Customer Solution Case Study                                        Chemical Company Avoids $4.3 Million in               ...
Situation                                    install it? How do I operate it? Poor assetEastman Chemical Company makes    ...
―Many of the capabilities                 maintenance delays, equipment                 We no longer had the luxury of    ...
―When you create a                        Collaboration and Portal Architecture         Eastman also used the SharePoint S...
―Very conservatively, I                   easily collaborate on the SharePoint site,   ―Or they found multiple versions of...
―We estimate that we are                  developing our requirements, it took two    throughout the day. ―Very conservati...
For More Information                                  Microsoft SharePoint Server 2010For more information about Microsoft...
Upcoming SlideShare
Loading in …5

Eastman Chemical SharePoint 2010 Case Study - Asset Management Solution


Published on

Eastman Chemical SharePoint 2010 Case Study - Asset Management Solution

EPC Group, SharePoint Consulting, SharePoint consulting services, EPC, SharePoint Asset Management, SharePoint case study, SharePoint 2010 Case study, Errin O'Connor

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Eastman Chemical SharePoint 2010 Case Study - Asset Management Solution

  1. 1. Customer Solution Case Study Chemical Company Avoids $4.3 Million in Capital Costs with Better Asset ManagementOverview ―After developing our requirements, it took two peopleCountry or Region:United StatesIndustry:Manufacturing—Chemicals just four months to create AIM on SharePoint Server. This eliminated the $350,000 expense of buying aCustomer ProfileEastman Chemical Company makes commercial product and customizing it.‖chemicals, fibers, and plastics that Ed Montgomery, Project Manager, Information Technology Project Office,other companies turn into everyday Eastman Chemical Companyproducts. The Kingsport, Tennessee–based firm has more than 10,000 Eastman Chemical Company is a global chemical company withemployees worldwide. manufacturing plants around the world. In those plants are tensBusiness Situation of thousands of pieces of capital equipment, from pumps toThe software that Eastman used to power generators, all of which need to be carefully managed tomanage asset documents was difficultto use and left information gaps that maximize uptime and performance and minimize maintenancecould result in equipment downtime costs. Eastman recently replaced an older capital assetand higher maintenance costs. management software program with a custom system built inSolution just four months using Microsoft SharePoint Server 2010. ByIn just four months, using MicrosoftSharePoint Server 2010, two Eastman authoring the new system itself, Eastman avoided spendingdevelopers created a customized asset U.S.$350,000 on a commercial program. Plus, Eastman calculatesinformation management programthat is easier to use and provides that it is avoiding $4.3 million in annual capital expensesautomated efficiencies. through better asset management. Further, it will speed upBenefits capital project cycles significantly and reduce server costs by 60 Four-month time-to-market percent. Software avoidance of U.S.$350,000 Capital avoidance of $4.3 million Project cycle improvements Employee productivity gains Server costs reduced 60 percent
  2. 2. Situation install it? How do I operate it? Poor assetEastman Chemical Company makes management results in equipmentchemicals, fibers, and plastics that other downtime, operating delays, highercompanies use as key ingredients for maintenance costs, shorter equipmenteveryday products—including food life, and environmental and safetypackaging, automobile paint, clothing incidents.fabrics, beverages, cosmetics, and more.Eastman is headquartered in Kingsport, Problems with Older SystemTennessee, where about 7,500 of its For years, Eastman used a commercial10,000-plus employees work and most document management system tomanufacturing occurs. Eastman also has perform asset information management.16 other manufacturing plants (including This program was also used widely tojoint ventures) in nine countries and manage documents in other parts of themultiple sales offices worldwide. Eastman company. Eastman has hundreds ofis a Fortune 500 company with 2010 capital projects open at any one time,revenues of U.S.$5.8 billion. ranging from a week-long project to repair a piece of equipment to a five-The Need to Manage Assets Well year project to build a newLike all large corporations with vast manufacturing plant. Whenever a groupphysical plants, Eastman is interested in kicked off a capital project, it wouldmanaging its capital facilities and assets create a document management siteto maximum effect. In Kingsport alone, where all the documentation, schedules,Eastman owns 500 buildings filled with and other information for that projecttens of thousands of pieces of were stored and shared. By 2009,equipment. Eastman needs to keep tabs Eastman had approximately 2 millionon everything it owns, from laboratory documents in its capital-projects sites,microscopes to wastewater treatment which were used