© 2013 IBM Corporation
Asset Management Best Practices:
Leveraging PAS 55 as the worldwide standard for
asset management u...
2
Please note
IBM’s statements regarding its plans, directions, and intent are subject to change
or withdrawal without not...
© 2013 IBM Corporation
Agenda
 Introduction – Asset Management
 PAS 55 – What is it ?
 Scope and coverage
 PAS 55 and ...
© 2013 IBM Corporation
Reminder: What is Asset Management?
PAS 55 defines Asset Management as:
 systematic and coordinate...
© 2013 IBM Corporation
PAS 55 – What is it ?
• The Institute of Asset Management and the British
Standards Institute (BSI)...
© 2013 IBM Corporation
PAS 55 is relevant to all Asset Classes across Industry
Facilities, Buildings, Warehouses, Hospital...
© 2013 IBM Corporation
PAS 55 scope and coverage
Important interface:
motivation, communication,
roles & responsibilities,...
© 2013 IBM Corporation
PAS55:2008 Management System Structure:
measurable continual improvement is an integral part
BSI - ...
© 2013 IBM Corporation
Benefits of optimized life cycle asset management:
 evidence, in the form of controlled and system...
© 2013 IBM Corporation
Deployment of the PAS 55 standard encourages to:
 Achieve asset management
good practices
 Challe...
© 2013 IBM Corporation
PAS 55 What does it require for compliance ?
 An Asset Management System that meets a framework of...
© 2013 IBM Corporation
 Organize around true Life Cycle Asset Management processes,
commitment and expenditure trends
 C...
© 2013 IBM Corporation
Maximo Asset Management leverages PAS 55
 Enables a natural alignment with PAS 55.. Using IBM Maxi...
© 2013 IBM Corporation
PAS 55:2008 Positioning with Maximo Asset Management
PAS 55 4.1 : General Requirements
IBM’s Maximo...
© 2013 IBM Corporation
Maximo Helps Manage to Policy
PAS 55 4.2 : Asset Management Policy
 Through the ability to configu...
© 2013 IBM Corporation
Maximo Enables Strategy, Objectives and Plans
PAS 55 4.3 : Asset management Strategy, Objectives an...
© 2013 IBM Corporation
Maximo Provides a Platform
PAS 55 4.4 : Asset Management Enablers and Controls
 Maximo Asset Manag...
© 2013 IBM Corporation
Maximo Drives Compliance
PAS 55 4.5 : Implementation of Asset Management Plan(s)
 The organization...
© 2013 IBM Corporation
Maximo Enables Full Lifecycle Management
PAS 55 4.6 : Performance Assessment and Improvement
 Maxi...
© 2013 IBM Corporation
Basic Components of Maximo
 Addresses business challenges of, Operations,
Facilities and IT
 Cons...
© 2013 IBM Corporation
Value drivers for improved asset management
Reduced Equipment
Investment
Reduced Facilities
Investm...
© 2013 IBM Corporation
Achieving benefits requires a structured, repeatable
process
Identify Benefit Opportunities
Establi...
© 2013 IBM Corporation
What are the future challenges facing Asset Managers?
Post M & A
synergies
Outsourcing /
new busine...
© 2013 IBM Corporation
Asset Management and PAS 55 in the Future
 Companies recognize Asset Management as a Value Added F...
© 2013 IBM Corporation
Questions?
Mary T Bunzel
Worldwide Industry Leader
Manufacturing
Phone: +1 414 526 2015
Email: mtbu...
© 2009 IBM Corporation
26 © 2013 IBM Corporation
27
Acknowledgements and Disclaimers:
© Copyright IBM Corporation 2012. All rights reserved.
– U.S. Government Users Restri...
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Pulse2014 1068

  1. 1. © 2013 IBM Corporation Asset Management Best Practices: Leveraging PAS 55 as the worldwide standard for asset management using IBM’s Maximo Asset Management
  2. 2. 2 Please note IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion. Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision. The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion. Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user’s job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.
