Procurement Environmental Asset Disposal 1 Equipment Register 3 Work Requests 19 Planned Maintenance 2 Asset Catalogue 18 Equipment 22 Analyses - Availability for 'Dow n' Condition and Maintenance Performance 21 Project 28 Preparation of Capital Works Plan 20 Operations Planning 26 Preparation of Operations Plan 23 Analyses - Life cycle costing and aging 24 Analyses - Failure analysis 25 Analyses - Reliability Assessments and Risk 27 Preparation of Maintenance Plan 4 Safety Plans 11 Master Items Catalogue 5 Work Planning 12 Stores and Inventory requirements (including consignment stock) 6 Work Scheduling 14 Reordering 7 Labour Assignments 8 Reporting and costing of Actual Resources used (internal and external) 9 Failure Reporting 10 Quick Reporting 13 Work Order Reservations 21 Project 15 Requests for Quotations 16 Purchasing and Receipting 19
20 Business Solutions Mapping (contd.) Finance Financial Services Accounting Financial Modelling Risk General Ledger 17 Invoice Processing Accounts Payable Accounts Receivable Fixed Assets Payroll Project Accounting 29 Maximo/Oracle Financials Interf ace 20
21 Typical Interfaced Enterprise Business Solution Market Research Strategic Planning Action Plans Work Mgnt Project Labour Allocation Timesheet Equipment Classifications Materials Catalogue Specifications Inventory Purchasing Receipts Project/Job Accounting Accounts Payable Invoice Process Fixed Assets Accounts Receivable Sales Invoice Sales Order General Ledger Routine Plans Procedures work History Condition Monitoring Analysis Payroll HR Labour Groups 21
22 Typical CMMS/FMS Interface Options CMMS Enterprise PR PR PO PO PO Changes PO Changes Receipt Receipt Invoice Voucher Transactions GL Companies Vendors COA COA Item Item Inventory Inventory Mat Res Mat Issue Labour Usage Mat Res Mat Issue Labour Usage Legend: A Master allowed in each system WO WO A Master allowed in one system only 22
23 Simplified Internal Trading Model Reference Equipment Register as required PURCHASER WO for Scope Work SERVICE PROVIDER Scope Work conveyed to Provider RFQ Quote Approval to Proceed Work History Initiate Work Order Qty Description Work Done Create Proforma Invoice Pricing: Cost + Burden Costs + Burden Actual Cross Charge at GL Level Revenue 23
24 3. Taking Ownership of Assets & CMMS
25 Will the Asset Owner Please Stand Assets need an Owner to: Align asset acquisition with Corporate needs Monitor Serviceability and Remaining Life of assets Determine appropriate Maintenance Strategies The CMMS requires Business Administration User Training & Support Monitor Health of CMMS Utilisation & Data Assist with Data Analysis 25
26 4. Collecting consistent AM Data
27 Defining AM Datasets Equipment Register Prefer higher level identification for Maintenance Planning Sufficient detailed level for Statutory recording & Analysis Classification of Equipment Form/Fit/Function OR Type/Make/Model Equipment Criticality How critical to Service delivery, Health & Safety, Environment, Other Equipment etc 27
28 Defining AM Datasets (contd.) Equipment Specifications Designed Performance Parameters Commissioning Information Performance/Condition Parameters & Assessment Criteria To support Condition Audits To support Condition Monitoring maintenance strategies Master Maintenance Strategies By Equipment Classification, Criticality & Operational Requirements 28
29 Defining AM Datasets (contd.) Master Items Catalogue & Spare Parts Lists Labour Classifications Failure Codes (for analysis of Breakdowns) In terms of Symptoms, Causes & Remedies Causes must be aligned with Failure Modes within RCM considerations Work Types For various maintenance types: Breakdown, Planned Routine Servicing, Condition Monitoring, Planned Corrective Maintenance, Planned Refurbishment For Modifications & Capital Works 29
30 5. Maximise the Utilisation of CMMS
31 Maximising CMMS Utilisation Your CMMS must be a Business Tool - not just an information gathering Database The User Interfaces must be relevant and friendly Provide internal User Support (at the Application level) and regular User Training Reward consistent CMMS utilisation with regular publication of Operational & Strategic KPI s 31
32 6. Implement AM Analysis & Controls
