2ec258c1a9bcd652d23397fbe28eeb94.ppt
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The Smart Software Symposium: Asset Management Joe Baah Maximo Sales Leader
Market dynamics • Our clients, across all industries, are looking for ways to – Cut costs – Preserve Capital – Create & Support new business models • Asset & Service management are proven to drive hard dollar ROA and ROI • IBM’s solutions enable you to manage the service management helps to; Streamline operations…. . reduce labor & inventory costs, Asset infrastructure that can help improve competitiveness Improve productivity…. . reliability, quality - OEE Prepare for regulatory changes; standardize & enforce processes, consolidate systems Extending useful asset life and deferring non-essential maintenance
The Challenge - Customer pain points Risk, Compliance Management • Regulatory compliance • Operational control Operational Excellence • Productivity & Energy Efficiency • Reliability Business Agility ROI, ROA & Value for Customers • Process Standardization • Ability to Adapt – New Business Models Business Alignment • Investment Accuracy • Resource Allocation Rational System Consolidation • Modern, Standards based Technologies • Cost of ownership and Complexity • Increasing the reliability and availability of assets, and the services the assets collectively support – Example; reduce lost revenue due to Equipment failures • Improving performance of assets to impact the top and bottom lines – Example; timely vehicle maintenance to reduce costly fuel consumption • Capturing actual costs for labor, materials, tools & services – Example; improve bottom line by reducing unnecessary repairs • Managing 3 rd party service providers interacting with business operations – Example; measuring provider performance against SLA’s – • Reducing the cost and complexity of the IT environment support the business – Example; eliminating duplicative systems while standardizing on modern technologies • Standardizing & enforcing business processes – Example; support regulatory requirements to document and test business processes while improving efficiency and consistency of worker activities
IBM Asset Management Leadership: Analyst View September, 2008 Gartner Magic Quadrant’s for Enterprise Asset Management Power Generation Manufacturing Transmission & Distribution “Under IBM ownership, MRO software has moved to extremely high viability. Global sales and implementation resources makes the solution widely available. Combined with Tivoli software, IBM Maximo Asset Management offers the opportunity of being able to manage IT-enabled assets with the same solution used to manage traditional EAM assets. High EAM investment and the leverage of IBM's research capabilities is bringing advanced maintenance functionality to market in the near future. It supports integration with a wide variety of ERP suites. It has native integration with ESRI’s GIS. It has versatility across multiple platforms. " Gartner, “Magic Quadrant for Enterprise Asset Management for Transmission & Distribution” | IBM Internal Use Slide: 6
It’s not just about the asset … it’s about what the asset does…. . and services delivered to the customer.
Performance Services Applied ABB APM “Power by the Hour” • Industry is evolving to address complex, highly specialized asset management • Automation Performance Services takes a growing trend applies it to the highly specialized area of industrial automation • Delivers automation excellence that drives business performance while optimizing risk • Pay for Asset Performance and Usage “MRI By the Image” Proven business models re-defined industry definition of “performance”.
Asset Management – The Connection to Shareholder Value Asset management directly contributes to INCREASE REVENUES DECREASE COST Product quality and reliability Process and equipment availability and productivity Price Revenue Quantity Profit generated Cost control/reduction Costs Equipment/fleet size Fixed Spares/Stockpiles Return on Assets Capital employed Working
Value propositions - Hard Dollar ROI with Asset Management • Over 82% of projects $50, 000 and higher require a business value analysis (source: Alinean, 2006). In their procurement process, most customers are required to develop an business case for major IT investments • Final purchasing decisions are sliding back to the CFO… We need to solidify a buying decision by strengthen client’s business case • Asset Management models now part of IBM Business Value Assessment approach – Link to W 3 site… Business Scenarios ROI Points Customer Example: Transportation Industry Labor Utilization Up 10 -20% • A major railroad saved Euro 5 M by better tracking labor to specific work Asset Utilization Up 3 -5% • A large OEM reduced overhaul process time from 56 days to 21 days Equipment purchases Down 3 -5% • A fleet management company saved Euro 9. 5 M by meeting 100% availability with less Warranty recoveries Up 10 -50% • A consumer products company with a medium size fleet increased warranty recovery 50% Inventory needs Down 20 -30% • A large passenger railroad was able to identify Euro 18 M in excess or obsolete inventory Inventory carrying costs Down 5 -20% • A railroad reduced saved US $1. 8 M impacting financing, insurance, handling, overhead, etc. Material Costs Reduced 10 -50% • A rail maintenance service company reduced costs 20% by optimizing material purchases Purchasing labor Reduced 10 -50% • A fleet management company reduced purchasing staff by 20%
Something Meaningful is Happening. “Every human being, company, organization, city, nation, natural system and man-made system is becoming interconnected, instrumented and intelligent. This is leading to new savings and efficiency—but perhaps as important, new possibilities for progress. ” And Maximo is a big part of it!