  3. 3. © 2013 IBM Corporation Agenda  Introduction – Asset Management  PAS 55 – What is it ?  Scope and coverage  PAS 55 and IBM Maximo Asset Management  Value Drivers  Summary
  4. 4. © 2013 IBM Corporation Reminder: What is Asset Management? PAS 55 defines Asset Management as:  systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan The organizational strategic plan is defined as:  overall long-term plan for an organization that is derived from, and embodies, its vision, mission, values, business policies, stakeholder requirements, objectives and the management of its risks Extracted from Publicly Available Specification (PAS) PAS 55-1:2008, BSI September 2008
  5. 5. © 2013 IBM Corporation PAS 55 – What is it ? • The Institute of Asset Management and the British Standards Institute (BSI) worked together to develop strategies to help reduce risks to business-critical assets. This project resulted in the Publicly Available Specification (PAS) 55, first published in 2004. •. This specification (standard) is the culmination of the latest thinking in terms of best practices in asset management systems. • Assets include plant, machinery, property, buildings, vehicles, construction, etc. that have a distinct and quantifiable business function or service
  6. 6. © 2013 IBM Corporation PAS 55 is relevant to all Asset Classes across Industry Facilities, Buildings, Warehouses, Hospitals Oil, Gas, Chemicals, Pharmaceuticals, Food, Electronics, Power Generation, Manufacturing Defense, Airlines, Rail, Road, Automotive Railways, Electric / Gas Distribution, Highways, Telecom, Water Computers, Routers, Networks, Software, Auto Discovery, Service desk Plant & Production Real Estate & Facilities Transportation and Fleet Infrastructure and Network IT Equipment Manage Assets Manage Asset Systems Manage asset portfolio Create/ acquire Utilize Maintain Renew/ dispose Capital Investments Optimization and sustainability planning Sustained performance Cost & Risk optimization Optimize life cycle activities Organizational Strategic Goals PAS 55 Asset Management System Organization Management
  7. 7. © 2013 IBM Corporation PAS 55 scope and coverage Important interface: motivation, communication, roles & responsibilities, knowledge, experience, leadership, teamwork Important interface: reputation, image, morale, constraints, social impact Important interface: life cycle costs, capital investment criteria, operating costs Important interface: data on condition, performance, activities, costs & opportunities Vital context: Stakeholder needs, business objectives, policies, regulatory environment, performance goals, risk management Physical Assets Financial Assets Human Assets Information Assets Intangible Assets
  8. 8. © 2013 IBM Corporation PAS55:2008 Management System Structure: measurable continual improvement is an integral part BSI - 2008 4.5 Implementation of Asset management plans 4.5.1 Life cycle activities 4.5.2 Tools, facilities and equipment 4.3 Asset management strategy, objectives and plans 4.3.1 AM management strategy 4.3.2 AM objectives 4.3.3 AM plans 4.3.4 Contingency planning Act DoCheck 4.1 General requirements PAS 55:2008 management system structure 4.6 Performance assessment and improvement 4.6.1 Performance and condition monitoring 4.6.2 Investigation of asset-related Failures, incidents and non-conformities 4.6.3 Evaluation of compliance 4.6.4 Audit 4.6.5 Improvement actions 4.6.6 Records 4.7 Management review 4.2 Asset management policy Plan 4.4. Asset management enablers and controls 4.4.1 Structure, authority and responsibilities 4.4.2 Outsourcing of AM activities 4.4.3 Training, awareness and competence 4.4.4 Communication, participation, and consultation 4.4.5 AM system documentation 4.4.6 Information management 4.4.7 Risk Management 4.4.8 Legal and other requirements 4.4.9 Management of change
  9. 9. © 2013 IBM Corporation Benefits of optimized life cycle asset management:  evidence, in the form of controlled and systematic processes, to demonstrate legal, regulatory and statutory compliance;  improved health, safety and environmental performance;  improved risk management and corporate governance and a clear audit trail for the appropriateness of decisions taken and their associated risks;  improved corporate reputation - enhanced shareholder value, improved marketability of product/service, greater staff satisfaction and more efficient and effective procurement from the supply chain;  enhanced customer satisfaction from improved performance and control of product or service delivery to the required standards;  long-term planning, confidence and performance sustainability;  the ability to demonstrate best value-for-money within a constrained funding regime;  optimized return on investment and/or growth; Holistic Systematic Optimal Sustainable Integral Risk-Based Organizational Commitment & Culture The dimensions of successful Asset management based on PAS 55
  10. 10. © 2013 IBM Corporation Deployment of the PAS 55 standard encourages to:  Achieve asset management good practices  Challenge and reduce current time-based work and replace with a “risk-based” management approach  Organize around true lifecycle asset management processes  Start processes to map the entire asset base and create the information strategy in accordance with the company’s overall strategy  Position asset management- specific accountability from the “shop floor to the top floor” and create motivational performance management  Focus on building the asset management knowledge base.  Understand and target the tools, and engage the entire organization  Adopt a truly holistic approach by continuously challenging good or best practices.
