patrick connaughton senior analyst forrester research
TRANSCRIPT
TeleconferenceNext-Generation Enterprise Asset ManagementPatrick Connaughton
Senior Analyst
Forrester Research
May 30, 2006. Call in at 11:00 am Eastern Time
2Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Theme
Moving from a reactive to a predictive state of
maintenance in enterprise asset management
3Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Agenda
• New technologies re-energize enterprise asset management.
• Solution providers seek to meet clients’ evolving EAM needs.
• Reactive culture hinders wide EAM adoption.
• EAM solution providers focus on adoption challenges.
• To achieve PdM, EAM solutions need to move upstream.
4Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Agenda
• New technologies re-energize enterprise asset management.
• Solution providers seek to meet clients’ evolving EAM needs.
• Reactive culture hinders wide EAM adoption.
• EAM solution providers focus on adoption challenges.
• To achieve PdM, EAM solutions need to move upstream.
5Entire contents © 2006 Forrester Research, Inc. All rights reserved.
EAM enabling technologies
• RFID and GPS
• GIS
• Wireless rugged PCs
• Handheld devices
• Ultrasound
• Thermal imaging
• Wireless sensors
Mobile asset tracking
Geographic asset details
Automated data entry
Condition monitoring
6Entire contents © 2006 Forrester Research, Inc. All rights reserved.
EAM enabling technologies
Mobile asset tracking for a company like JR Freight, railway transportation
Forklift-mounted GPS antenna and RFID reader
• Pinpoint the exact location of a tagged shipping container
• Reduces time to locate assets
• Improves supply chain visibility
7Entire contents © 2006 Forrester Research, Inc. All rights reserved.
EAM enabling technologies
Geographic asset details for utilities providers like Southern Company
• GIS technology with drill-down asset information
• Answers common field questions at a moment’s notice
• Streamlines field service work
• Increases efficiency with more readily available data
8Entire contents © 2006 Forrester Research, Inc. All rights reserved.
EAM enabling technologies
Automated data entry for companies like Pratt & Whitney
• Wireless bar code-based data collection
• Mobile computers
• Bar-code scanners
• Improve parts inventory data
• Streamlines the receiving process in the warehouse
9Entire contents © 2006 Forrester Research, Inc. All rights reserved.
EAM enabling technologies
Condition monitoring for a company like Chevron
• Embedded wireless sensors
• Monitor offshore oil wells
• Early problem identification
• Avoid more costly repairs
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EAM’s expanding functional footprint
Role-based analytics and reporting
Reliability-Centered Maintenance (RCM) Predictive Maintenance (PdM)
Requisition and purchasing eCommerce
Event management and alerting
Spare parts management
Financial reporting
HR skills registry
Warranty management
Workforce management
Work order management
Preventive scheduling
Asset registry
11Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Agenda
• New technologies re-energize enterprise asset management.
• Solution providers seek to meet clients’ evolving EAM needs.
• Reactive culture hinders wide EAM adoption.
• EAM solution providers focus on adoption challenges.
• To achieve PdM, EAM solutions need to move upstream.
12Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Vendor landscape
Integrys AssetPoint TabWare EFx
Datastream DataStream 7i
Indus Asset Suite
IFS EAM
Intentia EAM
MRO Software Maximo Enterprise Suite
Mincom Ellipse
Oracle E-Business Suite EAM
Oracle JD Edwards EnterpriseOne ALM
SAP Service and Asset Management
Vendor Product
13Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Vendor landscape
• Two major categories
» Best-of-breed
» ERP
• Offerings
» Standalone with out-of-the-box ERP integration
» EAM solutions within larger ERP offerings
14Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Agenda
• New technologies re-energize enterprise asset management.
• Solution providers seek to meet clients’ evolving EAM needs.
• Reactive culture hinders wide EAM adoption.
• EAM solution providers focus on adoption challenges.
• To achieve PdM, EAM solutions need to move upstream.
15Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Common day-to-day reactive issues
• Bad data and low user adoption
• Poor inventory management of service parts
• Inability to create proper work schedules
16Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Agenda
• New technologies re-energize enterprise asset management.
• Solution providers seek to meet clients’ evolving EAM needs.
• Reactive culture hinders wide EAM adoption.
• EAM solution providers focus on adoption challenges.
• To achieve PdM, EAM solutions need to move upstream.
17Entire contents © 2006 Forrester Research, Inc. All rights reserved.
EAM addresses common day-to-day reactive issues
• Bad data and low user adoption
Automated data entry
Refined validation rules
• Poor inventory management of service parts
Applied supply chain best practices
• Inability to create proper work schedules
Added business logic
18Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Agenda
• New technologies re-energize enterprise asset management.
• Solution providers seek to meet clients’ evolving EAM needs.
• Reactive culture hinders wide EAM adoption.
• EAM solution providers focus on adoption challenges.
• To achieve PdM, EAM solutions need to move upstream.
19Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Firms need tools that react, predict, and recommend
• Firms must integrate
» Asset monitoring/diagnostics and EAM tools
• Planners must consider all-in-one
» EAM data
» Asset monitoring trends
» Predictions
20Entire contents © 2006 Forrester Research, Inc. All rights reserved.
How firms will benefit …
• Real-time performance management
• Enterprise-level analytics
• Increased efficiency in labor management
• Closer ties between diagnostics and remediation
21Entire contents © 2006 Forrester Research, Inc. All rights reserved.
What’s the hold up?
• Present integration is only to import predefined work order tasks.
• Tasks are created in silos without priority or cost considerations.
• Tremendous amount of work to combine diagnostics and EAM.
» Rationalize all the data across all systems.
» Import to EAM.
» Analyze.
» Report.
22Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Core EAM Preventive maintenance
EAM application development
Past Recent Past Present Near Future Future
Complete PdM
RCM
•Mobile asset tracking•GIS asset details•Automation•Condition monitoring
Large Jump
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Benefits of Reliability-Centered Maintenance
• Presents a well-defined methodology for process re-engineering.
• Defines key performance metrics for assets under review.
• Identifies underlying causes, probabilities, and impact of failures.
• Maps preventive tasks.
24Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Recommendations
• Conduct a thorough RCM assessment before system upgrades and new installations.
• Harness the results from RCM by applying them to work orders within the production system.
• Firms must allocate resources proportionate to the cost and yield of each maintenance task.
25Entire contents © 2006 Forrester Research, Inc. All rights reserved.
What it means…
• Improved asset management =
» Better Utilization
» Better Reliability
» Better Returns
• Improvements require a holistic approach to EAM.
• Third-party outsourcing can expedite firms’ transformation to improving maintenance with cost optimization in mind.
26Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Patrick Connaughton
+1 617/613-6486
www.forrester.com
Thank you
27Entire contents © 2006 Forrester Research, Inc. All rights reserved.
Selected bibliography
• April 24, 2006, Market Overview “Next-Generation Enterprise Asset Management”
• April 4, 2006, Topic Overview “Topic Overview: The Extended Internet”
• March 15, 2006, Topic Overview “Topic Overview: Enterprise Mobility”
• December 22, 2005, Topic Overview “Topic Overview: Service-Oriented Architecture”
• October 18, 2004, Best Practices “Are Our Supply Chains Less Vulnerable Now?”