How To Understand The Business Impact Of Asset Integrity Management

Transcription

1 Asset Integrity Management and Enterprise Software Overview

2 Background In the early 2012, a study was conducted among manufacturing executives and professionals of middle market to large manufacturers to better understand the role EAM/CMMS solutions play today. This study reveals that: EAM and CMMS are still not widely adopted today. Other applications and spreadsheets still play a big role in tracking training requirements. Document management is still a big opportunity. This study was conducted by IFS North America and Mint Jutras, an independent research-based consulting firm that specializes in analyzing the business impact of enterprise applications

3 Importance of Asset Integrity Management An asset integrity management plan documents the activities required to ensure an asset can perform its required function effectively and efficiently while protecting health, safety and the environment. The plan must ensure that the people, systems, processes and resources that deliver integrity are in place, in use and will perform when required over the whole lifecycle of the asset. Asset integrity management affects all stages of the asset lifecycle, from design and construction to years of operation through to decommissioning. Asset integrity management may play a role in ensuring maximum return on the asset investment, but in some industries the term often deals more with the reduction of enterprise risk.

4 Major Areas Explored Adoption of EAM/CMMS How are elements critical to asset integrity management tracked? Training/certifications Asset documentation How well are these elements integrated with the enterprise? Are risk management and asset integrity plans in place? Are sustainability plans in place? Applications such as: Enterprise Resource Planning (ERP) Customer Relationship Mgt (CRM) Enterprise Asset Management (EAM) Supply Chain Mgt (SCM)

5 Key Findings Only 37% of survey respondents currently have EAM / CMMS solutions in place. Companies are 4X as likely to manage training requirements in human capital management than EAM. 40% still manage training through spreadsheets or manual hard copy documents. Almost half (49%) do not use applications to manage documents about their assets. 58% do have risk mitigation or asset integrity management plan in place. 65% do have sustainability programs.

6 Company Size (Annual Revenue) > $2.5B, 22% < $100 million, 40% $1- $2.5b, 9% $100 - $150m, 7% $500m - $1b, 9% $150 - $250m, 6% $250 - $500m, 6%

7 Does your company currently run an EAM or CMMS solution? 40% All Respondents 30% 20% 15% 22% 27% 10% 5% 0% EAM CMMS No Not applicable to my business While only 5% said EAM would not be helpful to them, a sizable percentage still have not implemented EAM or even a rudimentary computerized maintenance management system.

8 Is training tracked with enterprise software? All Respondents 50% 40% 44% 40% 30% 20% 10% 11% 4% 0% Yes in our EAM solution Yes in a HR/HCM solution, not tied in with EAM, CMMS or ERP No in spreadsheets, hard copy, etc. not integrated with enterprise systems Other

9 Where are documents regarding operating equipment stored? All Respondents 30% 33% 35% 30% 21% 25% 20% 11% 6% 15% 10% 5% EAM or CMMS Stand-alone document management system In a file on a server In a file cabinet (hard copy) Other 0%

10 What this means When asset data is stored outside of a centralized enterprise application, it is almost impossible to ensure that it is current, that everyone is working from the same version of the truth, and that asset integrity plans are being followed. Training and certification data must also be kept in a system that allows for streamlined reporting and management verification that assets are operated and maintained by competent professionals as required by law or regulation.

11 Does your company have a risk mitigation or asset integrity management plan in place? 60% 58% All Respondents 40% 20% 0% 28% 13% 1% Yes No Don't know Not applicable Some businesses are more susceptible to risk than others. The more asset intensive the business, the more devastating asset failure can be. An assembly shop can deal with asset failure more easily than process manufacturers with extensive equipment and fixed assets. For companies in some industries, however, asset failure can have environmental, health and safety repercussions.

12 Does your company have a sustainability plan in place? 75% 50% 65% All Respondents 25% 12% 22% 0% Yes No Don't know Today, the majority (65%) of manufacturers now have a sustainability plan in place. While this once was a feel good kind of thing (pretty pictures in the annual report), today it is viewed more as a good business practice. The nature and extent of sustainability practices can provide competitive advantage.

13 Implications for Industry Asset integrity management is an important discipline for any company that relies on productivity of capital assets. For companies in oil and gas, mining, power generation and others, asset integrity management is mission critical because equipment failures carry heavy liabilities beyond the balance sheet. Companies that do not keep data necessary to support asset integrity management in a secure and accessible enterprise system are exposing themselves to greater enterprise risk.

14 About IFS IFS is a public company (OMX STO: IFS) founded in 1983 that develops, supplies, and implements IFS Applications, a component-based extended ERP suite built on SOA technology. IFS focuses on agile businesses where any of four core processes are strategic: Service & asset management, manufacturing, supply chain and projects. The company has 2,000 customers and is present in more than 50 countries with 2,700 employees in total.

15 Asset Integrity Management and Enterprise Software Contact Information: Charles Rathmann, Analyst IFS North America