  11. 11. © 2013 IBM Corporation PAS 55 What does it require for compliance ?  An Asset Management System that meets a framework of requirements to display Asset Management competence.  Requirements are for ‘good’, rather than ‘best’ practice in each area plus evidence of processes and KPI’s for Continuous Improvement.  Specifies WHAT needs to be done, not “how”  All elements of the framework need to be covered. Excellence in one area doesn’t make up for a gap elsewhere. (this is an integration requirement)  Appropriateness, coverage & connectivity of the Asset Management system is what matters. Processes must be effective.  Requires evidence of what is being done and why. How is up to the organization. (Non Prescriptive - like ISO 9000/14000/18000)  PAS 55 is independent of industry sector, asset type, asset distribution & asset ownership structure.
  12. 12. © 2013 IBM Corporation  Organize around true Life Cycle Asset Management processes, commitment and expenditure trends  Challenge and reduce time-based work - Replace with a Condition, Value and Risk- based approach  Place AM specific accountability from shop floor to top floor and create “motivational performance management indicators” aside KPI’s  Adopt a truly Holistic Approach - continuously challenge practices and continuously improve  Get understanding where you are now relative to World Class performance  Map the Asset Base and create the Information Strategy you need  Build the Asset Management knowledge base – understand and target the tools and engage the whole organisation (holistic approach) PAS 55: What are the main messages? …and why adopt anyway?
  13. 13. © 2013 IBM Corporation Maximo Asset Management leverages PAS 55  Enables a natural alignment with PAS 55.. Using IBM Maximo Asset Management software supporting PAS 55 can help to: – improve customer service, increase return on assets, enable greater compliance, improve asset performance, reduce risk—all in a shorter time period, provide better visibility and control of all required information to better align with the organization’s overall business goals and objectives.  Supports full Maintenance Management requirements. This is optimized at process level. Examples are reactive, preventive and planned maintenance combining materials and service management.  Supports Asset Risk Management. This is optimized at asset performance level. Examples are asset reliability, service and performance management. Maximo Key Performance Indicators (KPIs) and metrics as Mean Time To Repair (MTTR), Mean Time Between Failure (MTBF) addresses such requirements.  Supports Infrastructure Management - This is optimized at service performance level. Examples are utilities and facilities management. Maximo's spatial and linear asset management, facilities and integrated workplace management capabilities (based on integration with Tririga’s IWMS).  Supports IT Asset Management - which is important managing today's complex assets and to integrate requirements from shop floor to the corporate office. MAXIMO ASSET MANAGE MENT
  14. 14. © 2013 IBM Corporation PAS 55:2008 Positioning with Maximo Asset Management PAS 55 4.1 : General Requirements IBM’s Maximo Asset Management software solution is widely viewed as the EAM market leader*) and provides the following capabilities: - A single version of the truth for all asset-related information - Support for all asset classes or asset types such as production assets, fleet or mobile assets, facility assets, as well as IT or IT-enabled assets - A place to define performance criteria and associated key performance indicator (KPI) measures - Identification of performance failure - Tracking and management of incidents, problems and change - Support for corrective and preventive action - Ability of the Maximo Asset Management workflow engine to model and monitor processes and procedures provides a communication mechanism for the user community and a secure data repository for all asset-related information. *) Source: Gartner Magic Quadrant 2011 MAXIMO ASSET MANAGE MENT
  15. 15. © 2013 IBM Corporation Maximo Helps Manage to Policy PAS 55 4.2 : Asset Management Policy  Through the ability to configure and re-configure key business processes as part of Maximo’s capabilities, users at all levels are able to achieve alignment with the company’s overall objectives and objectives and behavior for asset management in general or more specifically for activities as capital investments, operations, maintenance and contracting.  Health, safety and environmental issues (HS&E) provide a good example. - For instance, the primary objective of HS&E) initiatives is to reduce overall risk, comply with governmental regulations and create a safe, yet efficient operating environment. Achieving this objective is as much about standardizing HS&E practices as integrating these practices with day-to-day operations management.  Maximo Asset Management provides a foundational enterprise platform that integrates all health, safety, and environment (including security) processes with work and asset management data and processes to provide a single view of your personnel, facilities, assets and operations.
