1

Ten Pitfalls to Avoid WhenSelecting a CMMS/EAM

presented by:

David BergerWestern Management Consultants

2

About WMC and David Berger

David Berger• Professional Engineer and MBA• Written more than 350 articles on strategy, operations/IT

improvement, and organizational design • Extensive industry experience including 2 manufacturers,

and an Executive with one of North America’s largest financial institutions

• Worked as consultant with numerous clients from all industries in area of specialization – maintenance, asset management, CMMS/EAM

Western Management Consultants (WMC)• 30+ years in the general management consulting

business• Multiple offices across Canada

3

Introduction

• How can you get more out of your operating assets?

• CMMS/EAM software is key• Long history of poor research, selection, and

implementation of the right CMMS/EAM solution• 10 of the more common mistakes to avoid when

looking for a new or replacement CMMS/EAM• The mistakes are listed in no particular order• Recent survey by Plant Services magazine

4

User-Centered Design

Mistake #1 – You are far too focused on the software’s “look and feel”.

• “Intuitive User Interface” ranked #1 importance in PS survey• Significant progress by most vendors in this area in recent

years- Configure look and feel with screen painters- Tailor menus, tabs, screens, etc. to focus on priority work- Navigation tools like “favorites”, cookie trail, screen history- Data entry and reporting aids like comprehensive filters/sorts,

flexible form/report configurator• Most vendors have user groups, human factors expertise,

and modern development tools that ensure proper user interface

5

Vendor Partnership

Mistake #2 – You are purchasing software based on functional fit only.

• “Ease of implementation” ranked #2 in PS survey• EAM vendor = partner through implementation and

beyond• Key vendor support services include

- assessment of organizational readiness and gap analysis- process design expertise- knowledge of industry best practices- assistance in establishing key performance indicators (KPIs)- facilitation of data analysis and decision-making- longer term upgrades, additional modules, add-ons

• Examine financial health, track record and corporate culture

6

Real-time Knowledge Management

Mistake #3 – You think your CMMS/EAM is just a static data and reporting system.

• EAM = real-time monitoring & control system including:- notification feature (eg, escalate severe KPI variances)- alarming or alert management- sophisticated workflow engine- advanced planning functionality such as real-time

monitoring and trend analysis for conditions, energy consumption, emission levels, regulatory compliance, etc

• “Planning and scheduling” ranked #3 in importance in PS Survey

• “Notification and workflow” ranked as second-worst in terms of how well their current CMMS/EAM package performs

7

Decision Support

• “Maintenance optimization” & “Analysis tools” are ranked #4 & 5 in importance in PS Survey

• Analysis capability is the differentiator, not reporting

• Key decision support features to look for include:- configurable KPIs- dashboards and business intelligence- advanced analytics, maintenance optimization

tools- comprehensive risk-management / compliance

tools- advanced warranty-management functionality

• Look into notification and workflow functionality

Mistake #4 – You are hung up on the slicing and dicing of CMMS/EAM data.

8

Energy Efficiency & Environmental Control

Mistake #5 – You believe “green” functionality is today’s “flavor of the month”.

• U.S. companies invest > $100B per year in capital equipment & services; but spend > $400B per year on energy

• “What current trends do you think will have the most impact on operations in U.S. manufacturing plants?” – Energy prices #1

• Clear competitive advantage for companies that can monitor and control energy costs

• Key sustainability features to look for in a CMMS/EAM are- measure energy use at the asset level- compare carbon footprint of assets, products, product lines, etc.- incorporate maintenance practices and standards that ensure energy

efficiency of assets are optimal• “Health, Safety & Environment” ranked #6 in importance in PS

survey• “Comprehensive energy tracking” ranked #17 in importance,

and worst in terms of how well packages perform

9

Flexibility

Mistake #6 – You are focused solely on how the CMMS/EAM will satisfy your current needs.

• CMMS/EAM requirements should cover 3+ years out• Consider requirements of departments other than

maintenance, (operations, engineering, purchasing, finance, IT…)

• Specs should ensure flexibility to make changes to the software as stakeholder needs change

• Flexibility = configurability. Ranks #7 in importance. Includes:- quick and easy configuration to meet the specific needs of users- workflow engine to quickly redefine key maintenance process

logic- configurable KPIs for easily changing priority measures for

analysis and reporting

10

Enterprise Thinking

Mistake #7 – You tend to focus on how the CMMS/EAM benefits your location, instead of what benefits the organization overall.

• Select a CMMS/EAM package that can accommodate the needs of each plant, as well as the overall enterprise

• Strategic asset management functionality satisfies needs of- all levels in your company, from corporate to the shop-floor,- along the entire asset life cycle (i.e., design, procurement,

installation, maintenance, disposal), and- for any asset class (i.e., plant equipment, facilities, fleet,

infrastructure or linear assets, and IT)• “multi-site” and “strategic asset management” ranked #20

and #16 in importance in PS Survey – shows local plant bias

• Millions of dollars savings potential for multi-plant organizations

11

Best of Breed versus Single-Vendor Suite

Mistake #8 – You think implementing a single vendor ERP/EAM solution translates into the most “fully integrated” solution.

• Multiple best-of-breed solutions: too much software to support and integrate

• Select a single, best-fit, enterprise-wide, best-of-breed CMMS/EAM that integrates well with corporate ERP suite, i.e., strong open systems

• “Open systems” ranked #7 in importance & 3rd worst in current performance

• May want access to information & processes outside CMMS/EAM, eg, - aligning maintenance and production schedules- integrating labor data entry for both asset history and payroll purposes- integrating with applications specific to mobile devices- handling chargebacks for third-party billing- accounting properly for large capital projects involving maintenance

• Some best-of-breed CMMS/EAM packages are easier to integrate than suite solutions -- tend to be more open and flexible, and by necessity have always had to integrate with corporate and other systems

12

Total Cost of Ownership

Mistake #9 – You think it is always better to own and control your hardware, software and support services.

• “Payment cash flow flexibility” ranked last in PS survey • Consider payment & deployment options that are more cost-

effective, improve cash flow, lower total cost of ownership (TCO)• “SaaS” or “Software as a Service”: provides flexibility to pay

monthly per named user, incl. hosting, training, consulting and other start-up costs;

• Be wary of long-term risks if vendor outsources to third-party• Consider web-architected solution with lower TCO, i.e., cost of

- licenses,- implementation,- training,- upgrades,- ongoing maintenance and support and- hardware.

• “Web-architected solution” ranked #19 of 21 in PS Survey

13

Benefits Realization

Mistake #10 – You celebrate the day the CMMS/EAM system goes live.

• When would you consider the CMMS/EAM system successfully implemented – after a successful go-live?

• Success = benefits realized, not system installed• Success must be defined in terms of performance

measures and targets; the CMMS/EAM tracks progress• “Benefits realization” is ranked only #8 of 21 in PS

survey

In my view, the most important criterion in selecting a CMMS/EAM vendor and its software solution is ability to facilitate achievement of target benefits

• All other criteria must then align and support benefits realization

• Your CMMS/EAM vendor is an important partner in ensuring success over the long term

14

Q&A and Contact Information

David BergerWestern Management ConsultantsPhone: 416.362.6863 ext 237Email: david@wmc.on.ca

To get more information about Infor EAM solutions:To get more information about Infor EAM solutions:www.infor.com/eamwww.infor.com/eam1.800.397.6413 1.800.397.6413 infoEAM@infor.cominfoEAM@infor.com