daily by about 4,000facilities, and through design, Eastman employees, ranging fromconstruction, operation, maintenance, engineering to maintenance staffs.renovation, and decommissioning—whether the work is done by Eastman or However, the software had limitedvendors. metadata capability, so it was difficult to enforce metadata on documents. ThereThe industry term for the process of were multiple versions of the samewisely caring for capital assets is asset document, so project sites wereinformation management. For a capital overflowing with out-of-date andasset to perform optimally and provide duplicate documents that frustrated andmaximum return on investment, prolonged document searches. It wascompanies need to have complete, difficult to implement complex workflowsaccurate, and immediately available asset and alertsin the program, so once theinformation. Employees dealing with engineering staff had a capital asset inthose assets need to be able to answer place, it could not easily notify thequestions such as: Who made this asset? maintenance team so that it couldHow old is it? What is its role? Do we prepare the maintenance schedule andhave spare parts on hand? What order spare parts. These softwaremaintenance work is pending? What inefficiencies resulted in assetparts are under warranty? How do I management inefficiencies—
  3. 3. ―Many of the capabilities maintenance delays, equipment We no longer had the luxury of downtime, and even manufacturing maintaining multiple documentthat we would have to slowdowns. repository tools providing overlapping capability.‖ In January 2009, Eastmancreate from scratch in From a programming perspective, the embarked on a serious effort to shutOffice SharePoint Server program required specialized skills and down the older program. services that were difficult to find and2007 to replace our quite expensive. Creating workflows Even though Office SharePoint Server required customizing the software by was easier to use than the previousprevious asset using an obscure pseudo-object- program, Eastman faced a great deal ofmanagement application oriented programming language from customization work to replicate the asset the vendor. And for all its challenges with management functionality in thatwere present out-of-the- the software, Eastman was spending a program. However, good news came in huge amount on licensing fees. early 2010 when Eastman found outbox in SharePoint Server about Microsoft SharePoint Server 2010,2010.‖ Solution the successor to Office SharePoint Server While employees were struggling with 2007. ―Many of the capabilities that we Jim McGuire, Supervisor, Global this document management software, would have to create from scratch in Collaboration and Portal Architecture Eastman was busy rolling out Microsoft Office SharePoint Server 2007 to replace Group, Eastman Chemical Company Office SharePoint Server 2007 as its our previous asset management companywide intranet software and for application were present out-of-the-box team collaboration sites across the in SharePoint Server 2010,‖ says Jim company. Employees found Office McGuire, Supervisor in the Global SharePoint Server 2007 so easy to use Collaboration and Portal Architecture and so helpful in streamlining business Group at Eastman Chemical Company. processes that between 2007 and 2009 they created approximately 7,000 Development Efficiencies SharePoint sites used by nearly all 10,000 In August 2010, Eastman deployed employees. By 2010, Eastman had SharePoint Server 2010, and two approximately 10 terabytes of Eastman developers began the work of information on SharePoint sites. recreating the asset management application in SharePoint Server 2010. By With the gradual and grass-roots shift to December 2010, they were done—after Office SharePoint Server 2007, it became just two months of planning and two increasingly onerous for employees to months of development work. Eastman move between it and the document calls the new application AIM (short for management program. ―We had long asset information management). wanted to get rid of our document management system and standardize on ―We did far more than just move Office SharePoint Server as our documents from point A to point B and companywide content management replicate previous functionality in platform,‖ says Ed Montgomery, Project SharePoint Server; we used the features Manager in theInformation Technology in SharePoint Server to change our Project Office at Eastman Chemical business processes to help employees be Company. ―The effort intensified when much more efficient,‖ says Rebecca the national economic recession settled Dietrich, one of the two developers and a in, around 2008, and cash became scarce. Systems Analyst in the Global