  16. 16. © 2013 IBM Corporation Maximo Enables Strategy, Objectives and Plans PAS 55 4.3 : Asset management Strategy, Objectives and Plans  A key requirement of a solid EAM system as Maximo Asset Management is to be able to integrate efficiently with a range of other systems, to have at any time only “one version of the truth” in relation to asset information.  The capability to integrate with other external systems, through the IBM Maximo Enterprise Adapter or IBM WebSphere® software, and IBM service-oriented architecture (IBM SMART SOA®) components, provides a standards-based approach to systems integration.  Maximo’s Asset Management functionality, including its ability to configure key processes to specific requirements, while maintaining visibility and consistency throughout the system, provides good support to meet the overall requirements of the system and to document a long-term asset management strategy and related objectives and plans.
  17. 17. © 2013 IBM Corporation Maximo Provides a Platform PAS 55 4.4 : Asset Management Enablers and Controls  Maximo Asset Management provides full support to many of the functions noted in this section of the standard, including procedures and functionality for: - planning , scheduling and resource allocation, asset configuration, calibration and maintenance, spare parts maintenance, inspection and testing of systems and equipment, management of change with risk mitigation and availability of standard or user-defined key performance indicators (KPIs) combined with management dashboard capabilities based on roles.  Maximo Asset Management provides full capabilities to support all types of outsourcing requirements, including service desk, service request tracking, and service-level agreement management with contracting and billing.  Maximo Asset Management provides capabilities for organizational learning supported by solutions and lessons learned from applications to better manage labor skills and resource provisioning  Maximo’s risk assessment capabilities are designed as an iterative process that links all associated HS&E activities and organizational data. Maximo risk assessment capabilities provide a comprehensive solution for managing risk and improving safety, reliability and compliance.
  18. 18. © 2013 IBM Corporation Maximo Drives Compliance PAS 55 4.5 : Implementation of Asset Management Plan(s)  The organization should establish and maintain arrangements to ensure the effective control of activities required to fulfill the asset management policy, strategy, objectives and plans  IBM has developed an implementation methodology to ensure support of all objectives for a successful implementation of the asset management solution to matches with: - the overall objectives as outlined in the PAS 55 standard requirements - overall business goals and objectives of the organization.
  19. 19. © 2013 IBM Corporation Maximo Enables Full Lifecycle Management PAS 55 4.6 : Performance Assessment and Improvement  Maximo provide full support to track, monitor and manage asset condition and performance - Corrective Action Programs, CAPA - Identification of performance failure (as in ISO 14224 - Incidents and Change Management  Maximo supports concepts of “leading” indicators - where potential problems can be identified before occurrence and “lagging” indicators, - where analysis of past failures can indicate a decreasing performance trend  Maximo manages incident, problem, change management, to support - Identification of incidents - allocation of problems for investigations - management of changes to assets or procedures. MAXIMO ASSET MANAGE MENT
  20. 20. © 2013 IBM Corporation Basic Components of Maximo  Addresses business challenges of, Operations, Facilities and IT  Consolidates point solutions for Asset and Service Management into a logical suite of applications including: Work, Assets, Tools, Equipment, Facilities, Calibration, Linear, Spatial, Mobile and IT  Addresses business challenges of asset-intensive industries as in: – Manufacturing, Energy & Utilities, Oil & Gas – Infra-structure/Construction, Transportation  Provides asset and service management support for: – Asset owners/operators – 3rd Party Maintenance Service Providers – Facilities management  Includes enhanced Workflow – Event Driven – Context-based – Escalation Manager  Integrates with Financial Systems (e.g. SAP) as well as Business Intelligence (Cognos), Business Analytics (SPSS), Document Management Systems  Compliance with: ISO, ISA, ROHS, IEEE, OSHA, FDA, EMEA, etc  Standards Based - ITIL  KPI, Reporting and Analysis Tools  SOA technology framework compliant  Long history in the industry MAXIMO ASSET MANAGEMENT