Ultimately every asset will be “smart” GLOBAL SALES OF WIRELESS MODULES FOR DEVICES, SENSORS AND MACHINES WILL GROW RAPIDLY FROM APPROX. 33 MILLION UNITS THIS YEAR TO ABOUT 400 MILLION IN 2011. SOURCE: HARBOR RESEARCH THE NUMBER OF MACHINES CONNECTED TO CELLULAR NETWORKS IN NORTH AMERICA WILL REACH 66 MILLION BY 2011. AT THE END OF 2006, THERE WERE ABOUT 9 MILLION ACTIVE CELLULAR AND SATELLITE M 2 M CONNECTIONS IN THE U. S. & CANADA. SOURCE: BERG INSIGHT GLOBAL M 2 M MARKET WILL REACH $250 BILLION IN 2010. SOURCE: THE FOCALPOINT GROUP
The Changing Landscape: Embedded IT Components Fieldbus and IEC 61850 (UCA) technologies for instrumentation and control need self discovery and software configurability tools. The typical plant has thousands of devices with some degree of embedded intelligence used for real time performance monitoring. Virtually every mobile asset today has data collection capability. Whether continuously fed to the EAM application or via batch upload — performance data is being used for predictive maintenance. From vibration sensors to bearings with Bluetooth to microprocessor based engine controls — even mobile equipment is now IT dependant.
What’s smart about infrastructure? Centerpoint Energy uses Smart Meters to reduce power consumption through demand response. A bridge has built in sensors to monitor stress and indicate potential failure. Locomotives built by Bombardier have on board computer systems using telematics for real time diagnostics. A datacenter reduces energy consumption and optimizes service delivery by collecting power, thermal and temperature inputs from IT equipment, datacenter infrastructure and facilities. Smart buildings use building automation systems to optimize comfort, safety and energy consumption.
What is the role of asset management in a smarter planet? A smarter planet is built on intelligent, instrumented, and well-managed business and IT assets that enable rather than constrain innovation, transformation, and differentiation. • Manage business and IT assets together as services • Transform these assets into business value • Prevent asset-related health, safety, and business risk • Harness and manage emerging “smart assets”
The Service Management from IBM Delivering quality service and enabling business innovation The knowledge and capability to deliver a specified business outcome when it needs to occur, within the time and cost parameters you promised it would. 17
Swiss Rail Outage – June 22 nd 2005 • The good news – Nobody was hurt – 2 passengers fell in love and got married Swiss Federal Railways • The bad news – 199, 998 other passengers affected – 5, 000 U$ of direct costs occurred • The ugly news – There would have been enough time, to handle the situation correctly but…. . there were 18, 000 system alarms within 60 minutes • . . . and the tools to handle them correctly were A power system at a single regional node created a local problem that avalanched into a missing! system-wide breakdown • The volume of alarms over-whelmed control systems in place at the time, making it impossible to quickly isolate and correct the original problem 18
Application Consolidation Manage all assets in one IBM system for greater efficiency and return on investment Unified IBM solution to manage all critical assets across the enterprise Convergence through Consolidation ü ERP like consolidation of applications for asset management. ü Fosters effective management of IT-enabled assets. IT IT Transportation Facilities Production Business process similarities between EAM and IT Service Management (ITIL) ü Improves communication lines, streamlines workflow and optimizes labor across asset classes. ü Reduces management and maintenance cost of multiple, disconnected systems. ü Increases IT and operational efficiency.