  4. 4. ―When you create a Collaboration and Portal Architecture Eastman also used the SharePoint Server Group at Eastman Chemical Company. concept of document sets, a group ofSharePoint project in documents that support a single project In addition to the out-of-the-box and share the same metadata. The entireVisual Studio 2010, it features in SharePoint Server 2010, document set can be versioned as acreates the deployment Dietrich and her colleague used whole and downloaded as a compressed Microsoft SharePoint Designer 2010, an zip file with all the contents. People canpackage for you …. HTML editor and web design program also initiate a workflow on the entire set for creating and modifying SharePoint instead of individual workflows for eachDevelopers are free to sites, and the Microsoft Visual Studio document. ―We used document sets tofocus on being more 2010 development system. ―The create a new content type called a enhanced integration between transmittal, which we use to moveinnovative.‖ SharePoint Server 2010 and Visual Studio project documents from one stage to 2010 saved me a lot of work,‖ says Kevin another with automated efficiencies,‖ Kevin Tinn, Systems Analyst, Global Collaboration and Portal Architecture Tinn, the other developer and also a Dietrich says. Group, Eastman Chemical Company Systems Analyst in the Global Collaboration and Portal Architecture Streamlined Asset Lifecycle Group at Eastman Chemical Company. Management ―When you create a SharePoint project in As an example of how AIM has made Visual Studio 2010, it creates the asset management more efficient and deployment package for you, which accurate at Eastman, imagine the automates a good bit of the purchase of temperature and pressure development process. Developers are transmitters for an Eastman hydrolysis free to focus on being more innovative.‖ batch process. The process begins when an Eastman engineer develops a New Features Save Time, Improve specification sheet for the transmitter, Accuracy defining all the parameters that the Eastman made heavy use of content device must meet in a particular types in SharePoint Server 2010. With application, and assigns a unique content types, employees can specify the identification number. He or she also content fields, policies, workflows, and creates or modifies drawings to indicate other rules for a specific kind of content, where these devices will be installed. The such as a design document. Once engineer then creates or modifies defined, content types can be extended workflow diagramsand training materials. to other documents and reused across A SharePoint site in AIM is created SharePoint sites. ―Each capital project has programmatically for the capital project, its own SharePoint site, and every where all the documents related to that document in that site can be assigned asset will live. As documents, images, and common metadata,‖ Tinn says. drawings are uploaded to this site, ―Employees can also upload multiple metadata is assigned. documents in one step. These are efficiencies that save time and also When the specification sheet and related ensure metadata accuracy and documents are ready to send to outside consistency and easier document contractors for review and price quotes, search.‖ the engineer uses automated workflows in SharePoint Server to notify them. Eastman engineers and contractors can
  5. 5. ―Very conservatively, I easily collaborate on the SharePoint site, ―Or they found multiple versions of the making edits to a single copy of a same document. With SharePoint Serverestimate that 2,000 document and leaving version control to 2010, we sped up search with rich SharePoint Server. Automated workflows metadata for every document. If usersemployees and eliminate the constant flow of email know just about anything about acontractors working for messages and version-control confusion document, they can quickly find what experienced with the previous program. they need.‖Eastman are saving at Once Eastman has selected a vendor to Eastman is evaluating Microsoft FASTleast five minutes a build or provide the asset, construction Search Server 2010 for SharePoint forday.… Even small time or customization begins. All engineering more sophisticated and broader search documents generated during this phase results. ―Ultimately, we‘ll use FAST Searchsavings multiplied by are stored in the same SharePoint site, Server to deliver not only content but with metadata added automatically or also people and data,‖ says Tinn. ―Forthousands of employees manually to ensure easy document example, if someone enters the wordand contractors adds up search and retrieval later. ‗safety‘ we want them to see safety- related documents, our division safetyto big savings.‖ Once the capital asset is finished, coordinators, safety statistics, and so delivered to Eastman, and installed, the forth.‖ Ed Montgomery, Project Manager, Information Technology Project Office, maintenance staff responsible for the Eastman Chemical Company asset is automatically notified before the Eastman runs the AIM application on five asset goes into production so that they virtual machines—two web servers, one have time to order spare parts and create application server, one database server, a maintenance plan. At the same time, and one index server. the project‘s AIM site is automatically migrated to archival status, where all Benefits documents are available for reference for By migrating its asset management two years, at which time the site is application to SharePoint Server 2010, automatically deleted. With SharePoint Eastman Chemical Company was able to Server 2010, Eastman has built-in records avoid spending $350,000 on