  21. 21. © 2013 IBM Corporation Value drivers for improved asset management Reduced Equipment Investment Reduced Facilities Investment Reduced Facilities Investment Reduced Facilities Investment Reduced Facilities Investment Effective Service Delivery / Profits Generated Capital Efficiently Employed ROIC and Shareholder Value / Qualitative Benefits Operating Costs Reduce Material CostsReduce Material CostsReduce Material CostsReduce Material Costs Reduce Service CostsReduce Service CostsReduce Service CostsReduce Service Costs Increase Labour Productivity Increase Labour Productivity Increase Labour Productivity Increase Labour Productivity Increased Customer Satisfaction More CompetitiveMore CompetitiveMore CompetitiveImproved Safety/ lower risk Enhanced Regulatory & OEM Relationships Enhanced Regulatory & OEM Relationships Enhanced Regulatory & OEM Relationships Enhanced Regulatory & OEM Relationships Increased Account Penetration Increased Account Penetration Increased Account Penetration Increased asset availability /service reliability Fixed Capital Working Capital Increased Inventory & AR Turnover Increased Inventory & AR Turnover Increased Inventory & AR Turnover Increased Inventory & AR Turnover Revenue / Capability Value Drivers Increased asset availability and greater in-service reliability to provide a basis to improve service delivery/ grow more revenue from the same asset base More timely and precise interventions improves productivity and reduces material use and in turn overheads Increased asset lives and less downtime enables higher utilization and requires less investment in facilities/assets OBJECTIVE  Commercial - Maximize share holder value  Public Sector - Effective service delivery To realize these benefits it requires developing appropriate strategies and practical implementation approaches
  22. 22. © 2013 IBM Corporation Achieving benefits requires a structured, repeatable process Identify Benefit Opportunities Establish Business / Benefits Case Secure Benefits Ownership Develop and Track Benefits Measures Develop BR Action Plan Execute Benefits realization Action Plan Realize Results Identify Value  Review strategic priorities  Analyze performance  Evaluate opportunities  Develop value proposition Drive and Realize Value  Establish performance targets accountability  Drive value delivery actions  Manage performance delivery  Leverage successes IBM Industrial Products – Metals & Mining22
  23. 23. © 2013 IBM Corporation What are the future challenges facing Asset Managers? Post M & A synergies Outsourcing / new business models Poor reliability and utilization Overhead costs/ Credit crunch Globalization Environmental/ green agenda Capital constraints Ageing and under performing assets Security, safety, compliance pressures Ageing workforce Competitive environment Source: IBM Research 2009 Holistic Systematic Optimal Sustainable Integral Risk- Based Organizational Commitment & Culture
  24. 24. © 2013 IBM Corporation Asset Management and PAS 55 in the Future  Companies recognize Asset Management as a Value Added Factor, – 30 to 50% Cost Reductions – Doubling of Equipment Capability and OEE – Delivery of stable base to enable Lean Manufacturing Principles – Assured Environmental, Regulatory and Legal Compliance – Improved Image and relationships with Customers, Insurers, Regulators and other Stakeholders  PAS 55 – Companies will realize the benefits of the PAS 55 life-cycle approach – Drivers coming from Complexity, Regulatory, Financial, Insurance, Image – Increasing interest from Regulators: E&U, Water, Pharma, Food, Nuclear, Transportation, etc – Sector-specific aplication guideline projects (e.g. for property involving RIBA, BIFM, OGC + Industrial sponsors PAS 55 is a useful element of an Integrated Asset Management Strategy to help meet these challenges
  25. 25. © 2013 IBM Corporation Questions? Mary T Bunzel Worldwide Industry Leader Manufacturing Phone: +1 414 526 2015 Email: mtbunzel@us.ibm.com Thank you!
  26. 26. © 2009 IBM Corporation 26 © 2013 IBM Corporation
  27. 27. 27 Acknowledgements and Disclaimers: © Copyright IBM Corporation 2012. All rights reserved. – U.S. Government Users Restricted Rights - Use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM Corp. IBM, the IBM logo, and ibm.com and are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml Other company, product, or service names may be trademarks or service marks of others. Availability. References in this presentation to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. The workshops, sessions and materials have been prepared by IBM or the session speakers and reflect their own views. They are provided for informational purposes only, and are neither intended to, nor shall have the effect of being, legal or other guidance or advice to any participant. While efforts were made to verify the completeness and accuracy of the information contained in this presentation, it is provided AS-IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this presentation or any other materials. Nothing contained in this presentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. All customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer. Nothing contained in these materials is intended to, nor shall have the effect of, stating or implying that any activities undertaken by you will result in any specific sales, revenue growth or other results.

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