Asset Based Management Systems What to ask, what to expect, what to measure

Asset Based Management Systems What to ask, what to expect, what to measure

This presentation will share the lessons learned from 5 years of direct experience sourcing, configuring, implementing and leveraging an online asset based management system. We will walk through each phase of a project and provide useful watch outs and considerations We can t manage what we can t measure - Executive Teams everywhere

Operations Internal Technician Vendors Accounting Risk Fixed Assets Tax Facilities Finance IT Capital Control Purchasing Crop. Project teams Construction

Accountability Preventative Maintenance program Performance management Budget to actual/forecast tracking Cost control/savings Contract management Standardization of processes Warranty utilization Issue escalation Service validation Root Cause identification Trend analysis Life Cycle cost of assets Paperless process Automate dispatching Tracking of projects Outsourcing Parts management Mobile users Call Center

Business Case Start with objectives Talk to peers in industry Project Governance Executive sponsorship and oversight Who owns project Who makes final decision and how Project Management Use appropriate tools and disciplines that match your organizations size, structure and resources Resource identification Identify resources for development, implementation and system maintenance Cross functional team Operations, Accounting, Training, IT, Facilities, Tax, Internal Audit, Finance, Purchasing, etc.

Four areas of process improvement opportunities with these types of solutions Work order/invoice management Vendor management Internal Technician management Asset management

Document current work flow processes Very important as this will define the detailed requirements for many policies and procedures Engage the persons that actually do the work (the devil is in the details) Identify a point person for each process (part of project team) Identify gaps and inconsistences across different markets will need to be addressed as part of the change management process Be open to changes that will facilitate the technology choices available

Vendor Standard Operating Procedures What are your vendor SOPs today and why? What is missing? IVR check in and out of work order (how does system track) Sign-off of work order by manager on duty Not To Exceed (NTE) process Quotes Disputed invoices Document requirements for vendors and communication plan Compliance with processes what is your position on this and who and how will this be enforced?

Vendor Support Who trains vendors and how? Where can they go for help? What are the benefits for the vendors? Vendor reporting Score card Invoice review (is this provided) Vendor onboarding process Cost Setup In system In your accounts payable Contracts Insurance W9

Performance management Score card GPS tracking Dispatching Time card On-call/vacation routing Parts Inventory management Replenishment process Search other technicians inventories Mobile Application Create work orders Reassign work orders Custom fields Real time tracking Work order history Fix incorrect asset Filter work orders by location Alerts Work offline

Asset identification during work order creation Equipment tagging Graphic identification in Customer Portal Hierarchy of assets in Customer Portal (terminology) Process to identify and correct asset selected Asset attributes Model - Install Date Serial - Condition Manufacture - Warranty Refrigerant

Different types of assets Key Operating Equipment (KOE) Non-KOE Maintenance of the assets in the system When a new asset is installed (like for like replacement) New Store Opening National roll out of a new asset Tracking of life cycle cost Warranty setup, flagging and reporting Root cause analysis

Accounts Payable Vendor invoices Vendor Payment General Ledger Technician invoices Store debit Technician Credit Accruals Internal External Tax Risk (insurance claims) Fixed Asset (capital) Payroll Users (hierarchy) Locations (hierarchy)

Internal Audit Reporting requirements (SOX) Is there SAS 70 requirement Historical Data What do we have? How will this add value in new system? Effort to import Any constraints to objectives by adding historical data? Call Center Augment technology Vendor compliance of system use Escalations 24/7 monitoring Customer Portal Accountability Lower cost Self help Approval of invoices Customer Feedback

System compliance How is it tracked What tools are available to enforce System maintenance Sites Users Assets Providers Integration Reporting What fields are available for reporting How are reports created Can they be auto run and distributed and how does this work Analysis Does solution provider do analysis and how

Prepare a thorough RFI Based on objectives and known requirements Are you doing it today with a client in a production environment? Can I contact them? Summary of vendor responses with rating for each Completeness of information Reference interviews Penetration into your specific segment of restaurant industry Penetration into of your specific facilities model

From RFI choose top 3 or 4 vendors to demo their systems Allow plenty of time for demos Create script using current work flows (be open to changes that accomplish objective) Create score card for cross functional project team to use to capture notes and rate each vendor in a consistent way on each aspect of work flows Summary of all score cards complied to discuss with project team

Understand how changes made to system and by whom User interface Work Flows Approval limits Users and locations Custom Fields Track special projects

Change Management - do not under estimate the need for continuous education What s in it for me - the more compelling reasons for the operators to want to use the system the better On-going Training - build system training into standard manager training process Policies and Procedures - document and communicate policy and procedural changes as you go User Guides - have a place that all users can access and keep them cuurent

Information is not knowledge - Albert Einstein Focus on SMART metrics Simple to understand, collect, manage Meaningful worth the effort (ROI) Accurate exceptions less than 10% Real reflection of desired behaviors Timely enough to impact behaviors

Operations Invoice approval Proper prioritization Dispatching Duplicate work orders Deferred maintenance Self help resolution Vendors Customer satisfaction On time response On time completion IVR compliance On time invoicing Average invoice Contract compliance Repeat calls (first time repairs) Warranty compliance

Technicians Customer satisfaction On time response On time completion Time card hours to hours billed Stores per week Average invoice Repeat calls (first time repairs) PMs completed Assets root cause analysis Manufacturing issue Equipment design/selection Operations training Technician Training Preventative maintenance ROI PM completion versus created PM to demand ratio PM average cost to demand average cost