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

scott.smith@trmnet.com

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

Ali

gn

me

nt?

“… 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

scott.smith@trmnet.com