IBM Maximo Asset Management • Addresses business challenges of Operations and IT • Provides Service Management capabilities for – Asset Owners – Asset Managers – Service Providers • Consolidates point solutions for Asset and Service Management • Consolidates point solutions for various asset classes • Next generation J 2 EE Technology Platform
Maximo Asset Management manage all assets, their conditions and work processes Industry Solutions Asset Management Work Management Materials Management Locations Asset Failure Codes Condition Monitoring Meters Meter Groups Job Plans & Routes Service Requests Service Items Work Order Tracking Safety Quick Reporting Labor Qualifications Lock Out/Tag Out Tools/Crafts/Companies Preventive Maintenance Master PM Assignment Manager Item Master Storerooms Inventory Lot Management Kitting Issues & Transfers Condition Codes Stocked Tools Service Items (optional) Purchasing Request for Quotation Receiving Inspections Purchase Requisitions Invoices Purchase Orders Desktop Requisitions Contract Management Service Management Purchase Contracts Master Contracts Warranty Contracts Lease/Rental Contracts Labor Rate Contracts Payment Schedules Service Catalogs SLA Management Incidents Problems Changes Releases Solutions Configuration – UI, Database Fields, and Applications Enhanced Workflow – Event Driven, Context-based / Escalation Manager Maximo Enterprise Adapter KPIs / Reporting / Analysis Security & Administration Service Provider (optional) Customer Agreements Customer Management Customer Billing Bill Review Sales Order Response Plans Service Address Price Schedule
Architecture Matters • Built from the ground up in a true Web Architecture – Evolution of technology since 1997; stable on platform 2015+ – Non-proprietary standards based technology framework – Modern next generation architecture today; ‘Harrier’ point release • All applications built in a J 2 EE, n-tiered component architecture – Java 2 Enterprise Edition – Standard for developing multi-tier enterprise applications – Natively supports global security models • Maximo one of the few major applications J 2 EE certified – SAP and Oracle will ditch proprietary architectures for J 2 EE – Major technology jumps for vendors not on full J 2 EE or. NET platform • J 2 EE and Web Services provide ideal model for integration – Truly delivers Services Oriented Architecture (SOA) concept – Integration built directly into Maximo business processes – Compliant with Web Services-Interoperability Organization (WS-I) • Database led deployment and configuration suite – Screens, business process and integration settings deployed on database – Upgrade paths delivered for data model, screens, Workflow and Integration
Ease of Configuration Database Configuration & Application Designer Built in Tools Easy and Quick to use by all end user Configure UI, dashboards, KPIs, reports, create new applications and more…
Visibility of Performance Metrics and SLAs Configurable role based Start Center portlets Real time KPI based dashboards Seamless integration of ITIL – based processes Configurable graphical representation
Integration • Maximo Enterprise Adapter – Integrate any Maximo object – Dynamic Web services – Pre-built integration points • Assets, Locations, Work Orders, Service Requests … – Pre-built integrations to • SAP and Oracle • Maximo Fusion – Integrate Asset Center with any IT asset discovery tools – Pre-built integrations to • SMS, Altiris, Radia, Tivoli…
ERP Support in Maximo
IBM Industry Frameworks Drive IT Alignment with Business Processes Industry Solutions Composite Business Services ISV Services Process Models Data Models Industry Frameworks Open, Industry Standards Business Optimization Business Integration IT Operations SOA Foundation • PDIF Product Development Integration Framework • MIF Manufacturing Integration Framework • IIF Integrated Information Framework
Differentiators. . ERP vrs EAM Maximo is the market-leading, best in class solution for Asset Management. • Most MAXIMO customers have implement ERP systems (SAP, Oracle) and integrated them • Our customers find EAM to be complimentary to ERP • Customers want to have unified view of all Assets & their impact on key business objectives • This visibility enables customers to drive a better Return On Asset (ROA & EBITA) Industry Solutions • Support regulatory requirements of each Industry • Provides data standards for each industry. . . ISO 14224 • Follow unique business processes and requirements of industry which avoid customisation of the system reducing Cost of Ownership (TCO) Maximo integrates with ERPs to combine information and optimize business processes across the enterprise. • “Productized” integration adapters for SAP and Oracle • Ability to substantially reduce the number of applications needed to support the business growth objectives
Vertical Industry Focus Energy & Utilities Industrial Public Sector Oil & Gas Life Sciences Transportation Telecom Services Financial
Working in Partnership with Clients Group Type Advisory Council Special Interest User Groups Developm ent Partners Maximo WORLD Charter/ Objective External Members Set Direction C-Level Exchange of Best Practice Develop Requireme nt Promote Brand Exchange Users Subject Matter Experts Users C-Level Run by Maximo Industry Mktg Customer s Users Maximo Products & Tech MRO Marketin g Internal IBM Executive Committee Industry Mktg Sales Services P&T Services Industry Mktg All IBMers
Maximo Industry Solutions • Life Sciences Pharmaceuticals • Utilities • Nuclear Power Generation • Oil & Gas • Transportation / Fleet • Government • ITSM • FM
Key Transportation Assets Railway Infrastructure Rail Rolling Stock Technology Stations & Facilities Support Fleet Maximo is the only solution that can manage all of these assets!