a management capabilities that it did not commercial replacement. More have before, with rights management importantly, Eastman is able to manage pushed to project managers, who are capital assets more efficiently, avoiding responsible for assigning and an estimated $4.3 million annually in terminating access rights to AIM sites. downtime and maintenance costs. The company also estimates speeding up Improved Search Capability capital project cyclessignificantly and Eastman uses the built-in enterprise expects employee productivity gains. search capability in SharePoint Server to return search results to employees who Four-Month Time-to-Market for need to find documents in AIM sites. Custom Program; Cost Avoidance of ―One of the big complaints about our $350,000 previous system was that people couldn‘t There is huge value to Eastman in find documents,‖ says Richard Lane, getting a major corporate application off Systems Analyst in the Global the older document management Collaboration and Portal Architecture program and on a more modern, Group at Eastman Chemical Company. feature-rich platform so quickly. ―After
  6. 6. ―We estimate that we are developing our requirements, it took two throughout the day. ―Very conservatively, people just four months to create AIM I estimate that 2,000 employees andseeing an annual cost on SharePoint Server,‖ Montgomery says. contractors working for Eastman are ―This eliminated the $350,000 expense of saving at least five minutes a day,‖avoidance of $4.3 million buying a commercial product and Montgomery says. ―In a company asby managing our asset customizing it. Plus, we realized the large as Eastman, even small time benefits sooner.‖ savings multiplied by thousands ofmore effectively, employees and contractors adds up to Capital Cost Avoidance of $4.3 Million big savings.‖eliminating downtime, Annuallyand reducing With AIM in place, Eastman is able to Eastman will also be able to comply with perform asset information management internal and external audits faster andmaintenance costs.‖ much more efficiently and accurately, more easily by using AIM. ―We‘re able to minimizing the chance that equipment identify documents needed for audits Ed Montgomery, Project Manager, Information Technology Project Office, and facilities will be unavailable, probably twice as fast as we could Eastman Chemical Company expensive to maintain, or even before,‖ Montgomery says. ―Audits occur dangerous for workers. ―Based on on a frequent basis because we‘re a external studies, we estimate that we are chemicals manufacturer, so this is an seeing an annual cost avoidance of $4.3 important efficiency gain in the area of million by managing our asset more regulatory compliance.‖ effectively, eliminating downtime, and reducing maintenance costs,‖ Server Costs Reduced 60 Percent Montgomery says. ―This is an enormous Yet another savings that Eastman has benefit to the company.‖ realized by using SharePoint Server 2010 is connected with the ability to virtualize Capital Project Cycles Reduction AIM. ―We were never able to virtualize The ability to locate and manage capital- the previous application due to resource projects documents more efficiently will throttling issues,‖ McGuire says. ―Because enable Eastman to complete these we were able to virtualize the SharePoint projects faster, which has trickle-down Server environment, the server operating acceleration across the business. cost for this application was reduced 60 ―We‘reestimating reducing our capital- percent, eliminating a recurring capital project execution cyclesignificantly, cost of roughly $60,000 every three which means that we get equipment in years.‖ place sooner so we can get new products to market faster,‖ Montgomery says. ―Getting products to market faster helps us be more competitive in very competitive marketplaces.‖ Employee Productivity Gains The efficiencies provided by AIM also generate big employee productivity gains for Eastman. By eliminating the older program, Eastman simplified processes and made workflows more efficient, which saves employees time
  7. 7. For More Information Microsoft SharePoint Server 2010For more information about Microsoft Microsoft SharePoint Server 2010 is theproducts and services, call the business collaboration platform for theMicrosoft Sales Information Center at Enterprise and the Internet.(800) 426-9400. In Canada, call theMicrosoft Canada Information Centre For more information about Microsoftat (877) 568-2495. Customers in the SharePoint Server 2010, go to:United States and Canada who are or hard-of-hearing can reachMicrosoft text telephone (TTY/TDD)services at (800) 892-5234. Outside the50 United States and Canada, pleasecontact your local Microsoft subsidiary.To access information using the WorldWide Web, go more information about EastmanChemical Company products andservices, call (800) EASTMAN or visitthe website Software and Services Microsoft Server Product Portfolio − Microsoft SharePoint Server 2010 − Microsoft SharePoint Designer 2010 Microsoft Visual Studio − Microsoft Visual Studio 2010This case study is for informational purposes only.MICROSOFT MAKES NO WARRANTIES, EXPRESS ORIMPLIED, IN THIS SUMMARY.Document published April 2011