Demanding Excellence from Your Asset

Management System
John Reeve

Organizations that aggressively pursue operational excellence have the best opportunity
for enhanced profitability. They also realize value provided from a purpose-built
computerized maintenance management system (CMMS), precisely configured to extract
knowledge and manage by exception. However, the CMMS is only as good as the
surrounding process and roles. Hence, a comprehensive plan is needed that encompasses the
entire asset management system to enhance reliability, workforce productivity and job safety.

What Is a Purpose-Built System?

Very few organizations know what they want, even after their CMMS goes live. A good
implementer blends software knowledge with industry best practices. The implementer also
trains the core team to seek continuous improvement through benchmarking activities. As a
result, leadership may not know exactly what they want, but they are designing the CMMS
with the end goals in mind. Using the Uptime® Elements as a framework for reliability,
empowered by a configurable CMMS, leadership can set their own pace and build as they go.

The Reliability Journey

The Uptime Elements provide a critical relationship between the CMMS database and
reliability engineering. It is this relationship, however, that is oftentimes underdeveloped. In
order to pursue the shortest path to value, a clear road map is needed that addresses the hard
subjects, like:

 How do you reduce reactive maintenance?

 How do you extract bad actors?
 How do you implement defect elimination?
 How do you verify that your preventive maintenance/condition-based technology
program is set up correctly?
 How do you create a living program in support of failure mode refinement?

If you can’t make data-based decisions by leveraging failure data in your CMMS, then what
are you doing?
You Can’t Install Reliability

Reliability is the probability that a system will perform satisfactorily for a given period of
time under stated conditions.

Reliability Engineering is a subdiscipline of systems engineering that emphasizes

dependability in the lifecycle management of a product. Dependability, or reliability,
describes the ability of a system or component to function under stated conditions for a
specified period of time.

Asset reliability does not magically improve when a CMMS goes live. The software may be
best of breed, but it is the culture of the organization that drives excellence. Quite often,
leadership does not clearly define the endgame or provide a long-range plan to get there. Or,
the implementation team does not involve reliability leaders in defining the output essential
to measuring performance. Once the CMMS is operational, there also needs to be a strategy
for optimization and sustainment other than vendor recommended software upgrades.

The ideal asset management system is one that is based in reliability. And a
CMMS, if properly set up, will facilitate data-based decision making.

Where Are the Roadblocks?

 An executive level policy that does not encourage employees to attend off-site venues
to broaden knowledge in asset management
 Reliability engineer who is really a maintenance engineer
 No formation of a core team to integrate software functionality with asset
management best practices; unclear business rules; no benchmarking activities
 No CMMS utilization plan that states how the product should be used to add value to
the organization; this plan would identify the shortest path to value
 A working level that sees the asset management system as a people tracking system
 No business analyst to regularly interview the working level to identify process flaws,
lack of training and declining morale
 No planner/scheduler to improve workforce productivity and backlog reduction

There Is No Guidebook for Utilization and Optimization

4 Ways to Implement

When implementing a CMMS, management has three options:

 Replicate existing legacy system processes;

 Rely on software vendor suggested processes;
 Perform some combination.

There could be a fourth option: Combining industry best practices and advanced processes.
This combined approach assumes the consultant has knowledge to share regarding best
practices. But, regardless of the path chosen, without a clear understanding of output
requirements and analytical report design, you may not even be capturing the right data from
day one. Therefore, the individual or group who has the authority to define the intended
usage of the CMMS should determine the long-term success of this system.

Underutilization of CMMS Places Organization at a Disadvantage

Software by itself will not succeed in a poorly aligned culture. After all, the CMMS is just
one of 36 elements in the Uptime Elements framework. However, the CMMS is often
underutilized, misused and even misunderstood. The software vendor will not be able to
provide an industry specific process map, therefore, it is up to the asset stakeholders and core
team to build this map.