Key Rail Industry Wins in 2008/2009 • Will manage all rolling stock for French National Railway • Key to win: Ability to manage complex asset configurations • Will manage all rolling stock for Dutch service provider • Key to win: Ability to manage complex assets, integration to ERP • Will manage Rail infrastructure in Russia • Key to win: Ability to manage complex asset configurations and integrate to the SAP ERP • Will manage rolling stock for Australian service provider • Key to win: Deep industry capabilities, manage complex assets • Upgrading to internet architecture to manage all rolling stock sites • Key to win: Deep industry capabilities, ability to integrate to ERP • Will manage support fleet assets for UK rail service company • Key to win: Deep industry capabilities, and multiple asset support
Overview The New approach provides: • Vehicle location track & trace • Insurance and liability cost controls • Intersection of telematics logistics & Supply Chain Management • Regulatory compliance • Vehicle operations reliability – Integration to Maximo for Transportation
Product Expansion Model – Transportation Maximo for Transportation 6. 3 modules Alerts Maintenance Alerts PM Alerts Warranty Alerts Customer Configuration Industry Solutions Asset Information Asset Alias Asset History Equipment Groups Equipment Status Licensing & Insurance Serial # Changes Specifications & Vehicle Data Campaigns Campaign Setup Progress Status Fuel Management Fuel Record Fuel Tank Monitoring Fuel Transaction Import Industry Codes Line Codes Support of VMRS/AAR/ATA Dispatching & Scheduling Motor Pool Inventory Position Codes Count Books Labor Assignment Manager Labor Certification Meters Maximo Meter Adjustments Meter Change Out Meter Import Meter History Primary Meter Unlimited Meters Reporting & Analysis Drivers Log Industry Reports & KPIs Life Cycle Costing Log Segments & Problems Warranty OEM Warranties Part Warranties Warranty Tracking & Recovery Work Management Mechanic Work Order Recent & Repeat Repairs Repair Orders
Linear Use Case – Railway & Roads • Value Proposition – Railway maintenance is 20 -30% of operating costs of a railroad – 5 -15% annual revenue lost due to track occupancy for maintenance – DOTs: $92 B / year to maintain state highways – Municipalities: declining funding, aging infrastructure • Challenge – Need to manage as a continuous asset with dynamic segmentation – Mile or chain markers, track #, offset, switch, frog/crossing, signals… – Mile or Km markers, lane, direction, offset, bridges, tunnels, signs • Operations Process – DOT’s, Munic’s, Rail Inspectors walk track weekly, identify conditions – Crews make repairs or perform construction projects • Partners: – Bentley Systems – Optram – Mermec – Ramsys – Pavement - Envista
Energy & Utilities Value Chain Commercial Customer Extraction • Field development • Drilling operations • Crude oil & gas Production • Mining Coal & Uranium Generation • Fossil Generation • Hydro Generation • Nuclear Power • Wind Power Transmission Distribution Retail Customer • High Voltage • Work Management transmission • Operations Management • Substations • Mobile Inspection • 300 + utilities worldwide using MAXIMO Generation (160), transmission (38), distribution (21), Gas pipeline & distribution (23), water/wastewater (120) • 5 of 10 Global 500 Energy Companies • 7 of 10 Fortune 1000 Energy Companies • 17 of 30 Fortune 1000 Utilities Companies
The European Union is one example of a region developing a comprehensive plan to proactively address its requirements The Vision for the Smart. Grids of the future http: //www. smartgrids. eu/documents/vision. pdf has been developed in response for the need to: Provide a user-centric approach Provide innovation in the process of electricity networks renewal Maintain security of supply Provide accessibility to a liberalized market Ensure interoperability Enable distributed generation and utilization of renewable energy sources Best use of clean central generation Consider appropriately the impact of environmental limitations Enable demand side participation Inform the political and regulatory aspects Consider the societal aspects Strategic Deployment Document for Europe’s Electricity Networks of the Future
Trends in Distribution Operations Traditional Distribution Infrastructure Intelligent Utility Networks Characteristics • Customer energy management Meter Advanced Meter • More accurate billing • Improved power forecasting • Remote shut on/shut off • Improved outage restoration Standard Grid Network Automation and Analytics • New products and services • Improved safety for line workers • Automated information about equipment status • Responsive Service Emergency & Unplanned Planned • New Construction and planning • Inventory and Procurement integration • Decreased capital cost Source: IBM Institute for Business Value (IBV) analysis
