Maximo User Group Keynote - "Facilities" is Strategic!

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Information about Maximo User Group Keynote - "Facilities" is Strategic!
Leadership & Management

Published on May 8, 2014

Author: ScottSmithPE



Enabling enterprise asset management (EAM) by leveraging and extending Maximo. Keynote given at the Facilities Maximo User Group in April 2014. Strategies include ISO 55000 alignment, project/contract integration and system alignment.

Facilities IS Strategic! Moving to Lifecycle EAM – 3 key tactics for today’s Infrastructure and Maximo leaders Scott Smith, PE Former: PWO & Business Mgr, NAS Whidbey Former: Navy Maximo & EAM Program Manager Current: EAM Solutions Architect, TRM Disclaimer: This brief does not represent any Navy positions or endorsements Modified Navy Case Study from Pulse 2014. Co-presented with TRM – strategic partner for Navy Maximo.

2 3 Tactics for “Lifecycle EAM” Briefing Agenda 1) Get Strategic – sell the Boardroom • What is ISO 55000 and EAM? How to leverage? • Is ‘Facilities’ and ‘Infrastructure EAM’ really strategic? • Can ‘Lifecycle EAM’ improve our business & bottom line? 2) Integrate the EAM Lifecycle – sell Business Lines • Integration is hard - organization, process & systems • Business Line Leader – Can I just see “all” work? • How to integrate MRO & Acquisition (Projects, Contracts)? 3) Deliver Compelling Functionality – sell Users • This is REALLY hard for single platform systems • Without vertical functionality, horizontal integration will fail • Good news: Maximo evolution, GIS, Mobile, no coding tools Summary

3 Why “Strategize”? With reduced facility (and system) budgets, must “think out of the box”

4 What has changed since 2001? LOTS of change but alignment & integration challenges remain 2001 ERP MRO (maintain) ISO 9000 (Manufacturing) Equipment 4x/CMMS Windows/Citrix Data Brokers 2014 EAM EAM (lifecycle) ISO 55000 (all domains) “All Assets” 7.5/Web -> EAM Web/Cloud MIF/Web Services CXO Focus Asset Strategy Asset Standard Asset Focus Maximo Platform Integration Mobile-GIS Business Domain System Domain Alignment? “… while [infrastructure entities] have made significant investments in the last 20 years, they are stand-alone systems with limited capability for sharing information… isolated silos.” – ASCE – Integration of Infrastructure Processes

5 What Has NOT Changed? People – processes, systems and integration must empower them Employees (users) (“Boiler room”) Business Line Leaders CXO Facility/Asset Products & Services Customers I need compelling functionality – NOW! I need to see “ALL” work – not navigate 10 silos! Is our business getting good value from our assets and our asset management team?

6 “Strategic EAM” Business at Top, People in the center TRM Work Product

7 What is ISO 55000 and EAM? Approach “Asset lifecycle value” from different perspectives • Whole life optimal management of the physical assets – design, construct, maintain, replace… of plant, equipment and facilities • Improve utilization and performance, reduce costs, extend asset life - improve return on assets (value) • "Enterprise" - mgmt of the assets across departments, locations… EAM System • Implemented business processes and systems – “How to manage” • use of a life cycle management approach to realize value from asset • Coordinated activity of an organization to realize value from assets – to achieve organizational objectives ISO 55000 – Asset Mgmt System • Holistic framework… policies, plans, processes and information systems, which are integrated to give assurance that the asset management activities will be delivered – “What to manage” ISO 55000 Strategy centric (“What”) Enterprise Asset Mgmt Execution centric (“How”) Summarized from ISO 55000 documents Good Source: Uptime Magazine Wikipedia References

8 Putting ISO & EAM together Winning combination – Strategy + Execution Stakeholder and Organization Context Organization Objectives Strategic Asset Mgmt Plan & Objectives Asset Mgmt Plans Implement Plans across asset portfolio Evaluate performance & improvements ISO 55000 “Strategy” “What to Do” EAM Execution “How to do it” (People, Process, Systems) TRM Work Product

9 Is “Facilities” really Strategic? For infrastructure intensive enterprises, YES

10 Is “Infrastructure EAM” Strategic? Yes - and let your CXOs know! TRM Work Product

11 Lifecycle EAM – Business Value? For a $1B Infrastructure “plant” – 40% is $400M Asset Value “Loss” (~ 40%) Maintenance – Non-optimal maintenance strategy and execution (faster degradation) Repair – Increased scope (cost) to fix sins of the past Reduced asset life – Increases capital cost TRM Work Product

EAM Lifecycle Integration Integration Strategies

13 Navy EAM Integration Mandate Reduce shore costs to recapitalize Fleet (“Sea Enterprise”) • Mandate: Move from silos to integrated ‘EAM’ organization – in 3 years • Integrate functional silos – maintenance, projects, contracts • Improve asset lifecycle – visibility, speed, quality, cost • Integrate organization, processes and systems (in parallel) • Key Challenges: • Geography – 15K global users at 72 installations • Asset scope - $150B in facilities, equipment, utilities, vehicles… • Back office integration – Mainframe financials, DoD contracts • Culture – MRO “blue collar” vs. Project/Contract “white collar” • System “chaos” – 400+ local & regional systems (instances) Business Realization: Organization and Process integration not viable without single platform (“enterprise”) and integrated systems...

