Comparison between ERP-EAM and CMMS


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A comparative presentation between an Enterprise Asset Management Module of ERP and a Computerized Maintenance Management System

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Comparison between ERP-EAM and CMMS

  1. 1. Comparison between Enterprise Resources Planning Oracle E-Business SuiteEnterprise Asset Management &Computerized Maintenance Management System January 25rd, 2012 Prepared by Ghassan Chahine PhD Candidate MBA, EMBA, ITIL MIS MANAGER
  2. 2. Discussion Topics1. CMMS Overview2. Oracle EBS Overview3. Oracle EAM overview4. CMMS v/s EAM5. Integration or interfacing6. Applicable Scenarios (Comparison)7. CMMS or EAM?
  3. 3. 1. CMMS Overview
  4. 4. 2. Oracle EBS OverviewOracle Human ResourcesOracle Self-Service Human ResourcesOracle PayrollOracle FinancialsOracle PurchasingOracle Enterprise Asset ManagementOracle Self-Service Work Requests for Oracle Enterprise Asset ManagementOracle Inventory ManagementOracle Order Management
  5. 5. 3. Oracle EAM overview• Functions: – Asset Management – Work Management – Inventory Management – Asset Performance & Forecasting – Maintenance Budgeting – Work Order Billing – Direct Item Procurement for Work Orders – Preventive & Predictive Maintenance – Maintenance Intelligence – Cost Management – Contractor Services – …
  6. 6. 4. CMMS v/s EAM• Operational Challenges:
  7. 7. 4. CMMS v/s EAM -cont-• Strategic Advantages:
  8. 8. 5. Integration or interfacing• Interfacing
  9. 9. 5. Integration or interfacing –cont- ISSUES: • Where is the official inventory maintained? • How do you keep the inventories in sync? • What flares will go off when they go out of sync? • How do you put them back in sync? • ….
  10. 10. 5. Integration or interfacing –cont-
  11. 11. Applicable Scenarios (Comparison) Scenario Major PROs Major CONs1- To keep CMMS system as is, and not No EAM cost of licenses and O&M keeps on CMMS as isimplement EAM (or implement it implementation. O&M will sustain living at an isolated island (no systematic or automated work with otherelsewhere) departments Lack of information consistency and reporting capabilities even for O&M ACS team keeps the sole players and information owners on O&M2- To Interface data (exchange/sync) No additional cost Reverse process engineering is requiredbetween CMMS and ERP (Orders, Fin, (Provided free of charge by the (hierarchical approvals, Service level management, …)HR, Purchasing, Inventory…) implementer) Data will have no reliable history (asset lifecycle) Risks of data issues, failures, changes … from the CMMS side (service management with gaps) Limited advantages to other enterprise functions (HR, PLW, FIN, …) Undefined custom interfacing will be required such as Assets & Depreciations, Contracts, Orders, Resources, Purchasing (long dynamic list and persistent changes)
  12. 12. Applicable Scenarios (Comparison) Scenario Major PROs Major CONs3- To Integrate CMMS system • Best effort is reach toward some functional, analysis • High cost of implementationwith ERP and reporting requirements • Sponsor rejection of ERP custom development. • Capability to merge data from different sources into • Implementation will be due with custom one database repository. development (not recommended, risky, time & effort consuming) • Forgone functions and features: Asset lifecycle, asset tracking, maintenance analyses, financial analysis, Operations mgmt, Change mgmt, strategic planning and analysis.4- To Fully diversify toward • Enforces consistent, full and timely data entry • Additional cost of EAM license andEAM and drop CMMS • Relate all enterprise functions into one entity implementation to be added to EAMconsequent to successful • Waive manual work, redundant entries and • Risk of cooperation from the O&M ACS Staff.implementation additional resourcing • Provide full capabilities to produce different decision-making analyses. • No additional time consuming: Parallel implementation along other ERP modules • Enables Masaar team to manage, control and lead on the full O&M, Procurement and inventory, all in one repository. • Involves Masaar O&M team in full knowledge lifecycle
  13. 13. CMMS or EAM?• Enterprise benefit• Financial concern• Operational outlook• Functional perspective – Purchasing & procurement – Inventory Management – Inventory, Parts and Asset Tracking – Financial and accounting mgmt. & control – HR management capabilities – Enhanced statistics & reporting – Computer aided design implementation – Customization capabilities forms, queries, reports. – More conclusive analysis – Maintenance, Repair and Overhaul (MRO) alternatives – Training provisioning and knowledge transfer. – Waive of single point of failure – Sustainable Support availability – Scalability in vertical & Horizontal growth