Advanced Processes Deliver Greatest ROI

Most implementers will implement the CMMS using basic processes since this is the quickest
and cheapest way to reach the go live milestone. Basic processes, such as creating and
completing work orders, are easily understood, but advanced processes, such as chronic
failure analysis, backlog management and future scheduling, are frequently not pursued. A
CMMS, unlike other software programs, only achieves greatness when surrounding processes
are optimized and decision-making tools are enabled. Admittedly, these advanced processes
are more complex and take more time to implement, but they enable decision makers to
maximize value.

The Goal of Operational Excellence Must Come from Within

The first step toward operational excellence is to establish an awareness and understanding
within the executive team. The executive sponsor should have training in asset management
strategy. More importantly, the concept of advanced processes should be defined and linked
to the return on assets (ROA). In a perfect scenario, the CMMS implementation contract
would be worded to identify both short-term and long-term goals. Either way, the onus is on
the sponsors and reliability leaders to clearly communicate strategies for success.

Investigating the Sub-Elements of a CMMS

Every CMMS has user applications. Examples include work orders, assets, locations,
inventory and purchasing. But rather than focus on product navigation, let’s look at the things
that really matter, such as process and roles.

Advanced Processes

Root cause analysis (RCA) might be done once or twice a month. An RCA also might have
trigger points that mandate performance. However, it is the smaller, recurring failures that
cause 40 to 60 percent of maintenance costs, so they deserve greater attention. If reliability
leaders want to stop the problem at the origin, then defect elimination should be pursued. The
combination of these techniques, plus work order (WO) feedback, helps ensure the right work
is being done by the right staff at the right time.
CMMS Design with the End in Mind

Too many implementers focus only on the software. This means they perform rudimentary
setup per the product training manual, load data and train staff. But, if the implementers were
to involve the reliability engineers, they might get an entirely different emphasis. Reliability
engineers benefit the most from failure data that is properly captured to support reliability
engineering. They would start with a failure analytic design that enables the reliability team
to drill down on failure modes once the bad actors are defined. In some cases, these new
output requirements require configuration of the input screens to provide the right data, such
as a validated failure mode.

RCM for Asset Management

Setting up reliability-centered maintenance (RCM) for asset management can be illustrated

with six primary blocks. The asset registry must be populated with criticality that is risk
based. Using this criticality, the best method for strategy creation, for example RCM analysis
or preventive maintenance (PM) optimization, can be determined. In some cases, the original
equipment manufacturer (OEM) guidelines are used or simply, peer-to-peer
recommendations. These strategies are then converted to PM servicing activities or condition-
based technology (CBT) routes. Work can then be properly planned, scheduled and executed.
Using a failure analytic, bad actors can be presented to the reliability action team for analysis
and action.

Stretch Goals Are Ideal

Best in class organizations continually seek new ideas and technologies in support of their
goals. Some improvement initiatives can take a while to implement. And, every organization
has the right to use the CMMS in the manner it sees fit. But, leadership should not assume
there is a guaranteed benefit from poorly implemented systems. Therefore, if an organization
wishes to pursue the highest levels of asset management, it needs to configure the software
and surrounding processes, including stretch goals, to maximize value.

If leadership leaves it up to individuals to pursue continuous improvement, the opportunity

for greater results may be missed. If stretch goals are used, there is a greater chance of
success through awareness. You may not always make these stretch goals, but if they are not
established, you absolutely will not. The other benefit of this strategy is that by defining the
endgame or target goal(s), you can then, as a group, sit down and lay out the logical steps to
get there. This becomes the road map, with a timeline.

Key Elements of an Asset Management System

In summary, there are many elements of an asset management system. The CMMS should be
purpose-built to manage by exception and improve ROA. Leadership should be informed and
goals aligned. But remember, it is the advanced processes that provide the biggest bang for
the buck.
NEW RELEASE!

Demanding Excellence from Your Asset Management System by John Reeve, August 2019 by
Reliabilityweb.com Publishing. For more information: www.reliabilityweb.com/bookstore

John Reeve

John Reeve, CRL, is Senior Business Consultant at EDI. John was the second consultant
hired by the company that invented Maximo and hasfocused on Maximo software and asset
management system design for the last 20 years. His combined knowledge in both project
management and asset management make him unique in the consulting
field. www.edatai.com