14 EAM “System Chaos” 400+ EAM Organization, Core Processes, and Systems

15 Goal: Globalize & Integrate Integrate Organization, Processes and Core Systems – in 3 years A) Single Platform Maximo – 72 bases (cornerstone) B) Project & Contract Integration (EAM) C) Beyond systems: Reliability & Value Engineering

16 Maximo – EAM Cornerstone Core system – 72 global bases, all asset/work types, 10K users

17 “Acquisition Integration” Options Several Project and Contract solutions available today • Project Management Options • Vanilla Maximo • MS Project or Primavera Integration • Composite Application (eProjects) • Tririga Capital Projects • Extend Maximo & Scheduler 7.5 • Contract Management Options • Vanilla Maximo • Primavera Contracts (Construction) • Composite Application (eContracts) • Emptoris – Preaward, RFP, Redline • Extend Maximo for complex contracts • Including construction mgmt “Leading companies must improve the whole contract lifecycle… particularly capital intensive companies including defense, facilities” - Andy Kyte, Gartner TRM Work Product

18 2004 - From “CMMS” to “EAM” Adding “composite apps” – 5K users. OK, how do we view all of this?...

Recent Emergency Work (Maximo) Active Projects (eProjects) Recent Contract Awards (eContracts) Key performance indiciators built from this data (ISO component). Maximo 7x has robust Dashboard and KPI capability 2005 - Business Line Leaders Hey, I CAN see “all” work! Can you put this on a map?... Workorder Details Project Details (eProjects)

20 2007- OK, we can put “all work” on a map That’s good, but can we connect field workers? …. Employee and Client Portal with single sign-on View Installation Map (GIS – ESRI) View Building workorders (Maximo)

21 2014 – Yes, can connect Field Workers too The “perfect integration storm” – Maximo-GIS-Mobile 1) Define asset segments in Maximo Linear 2) Visualize assets and work in Spatial 3) Automate field work with mobile Example below: Stormwater Management system for State of Hawaii DOT (TRM) FMMUG Briefs (& Pulse) - Georgia Power, Sarasota County Pulse: 12 Maximo presentations with mobile

22 3) Beyond Systems How do we ‘functionally leverage’ this integration? Asset Plan Summary (ISO 55000 component) Maintenance & Capital Project Priorities Value Engineering Reliability Engineering ‘Gray collar” Leaders White Collar Blue Collar

Must Deliver Compelling Systems If this “single platform” system does not provide the functionality – I’m going back to Spreadsheets. CIO: Hey, are people really using these expensive systems – if not, why did we integrate?

24 ‘Single Platform’ challenges Without compelling functionality – integration fails • Support all Asset, Work, & Project Types? • Assets – Facilities, Equipment, Utilities, Fleet… • Work – PM, CM, Service, Repair, Renovation… • Projects – Capital, Environmental, Real Estate, Planning… • Support regional and local requirements? • Currency, Foreign nationals, taxes… • Enterprise and Department reporting… • Timely changes and promotions? • Keys to Success 1. Executive Sponsorship – we are doing this! 2. Empowered functional teams – decide “right” functionality 3. Flexible Core system – Maximo (screens, MIF, fields…) 4. No coding extensions & configuration, e.g. RulesManager 5. Data Store – Enable reporting “self service” to power users 6. MUST recruit/retain the “A” Team – functional & system

25 EAM ‘horizontal integration’ is nice But are you delivering ‘vertical’ functionality for each user group?… ?

26 Vertical Functionality Core system tasks, transactional integration, data views

27 The Good News Maximo Functionality and Tools continue to improve MOBILE

28 Extending Maximo with minimal coding Provide key functionality and simplify configuration Organic Maximo Flexibility - Add fields, Tables - Cloned Apps - Modify screens… Composite layer integrated with Maximo - Advanced rules & validation - Composite tables & objects in Maximo applications IBM Blue Mix – Full composite engine - Robust, Cloud-based Composite Environment - Integrate multiple apps Example: Lock-out Tag-out “bolt-on” via TRM Rules Mgr Gartner: “By 2016, midsize to large companies will spend 33% more on application integrations than in 2013”

29 Summary 3 Key Tactics to achieving Strategic “Lifecycle EAM” • “Lifecycle EAM” is strategic – sell boardroom • Facilities = Infrastructure = Strategic • Mandate: Increase asset value to the business (ISO 55000) • Requires Lifecycle integration – people, process, systems • 1st Step: CXO sponsorship for strategic asset planning • EAM system integration is key – sell BL leaders • Must have an MRO core – asset registry, work, materials… • Project Integration options – Maximo+/Sked, Tririga, 3rd Party • Contract integration options – Maximo+, Emptoris, 3rd Party • EAM functionality is ‘more key’ – sell Users • Supporting ALL asset, work, project, contract types is hard • Empower functional teams (not corporate) to drive apps • Enabling tech: “no coding” extensions, data stores… • After foundation is solid add icing: full GIS, Mobile…

30 Questions? Thank you for your time! Scott Smith

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