33 AM Data Capture,, Processes P & Outcomes Asset Acquisition, Creation Condition, Performance & Operational Requirements. Assessment Criteria Service Levels Spatial Information System Equipment & Location Register Fixed Assets Register Asset Capitalisation & Revaluation Effectiveness of Asset Types Operational Effectiveness Asset Planning Strategies & Design Guides Update Maintenance Plans MORTALITY Condition, Remaining Life Assessment Priority Infrastructure Plan Project (Workflow) Master Maintenance Plans Maintenance Works Program Maintenance Strategies Hire Equip Usage Alarm Condition * Asset Condition * Asset Performance * Asset Usage RELIABILITY Performance and Levels of Service Assessment Risk Assessment Refurbishing Planned Maintenance Failure Analysis Work % Effective Life from decay curve Works to minimise risk Asset Types Labour Classifications, Trades Unplanned Maintenance Costed Maintenance Details UTILISATION System Capacity Utilisation & Effectiveness Treatment Options to Reduce consequences of Failure Utilisation Levels STRATEGIC ASSET MGT PLAN TOTAL MANAGEMENT PLAN Failure Prediction Modeling Labour & Services Usage Materials Master Catalogue COST Life Cycle Cost Assessment Renewals Decision Making Renewals Materials Usage & Reason for Usage Failure Codes Failure Reports *Failure Codes * Outages - forced/unforced, cause PLANNING Network Models Financial Models Contributed Assets etc Service Delivery Plan Capital Works Program Renewals, Modifications, Acquisitions, Minor & Capital Works AM Processes V1.0 ASSET MGT TEAM OPERATIONS & MAINTENANCE AM ANALYSIS AM OUTCOMES ASSET MANAGEMENTM TEAM OPERATIONS & MAINTENANCE ASSET MANAGEMENT ANALYSIS ASSET MANAGEMENT OUTCOMES 33
34 Asset Team Processes Condition, Performance & Operational Requirements. Assessment Criteria Service Levels Spatial Information System Master Maintenance Plans Asset Types Labour Classifications, Trades Materials Master Catalogue Failure Codes ASSET MGT TEAM 34
35 Operations & Maintenance Processes Asset Acquisition, Creation Equipment & Location Register Fixed Assets Register Asset Capitalisation & Revaluation Priority Infrastructure Plan Project (Workflow) Planned Maintenance Hire Equip Usage Alarm Condition * Asset Condition * Asset Performance * Asset Usage Work Unplanned Maintenance Costed Maintenance Details Labour & Services Usage Materials Usage & Reason for Usage Failure Reports *Failure Codes * Outages - forced/unforced, cause OPERATIONS & MAINTENANCE 35
36 Asset Analysis Processes MORTALITY Condition, Remaining Life Assessment RELIABILITY Performance and Levels of Service Assessment UTILISATION System Capacity Utilisation & Effectiveness COST Life Cycle Cost Assessment Effectiveness of Asset Types Operational Effectiveness Risk Assessment Failure Analysis % Effective Life from decay curve Treatment Options to Reduce consequences of Failure Utilisation Levels Failure Prediction Modeling Renewals Decision Making PLANNING Network Models Financial Models Contributed Assets etc AM ANALYSIS 36
37 Asset Outcomes Processes Works to minimise risk Service Delivery Plan Asset Planning Strategies & Design Guides Update Maintenance Plans Refurbishing Maintenance Works Program Maintenance Strategies STRATEGIC ASSET MGT PLAN TOTAL MANAGEMENT PLAN Renewals Capital Works Program Renewals, Modifications, Acquisitions, Minor & Capital Works AM OUTCOMES AM Processes V1.0 37
38 Future Directions of CMMS s
39 Possible Future Directions.... There is market opportunity for the development of middle level Enterprise systems integrating CMMS and FMS CMMS and Enterprise systems must support internal & external trading of maintenance services There will be increased linkage between Enterprise systems and Electronic Trading market places for the purchase of materials and services 39
40 Possible Future Directions.... There is a need for the development Business to Business (B2B) links between the respective systems of Service Providers and Asset Owners for the transfer of maintenance services data 40
41 Possible Future Directions.... There will be an increased inclusion of Maintenance Analysis tools in CMMS s eg Condition Assessment Reliability Assessment Life Cycle Cost Assessment Failure Analysis Failure Prediction Analysis Risk Assessment Optimisation of Maintenance Treatments Renewal Decision Making
42
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