Reduce Costs & Adopt Green Manufacturing Practices Asset Management for Green Manufacturing Selvaraja Vallyan Maximo Sales Leader, ASEAN selva@sg.ibm.com
Agenda Vision Green Manufacturing Industry Challenges Value Asset Management for Manufacturing Case Study Value Proposition Summary
Green Manufacturing has a broad definition and impact. "Sustainable Manufacturing" is the creation of manufactured products that use processes that are*: nonpolluting conserve energy and natural resources are economically sound safe for employees, communities and consumers *as defined by the International Trade Administration
Drivers for Environmental Demand Compliance and Regulation Environmentally Aware Customers Rising Energy, Raw Material, & Waste Disposal Costs Product Strategy Strategic Take on Environmental Costs Consumers Making Moral Purchases
The impact requires rethinking manufacturing fundamentals From Simply Adhering to Governmental Regulations Heavily manual EH&S Data Collection for compliance sake Six Sigma To Increased Reduction in Carbon Emissions and Water Consumption Automated Environmental Data Collection and Reporting for optimization sake Green Sigma Supply Chain Management Sustainable Value Chain
Green Initiatives should be considered in all functional areas of the plant Plan & Schedule Resources & Utilities Materials Water Oil Waste Soil & Air Electricty Material Movement Ship Materials Quality Maintenance Material Conversion Material Movement Material Conversion
IBM s Asset Management Solution: Maximo Asset Management MAXIMO ASSET MANAGEMENT Addresses asset management challenges for line of business operations and IT Consolidates point solutions for Asset and Service Management into a Suite Includes enhanced Workflow Event Driven Context-based Escalation Manager Provides Service Management capabilities for Asset Owners Asset Managers Service Providers Next generation J2EE Technology Platform Service Oriented Architecture (SOA)
What IBM Maximo Does: One unified solution to manage all asset classes Broad, best-in-class service support for all critical assets that drive the business Production Equipment Facilities Transportation Assets Power generation equipment Refineries, chemical plants Manufacturing lines Corporate buildings Hotels, hospitals Airports, government facilities Rail, rolling stock Over-road vehicles Ships, aircraft Consolidation for greater efficiencies IT Hardware and Software Servers, laptops, network devices Software configurations, licenses Service We Enable Operational Efficiency and Consolidation
What Does Maximo (EAM) Do? Assets Equipment Locations Job Plans What to do Resources required Preventive Maintenance Triggered by Time Meter Condition Work Requests Help Desk Request Tenant Request Preventive Maintenance Work Orders Inspection Work Orders Unplanned Work Orders
Processes for Maintenance and Inbound Supply Chain Management Payment Accounts Payable Process Invoicing Purchasing Process Fulfill P.O. by Vendor Issue P.O. Contract Select Vendor Purchase Request Non-Maintenance Material and Service Requirements Plan Work Initiate Work Inventory Counting Transactions to Financial Modules Inventory Management Process Update Inventory Data Receive Materials Store Materials Execute Maintenance Work Analyse Work Issue Materials Schedule Maintenance Work Track Equipment Movement Maintenance Process Maintain Location Hierarchy Maintain Equipment Data Labor Entries to Payroll/HR
IBM Maximo Asset Management Footprint Accounts Payable Invoices Purchasing Module PO Receipts RFQ Contracts PR Work Request Transactions to Financial Modules Inventory Control Inventory Module Issues & Transfers PMs Work Orders Maintenance Modules Job Plans Operating Locations Equipment Labor Entries to Payroll/HR
Management views with KPI s
Case Study The Company The Challenge The Solution The Benefits Volvo Car Corporation Vehicle Manufacturer Production capacity of 230,000 cars (2004) To achieve an annual cost savings target of 5% 31% of downtime results in lost production Increasing production line automation: robots and computercontrolled equipment IBM Maximo Asset Management Reduction of the risk of production stoppage Material cost reduction of high budget maintenance function Expand effective asset life on complex tools such as paint shop robots Break even achieved in less than 2 years
Case Study Improved PM Strategy A manufacturing plant uses large stainless steel tubs to mix product at one of their larger US based plants. Each tub requires a large mixer powered by a motor, which in turn requires quarterly PM service at an average cost of $10,000 per occurrence. When they implemented a condition based strategy for preventive maintenance, based on the actual run time of each tub, they learned that only a few of the motors required maintenance due to operations. The rest could receive a more minor PM routine and still attain corporate goals of availability. This simple change decreased maintenance costs at this plant by more than $1 Million per year.
What Values & Benefits Does The Customer Derive? Potential Green Benefits: Lower Operational Costs While Reducing Carbon Footprint Reduction Waste in Unnecessary Production Cost Improved Margins Avoid Carbon Footprint Penalties Demonstrate Environmentally Responsible Organization
Gartner Magic Quadrant for Enterprise Asset Management for Manufacturing IBM Maximo is the only solution to have been placed in the EAM Leader s Quadrant in all 12 editions of the Gartner EAM Magic Quadrant for Manufacturing and the previous Gartner EAM Magic Quadrant Combined with Tivoli software, IBM Maximo Asset Management offers the capability of managing IT-enabled assets with the same solution that is used to manage traditional EAM assets. It has high customer satisfaction within the manufacturing sector. It is scalable to very large manufacturing organizations. It supports integration with a wide variety of ERP suites. It has versatility across multiple platforms. Source: Gartner (September 2008)
Why IBM Maximo? Only provider of solutions for Manufacturing MRO and Asset & Service Management Business Agility Standards-based, Service Oriented Architecture Proven Provider A Long Term Partner We Will Help Your Organization To Increase Equipment Performance And Reliability Lower IT and Operational Costs Drive Rationale Business System Consolidation Improve Risk Management Drive Higher Service Levels
Evaluating Your Asset Management and Supply Chain Processes Maturity Levels Value -Fire fighting -Run to fail -Work Mgmt -Preventive -Spares parts IV IV -Reliability -Condition -Predictive III III Understanding Understanding -All Business Processes -Service Level Agreements -Service Management II II Competence Competence -One System All Processes -Asset & Services Management -Enterprise Wide Business Alignment II Excellence Excellence V Innocence Innocence Awareness Awareness amcoe Asset Management Center of Excellence Maturity
Want to know more? Sales related queries Selvaraja Vallyan Maximo sales, ASEAN selva@sg.ibm.com Product / Technical related queries Johannes Tjoa Technical Sales, ASEAN johannes@my.ibm.com