Enterprise Asset Management, shifting from Investment to Exploitation
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This document discusses how enterprise asset management is shifting from an investment phase to an exploitation phase. It notes that productivity declined during the investment phase of the last decade as companies focused on building infrastructure. It suggests that asset management strategies now need to shift towards predictability and maintaining assets based on need to maximize margins. The next phase will require leveraging new technologies to optimize asset performance and supply chain management.
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Enterprise Asset Management, shifting from Investment to Exploitation
- 1. © ABB Slide 1July 28, 2016 Enterprise Asset Management (EAM) shifting from
- 2. © ABB Slide 2 Enterprise Asset Management – Shifting from Investment to Exploitation July 28, 2016 COSOL Asset Intensive Industry systems and strategy specialists. Improve business processes to achieve business outcomes. Pragmatic approach to exploiting emerging technologies. ABB Services Partner Global Presence EAM Specialists
- 3. © ABB Slide 3 Enterprise Asset Management – Shifting from Investment to Exploitation July 28, 2016 John Searls Consultant, associate of COSOL •24 years with Rio Tinto •Maintenance and asset management a common thread •Worked across business units, corporate functions •Various transformational programs, including Ellipse and global SAP rollouts Asset Intensive Industry Focus Shared views on the role technology can play in Asset Management 30+ ERP/EAM go-lives between us Brad Skeggs Managing Director – COSOL •27 years delivering EAM solutions. •PM/ Sponsor for implementations in South America , Australia , United States, Mongolia. •Passionate about delivering customer productivity improvements via empowered teams of professionals
- 4. © ABB Slide 4 Enterprise Asset Management – Shifting from Investment to Exploitation July 28, 2016 The last decade was clearly an investment phase The last decade was clearly an investment phase Source: Craig Sainsbury – Goldman Sachs
- 5. © ABB Slide 5 Enterprise Asset Management – Shifting from Investment to Exploitation July 28, 2016 Productivity declined during that time
- 6. © ABB Slide 6 Enterprise Asset Management – Shifting from Investment to Exploitation July 28, 2016 The next decade will be different
- 7. © ABB Slide 7 Enterprise Asset Management – Shifting from Investment to Exploitation July 28, 2016 What happened with Productivity? 40h 60h 2000 2010 50% 70% 2000 2010 40% 2000 2010 60% 80%
- 8. © ABB Slide 8 Enterprise Asset Management – Shifting from Investment to Exploitation July 28, 2016 What Asset Management Strategies need to shift? from Schedule Capacity to Schedule for Margin from Reliability to Predictability from Schedule Compliance to Maintain on Need Alone We are running the most expensive assets flat out Our production schedule is optimised for margin We need to maintain this equipment to be maintenance schedule compliant We need to maintain this equipment to have schedule ready assets We need to spend whatever it takes to have this asset reliable We need to be able to predict the performance of this asset
- 9. © ABB Slide 9 Enterprise Asset Management – Shifting from Investment to Exploitation July 28, 2016 What Asset Inbound Supply Chain Strategies need to shift? from Cost Only to Cost and Cash Flow from “Just in Case” to Cost of Capital from Warehouse Capacity to Vendor Capacity An Inventory purchase was only a balance sheet hit not an EBIT hit! That ROP reduction means less short term PO’s and less payments A recurring theme is customers provisioning for all eventualities Better utilise your vibrant vendor community. Be creative! Those Insurance may not be all that you are expecting them to be! Dealing with POTOBS improves cash flow saves costs and improves asset predictability
- 10. © ABB Slide 10 Enterprise Asset Management – Shifting from Investment to Exploitation July 28, 2016 The next 5 years for the CIO The Challenge is to be relevant at the C Level Table by bringing innovation and technology
- 11. © ABB Slide 11 Enterprise Asset Management – Shifting from Investment to Exploitation July 28, 2016 Some Possible Themes
- 12. © ABB Slide 12 Enterprise Asset Management – Shifting from Investment to Exploitation July 28, 2016 Is this the new Golden Age for EAM Systems?
- 13. © ABB Slide 13 Enterprise Asset Management – Shifting from Investment to Exploitation July 28, 2016 Questions? @COSOL_int COSOL www.cosol.com.au enquiries@cosol.com.au +617 3129 3341