Practical Benefits for Businesses Around the World In the first year, dramatically improved overall quality of service by reducing system failures 58 percent, IT interruptions 39 percent, and downtime 80 percent using Tivoli Monitoring, Event Management and Configuration and Change Solutions Enables delivery of enterprise level Implemented Tivoli Identity Management Solutions. Projected business continuity services for as little 50% reduction in the number of administrators assigned to as 3 USD a day. Reduces client recovery support identity management processes within 18 months. times from days to less than an hour. Expected annual cost reduction of $20 Million/year. Enterprise Asset Management and Service Request Manager based solution Increased revenue through accurate charge back information and helped enhance security efforts and streamline compliance reporting Tivoli solution providing Business Service Management on top of Tivoli Monitoring and Event Management enables Fast impact and root cause analysis to pinpoint customers and links that need immediate remedial attention Enterprise Asset Management Solution projected 25% increase in staff productivity Reduced operational costs. Increase First Call Resolution to 60% at Help desk for increased Customer Sat Reduced IT administration costs Monitoring and dynamic allocation of resources to meet service level objectives The US Food & Drug Administration FDA was drawn to IBM's CCMDB and CDT capability – to optimize IT processes, by leveraging a topological map of discovered infrastructure components to business applications. Saved the company US$250, 000 annually through streamlined business processes Gained a 33% increase in end user satisfaction, a key indicator of increased bid accuracy 42
Transportation Case Study – Tube Lines The Company Tube Lines • Responsible for Jubilee, Northern and Piccadilly lines at London Underground The Challenge • Required an up to date solution to proactively maintain 200 miles of track, 255 trains, 100 stations, 2, 395 bridges and structures, 71 lifts and 227 escalators The Solution • Maximo for Transportation • Maximo Mobile • Integration to Oracle Financials and HR The Benefits • Improved cost collection and accountability • Fast remote access and greater management of assets • System consolidation to a single asset solution
Smarter asset management Business Challenge Deploying a single asset management solution across the enterprise to streamline processes, drive proactive maintenance strategies, maximize performance and reduce passenger interruptions. Smart Business Benefits: • Reduced asset failure rates • Minimized passenger interruptions • Improved service level agreement compliance • Reduced emergency maintenance • Increased proactive maintenance • Improved information accuracy • Streamlined maintenance processes with mobile technology Company at glance: 30 year Public Private Partnership contract with London Underground to maintain 200 miles of track, 255 trains, 100 stations, 2, 395 bridges and structures, 71 lifts and 227 escalators. “Creating a single source of all asset information has provided unprecedented visibility of asset performance …” July, 2008
Transportation Case Study – Bombardier The Company Bombardier • Maintain 48 rail sites worldwide • 6. 000 locomotives & passenger cars The Challenge • Provide a packaged maintenance solution • Implement Inventory and Consignment Stock functions • Manage train configuration down to a detailed level The Solution • Maximo Asset and Work Management, • Maximo Inventory and Purchasing Management • Integration to SAP ERP The Benefits • Improved Warranty tracking • Failure reporting available to all Bombardier customers • Reduced inventory by 20% through optimization
Tivoli - How does it reduce costs, How much, How fast to implement, 1 customer example 46
Maximo Asset Management Comprehensive enterprise asset lifecycle management Maximo Asset Management provides comprehensive asset lifecycle management for all asset types enabling you to develop comprehensive programs for preventive, predictive, routine and unplanned maintenance. Supports asset, work, service, contract, materials and procurement management. Highlights ü Gain insight across all of your assets, their conditions and work processes ü ü ü around them for better planning and control. Manage all of your asset deployment, specifications, monitoring, calibration, costing and tracking from a single system. Comprehensive maintenance work management solution for planned and unplanned activities such as preventive, reactive and conditionbased maintenance. Plan inventory to meet maintenance demand precisely, making the right parts available at the right location when needed. Manage your vendor contracts with comprehensive contract management support for purchase, lease, rental, warranty, rate, master, blanket and user-defined contracts. Service Provider offering manages multiple customers in a single deployed instance, provides accurate billing and improves service delivery efficiency. “To enable a rapid, cost effective deployment, International Power required an asset and maintenance management product that could meet the business objectives of improved effectiveness and cost control and was supported in all the territories of the world” —Andrew Dickinson IT Director International Power
Case Study: Abu Dhabi Water and Electricity Authority (ADWEA) The Company The Challenge Desalination, transmission and distribution of water n Generation, transmission and distribution of electrical power n 250, 000 electric customers, 150, 000 water customers n 200 Gallons per Day desalination, 3000 MWs generated n Modernize the utility through privatization n Diverse Assets n Staff Reductions n Information Technology n MAXIMO core to new integrated solution for state of the art maintenance and material management system n Integrated with Oracle Financials n Standard for 8 business units with 1600 users n The Solution $30 M savings in materials management and inventory reductions n $2. 5 M savings from optimizing maintenance n Improved business process and workflow in functional area n The Benefits
2ec258c1a9bcd652d23397fbe28eeb94.ppt